Private Organizations on DoD Installations

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: Final rule.

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SUMMARY: The 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.

EFFECTIVE DATE: October 23, 1997.

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

614-3112.

SUPPLEMENTARY INFORMATION: The Department of Defense published a

proposed rule on February 24, 1998 (63 FR 9167). No material comments

were received.

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 USC 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 final rule.

Public Law 104-13, ``Paperwork Reduction Act of 1995'' (44 USC

Chapter 35)

I, Francis M. Rush, Jr., Acting Assistant Secretary of Defense for

Force Management Policy, hereby certify that 32 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 building and facilities, Private

organizations.

Accordingly, 32 CFR part 212 is 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.

[[Page 32617]]

(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 to 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 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 jurisdictions, 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,

[[Page 32618]]

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: June 9, 1998.

Patricia L. Toppings,

Alternate OSD Federal Register Liaison Officer, Department of Defense.

[FR Doc. 98-15808 Filed 6-12-98; 8:45 am]

BILLING CODE 5000-04-M