110 STAT. 264 PUBLIC LAW 104-106—FEB. 10, 1996 "(1) The term 'nonappropriated fund instrumentality' means the Army and Air Force Exchange Service, Navy Exchange Service Command, Marine Corps exchanges, or any other instrumentaUty of the United States under the jurisdiction of the Armed Forces which is conducted for the comfort, pleasure, contentment, or physical or mental improvement of members of the Armed Forces. "(2) The term 'base closure law' has the meaning given such term by section 2667(g) of this title.". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "2490a. Combined exchange and commissary stores.". (b) CONFORMING AMENDMENT.— Section 375 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103- 337; 108 Stat. 2736) is amended by striking out ", until December 31, 1995,". SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES. Contracts. (a) USE OF COMMERCIAL BANKING INSTITUTION. — (1) As SOon as practicable after the date of the enactment of this Act, the Secretary of Defense shall seek to enter into an agreement with a commercial banking institution under which the institution agrees to finance and operate the deferred payment program of the Army and Air Force Exchange Service and the deferred payment program of the Navy Exchange Service Command. The Secretary shall use competitive procedures to enter into an agreement under this paragraph. (2) In order to facilitate the transition of the operation of the programs referred to in paragraph (1) to commercial operation under an agreement described in that paragraph, the Secretary may initially limit the scope of any such agreement so as to apply to only one of the programs. (b) REPORT.— Not later than December 31, 1995, the Secretary shall submit to Congress a report on the implementation of this section. The report shall also include an analysis of the impact of the deferred payment programs referred to in subsection (a)(1), including the impact of the default and collection procedures under such programs, on members of the Armed Forces and their families. SEC. 338. AVAILABILITY OF FUNDS TO OFFSET EXPENSES INCURRED BY ARMY AND AIR FORCE EXCHANGE SERVICE ON ACCOUNT OF TROOP REDUCTIONS IN EUROPE. Of funds authorized to be appropriated under section 301(5), not less than $70,000,000 shall be available to the Secretary of Defense for transfer to the Army and Air Force Exchange Service to offset expenses incurred by the Army and Air Force Exchange Service on account of reductions in the number of members of the United States Armed Forces assigned to permanent duty ashore in Europe. SEC. 339. STUDY REGARDING IMPROVING EFFICIENCIES IN OPER- ATION OF MILITARY EXCHANGES AND OTHER MORALE, AVELFARE, AND RECREATION ACTIVITIES AND COM- MISSARY STORES. (a) STUDY REQUIRED. — The Secretary of Defense shall conduct a study regarding the manner in which greater efficiencies can be achieved in the operation of— (1) military exchanges;
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