10 U.S.C. § 433 — Relationship with other Federal laws

(a) In General. A commercial activity run under this subchapter must normally follow all applicable federal laws. This is the default rule, unless subsection (b) allows an exception. (b) Authorization of Waivers When Necessary to Maintain Security. (1) The Secretary of Defense can waive certain federal laws or regulations for a commercial activity if two things are true: the activity is authorized under section 431, and following those laws or regulations would create an "unacceptable risk" of exposing an authorized intelligence activity. The Secretary can only waive as much compliance as necessary to prevent that exposure. (2) Any waiver decision must be made in writing. It must list exactly which laws and regulations no longer apply to that commercial activity. (3) The Secretary cannot hand off this waiver power to just anyone. It can only be delegated to the Deputy Secretary of Defense, an Under Secretary of Defense, an Assistant Secretary of Defense, or the secretary of a military department. (c) Federal Laws and Regulations. This subsection limits what "federal laws and regulations" means for purposes of the waiver power in subsection (b). Only laws and regulations about these seven topics count: (1) receiving and using appropriated and nonappropriated funds; (2) buying or managing property or services; (3) disclosing, keeping, and managing information; (4) hiring and managing personnel; (5) paying for travel and housing; (6) setting up legal entities or government instrumentalities; and (7) restrictions on foreign trade or financial transactions that would reveal the commercial activity as belonging to the United States Government.