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"(5) Determination whether such surplus property (except surplus property allocated in conformity with paragraph (2) of this subsection) is usable and necessary for municipal government purposes, including research, in any State shall be made by the Secretary of Health, Education, and Welfare, who shall allocate such property on the basis of need and utilization for transfer by the Administrator of General Services to such State agency for distribution to municipalities in such State. No such property shall be transferred until the Secretary of Health, Education, and Welfare has received from such State agency a certification that such property is usable and needed for municipal government purposes in the State, and until the Secretary has determined that such State agency has conformed to minimum standards of operation prescribed by the Secretary for the disposal of surplus property."

(d) The paragraph of such subsection renumbered as paragraph (6) is amended by striking out "or paragraph (4)" and inserting in lieu thereof ", paragraph (4), or paragraph (5)".

SEC. 2. (a) Paragraph (1) of subsection (k) of section 203 of the Federal Property and Administrative Services Act of 1949 is amended by striking out "for school, classroom, or other educational use, or for use in the protection of public health, including research" and inserting in lieu thereof "for (1) school, classroom, or other educational use, (2) use in the protection of public health, (3) use by a municipal government, or (4) research for any of such uses".

(b) Paragraph (1) of such subsection is amended by relettering subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively, and by inserting after subparagraph (B) the following new subparagraph:

"(C) Subject to the disapproval of the Administrator within thirty days after notice to him by the Secretary of Health, Education, and Welfare of a proposed transfer of property for use by a municipal government, the Secretary of Health, Education, and Welfare, through such officers or employees of the Department of Health, Education, and Welfare as he may designate, may sell or lease such real property for municipal government purposes, including research, to municipalities in the State."

(c) The subparagraph of paragraph (1) of such subsection_relettered subparagraph (D) is amended by striking out "and subparagraph (B)" and inserting in lieu thereof ", subparagraph (B), and subparagraph (C)”.

(d) Paragraph (2) of subsection (k) of such section is amended (1) by striking out "or" at the end of subparagraph (D), (2) by striking out the comma at the end of subparagraph (E) and inserting in lieu thereof "; or", and (3) by inserting immediately after subparagraph (E) the following new subparagraph:

"(F) the Secretary of Health, Education, and Welfare in the case of property transferred pursuant to this Act to municipalities for use for municipal government purposes,”.

[H. R. 6537, 85th Cong., 1st sess.]

A BILL To authorize the disposition of certain obsolete and excess property to the United States Volunteer Life Saving Corps

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subject to regulations under section 205 the Federal Property and Administrative Services Act of 1949 (40 U. S. C., sec. 486)

(1) The Secretary of the Army, under such conditions as he may prescribe, may sell obsolete or excess material to the United States Volunteer Life Saving Corps. Sales under this paragraph shall be at fair value to the Department of the Army, including packing, handling, and transportation.

(2) The Secretary of the Navy may give obsolete material not needed for naval purposes, and sell other material that may be spared at its fair value, to the United States Volunteer Life Saving Corps. In each case the cost of transportation and delivery shall be charged to the United States Volunteer Life Saving Corps.

(3) The Secretary of the Air Force, under such conditions as he may prescribe, may sell obsolete or excess material to the United States Volun

teer Life Saving Corps. Sales under this paragraph shall be at fair value to the Department of the Air Force, including packing, handling, and transportation.

(4) The Commandant of the Coast Guard may dispose of, with or without charge, to the United States Volunteer Life Saving Corps all such obsolete or other material as may not be needed for the Coast Guard.

Mr. McCORMACK. Any other witnesses here?

If not, the hearings will be closed.

We thank each and every one of you.

(H. R. 4107, H. R. 6316, and H. R. 13085 follow :)

[H. R. 4107, 85th Cong., 1st sess.]

A BILL To amend the Federal Property and Administrative Services Act of 1949 to permit the donation of surplus property to volunteer fire-fighting organizations, volunteer reserve services, squads, and first-aid crews

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first sentence of section 203 (j) (1) of the Federal Property and Administrative Services Act of 1949 (40 U. S. C. 484 (j) (1)) is amended to read as follows: "Under such regulations as he may prescribe, the Administrator is authorized in his discretion to donate for educational purposes or public health purposes, including research, or for the purpose of aiding in the protection of life and property by volunteer fire-fighting organizations, volunteer reserve services, squads, and first-aid crews, in any State, without cost (except for costs of care and handling), such equipment, materials, books, or other supplies (whether or not capitalized in a working-capital or similar fund) under the control of any executive agency as shall have been determined to be surplus property and as shall have been determined under paragraph (2) or (3) of this subsection to be usable and necessary for any of such purposes."

SEC. 2. (a) The first sentence of section 203 (j) (2) of such Act (40 U. S. C. 484 (j) (2)) is amended to read as follows: "Determination whether such surplus property (except surplus property donated in conformity with paragraph (3) of this subsection) is usable or necessary for educational purposes or public health purposes (including research), or for the purpose of aiding in the protection of life and property by volunteer fire-fighting organizations, volunteer reserve services, squads and first aid crews, shall be made by the Secretary of Health, Education, and Welfare, who shall locate such property on the basis of needs and utilization for transfer by the Administrator (1) to medical institutions, hospitals, clinics, health centers, school systems, schools, colleges, and universities which are tax supported or have been held exempt from taxation under section 501 (c) (3) of the Internal Revenue Code of 1954; (2) to State departments of education or health for distribution to the institutions and organizations described in clause (1), except that in any State where another agency is designated by State law for such purpose such transfer shall be made to such other agency for such distribution within the State; or (3) to any incorporated or unincorporated volunteer fire department, fire company, or other similar fire-fighting organization, volunteer reserve service, squad, or first aid crew."

(b) The second sentence of such section 203 (j) (2) is amended by inserting "or for the purpose of aiding in the protection of life and property by volunteeer fire-fighting organizations, volunteer reserve services, squads and first aid crews in the State," after "in the State,".

SEC. 3. Section 203 (m) of such Act (40 U. S. C. 484 (m)) is amended by inserting after "educational purposes and health purposes" a comma and the following: "or for the purpose of aiding in the protection of life and property by volunteer fire-fighting organizations, volunteer reserve services, squads and first aid crews,".

SEC. 4. Section 203 (n) of such Act (40 U. S. C. 484 (n)) is amended by inserting "or volunteer fire-fighting organizations, volunteer reserve services, squads and first aid crews" after "educational or public health institutions".

[H. R. 6316, 85th Cong., 1st sess.]

A BILL To amend the Federal Property and Administrative Services Act of 1949 to permit the donation of surplus property to volunteer fire-fighting organizations, volunteer reserve services, squads, and first-aid crews

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first sentence of section 203 (j) (1) of the Federal Property and Administrative Services Act of 1949 (40 U. S. C. 484 (j) (1)) is amended to read as follows: "Under such regulations as he may prescribe, the Administrator is authorized in his discretion to donate for educational purposes or public health purposes, including research, or for the purpose of aiding in the protection of life and property by volunteer fire-fighting organizations, volunteer reserve services, squads, and first-aid crews, in any State, without cost (except for costs of care and handling), such equipment, materials, books, or other supplies (whether or not capitalized in a working-capital or similar fund) under the control of any executive agency as shall have been determined to be surplus property and as shall have been determined under paragraph (2) or (3) of this subsection to be usable and necessary for any of such purposes."

SEC. 2. (a) The first sentence of section 203 (j) (2) of such Act (40 U. S. C. 484 (j) (2)) is amended to read as follows: "Determination whether such surplus property (except surplus property donated in conformity with paragraph (3) of this subsection) is usable or necessary for educational purposes or public health purposes (including research), or for the purpose of aiding in the protection of life and property by volunteer fire-fighting organizations, volunteer reserve services, squads and first-aid crews, shall be made by the Secretary of Health, Education, and Welfare, who shall allocate such property on the basis of needs and utilization for transfer by the Administrator (1) to medical institutions, hospitals, clinics, health centers, school systems, schools, colleges, and universities which are tax supported or have been held exempt from taxation under section 501 (c) (3) of the Internal Revenue Code of 1954; (2) to State departments of education or health for distribution to the institutions and organizations described in clause (1), except that in any State where another agency is designated by State laws for such purpose such transfer shall be made to such other agency for such distribution within the State; or (3) to any incorporated or unincorporated volunteer fire department, fire company, or other similar firefighting organization, volunteer reserve service, squad, or first aid crew."

(b) The second sentence of such section 203 (j) (2) is amended by inserting "or for the purpose of aiding in the protection of life and property by volunteer fire-fighting organizations, volunteer reserve services, squads and first aid crews in the State," after "in the State,".

SEC. 3. Section 203 (m) of such Act (40 U. S. C. 484 (m)) is amended by inserting after "educational purposes and health purposes" a comma and the following: "or for the purpose of aiding in the protection of life and property by volunteer fire-fighting organizations, volunteer reserve services, squads and first aid crews,".

SEC. 4. Section 203 (n) of such Act (40 U. S. C. 484 (n)) is amended by inserting "or volunteer fire-fighting organizations, volunteer reserve services, squads and first aid crews" after "educational or public health institutions".

[H. R. 13085, 85th Cong., 2d sess.]

A BILL To amend section 203 of the Federal Property and Administrative Services Act of 1949 to provide for the donation of surplus property to public libraries

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That clause (A) of paragraph (3) of subsection (j) of section 203 of the Federal Property and Administrative Services Act of 1949 (40 U. S. C. 484) is amended by inserting immediately after "health centers," the following: "public libraries,".

SEC. 2. Such subsection (j) is amended by inserting at the end thereof the following:

"(7) For the purposes of this subsection and subsection (k), a public library shall be considered to be an educational institution."

SEC. 3. The portion of subsection (k) of such section 203 which precedes subparagraph (A) is amended by inserting immediately after "classroom," the following: "library,”.

(Whereupon, at 12:05 p. m. the subcommittee was adjourned.) (Statements of Members of Congress follow:)

STATEMENT OF HON. THOMAS L. ASHLEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OHIO

Mr. Chairman, I am indeed grateful to you and the members of this committee for the opportunity to testify in behalf of my bill, H. R. 5448, which would amend the Federal Property and Administrative Services Act of 1949 to make rehabilitation facilities and sheltered workshops eligible for donations of surplus real and personal property.

As you know, the present law authorizes the donation of surplus Federal property "for purposes of education, public health, or civil defense, or for research for such purposes;” the provision relating to civil defense having been enacted in the last session of Congress is not relevant to our concern. The present law, however, restricts such donations to "tax-supported or nonprofit medical institutions, hospitals, clinics, health centers, school systems, schools, colleges, and universities."

Under the administration of the law, very few public and private nonprofit rehabilitation facilities have been deemed eligible due to what I regard as a strained and narrow construction that has been placed upon the statute by administrative regulation of the Department of Health, Education, and Welfare a regulation which requires that a facility must be devoted "primarily to health and medical services" or "primarily to approved academic vocational or professional study and instruction."

A great many rehabilitation facilities, as you can appreciate, have educational and health aspects as well as employment and general physical rehabilitation aspects, but under the present interpretation of the law, they are not deemed to be within either of the categories of eligible facilities, because they are not “primarily" devoted to educational or health purposes. I have, in fact, been reliably informed that the Office of Vocational Rehabilitation of the Department of Health, Education, and Welfare has been trying to get more Federal surplus property into the hands of rehabilitation agencies, but that amendatory legislation is necessary before any substantial number of rehabilitation agencies could become eligible for such property. The purpose of this legislation is to broaden the restrictive definition of eligible institutions to include "rehabilitation facilities, centers, or sheltered workshops," so that Federal surplus property now standing idle and in many cases deteriorating, can be put to this most worthwhile and constructive use of restoring to economically and socially productive lives our handicapped citizens.

Certainly the restoration of intellectual competence and health through medical treatment and psychological therapy are vital to economic and social independence, but the rehabilitation process is incomplete without adequate and expert vocational direction and training and to deny the use of available Federal property to those institutions which devote their resources to the development of potentially employable persons is both shortsighted and inhumane.

I am sure there is little need for me to dwell here on the tremendously important role and contribution which vocational rehabilitation has played in helping to change one of our Nation's economic problems into one of promise. A recent detailed and objective study conducted in Kansas City reveals conclusively that 65 percent of all disabled persons can be aided by rehabilitation services. About 40 percent are under the age of 18, and it is estimated that about the same number could with proper facilities be rehabilitated to the point of remunerative employment. If this bill is enacted into law, the limited funds of these institutions now used to purchase property and equipment could be released for much needed expansion and development of existing centers and workshops as well as for the hiring and training of critically needed additional personnel.

It has been scientifically estimated that the cost of rehabilitation services to the Federal Government has been more than repaid by the revenue received from increased earnings of disabled men and women who have been rehabilitated. The cumulative record of earnings of rehabilitants for the past decade increased nearly $3 billions, the income taxes on which was $300 million. Yet the total ex

penditure for public programs for the same period were only $225 million, not to mention the dollar savings to the public through eliminating their public dependency.

Nor are there any statistics to portray the full depth and meaning in human terms of individual rehabilitation, for no one can assess in dollars and cents the personal reward and inner satisfaction that comes from being restored to human dignity and achieving self-sufficiency and economic independence through vocational rehabilitation.

Were I not so disturbed I would be mildly amused by the transparent effort of the Department of Health, Education, and Welfare to minimize the significance of vocational rehabilitation in its recent report on this bill. The Department states, and I quote, "Any proposal for an extension of eligibility under the donation program immediately raises the question of extension to other activities and organizations equally deserving but not now eligible-e. g., mosquito districts, nurseries, museums, 4-H clubs, fire-fighting organizations, life-saving squads *** thus creating new lines which would be difficult to justify on grounds of equity."

Now it is not my intention to deride the worthwhileness or importance of these organizations and activities. Certainly they fill a need and are deserving of our support. But I resent, and deeply, the Department's implication that the objectives of vocational rehabilitation are so trivial or its scope so narrow and limited as the activities of these "equally deserving claims upon Federal surplus property."

I note too that the General Services Administration recommends against H. R. 5448 because it "would inevitably result in increased administrative costs and a complication of disposal operations." Moreover, say they, it would "jeopardize orderly procedures for surplus property disposal now being carried out under the act." I am not unmindful of some ill-conceived efforts in the past to promote economy at the expense of human welfare, and while I have consistently opposed any profligate waste of taxpayers' money. I submit that human needs must be fulfilled even if it means an increase in administrative costs or the possible complication of operations or a mild disruption of orderly procedures. If your consideration of the measure I propose is to be resolved into a question of values, surely we cannot establish a pattern of sacrificing human needs and aspirations and their fulfillment to shortsighted principles of pennywise, pound-foolish economy.

I earnestly urge that this committee give prompt and favorable consideration to H. R. 5448 to make rehabilitation facilities and sheltered workshops eligible for donations of surplus Federal property.

STATEMENT OF HON. ALVIN M. BENTLEY, A REPRESENTATIVE IN CONGRESS

FROM THE STATE OF MICHIGAN

Mr. Chairman and members of the committee, it is a pleasure to submit this statement on behalf of my bill, H. R. 5451, introduced by me on February 28, 1957, and which would amend section 203 of the Federal Property and Administrative Services Act of 1949 to permit the disposal of surplus property to municipalities. This legislation was introduced by me in respect to resolutions from various communities in my State, including several in my own congressional district, that municipalities be accorded these surplus property disposal preferences under the Federal Property and Administrative Services Act of 1949. My bill, if passed, would permit the disposal of Federal surplus property to municipalities on the same basis as it is now offered to certain local public health agencies, school boards and civil defense organizations.

Prior to enactment of this act in 1949, surplus property was available to a multitude of nonprofit institutions and organizations with various priorities, resulting in many delays, confusion and extra warehouse storage expenses. The 1949 limitations were designed to simplify the situation and reduce costs. Since that time, exceptions have been enacted for public health and educational programs and civil defense purposes. Recently, a movement was initiated by Michigan communities to extend the disposal priorities to municipalities for general civic purposes, although individual divisions of civic governments such as fire departments, water, and gas systems, and so forth, have sought preferences since the 1949 limitations.

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