[Federal Register Volume 63, Number 36 (Tuesday, February 24, 1998)]
[Proposed Rules]
[Pages 9167-9168]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4630]


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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 212

[DoD Instruction 1000.15]
RIN 0790-AG53


Private Organizations on DoD Installations

AGENCY: Assistant Secretary of Defense for Force Management Policy, 
DoD.

ACTION: Proposed rule.

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SUMMARY: The proposed revision of this part will ensure that private 
organizations operating on DoD installations do so in accordance with 
parameters established for their authorization and support. Private 
organizations are self-sustaining, non-Federal entities which operate 
on DoD installations outside the scope of any official capacity as 
officers, employees, or agents of the Federal Government.

DATES: Comments are requested by April 27, 1998.

ADDRESSES: Forward comments to: ODASD (PSF&E), Room 1B700, 4000 Defense 
Pentagon, Washington, DC 20301-4000.

FOR FURTHER INFORMATION CONTACT:
Martin S. Thomas III, LTC, USA, (703) 614-3112.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866, ``Regulatory Planning and Review''

    I, Francis M. Rush, Jr., Acting Assistant Secretary of Defense for 
Force Management Policy, hereby determine that 32 CFR part 212 is not a 
significant regulatory action. The rule does not:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy; a sector of the 
economy; productivity; competition; jobs; the environment; public 
health or safety; or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs, or the rights and obligations of 
recipients thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601)

    I, Frank M. Rush, Jr., Acting Assistant Secretary of Defense for 
Force Management Policy, hereby certify that this rule is not subject 
to the Regulatory Flexibility Act (5 U.S.C. 601) because it would not, 
if promulgated, have a significant economic impact on a substantial 
number of small entities. The primary effect of this rule will not be 
on small businesses, but on private organizations operating on DoD 
installations as the procedures for their authorization and support 
have been redefined and reestablished in this proposed rule.

Public Law 104-13, ``Paperwork Reduction Act of 1995'' (44 U.S.C. 
Chapter 35)

    I, Francis M. Rush, Jr., Acting Assistant Secretary of Defense for 
Force Management Policy, hereby certify that CFR part 212 does not 
impose any reporting or recordkeeping requirements under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

List of Subjects in 32 CFR Part 212

    DoD installations, Federal buildings and facilities, Private 
organizations.
    Accordingly, 32 CFR part 212 is proposed to be revised to read as 
follows:

PART 212--PRIVATE ORGANIZATIONS ON DOD INSTALLATIONS

Sec.
212.1  Reissuance and purpose.
212.2  Applicability.
212.3  Definitions.
212.4  Policy.
212.5  Responsibilities.
212.6  Procedures.

    Authority: 5 U.S.C. 301.


Sec. 212.1  Reissuance and purpose.

    This part:
    (a) Revises 32 CFR part 212.
    (b) Implements policy in DoD Directive 5124.5.\1\
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    \1\ Copies may be obtained, if needed, from the National 
Technical Information Service (NTIS), 5285 Port Royal Road, 
Springfield, VA 22161.
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    (c) Updates responsibilities and procedures to define and 
reestablish parameters for private organizations located on DoD 
installations for their authorization and support.


Sec. 212.2  Applicability.

    This part applies to:
    (a) The Office of the Secretary of Defense (OSD), the Military 
Departments, the Chairman of the Joint Chiefs of Staff, the Combatant 
Commands, the Defense Agencies, and DoD Field Activities (hereafter 
referred to collectively as the ``DoD Components'').
    (b) Private organizations authorized to operate on DoD 
installations.


Sec. 212.3  Definitions.

    (a) DoD Installation. A location, facility, or activity owned, 
leased, assigned to, controlled, or occupied by a DoD Component.
    (b) Private Organizations. Self-sustaining and non-Federal 
entities, incorporated or unincorporated, which are operated on DoD 
installations with the written consent of the installation commander or 
higher authority, by individuals acting exclusively outside the scope 
of any official capacity as officers, employees, or agents of the 
Federal Government.


Sec. 212.4  Policy.

    It is DoD policy under DoD Directive 5124.5 that procedures be 
established for the operation of private organizations on DoD 
installations to prevent the official sanction, endorsement, or support 
by DoD Components except as in 32 CFR part 84. Private organizations 
are not entitled to sovereign immunity and privileges accorded to 
Federal entities and instrumentalities. Private organizations are not 
Federal entities and are not be treated as such, in order to avoid 
conflicts of interest and unauthorized expenditures of appropriated, 
commissary surcharge, or nonappropriated funds.


Sec. 212.5  Responsibilities.

    (a) The Assistant Secretary of Defense for Force Management Policy, 
under the Under Secretary of Defense for Personnel and Readiness, shall 
be responsible for all policy matters and OSD oversight for the 
monitoring of

[[Page 9168]]

private organizations on DOD installations.
    (b) The Heads of the DoD Components shall implement this part, 
shall be kept aware of all private organizations located on 
installations under their jurisdiction, and ensure that periodic 
reviews of private organizations are conducted to:
    (1) Ensure for each such private organization that the membership 
provisions and purposes on the basis of which the organization was 
permitted on the installation continue to apply, thereby justifying 
continuance on the installation. Substantial changes to those 
conditions shall necessitate further review, documentation, and 
approval for continued permission to remain on the installation.
    (2) Furnish reports to the Assistant Secretary of Defense for Force 
Management Policy on private organizations covered by this part as 
required.


Sec. 212.6  Procedures.

    (a) To prevent the appearance of an official sanction or support by 
the Department of Defense, a private organization covered by this part 
shall not utilize the following in its title or letterhead:
    (1) The name or seal of the Department of Defense or the acronym 
``DoD.''
    (2) The name, abbreviation, or seal of any DoD Component or 
instrumentality.
    (3) The seal, insignia, or other identifying device of the local 
installation.
    (4) Any other name, abbreviation, seal, logo, insignia, or the 
like, used by any DoD Component to identify any of its programs, 
locations, or activities.
    (b) Activities of private organizations covered by this part shall 
not in any way prejudice or discredit the DoD Components or the other 
Agencies of the Federal Government.
    (c) The nature, function, and objectives of a private organization 
covered by this part shall be delineated in a written constitution, by-
laws, charter, articles of agreement, or other authorization documents 
acceptable to the head of the DoD installation. That documentation 
shall also include:
    (1) Description of membership eligibility in the private 
organization.
    (2) Designation of management responsibilities, to include the 
accountability for assets, satisfaction of liabilities, disposition of 
any residual assets on dissolution, and other matters that show 
responsible financial management.
    (3) Documentation indicating an understanding by all members as to 
whether they are personally liable if the assets are insufficient to 
discharge all liabilities.
    (d) A private organization covered by this part that offers 
programs or services similar to either appropriated or nonappropriated 
fund activities on a DoD installation shall not compete with, but may, 
when specifically authorized in the approval document, supplement those 
activities.
    (e) Private organizations covered by this part shall be self-
sustaining, primarily through dues, contributions, service charges, 
fees, or special assessment of members. There shall be no financial 
assistance to a private organization from a nonappropriated fund 
instrumentality in the form of contributions, repairs, services, 
dividends, or other donations of money or other assets. Fundraising and 
membership drives are governed by 32 CFR part 84.
    (f) The DoD Components may provide logistical support to private 
organizations with appropriated Federal Government resources in 
accordance with 32 CFR part 84. In conformance with DoD Directive 
1015.1,\2\ nonappropriated fund instrumentalities funds or assets shall 
not be directly or indirectly transferred to private organizations.
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    \2\ See footnote to Sec. 212.1(b).
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    (g) Personal and professional participation in private 
organizations by DoD employees is governed by 32 CFR part 84.
    (h) Neither appropriated fund activities nor nonappropriated fund 
instrumentalities may assert any claim to the assets, or incur or 
assume any obligation of any private organization covered by this part 
except as may arise out of contractual relationships. Property 
abandoned by a private organization on its disestablishment or 
departure from the installation, or donated by it to the installation, 
may be acquired by the DoD installation under the terms of applicable 
agreements, statutes, and DoD policy.
    (i) Adequate insurance, as defined by the Service concerned, shall 
be secured by the organization to protect against public liability and 
property damage claims or other legal actions that may arise as a 
result of activities of the organization or one or more of its members 
acting in its behalf, or the operation of any equipment, apparatus or 
device under the control and responsibility of the private 
organization.
    (j) Private organizations shall be responsible for ensuring 
applicable fire and safety regulations, environmental laws, local, 
state, and Federal tax codes, and any other applicable statutes and 
regulations are complied within the operation of the private 
organization.
    (k) Income shall not accrue to individual members except through 
wages and salaries as employees of the private organization or as award 
recognition for service rendered to the private organization or 
military community. The head of a DoD installation concerned may 
approve the operation of private organizations, such as investment 
clubs, in which the investment of members' personal funds result in a 
return on investment directly and solely to the individual members.
    (l) No person because of race, color, creed, sex, age, disability 
or national origin shall be unlawfully denied membership, unlawfully 
excluded from participation, or otherwise subjected to unlawful 
discrimination by any private organization on a DoD installation 
covered by this part. DoD installations will publicly disseminate 
information on procedures for individuals to follow at the local 
installation when unlawful discrimination by private organizations is 
suspected.
    (m) Applicable laws on labor standards for employment shall be 
observed.
    (n) This part does not apply to the following organizations, which 
are governed by DoD Directives and Instructions as referenced:
    (1) Scouting organizations operating at U.S. military installations 
located overseas (DoD Instruction 1015.9 \3\).
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    \3\ See footnote to Sec. 212.1(b).
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    (2) American National Red Cross (DoD Directive 1330.5 \4\).
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    \4\ See footnote to Sec. 212.1(b).
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    (3) United Service Organizations, Inc. (DoD Directive 1330.12 \5\).
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    \5\ See footnote to Sec. 212.1(b).
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    (4) United Seamen's Service (DoD Directive 1330.16 \6\).
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    \6\ See footnote to Sec. 212.1(b).
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    (5) Financial Institutions on DoD Installations (32 CFR part 231).
    (o) Certain unofficial activities may be conducted on DoD 
installations, but need not be formally authorized because of the 
limited scope of their activities, membership or funds. Examples are 
office coffee funds, flower funds, and similar small, informal 
activities and funds. DoD Components shall establish the basis upon 
which such informal activities and funds shall operate.

    Dated: February 19, 1998.
Patricia L. Toppings,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 98-4630 Filed 2-23-98; 8:45 am]
BILLING CODE 5000-04-M