110 STAT. 262 PUBLIC LAW 104-106—FEB. 10, 1996 10 USC 2241 note. Regulations. Termination date. (b) CLERICAL AMENDMENT.— The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "2643. Commissary and exchange services: transportation overseas.". SEC. 335. DEMONSTRATION PROJECT FOR UNIFORM FUNDING OF MORALE, WELFARE, AND RECREATION ACTIVITIES AT CER- TAIN MILITARY INSTALLATIONS. (a) DEMONSTRATION PROJECT REQUIRED.—(1) The Secretary of Defense shall conduct a demonstration project to evaluate the feasibility of using only nonappropriated funds to support morale, welfare, and recreation programs at military installations in order to facilitate the procurement of property and services for those programs and the management of employees used to carry out those programs. (2) Under the demonstration project— (A) procurements of property and services for programs referred to in paragraph (1) may be carried out in accordance with laws and regulations applicable to procurements paid for with nonappropriated funds; and (B) appropriated funds available for such programs may be expended in accordance with laws applicable to expenditures of nonappropriated funds as if the appropriated funds were nonappropriated funds. (3) The Secretary shall prescribe regulations to carry out paragraph (2). The regulations shall provide for financial management and accounting of appropriated funds expended in accordance with subparagraph (B) of such paragraph. (b) COVERED MILITARY INSTALLATIONS.—The Secretary shall select not less than three and not more than six military installations to participate in the demonstration project. (c) PERIOD OF DEMONSTRATION PROJECT. — The demonstration project shall terminate not later than September 30, 1998. (d) EFFECT ON EMPLOYEES. —For the purpose of testing fiscal accounting procedures, the Secretary may convert, for the duration of the demonstration project, the status of an employee who carries out a program referred to in subsection (a)(1) from the status of an employee paid by appropriated funds to the status of a nonappropriated fund instrumentality employee, except that such conversion may occur only— (1) if the employee whose status is to be converted— (A) is fully informed of the effects of such conversion on the terms and conditions of the employment of that employee for purposes of title 5, United States Code, and on the benefits provided to that employee under such title; and (B) consents to such conversion; or (2) in a manner which does not affect such terms and conditions of employment or such benefits. (e) REPORTS.— (1) Not later than six months after the date of the enactment of this Act, the Secretary shall submit to Congress an interim report on the implementation of this section. (2) Not later than December 31, 1998, the Secretary shall submit to Congress a final report on the results of the demonstration project. The report shall include a comparison of— (A) the cost incurred under the demonstration project in using employees paid by appropriated funds together with
�
