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(b) By inserting the following new subparagraph after subparagraph (2) (D):

“(E) the Federal Civil Defense Administrator, in the case of property transferred pursuant to this Act to civil-defense organizations of the States, political subdivisions and instrumentalities thereof which are established by

or pursuant to State law is authorized and directed—”.

Sec. 6. In carrying out the responsibilities of the Federal Civil Defense Administrator under this Act, the provisions of sections 201 (b), 401 (c), 401 (e), and 405 of the Federal Civil Defense Act of 1950, as amended, shall apply.

Passed the House of Representatives July 29, 1955.
Attest:

RALPH R. ROBERTS, Clerk.

(Committee Print, December 9, 1955]

[H. R. 7227, 84th Cong., 2d sess.) AMENDMENTS in the nature of a substitute, to amend further the Federal

Property and Administrative Services Act of 1949, as amended, to authorize the disposal of surplus property for civil defense purposes, to provide that certain Federal surplus property be disposed of to State and local civil defense organizations which are established by or pursuant to State law, and for other purposes, viz: Strike out all after the enacting clause and insert in lieu thereof the following:

That subsection 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended (40 U. S. C. 484 (j)) is amended to read as follows:

“(j) (1) Under such regulations as he may prescribe, the Administrator is authorized in his discretion to donate without cost (except for costs of care and handling) for use in any State for purposes of education, public health, or civil defense, or for research for any such purpose, any equipment, materials, books, or other supplies (including those capitalized in a working capital or similar fund) under the control of any executive agency which shall have been determined to be surplus property and which shall have been determined under paragraph (2), (3), or (4) of this subsection to be usable and necessary for any such purpose. In determining whether property is to be donated under this subsection, no distinction shall be made between property capitalized in a working-capital fund established under section 405 of the National Security Act of 1947, as amended, or any similar fund, and any other property. No such property shall be transferred for use within any State except to the State agency designated under State law for the purpose of distributing, in conformity with the provisions of this subsection, all property allocated under this subsection for use within such State.

“(2) In the case of surplus property under the control of the Department of Defense, the Secretary of Defense shall determine whether such property is usable and necessary for educational activities which are of special interest to the armed services, such as maritime academies or military, naval, Air Force, or Coast Guard preparatory schools. If such Secretary shall determine that such property is usable and necessary for such purposes, he shall allocate it for transfer by the Administrator to the appropriate State agency for distribution to such educational activities. If he shall determine that such property is not usable and necessary for such purposes, it may be disposed of in accordance with paragraph (3) or paragraph (4) of this subsection.

“(3) Determination whether such surplus property (except surplus property allocated in conformity with paragraph (2) of this subsection) is usable and necessary for purposes of education or public health, or for research for any such purpose, in any State 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 to such State agency for distribution to (A) tax-supported medical institutions, hospitals, clinics, health centers, school systenis, schools, colleges, and universities, and (B) other nonprofit medical institutions, hospitals, clinics, health centers, schools, colleges, and universities which are exempt from taxation under section 501 (c)(3) of the Internal Revenue Code of 1954. No such property shall be transferred to any State agency until the Secretary of Health, Education, and Welfare has received, from such State agency, a certification that such property is usable and needed for educational or public health purposes in the State, and until the Secreary has determined that such State agency has conformed to minimum standards of operation prescribed by the Secretary for the disposal of surplus property.

“(4) Determination whether such surplus property (except surplus property allocated in conformity with paragraph (2) of this subsection) is usable and necessary for civil defense purposes, including research, in any State shall be made by the Federal Civil Defense Administrator, who shall allocate such property on the basis of need and utilization or transfer by the Administrator of General Services to such State agency for distribution to civil defense organizations of such State, or political subdivisions and instrumentalities thereof, which are established pursuant to State law. No such property shall be transferred until the Federal Civil Defense Administrator has received from such State agency a certificate that such property is usable and needed for civil defense purposes in the State, and until the Federal Civil Defense Administrator has determined that such State agency has conformed to minimum standards of operation prescribed by the Federal Civil Defense Administrator for the disposal of surplus property. The provisions of sections 201 (b), 401 (c), 401 (e), and 405 of the Federal Civil Defense Act of 1950, as amended, shall apply to the performance by the Federal Civil Defense Administrator of his responsibilities under this section.

“(5) The Secretary of Health, Education, and Welfare and the Federal Civil Defense Administrator may impose reasonable terms, conditions, reservations, and restrictions upon the use of any single item of personal property donated under paragraph (3) or paragraph (4), respectively, of this subsection which has an acquisition cost of $2,500 or more.

“(6) The term 'State', as used in this subsection, includes the District of Columbia, the Commonwealth of Puerto Rico, and the Territories and possessions of the United States."

Sec. 2. (a) Clause (C) of paragraph (2) of subsection 203 (k) of such Act is amended by striking out the word "or" at the end thereof.

(b) Clause (D) of paragraph (2) of such subsection is amended by striking out the comma at the end thereof and inserting in lieu thereof a semicolon and the word “or”.

(c) Paragraph (2) of such subsection is amended by inserting, immediately after clause (D) thereof, as amended by this section, the following new clause:

“(E) the Federal Civil Defense Administrator, in the case of property transferred pursuant to this Act to civil defense organizations of the States or political subdivisions or instrumentalities thereof which are established

by or pursuant to State law,”. SEC. 3. Subsection 203 (n) of such Act is amended to read as follows:

"(n) For the purpose of carrying into effect the provisions of subsections (j) and (k), the Secretary of Health, Education, and Welfare, the Federal Civil Defense Administrator, and the head of any Federal agency designated by either such officer, are authorized to enter into cooperative agreements with State surplus property distribution agencies designated in conformity with paragraph (1) of subsection (j). Such cooperative agreements may provide for utilization by such Federal agency, without payment or reimbursement, of the property, facilities, personnel, and services of the State agency in carrying out any such program, and for making available to such State agency, without payment or reimbursement, property, facilities, personnel, or services of such Federal agency in connection with such utilization.”

SEC. 4. Subsection (h) of section 507 of the Federal Property and Administrative Services Act of 1949, as amended, as added by clause (3) of the joint resolution entitled “Joint resolution to provide for the acceptance and maintenance of Presidential libraries, and for other purposes”, approved August 12, 1955 (69 Stat. 697), is redesignated as subsection (i) of such section.

Sec. 5. (a) Except as provided by subsection (b), the amendments made by this Act shall become effective on the first day of the first month beginning after the date of enactment of this Act.

(b) In the case of any State which on the date of enactment of this Act has not designated a single State agency for the purpose of distributing surplus property pursuant to subsection 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended, transfers of such property may be made by the Administrator of General Services under such subsection, as amended by this Act, to any State agency or official authorized under State law to receive and distribute such property until ninety calendar days have passed after the close of the first regular session of the legislature of such State beginning after the date of enactment of this Act.

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Amend the title so as to read: "An Act to amend the Federal Property and Administrative Services Act of 1949, as amended, to authorize the disposal of surplus property for civil defense purposes, and for other purposes."

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[S. 3693, 84th Cong., 2d sess.] A BILL To amend further the Federal Property and Administrative Services Act of 1949,

as amended, to authorize the disposal of surplus property for civil defense purposes, to provide that certain Federal surplus property be disposed of to State and local civil defense organizations which are established by or pursuant to State law, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended (40 U. S. C. 484 (j)) is amended to read as follows:

“(j) (1) Under such regulations as he may prescribe, the Administrator is authorized in his discretion to donate without cost (except for costs of care and handling) for use in any state for purposes of education, public health, or civil defense, or for research for any such purpose, any equipment, materials, books, or other supplies (including those capitalized in a working capital or similar fund) under the control of any executive agency which shall have been determined to be surplus property and which shall have been determined under paragraph (2), (3), or (4) of this subsection to be usable and necessary for any such purpose. In determining whether property is to be donated under this subsection, no distinction shall be made between property capitalized in a working-capital fund established under section 405 of the National Security Act of 1947, as amended, or any similar fund, and any other property. No such property shall be transferred for use within any State except to the State agency designated under State Law for the purpose of distributing, in conformity with the provisions of this subsection, all property allocated under this subsection for use within such State.

“(2) In the case of surplus property under the control of the Department of Defense, the Secretary of Defense shall determine whether such property is usable and necessary for educational activities which are of special interest to the armed services, such as maritime academies or military, naval, Air Force, or Coast Guard preparatory schools. If such Secretary shall determine that such property is usable and necessary for such purposes, he shall allocate it for transier by the Administrator to the appropriate State agency for distribution to such educational activities. If he shall determine that such property is not usable and necessary for such purposes, it may be disposed of in accordance with paragraph (3) or paragraph (4) of this subsection.

“(3) Determination whether such surplus property (except surplus property allocated in conformity with paragraph (2) of this subsection) is usable and necessary for purposes of education or public health, or for research for any such purpose, in any State 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 to such State agency for distribution to (A) tax-supported medical institutions, hospitals, clinics, health centers, school systems, schools, colleges, and universities, and (B) other nonprofit medical institutions, hospitals, clinics, health centers, schools, colleges, and universities which are exempt from taxation under section 501 (c)(3) of the Internal Revenue Code of 1954. No such property shall be transferred to any State agency until the Secretary of Health, Education, and Welfare has received, from such State agency, a certification that such property is usable and needed for educational or public health 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.

“(4) Determination whether such surplus property (except surplus property allocated in conformity with paragraph (2) of this subsection) is usable and necessary for civil defense purposes, including research, in any State shall be made by the Federal Civil Defense Administrator, 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 civil defense organizations of such State, or political subdivisions and instrumentalities thereof, which are established pursuant to State law. No such property shall be transferred until the Federal Civil Defense Administrator has received from such State

agency a certification that such property is usable and needed for civil defense purposes in the State, and until the Federal Civil Defense Administrator has determined that such State agency has conformed to minimum standards of operation prescribed by the Federal Civil Defense Administator for the disposal of surplus property. The provisions of sections 201 (b), 401 (c), 401 (e), and 405 of the Federal Civil Defense Act of 1950, as amended, shall apply to the performance by the Federal Civil Defense Administrator of his responsibilities under this section.

“(5) The Secretary of Health, Education, and Welfare and the Federal Civil Defense Administrator may impose reasonable terms, conditions, reservations, and restrictions upon the use of any single item of personal property donated under paragraph (3) or paragraph (4), respectively, of this subsection which has an acquisition cost of $2,500 or more.

“(6) The term 'State', as used in this subsection, includes the District of Columbia, the Commonwealth of Puerto Rico, and the Territories and possessions of the United States."

Sec. 2. (a) Clause (C) of paragraph (2) of subsection 203 (k) of such Act is amended by striking out the word “or” at the end thereof.

(b) Clause (D) of paragraph (2) of such subsection is amended by striking out the comma at the end thereof and inserting in lieu thereof a semicolon and the word “or”.

(c) Paragraph (2) of such subsection is amended by inserting, immediately after clause (D) thereof, as amended by this section, the following new clause:

“(E) the Federal Civil Defense Administrator, in the case of property transferred pursuant to this Act to civil defense organizations of the States or political subdivisions or instrumentalities thereof which are established

by or pursuant to State law,". SEC. 3. Subsection 203 (n) of such Act is amended to read as follows:

“(n) For the purpose of carrying into effect the provisions of subsections (j) and (k), the Secretary of Health, Education, and Welfare, the Federal Civil Defense Administrator, and the head of any Federal agency designated by either such officer are authorized to enter into cooperative agreements with State surplus property distribution agencies designated in conformity with paragraph (1) of subsection (j). Such cooperative agreements may provide for utilizition by such Federal agency, without payment or reimbursement, of the property, facilities, personnel, and services of the State agency in carrying out any such program, and for making available to such State agency, without payment or reimbursement, property, facilities, personnel, or services of such Federal agency in connection with such utilization."

SEC. 4. Subsection (h) of section 507 of the Federal Property and Administrative Services Act of 1949, as amended, as added by clause (3) of the joint resolution entitled “Joint resolution to provide for the acceptance and maintenance of Presidential libraries, and for other purposes," approved August 12, 1955 (69 Stat. 697), is redesignated as subsection (i) of such section.

SEC. 5. (a) Except as provided by subsection (b), the amendments made by this Act shall become effective on the first day of the first month beginning after the date of enactment of this Act.

(b) In the case of any State which on the date of enactment of this Act has not designated a single State agency for the purpose of distributing surplus property pursuant to subsection 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended, transfers of such property may be made by the Administrator of General Services under such subsection, as amended by this Act, to any State agency or official authorized under State law to receive and distribute such property until ninety calendar days have passed after the close of the first regular session of the legislature of such State beginning after the date of enactment of this Act.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS STAFF MEMORANDUM No. 84-1-38,

DECEMBER 9, 1955 Subject: H. R. 7227 and S. 1527 to further amend the Federal Property and

Administrative Services Act of 1949, as amended, to authorize the donation of surplus property for civil-defense purposes.

BACKGROUND

H. R. 7227 passed the House of Representatives on July 29, 1955, and was referred to this committee during the closing days of the last session of Congress.

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The bill provides for amending section 203 of the Federal Property and Administrative Services Act of 1949, as amended, so as to authorize the donation of surplus personal property to civil-defense organizations of the States, political subdivisions and instrumentalities thereof which are established by or pursuant to State law.

Another bill (S. 1527) was introduced in the Senate on March 22, 1955, by Senator Hubert H. Humphrey, at the request of the Civil Defense Administrator, and referred to this committee. This bill would authorize the Administrator of General Services to donate surplus property for civil-defense purposes when it is determined by the Federal Civil Defense Administrator that the property is usable and needed for such purpose. Under this bill civil defense would be added as an eligible donee after health and education, and it was contemplated that all three groups would qualify on an equitable basis for Government-owned surplus property. Although the objectives of the two bills are similar, they differ in the following respect :

H. R. 7227 differs from S. 1527 in two important respects:

H. R. 7227 would place State and local civil-defense agencies in a favored position to receive donations of surplus property as compared to schools, colleges, hospitals, and clinics. Section 3 of the bill would authorize the Secretary of Defense to allocate surplus property peculiarly adaptable for civil-defense purposes to civil-defense organizations of special interest to the armed services. Such allocations would be made before the Secretary of Health, Education, and Welfare would have an opportunity to consider the property for possible donation to schools and hospitals, which means that donations for civil-defense purposes would have a priority over donations for health and education.

Furthermore, section 4 of H. R. 7227 would afford a second opportunity for allocations to civil-defense agencies by authorizing the Federal Civil Defense Administrator to make allocations of any property which might have been overlooked when the Secretary of Defense was making allocations or which might he in the custody of civilian agencies. Donations by the Federal Civil Defense Adninistrator would not be limited to items peculiarly adaptable to civildefense needs, but would include many items likely to be allocated for health or educational purposes.

These features of H. R. 7227 would require (1) a return to a system of priorities in which one group of claimants is favored over others and would produce the same insatisfactory results which caused a general repeal of statutes on disposal of surplus property in 1949; (2) it would be impossible to fix responsibility for proper administration and control of the donation program if both the Secretary of Defense and the Federal Civil Defense Administrator are authorized to make allocations to civil-defense organizations; and (3) it is doubtful wehther civil-defense agencies requesting property primarily for stockpiling purposes should, in every instance, have a priority over the current consumption requirements of schools, hospitals, and health centers. It is doubtful whether the language in section 3 of the bill limiting donations by the Secretary of Defense to items “peculiarly adaptable for civil defense" will solve these problems. In fact most of the items listed as examples in the House report on H. R. 7227 could also be utilized by health or educational activities, indicating an immediate conflict of interests.

H. R. 7227 contains language providing that surplus property carried in working capital funds is to be considered donable for civil defense as well as education and public health purposes on the same basis as other surplus property. This reflects clarification provisions approved by the committee, subsequent to the introduction of S. 1527, which resulted in the enactment of Public Law 61, approved June 3, 1955.

The recent amendment to the Property Act, Public Law 61, contains other provisions to which there are no references in H. R. 7227 or S. 1527. These include (1) a

ment that State agencies certify that property is needed for authorized purposes before donations are made; (2) removal of restrictions in the use of donated items costing $2,500 or less ; (3) authority for cooperative agreements between the Federal Government and State agencies responsible for obtaining and distributing surplus property; and (4) requirements for quarterly reports to the Congress showing acquisition cost and distribution of donated property among the States. Approval of H. R. 7227 or S. 1527 in their present form would result in the continued application of these policies, procedures, and controls to donations for education or health, but not to civil defense.

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