SHIPS’ STORES.

SEC. 371. SHIPS’ STORES. (a) Conversion to Operation as Nonappropriated Fund Instrumentalities.—Not later than October 1, 1994, the Secretary of the Navy shall convert the operation of all ships’ stores from operation as an activity funded by direct appropriations to operation by the Navy Exchange Service Command as an activity funded from sources other than appropriated funds. 107 STAT. 1635 (b) Transfer of Funds.—To facilitate the conversion required under subsection (a), the Secretary of the Navy shall transfer to the Navy Exchange Service Command, without cost to the Navy Exchange Service Command, from— (1) the Navy Stock Fund, an amount equal to the value (2) of existing ships’ stores assets in that Fund; and the Ships’ Stores Profits, Navy Fund, residual cash in that Fund. (c) Codification.—Section 7604 of title 10, United States Code, is amended— (1) by inserting “(a) In General.—” before “Under such regulations”; and (2) by adding at the end the following new subsections: “(b) Incidental Services.—The Secretary of the Navy may provide financial services, space, utilities, and labor to ships’ stores on a nonreimbursable basis. “(c) Items Sold.—Merchandise sold by ship stores afloat shall include items in the following categories: “(1) Health, beauty, and barber items. “(2) Prerecorded music and videos. “(3) Photographic batteries and related supplies. “(4) Appliances and accessories. “(5) Uniform items, emblematic and athletic clothing, and equipment. “(6) Luggage and leather goods. “(7) Stationery, magazines, books, and supplies. “(8) Sundry, games, and souvenirs. “(9) Beverages and related food and snacks. “(10) Laundry, tailor, and cleaning supplies. “(11) Tobacco products.”. (d) Effective Date.—Subsections (b) and (c) of section 7604 of title 10, United States Code, as added by subsection (c), shall take effect on the date on which the Secretary of the Navy completes the conversion referred to in subsection (a).