SECTION 1. AIR FORCE ACADEMY ATHLETIC ASSOCIATION.

    (a) In General.--Chapter 903 of title 10, United States Code, is 
amended by inserting after section 9359 the following new section:
``Sec. 9359a. Air Force Academy Athletic Association: authorization, 
              purpose, and governance
    ``(a) Establishment Authorized.--The Secretary of the Air Force may 
establish a nonprofit corporation, to be known as the `Air Force 
Academy Athletic Association', to support the athletic program of the 
Air Force Academy.
    ``(b) Organization and Duties.--(1) The Air Force Academy Athletic 
Association (in this section referred to as the `Association') shall be 
organized and operated as a nonprofit corporation under section 
501(c)(3) of the Internal Revenue Code of 1986 and under the powers and 
authorities set forth in this section and the provisions of the laws of 
the State of incorporation. The Association shall operate on a 
nonpartisan basis exclusively for charitable, educational, and civic 
purposes consistent with the authorities referred to in this subsection 
to support the athletic program of the Academy.
    ``(2) Subject to the approval of the Secretary of the Air Force, 
the Association may--
            ``(A) operate and manage athletic and revenue generating 
        facilities on Academy property;
            ``(B) use Government facilities, utilities, and services on 
        the Academy, without charge, in support of its mission;
            ``(C) sell products to the general public on or off 
        Government property;
            ``(D) charge market-based fees for admission to Association 
        events and other athletic or athletic-related events at the 
        Academy and for use of Academy athletic facilities and 
        property; and
            ``(E) engage in other activities, consistent with the 
        Academy athletic mission as determined by the Board of 
        Directors.
    ``(c) Board of Directors.--(1) The Association shall be governed by 
a Board of Directors made up of at least nine members. The members, 
other than the member referred to in paragraph (2), shall serve without 
compensation, except for reasonable travel and other related expenses 
for attendance at required meetings.
    ``(2) The Director of Athletics at the Academy shall be a standing 
member of the Board as part of the Director's duties as the Director of 
Athletics.
    ``(3) Subject to the prior approval of all nominees for appointment 
by the Secretary of the Air Force, the Superintendent shall appoint the 
remaining members of the Board.
    ``(4) The Secretary of the Air Force shall select one of the 
members of the Board appointed under paragraph (3) to serve as 
chairperson of the Board.
    ``(d) Bylaws.--Not later than July 1, 2010, the Association shall 
propose its by-laws. The Association shall submit the by-laws, and all 
future changes to the by-laws, to the Secretary of the Air Force for 
review and approval. The by-laws shall be made available to Congress 
for review.
    ``(e) Transition From Nonappropriated Fund Operation.--(1) Until 
September 30, 2011, the Secretary of the Air Force may provide for 
parallel operations of the Association and the Air Force 
nonappropriated fund instrumentality whose functions include providing 
support for the athletic program of the Academy. Not later than that 
date, the Secretary shall dissolve the nonappropriated fund 
instrumentality and transfer its assets and liabilities to the 
Association.
    ``(2) The Secretary may transfer title and ownership to all the 
assets and liabilities of the nonappropriated fund instrumentality 
referred to in paragraph (1), including bank accounts and financial 
reserves in its accounts, equipment, supplies, and other personal 
property without cost or obligation to the Association.
    ``(f) Contracting Authorities.--(1) The Superintendent may procure 
goods, services, human resources, and other support, on a 
noncompetitive basis and at fair and reasonable prices, from the 
Association in support of this section. Any such procurement shall be 
exempt from Federal procurement and Federal procurement-preference 
laws, rules, regulations, processes and procedures.
    ``(2) The Superintendent may accept from the Association funds, 
goods, and services for use by cadets and Academy personnel during 
participation in, or in support of, Academy or Association contests, 
events, and programs.
    ``(g) Use of Air Force Personnel.--Air Force personnel may 
participate in--
            ``(1) the management, operation, and oversight of the 
        Association;
            ``(2) events and athletic contests sponsored by the 
        Association; and
            ``(3) management and sport committees for the National 
        Collegiate Athletic Association and other athletic conferences 
        and associations.
    ``(h) Funding Authority.--The authorization of appropriations for 
the operation and maintenance of the Academy includes Association 
operations in support of the Academy athletic program, as approved by 
the Secretary of the Air Force.
    ``(i) Federal Tort Claims Act.--The Association is deemed to be a 
Federal entity for purposes of chapter 171 of title 28, relating to 
tort claims. Members of the Board of Directors, Association employees, 
and Air Force personnel participating in the management, operation, and 
oversight of the Association are entitled to the protections of such 
chapter and are entitled to qualified immunity from liability for 
actions taken in the scope of their participation as members of the 
Board of Directors or participation or employment as members of the Air 
Force and Association.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
9359 the following new item:

``9359a. Air Force Academy Athletic Association: authorization, 
                            purpose, and governance.''.
Output: Authorizes the Secretary of the Air Force to establish (as a nonprofit corporation) the Air Force Academy Athletic Association, to support the athletic program of the Air Force Academy.