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(2) by striking out subparagraph (A) and subparagraph (B) in the subparagraph so redesignated as subparagraph (D) and inserting in lieu thereof "subparagraphs (A), (B), and (C)"; and

(3) 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 in the promotion of public recreation, the Secretary, through such officers and employees of the Department of Health, Education, and Welfare as he may designate, may sell or lease such real property for public recreation purposes to tax-supported public recreation agencies of any State or of any political subdivision of a State." (c) Paragraph (2) of such section 203 (k) is amended by striking out "or" at the end of subparagraph (D), by striking out the comma at the end of subparagraph (E) and inserting in lieu thereof "; or", and by inserting immediately after subparagraph (E) the following new subparagraph:

"(F) The Secretary of Health, Education, and Welfare, through such officer or employee of the Department as he may designate, in the case of property transferred pursuant to this Act to tax-supported public recreation agencies of any State or of any political subdivision of a State for use in the promotion of public recreation.".

SEC. 3. Section 203 (o) of such Act of 1949, as amended (40 U.S.C. 484(0)), is amended by striking out "educational or public health institutions" and inserting in lieu thereof "educational or public health institutions, or public recreation agencies,”.

[S. 2103, 86th Cong., 1st sess.]

A BILL To provide that surplus personal property of the United States may be donated to the States for the promotion of fish and wildlife management activities, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in order to promote fish and wildlife management and development activities by the States in cooperation with the Federal Government in furtherance of the Federal Aid in Wildlife Restoration Act of September 2, 1937 (50 Stat. 917; 16 U.S.C. 669), the Federal Aid in Fish Restoration Act of August 9, 1950 (64 Stat. 430; 16 U.S.C. 777), the Fish and Wildlife Act of 1956, approved August 9, 1956 (70 Stat. 1119; 16 U.S.C. 742(a)), and the Fish and Wildlife Coordination Act, as amended, approved August 12, 1958 (72 Stat. 563; 16 U.S.C. 661), and other enactments relating to fish and wildlife management and development activities, the Administrator of General Services is authorized, in his discretion and pursuant to such regulations as he may prescribe, to donate without cost, except for direct costs of care and handling, for fish and wildlife management and development purposes, to the States, Territories, and possessions, or to appropriate agencies thereof, such equipment, materials, supplies, or other personal property under the control of any Executive agency as shall have been determined by the Administration of General Services to be surplus Federal property in accordance with established procedures relating thereto. A determination as to whether the particular surplus properties available for transfer hereunder are usable and desirable for the purposes of this Act shall be made by the Secretary of the Interior, who shall allocate such property on the basis of needs and prospective use prior to the transfer thereof by the Administrator of General Services to the said States, Territories, and possessions.

[S. 2043, 86th Cong., 1st sess.].

À BILL To authorize the disposal of surplus equipment, materials, books, and supplies under section 203 (j) of the Federal Property and Administrative Services Act of 1949 to the New Mexico Boys' Ranch

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purposes of section 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 484), the New Mexico Boys' Ranch, a nonprofit organization affiliated with the

Valencia County, New Mexico, school system, shall be deemed to be a tax-supported school, and its purposes shall be deemed to be educational, within the meaning of such section.

[S. 2198, 86th Cong., 1st sess.]

A BILL To amend the Federal Property and Administrative Services Act of 1949 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 203 (j) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484) is amended by the addition of the following:

"(7) Surplus property to which American educational organizations are eligible for performing educational work, including research, may be taken to foreign countries where such organizations are working among underprivileged tribal groups pursuant to contract agreements under such foreign country".

[S. 2244, 86th Cong., 1st sess.]

A BILL To amend the Federal Property and Administrative Services Act of 1949, as amended, to promote the welfare of the Indian tribes by making available to them surplus personal property

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That Section 203 of the Federal Property and Administrative Services Act of 1949, as amended, is further amended by adding to the end thereof the following subsection:

"(p) 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) surplus personal property (including property capitalized in a working capital or similar fund) to any Indian tribe, band, or group under Federal supervision: Provided, That the Secretary of the Interior shall first have de termined that such property is needed by such tribe, band, or group for an ap proved program, and that tribal funds cannot reasonably be made available for the acquisition of such property."

[S. 2270, 86th Cong., 1st sess.]

A BILL To improve the administration of transfers of certain real property for wildlife or other purposes by repealing the Act of May 19, 1948, and incorporating the essential provisions thereof in the Federal Property and Administrative Services, Act of 1949, as amended

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act of May 19, 1948 (62 Stat. 240, ch. 310) is hereby repealed.

SEC. 2. (a) Paragraph (C) of subsection (k) (2) of section 203 of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 484), is hereby amended to read as follows:

"(C) The Secretary of the Interior, in the case of property transferred (i) pursuant to the Surplus Property Act of 1944, as amended, and pursuant to this Act, to States, political subdivisions, and instrumentalities thereof, and municipalities for use as a public park, public recreational area, or historic monument for the benefit of the public, and (ii) pursuant to subsection (p) of this section, to a State agency charged with the administration of the wildlife resources of that State for use in the conservation of wildlife not relating to migratory birds;".

(b) Section 203 of such Act is further amended by adding at the end thereof the following new subsection:

"(p) (1) Whenever the Secretary of the Interior determines that any surplus real property is useful for the purpose of wildlife conservation, and the Administrator after consultation with the Secretary of the Interior determines that such property is chiefly valuable for that purpose, the Administrator is authorized in his discretion, under such regulations as he may prescribe, to transfer that property without reimbursement or transfer of funds (and in the dis

cretion of the Administrator with or without any improvements situated there on) to

"(A) the Secretary of the Interior, if the Secretary determines that such property has particular value for the purpose of carrying out the national migratory bird management program; or

"(B) if he does not so determine, to the agency of a State within which that property is situated charged with the administration of the wildlife resources of that State for use in the conservation of wildlife other than migratory birds.

"(2) Each transfer of surplus property to any State agency under this subsection shall be made subject to the following terms, conditions, reservations, and restrictions:

"(A) All property so transferred shall be used and maintained for the purpose for which it was conveyed;

"(B) Upon determination by the Administrator that it is in the interest of the United States, all oil, gas, and mineral rights with respect to that property shall be reserved to the United States for separate transfer or disposal under this Act;

"(C) During any national emergency declared by the President or by the Congress, the United States shall have the right to make exclusive or nonexclusive use of the property and shall have exclusive or nonexclusive control and possession thereof without charge;

"(D) Such additional terms, conditions, reservations, and restrictions as the Administrator may determine to be necessary to safeguard the interests of the United States; and

"(E) Upon failure of the transferee to comply with any of the terms, conditions, reservations, or restrictions of the transfer, all of the property so transferred, or any portion thereof, shall, at the option of the United States, revert to the United States in its then existing condition."

[S. 2367, 86th Cong., 1st sess.]

A BILL To provide that certain surplus property of the United States may be donated for park or recreational purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 13 (h) (2) of the Surplus Property Act of 1944, as amended (50 App. U.S.C., sec. 1622(h) (2)), is amended by striking out the first sentence thereof, and so much of the second sentence thereof as precedes the colon, and inserting the following: "Conveyances of property under this subsection for park or recreational purposes, and for historic-monument purposes, shall be made without monetary consideration".

[S. 2442, 86th Cong., 1st sess.]

A BILL To provide for the disposition of surplus personal property to the government of Alaska

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act entitled "An Act to provide for the disposition of surplus personal property to the Territorial government of Alaska," approved August 24, 1954 (68 Stat. 794), as amended by the Act of August 1, 1956 (70 Stat. 918), is amended by striking out "until December 31, 1958" where it appears in the first section, and by striking out "Territorial" where it appears in the first section and title.

Memorandum to Senator Gruening.

JULY 27, 1959.

Subject: Bills providing for extension for provisions for donation of surplus
Federal property.

I. PRESENT LEGISLATION GOVERNING DONATION OF FEDERAL SURPLUS PERSONAL

PROPERTY

Section 203 (j) of the Federal Property and Administrative Services Act now governs the disposal of donable surplus personalty of the Federal Government.

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Under provisions of this law, surplus Federal property may be donated 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. II. PRESENT LAW GOVERNING DISPOSAL OF SURPLUS FEDERAL REAL PROPERTY TO STATES

Section 203 (k) of the Federal Property and Administrative Services Act provides for the sale or lease of surplus real property for education and public health purposes. In effect, this provision frequently allows the virtual donation of real property due to the inclusion in section 203(k) (1) (C) of a provision which allows the Secretary of Health, Education, and Welfare to take into consideration any benefit which has accrued or may accrue to the United States from the use of such property by the State, county, or city to which it is transferred. In effect, this has resulted in transferring real property to local agencies at prices which are very much less than the actual value of the property.

Section 13(g) of the Surplus Property Act of 1944 provides for the donation of surplus real and personal property to the States, counties, cities or tax-supported institutions for airport purposes.

Section 13 (h) of the Surplus Property Act of 1944 provides for the transfer to States, cities, and State instrumentalities of surplus real property, including improvements and equipment located thereon, which in the determination of the Secretary of Interior is suitable and desirable for use as a public park, public recreational area, or historic monument.

This provision requires that the conveyance be made at a price equal to 50 percent of the fair value of the property conveyed, unless the location is to serve as an historic monument, in which case it may be conveyed without consideration.

Public Law 537 of the 80th Congress authorized the conveyance to the States of real property, without reimbursement or transfer of funds when such property is found to be chiefly valuable for wildlife conservation puposes. Under this law, if the Secretary of Interior finds that the property has particular value in carrying out the national migratory bird management program, such property would be transferred to the Secretary of the Interior for this purpose.

NOTE. This is the law which the General Services Administration wishes to have amended in accordance with the bill, S. 2270, which has been introduced at the request of that agency. This bill would repeal the existing law and conform its provisions with other procedures now established under the Federal Property and Administrative Services Act.

III. PROCEDURE FOR DONATION OF SURPLUS PROPERTY

The Department of Health, Education, and Welfare is the agency responsible for controlling the disposition of property donated for health and education purposes. By delegation from the OCDM, the Department is also responsible for the administration of the donable property program for civil defense.

The program is operated in cooperation with the State surplus property disposal agencies, and the Federal and State agencies work very closely together. The State surplus property disposal agencies have staffs of screeners who keep themselves constantly informed of the probable availability of surplus property and the needs for it of local health, education, and civil defense organizations. The procedure for disposing of donable property is as follows:

(1) Federal agencies having personal property which is not needed report its availability to the General Services Administration.

(2) The GSA supplies information concerning excess property to all other executive agencies.

(3) If any agency can use property which is excess to the needs of another, the agency will receive the excess subject to reimbursement of the donor agency for the value of property received.

(4) In the event no other Federal agency can use property which is excess to a particular agency, it is then declared surplus and may be available for donation for health, education, and civil defense purposes.

(5) The State surplus property disposal agencies send requests on forms provided by the Department of Health, Education, and Welfare, listing types of property which are needed and usable in their States. Upon receipt of notices by HEW of the availability of surplus property matching the requirements of

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the States, the surplus property is required to be held by the disposing agencies for transfer to a State surplus property officer.

(6) The State agency is responsible for picking up the surplus property to which it is entitled from the disposing agency.

(7) The State agency ordinarily transfers the property to warehouses where it is held for inspection and selection by local health, education, and civil defense groups.

(8) The local groups select the property they can use from supplies available at the State warehouse and make arrangements for transporting it to its ultimate destination. At the time the local agency takes the surplus property, a form prescribed by HEW is completed to show the withdrawal of the property from the warehouse.

(9) Title of property having acquisition cost of $2,500 or less remains in the Federal Government until transfer to the ultimate donee in the State. In the case of any single item of personal property having an acquisition cost of $2,500 or more, the Secretary of Health, Education, and Welfare and the Federal Civil Defense Administrator are empowered to impose reasonable terms, conditions, reservations, and restrictions on use. Thus, in the case of the transfer of single items costing more than $2,500, the conveyance to the State agency is conditioned on the performance of prescribed terms.

IV. ACCOUNTABILITY FOR SURPLUS PROPERTY

Under existing procedures, the Federal Government maintains no effective system of accounting for surplus property having a single-item acquisition value of less than $2,500 after the property is transferred to State disposal agencies. There is, under present regulations, no way of accurately determining the amount of surplus property held in various State warehouses.

V. DISPOSAL OF NON REPORTED PROPERTY

Under section 202(h) of the Federal Property and Administrative Services Act, the General Services Administrator may authorize other Federal agencies to abandon, destroy, or donate to public bodies property which has no commercial value or property having a sale value which is less than the estimated cost of continued care and handling. There appears to be no accurate accounting at this time of the quantity of property of which disposal is made under this provision. An estimate has been received that the amount of property which is disposed of in this manner is considerably greater than the quantity distributed through the other program for donation of surplus property provided for by section 203 of the Federal Property and Administrative Services Act.

VI. MAJOR CONSIDERATIONS TO BE DETERMINED IN HEARINGS ON DONABLE PROPERTY BILLS

(1) What is the actual quantity of surplus property now available?
(2) What is the estimate of property which may become available?
(3) What is the rate of utilization of property declared surplus?
(a) How much property is in State warehouses?

(b) How much turnover of surplus property occurs with respect to property transferred to State warehouses?

(4) What administrative problems would be created by the addition of qualified donees beyond those now eligible as health, education, and civil defense agencies?

(5) Is it necessary to establish a system of priorities if additional qualified donees are included in the law?

(6) Is there sufficient generation of surplus property to provide for additional donees?

(7) If there is property available in addition to that now utilized by presently eligible donees, how should additional donees be selected?

(8) Should procedures be established to account for surplus property items during the time they are in the hands of State surplus property disposal agencies?

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