(a) The Secretaries of the Army, Navy and Air Force, and the Director, Defense Supply Agency, are authorized to permit the construction, establishment or operation of vending stands on military or naval installations or other Federal property under their jurisdiction. Such permission may be granted under a revocable license in which the conditions for occupancy are set forth clearly.

(b) Where a vending stand may be properly and satisfactorily operated by a blind person, the Secretaries of the Army, Navy and Air Force, and the Director, Defense Supply Agency, will give preference, as to the operation of such a vending stand, to a blind person licensed by a State agency as provided in the Randolph-Sheppard Vending Stand Act. The Secretaries and the Director will provide for cooperation with the appropriate State licensing agency in selecting the type, locations or relocation of vending stands to be operated by licensed blind persons. The foregoing preference may be denied or revoked if it is determined by the local commanding officer:

(1) That existing security measures relative to location of the vending stand or to the clearance of the blind operator thereof cannot be followed;

(2) That vending stand standards relating to appearance, safety sanitation, and efficient operation cannot be met;

(3) That for any other reasons the interests of the United States would be adversely affected or the Department of Defense would be unduly inconvenienced thereby.

(i) Loss of revenue by reason of granting a rent-free permit for operation of a vending stand by a licensed blind person shall not be the basis for denying such permit. However, the permit will not be granted if to do so would seriously affect the primary mission of the Department of Defense by reducing revenue below the point which is necessary for the maintenance of a reasonably adequate morale and welfare program.

(ii) Certain types of nonappropriated fund operations such as post exchanges, motion pictures, and restaurants have traditionally been used by the Department of Defense to foster morale and welfare of those engaged in the defense effort. Revenue from these activities is used to supplement appropriated funds in conducting a well-rounded morale and welfare program. No permits should be granted that will place the morale and welfare program in jeopardy.

in

(c) The preference established paragraph (b) of this section will be protected from the unfair or unreasonable competition of vending machines. No vending machine will be located within reasonable proximity to a vending stand operated by a licensed blind person if the vending machine vends articles of a type sold at such stand, except that, where local needs require the placement of such a vending machine, operation of and the income from such vending machine shall be assumed by the blind vending stand operator.

(d) So far as feasible, items sold at vending stands operated by the blind will consist of newspapers, periodicals, confections, tobacco products, articles dispensed automatically or in containers or wrappings in which they are placed before receipt by the vending stand, and such other suitable articles as may be approved for each vending stand location.

(e) In the event that the commander of the military installation or activity involved and the State licensing agency fail to reach agreement concerning the granting of a permit for a vending stand, the revocation or modification of a permit, the suitability of the stand location, the assignment of vending machine proceeds, the method of operation of the stand, or other terms of the permit (including articles which may be sold), the State licensing agency shall have the right to appeal such disagreements, through channels, to the Secretary of the appropriate Military Department or the Director, Defense Supply Agency. appeal, a full investigation shall be undertaken. The State licensing agency shall be given the opportunity to present information. A final decision by the Secretary of the appropriate Military Department or the Director, Defense Supply Agency, will be rendered within ninety (90) days of the filing of the appeal.

Upon

§ 260.5 Reports.

Notification of the decision on appeal and the action taken thereon will be reported to the State licensing agency, the Department of Health, Education, and Welfare, and the Assistant Secretary of Defense (Manpower) not later than ninety (90) days after the action has been taken. The Secretary of each Military Department and the Director, Defense Supply Agency, will report annually to the Assistant Secretary of Defense (Manpower) the total number of applications for vending stand locations received from State licensing agencies, the number accepted, the number denied, and the number still pending. This report will be as of June 30 and will be submitted not later than August 31 of each year. The first report will be due as of June 30, 1964. A copy of this report will be sent to the Department of Health, Education, and Welfare.

PART 261-ALCOHOLIC BEVERAGE CONTROL

Sec.

261.1

261.2

261.3

261.4 261.5

Authority and purpose.
Applicability and scope.
Responsibility.

General policy statements.
Authorized sales.

AUTHORITY: The provisions of this Part 261 issued under R.S. 161; 5 U.S.C. 301.

SOURCE: The provisions of this Part 261 appear at 29 F.R. 11917, Aug. 20, 1964, unless otherwise noted.

§ 261.1 Authority and purpose.

Under the authority contained in section 6, 1951 Amendments to the Universal Military Training and Service Act, 50 U.S.C. App. 473, this part assigns responsibility and establishes uniform Department of Defense policy governing the sale of alcoholic beverages.

§ 261.2 Applicability and scope.

The provisions of this part apply to all DOD components and to all persons eligible to patronize on-base outlets selling alcoholic beverages in the United States and the District of Columbia.

(b) Military Departments. The Secretaries of the Military Departments shall be responsible for effectively carrying out the policies of this part and to make and issue implementing regulations in accordance with existing applicable laws.

§ 261.4 General policy statements.

(a) Use of alcoholic beverages. The established policy of the Department of Defense with respect to controlling the use of alcoholic beverages by members of the Armed Forces is to encourage abstinence, enforce moderation, and punish over-indulgence. This policy can be carried out most effectively through command supervision.

(b) Restrictive controls and affirmative measures. (1) Restrictive controls shall be established by Secretaries of the Military Departments which recognize (as the primary consideration) the varying conditions and requirements of military service, yet do not discriminate against individuals in the Armed Forces by denying them the rights and privileges of other citizens.

(2) Affirmative measures shall be taken, including but not limited to providing (i) character guidance, with emphasis on the harmful effects of the immoderate use of alcoholic beverages, using the advice and assistance of chaplains, and (ii) wholesome recreation, entertainment, and relaxation for individuals in the Armed Forces both on and off station, using the initiative and assistance of local communities and national organizations.

(c) Cooperation. (1) DOD will cooperate with all duly constituted regulatory officials (local, state and Federal) to the degree that the duties of such officials are related to the furtherance of the terms of this Part. However, the purchase of all alcoholic beverages for resale at any camp, post, station, base or other place primarily occupied by members of the Armed Forces within the United States shall be in such a manner and under such conditions as shall obtain for the Government the most advantageous contract, price and other factors considered, without regard to prices locally established by state statute or otherwise.

(2) This policy of cooperation is not to be construed or represented as an admission of any legal obligation to submit to State control.

(a) Other than packaged alcoholic beverages. Appropriate regulations controlling the sale of alcoholic beverages dispensed by the drink, or beer sold in other than sales outlets for packaged alcoholic beverages, may be promulgated by the Secretaries of the Military Departments.

(b) Sales outlets for packaged alcoholic beverages. The sale of packaged alcoholic beverages, other than beer, may be authorized on military installations when the Secretary of a Military Department approves the establishment of such sales outlets after determining that the authorization will be beneficial to the morale of the military community.

(1) In arriving at such determinations, the Secretary of a Military Department will take cognizance of all pertinent factors including the following criteria as applicable:

(i) Estimated number of authorized patrons per outlet if granted.

(ii) Importance of estimated contributions of package store profits to providing, maintaining and operating clubs, messes and other recreational activities.

(iii) Availability of wholesome family social clubs to military personnel in the local civilian community.

(iv) Geographical inconveniences.
(v) Limitations of non-military

sources.

(vi) Disciplinary and control problems due to restrictions imposed by local law and regulation.

(vii) Highway safety.

(viii) A digest of the attitudes of community authorities or civic organizations toward establishment of a package sales outlet.

(2) An information copy will be dispatched to the ASD (M) of each action approving the establishment of sales outlets for packaged alcoholic beverages, including the determinations and findings made in accordance with the criteria as stated above.

(3) Controls-(i) Purchase and consumption. Although individual rationing will not be required, installation commanders will maintain a continuing review of the amount of alcoholic beverages purchased in the sales outlets and the number of authorized purchas

sive per capita amount, appropriate control measures will be instituted to assure compliance with § 261.4(a) or subdivision (iii) of this subparagraph as applicable.

(ii) Pricing. Prices in authorized sales outlets for packaged alcoholic beverages shall be within ten percent (10%) of the lowest prevailing rates of civilian outlets in the area. Exceptions will be granted only upon approval by the Secretary of the cognizant Military Department upon a substantiated showing, to be made in each case, that special factors warrant an exception thereto.

(iii) Diversion. Diversion, to unauthorized persons of packaged alcoholic beverages purchased by members of the Armed Forces in authorized sales outlets, is a serious offense and where substantiated will be punished.

(4) Eligibility for patronage of sales outlets. Eligibility for patronage of sales outlets for alcoholic beverages on military installations will be restricted to authorized personnel prescribed by the Secretaries of the Military Departments.

(a) The enactment into law of the National Defense Facilities Act of 1950, 64 Stat. 829, established enabling legislation to provide facilities for the training of all Reserve Components of the Armed Forces. 69 Stat. 593 amended certain of the provisions of 64 Stat. 829. The policies promulgated herein are concerned with section 3 (b) and 3(c) of the act, as amended, which authorize contributions of Federal funds to the several States and Territories of the United States, Puerto Rico and the District of

Columbia (referred to in this part as the State).

(b) The act, as amended, provides for contributions of Federal funds to the State as the Secretary of Defense shall determine to be necessary:

(1) To expand, rehabilitate, or convert facilities owned by such State to the extent required for the joint utilization of such facilities;

(2) To expand, rehabilitate, or convert facilities owned by such State to the extent made necessary or to acquire, construct, expand, rehabilitate, or convert such additional facilities as he shall determine to have been made essential, by any conversion, redesignation, or reorganization of a unit or units of the National Guard of the United States or the Air National Guard of the United States, requested or authorized by the Secretary of the Army or the Secretary of the Air Force, respectively;

(3) For the acquisition, construction, expansion, rehabilitation or conversion by such State of such additional facilities that have been made essential by any increase in the strength of the National Guard of the United States or the Air National Guard of the United States.

(c) It is recognized that many existing State-owned or controlled facilities contain certain types of space, such as drill halls, which were not being fully utilized because of limited support space, such as administrative offices, storage space, locker rooms, etc. Contributions of Federal funds to the State for the expansion of these facilities to provide this additional space will insure the maximum fiscal economy through the full and joint utilization of common space to the maximum extent practicable.

(d) It is also recognized that many existing State-owned or controlled facilities cannot physically accommodate certain equipment involved upon conversion, redesignation or reorganization of the organizational units previously assigned to those facilities. A provision of 69 Stat. 593 (see paragraph (b) (2) of this section) will relieve the States of the inequitable burden of financing the cost of physical changes in existing facilities made necessary by such organizational changes requested or authorized by the Federal Government.

(e) An additional purpose of the act is to authorize contributions to the State for the construction or acquisition of additional facilities. This will relieve, in some measure, the inequitable burden

placed upon the several States through the increase in the number of units and the strength of units of the National Guard over that which existed prior to World War II.

§ 262.2 Policies and procedures.

(a) Each project toward which a contribution is granted by the Federal Government under the authority of the act, as amended, shall be covered by an agreement between the United States and the State. The purpose of such agreement is to delineate the equities and obligations involved and thereby assure not only a clear understanding of these obligations but definitely to establish these equities.

(b) The following policies are to be used as a guide in negotiating and executing agreements with States in the implementation of sections 3 (b) and 3 (c) of the act, as amended:

(1) All work authorized pursuant to section 3 (b) or 3 (c) of the act, as amended, shall be done in accordance with the laws of the State in which the project is located, and under the supervision of officials of such State, subject to inspection and approval by the Secretary of Defense, or his delegate. Provisions definitive of such inspection and approval shall be included in said agreement, to accomplish the purpose of assuring that the work performed toward which the Federal contribution is made complies with the plans, specifications, criteria and standards approved for the project by the Secretary of Defense, or his delegate. Except for supervision of a project, which function is reserved by law to State officials, the services of the Chief of Engineers or the Chief of the Bureau of Yards and Docks may be utilized to the extent mutually agreed by the State and the Military Department concerned.

(2) A separate agreement shall be entered into between the State and the Federal Government for each project covering the terms, conditions, equities and obligations of the parties.

(3) The State, as defined in section 7 (c) of the act, as amended, shall certify that it has the legal authority and the necessary funds to accomplish its share of the project, that it will furnish evidence satisfactory to the Department of Defense of a perfected title to, or other adequate property interest in, acceptable and suitable real estate, and that such real estate is located in an area appropri

ate, under local laws and ordinances relating to location and construction, to the use for which the facilities are intended.

(4) Plans, specifications and cost estimates shall be approved by the Federal Government.

(5) The agreement shall remain in full force and effect for the fixed term of years which represents the estimated useful life of the facility.

(6) When a facility is to be jointly utilized:

(i) The agreement shall identify the space, both within and outside the building or buildings, which is to be maintained and reserved for the exclusive use of those Reserve Components that are designated by the Federal Government;

(ii) The agreement shall identify the space, both within and outside the building or buildings, which is to be utilized in common by all Reserve Components assigned to the facility;

(iii) The agreement shall prescribe the extent of collaboration between the State and the Federal Government in the selection of the site location and the orientation of the facilities to be jointly and exclusively utilized by those Reserve Components which are designated by the Federal Government;

(iv) The agreement shall prescribe the costs to be borne by the Federal Government and by the State in maintaining the common use space, both within and outside the building or buildings, and in general administrative expense for janitorial and similar service. Each such agreement shall take cognizance of the net proceeds derived from leasing the facility or other arrangements and other income in accordance with section 4 (e) of the act, as amended;

(v) The agreement shall prescribe generally for the time and extent of the use by the various components, and prescribe the method of resolving conflicts in schedules for use of the facilities.

(7) Insofar as it is determined at the time the Federal contribution is made that it is impracticable for the State and the Federal Government to delineate the extent of the spaces to be jointly and exclusively utilized by those Reserve Components designated by the Federal Government, the agreement shall contain a covenant on the part of the State substantially as follows:

To make such facility available for joint utilization to the extent that the State shall hereafter deem it to be practicable.

In the event it is necessary to apply the concept of a "Master Agreement" contemplating future individual agreements with respect to specific projects, such "Master Agreement" shall contain an affirmative covenant on the part of the State in substantially the following form:

At the time each contribution is made by the Government, to negotiate concerning the extent to which the facility covered thereby will be made available for joint utilization as the term is defined in section 7 (e) of the National Defense Facilities Act of 1950, as amended.

(8) At no time during the term of the agreement shall such State permit any disposition or use to be made of such facility which will interfere with its use for the administration and training of units of the Reserve Components of the Armed Forces of the United States, or in time of war or national emergency of other units of the Armed Forces of the United States or any other use by the Federal Government.

(9) The State shall take necessary action, to the extent of its power or authority, to prohibit utilization by outside interests (such as adjacent land owners, public utility corporations, etc.) that would interfere with the use of the facility for its intended purpose.

(10) The State shall be required to maintain and preserve the facility in a state of good repair except that the Federal Government may contribute to the cost of maintenance to an extent commensurate with the joint utilization of the facility by those Reserve Components which are designated by the Federal Government. The agreement shall specify the basis for determining the extent of such contribution by the Federal Government. Each such agreement shall take cognizance of the net proceeds derived from leasing the facility or other arrangements and other income in accordance with section 4 (e) of the act, as amended. (See subparagraph (6) of this paragraph.)

(11) Where the State accomplishes the project by contract, the State shall let such contract in accordance with the laws of such State, and under regulations in current use by the Federal Government insofar as the application of such regulations by supervisory officials of the State is not precluded by nor inconsistent with the State laws. All contracts, subcontracts and change