EXPANSION OF DONABLE PROPERTY PROGRAM WEDNESDAY, JULY 29, 1959 U.S. SENATE, SPECIAL SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, D.C. The special subcommittee met, pursuant to call at 10:30 a.m., in room 3302, New Senate Office Building, Senator Ernest Gruening (chairman of the subcommittee) presiding. President: Senators Gruening and Muskie. Also present: Walter L. Reynolds, chief clerk and staff director; Ann M. Grickis, assistant chief clerk; Glenn K. Shriver, professional staff member. Senator GRUENING. The meeting will please come to order. On June 18, 1959, the chairman of the Committee on Government Operations appointed a special subcommittee to consider a number of bills providing for amendment of the Federal Property and Administrative Services Act of 1949, and asked me to serve as chairman for the purpose of holding hearings. As of this moment, there are 12 bills before this subcommittee proposing a change in the law so as to authorize the donation of Government surplus to a number of additional using activities. These bills provide for donating surplus property to: (1) tax supported and publicly owned libraries; 1 (2) agencies engaged in cooperative agricultural extension work; 2 (3) to volunteer firefighting organizations; (4) to certain welfare agencies; (5) to public recreation agencies; 5 (6) for the promotion of fish and wildlife activities; (7) to the New Mexico Boys' Ranch; (8) to Indian tribes; 8 (9) to take property outside of the United States for health and educational use, and (10) to authorize the disposal of surplus personal property to the government of Alaska.10 9 7 6 I understand that the Committee on Government Operations or a duly authorized subcommittee thereof has received numerous requests for broadening the donation provisions of the property act, and have held hearings on such proposals in 1949, 1954, and 1956. The committee again reviewed the program in 1958, and concluded that if additional donees were made eligible, there would not be 1 S. 155. p. 2. 2 S. 1018, p. 2. 3 S. 1210, p. 4. 4 S. 1365, p. 5. S. 1766, p. 5; S. 2367, p. 8. S. 2103, p. 6; S. 2270, p. 7. 7 S. 2043, p. 6. 8 S. 2244, p. 7. S. 2198, p. 7. 10 S. 2442, p. 8. 1 enough property available to meet the minimum needs of education, health, and civil defense activities. As most of you know, this program has been in existence for a long time and has accomplished a great deal of good in our crowded schools, and colleges, during the postwar period; for this reason I shall not attempt to prolong this discussion by reviewing the legislative background of the program. A résumé of the surplus property donation program has already been prepared and is contained in a number of memorandums which were prepared by the staff. At this time, I shall insert in the record a copy of each bill before this special subcommittee, together with a memorandum dated July 27, 1959, and staff memorandums Nos. 85-1-16, 86-1-23, 86-1-25, and 86-1-42. (The bills and staff memorandums referred to follow :) [S. 155, 86th Cong., 1st sess.] A BILL To amend the Federal Property and Administrative Services Act of 1949 so as to permit donations of surplus property to libraries which are tax supported or publicly owned and operated Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) paragraph (1) of subsection (j) of section 203 of the Federal Property and Administrative Services Act of 1949 is amended by inserting immediately after "public health," the following: "public information,". (b) Paragraph (3) of such subsection is amended (1) by striking out "or public health" wherever it appears in such paragraph and inserting in lieu thereof ", public health, or public information", (2) by striking out "and (B)" and inserting in lieu thereof "(B)", and (3) by inserting immediately before the period at the end of the first sentence of such paragraph the following: ", and、 (C) libraries which are tax supported or publicly owned and operated". [S. 1018, 86th Cong., 1st sess.] A BILL To authorize the donation of surplus property to certain agencies engaged in cooperative agricultural extension work, and for other purposes 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 (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 any of the purposes specified hereinafter any equipment, material, books, or other supplies (including those capitalized in a working capital or similar fund) under the control of any executive agency which has been determined to be surplus property and, in accordance with the provisions of this subsection, to be usable and necessary for such purpose. Donations under this subsection may be made for purposes of― "(A) education; “(B) public health; “(C) civil defense; 66 '(D) cooperative agricultural extension work; and "(2) 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. "(3) 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 (4), (5), or (6) of this subsection. "(4) Determination whether such surplus property (except surplus property allocated in conformity with paragraph (3) 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. "(5) Determination whether such surplus property (except surplus property allocated in conformity with paragraph (3) 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 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. "(6) Determination whether such surplus property is usable and necessary for cooperative agricultural extension work or research therefor in any State shall be made by the Secretary of Agriculture, 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 agencies within such State which are engaged in cooperative agricultural extension work conducted in accordance with the Act of May 8, 1914, as amended (7 U.S.C. 341-348). No such property shall be so transferred until the Secretary of Agriculture has received from such State agency a certification that such property is usable and needed for such cooperative agricultural extension work in the State, and until the Secretary of Agriculture has determined that such State agency has conformed to minimum standards of operation prescribed by the Secretary of Agriculture for the disposal of surplus property under this subsection. "(7) The Secretary of Health, Education, and Welfare, the Federal Civil Defense Administrator, and the Secretary of Agriculture may impose reasonable terms, conditions, reservations, and restrictions upon the use of any single item of personal property donated under paragraph (4), paragraph (5), or paragraph (6), respectively, of this subsection which has an acquisition cost of $2,500 or more. "(8) 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) Notwithstanding any provision of the Federal Property and Administrative Services Act of 1949, any equipment, materials, books, or other supplies (whether or not capitalized in a working-capital or similar fund) of the Post Office Department or the General Services Administration which are excess property and the custody of which has been transferred heretofore to any State or county agency engaged in cooperative agriculture extension work pursuant to the Act of May 8, 1914, as amended (7 U.S.C. 341-348), for the use of such agency, may be donated to such agency without cost by the Postmaster General or the Administrator of General Services, respectively. (b) As used in this section, the term "excess property" shall have the meaning given thereto by section 3(e) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 472). [S. 1210, 86th Cong., 1st sess.] A BILL To amend the Federal Property and Administrative Services Act of 1949 to permit donations of surplus property to volunteer fire-fighting organizations, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the first sentence of section 203 (j) (1) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C., sec. 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 without cost (except for direct 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, or for the purpose of aiding in the protection of life and property by volunteer firefighting organizations, 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.' (b) The last sentence of section 203 (j) (1) of such Act is amended by inserting before the period at the end thereof the following: except that notwithstanding a State agency is not designated under State law for the purpose of distributing property for use by volunteer fire-fighting organizations, such property may be transferred to such State agency for use for purposes of education, public health, or civil defense, or for research for any such purpose". SEC. 2. (a) The first sentence of section 203 (j) (3) of such Act (40 U.S.C., sec. 484 (j) (3) is amended to read as follows: "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, or for the purpose of aiding in the protection of life and property by volunteer fire-fighting organizations, 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, (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, or (C) to any incorporated or unincorporated volunteer fire department, fire company, or other similar fire-fighting organization which is tax supported or has been held exempt from taxation under section 501 of the Internal Revenue Code of 1954." (b) The second sentence of section 203 (j) (3) is amended by inserting "or for the purpose of aiding in the protection of life and property by volunteer fire-fighting organizations in the State," after "in the State.". SEC. 3. Section 204(k) (2) of such Act (40 U.S.C., sec. 484 (k)) is amended by striking out "or" at the end of clause (D), by striking out the comma at the end of clause (E) and inserting in lieu thereof "; or", and by inserting immediately after clause (E) the following new clause: "(F) the Secretary of Health, Education, and Welfare, through such officers or employees of the Department of Health, Education, and Welfare as he may designate, in the case of property transferred pursuant to this Act to volunteer fire-fighting organizations for aiding in the protection of life and property by such organizations,". SEC. 4. Section 203 (o) of such Act 40 U.S.C., sec. 484 (n)) is amended by inserting "or volunteer fire-fighting organizations" after "educational or public health institutions". [S. 1365, 86th Cong., 1st sess.] A BILL To amend the Federal Property and Administrative Services Act of 1949 to authorize the disposal of surplus property to certain welfare agencies Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph (1) of subsection (j) of section 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C., sec. 484), is amended by inserting immediately after "or for research for any such purpose" the following: ", or for utilization by welfare or recreation agencies". SEC. 2. Paragraph (3) of such subsection (j) is amended (1) by inserting immediately after "or for research for any such purpose" the following: ", or for utilization by welfare or recreation agencies"; (2) by striking out "and (B)" and inserting "(B)"; and (3) by inserting immediately after "Internal Revenue Code of 1954" the following: ", and (C) welfare or recreation agencies". SEC. 3. Paragraph (2) of subsection (k) of such section 203 is amended— (1) by striking out "or" at the end of subparagraph (D); (2) by striking out "law," in subparagraph (E) and inserting in lieu thereof "law; or"; and (3) by inserting immediately after such subparagraph (E) the following: "(F) the Secretary of Health, Education, and Welfare, in the case of property transferred pursuant to this Act to welfare or recreation agencies-". SEC. 4. Such section 203 is further amended by adding at the end thereof the following new subsection: "(p) As used in this section, the term 'welfare or recreation agencies' means tax-supported or tax-exempt welfare or recreation agencies which serve people in institutions and in groups, but in the case of any such agency which is a tax-exempt voluntary agency, includes only an agency which meets at least one of the following criteria "(1) such agency is licensed by a State standard-setting agency; "(2) such agency receives funds through a State or local community fund or similar federated fund-raising body; or "(3) such agency is affiliated with, or is a part of, a national standardsetting organization." [S. 1766, 86th Cong., 1st sess.] A BILL To amend the Federal Property and Administrative Services Act of 1949 to permit the donation and other disposal of property to tax-supported public recreation agencies Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) paragraph (1) of section 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C., sec. 484(j)), is amended by insertion "public recreation," immediately after "public health,". (b) The first sentence of paragraph (3) of section 203 (j) of such Act of 1949, as amended, is amended (1) by striking out "or public health," and by inserting in lieu thereof ", public health, or public recreation,”, (2) by striking out "and (B)" and inserting in lieu thereof “(B)”, and (3) by inserting immediately before the period at the end thereof the following: "and (C) tax-supported public recreation agencies of any State, or of any political subdivision of a State.". SEC. 2. (a) The first sentence of paragraph (1) of section 203 (k) of such Act of 1949, as amended (40 U.S.C., sec. 484 (k)), is amended by inserting before the period at the end thereof a comma and by following: "or for use in the promotion of public recreation". (b) Paragraph (1) of such section 203 (k) is further amended (1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), |