(c) Whenever negotiations are undertaken for disposal to nonprofit public health or educational organizations which are not instrumentalities of State or local governments of any surplus real property which cost the Government $1 million or more, the Department shall give notice to the Attorney General of the United States of the proposed disposal and the probable terms and conditions thereof. The applicant shall furnish to the Department such information and documents as the Attorney General may determine to be appropriate or necessary to enable him to give the advice as provided for by section 207 of the Act or to determine whether any other disposition or proposed disposition of the surplus real property violates the antitrust laws of the United States.

(d) Where an applicant proposes to acquire and use in place improvements located on land which the Government does not own, he shall be required, before disposal shall be consummated, to obtain a right to use the land commensurate with the duration of the restrictions applicable to the improvements. The applicant shall be required to assume, or obtain release of, the Government's obligations respecting the land including but not limited to such obligations as restoration, waste, and rent. At the option of the Department, the applicant may be permitted to post a bond to indemnify the Government against such obligations.

(e) The Department may require the inclusion on the transfer document of any other provision deemed desirable or necessary.

(f) Where an eligible applicant for an on-site transfer proposes to construct new, or rehabilitate old facilities, the financing of which must be accomplished through issuance of revenue bonds having terms inconsistent with the terms and conditions or transfer prescribed in § 12.9 (c), (d), and (e), the Department may, in its discretion, impose such alternate terms and conditions of transfer in lieu thereof as may be appropriate and effective to assure utilization of the

property for educational or public health purposes: Provided, however, That the right to repossess in the event of national emergency, as set forth in § 12.9 (c) (7) shall be reserved in every transfer.

§ 12.12 Utilization.

(a) Where property or any portion thereof is not being utilized for the purposes for which transferred, the transferee shall be required at the direction of the Department:

(1) To retransfer such property to other health or educational user as the Department may direct;

(2) To sell such property for the benefit and account of the United States; (3) To return title to such property to the United States; or

(4) To abrogate the conditions and restrictions of the transfer, as set forth in § 12.9 (d), except that where property has never been placed in use for the purposes for which transferred, abrogation will not be permitted except under extenuating circumstances.

(5) When the transferee is unable to construct the proposed facilities on land conveyed under the deferred use plan, it may purchase the land as set for in § 12.10 (f).

(b) Where the transferee desires to place the property in temporary use for a purpose other than that for which the property was transferred, approval of the Department must be obtained, and will be conditioned upon such terms as the Department may impose, including but not limited to the requirement that net revenues therefrom will be payable to the Department.

1 This public benefit allowance applies only to surplus real property being sold for on-site use. When surplus real property is to be moved from the site, a basic public benefit allowance of 95 percent will be granted to educational institutions for any educational use authorized by regulations and defined by implementing procedures except for School Outdoor Education where a 50-percent public benefit allowance will be granted.

2 Applicable when this is the primary use to be made of the property. The public
benefit allowance for the overall educational program is applicable when such facilities
are conveyed as a minor component of other facilities.

3 The maximum allowance available to eligible private, nonprofit institutions.
Tax supported institutions receive 100-percent allowance.

50

50

50

2 100

EXHIBIT B-Department OF HEALTH, EDUCATION, AND WELFARE-Office of SURPLUS PROPERTY UTILIZATION PUBLIC BENEFIT ALLOWANCE FORMULA FOR TRANSFER OF REAL PROPERTY FOR HEALTH PURPOSES I

This public benefit allowance formula applies only to surplus real property being sold for on-site use. When surplus real property is to be moved from the site, a basic public benefit allowance of 95 percent will be granted to health institutions in the purchase of such real property for any health use authorized by regulations and

30

10

10

10

10

100

30

100

30

defined by implementing procedures except water systems and facilities therefor
where a 50-percent public benefit allowance will be granted.

2 Applicable when this is the primary use to be made of the property. The public
benefit allowance for the overall health program is applicable when such facilities
are conveyed as a minor component of other facilities.

(a) "Act" means the Federal Property and Administrative Services Act of 1949, Public Law 152, 81st Congress (63 Stat. 377), as amended (40 U.S.C. 471 et seq.). Terms defined in the Act and not defined in this section, shall have in this part the meaning given to them in the Act.

(b) "Accredited" means approval by a recognized accrediting board or association on a regional, State, or National level such as a State Board of Education or Health, a regional or national accrediting association for universities, colleges, or secondary schools, the American Hospital Association, etc.

(c) "Approved" means recognition and approval by the State Department of Education, State Department of Health, or other appropriate authority. With respect to an educational institution, such approval must relate to academic or instructional standards. An educational institution may be considered as approved if its credits are accepted by accredited or State approved institutions, or if it meets the academic or instructional standards prescribed for public schools in the State.

(d) "Civil defense organization" means the official organization established by or pursuant to State law as being responsible for the civil defense program for such State, or political subdivisions and instrumentalities thereof. This term does not include a "State agency" as defined in paragraph (cc) of this section.

(e) "Clinic" means an approved facility organized and operated for the primary purpose of providing outpatient health services and includes the customary related facilities such as laboratories, treatment rooms, etc.

(f) "College" means an approved or accredited institution of higher learning offering organized study courses and credits leading to the baccalaureate or higher degrees.

(g) "Department" means the Department of Health, Education, and Welfare.

(h) "Donable property" means surplus equipment, materials, books, or other supplies under the control of any executive agency (including surplus property in working capital funds established pursuant to 10 U.S.C. 2208 or in similar management-type funds) except:

(1) Such property as may be specified from time to time by the Administrator of General Services;

(2) Surplus agricultural commodities, food, and cotton or woolen goods determined from time to time by the Secretary of Agriculture to be commodities requiring special handling in order to assist him in carrying out his responsibilities with respect to price support or stabilization;

(3) Property in trust funds.

(i) "Donated property" means equipment, materials, books and other personal property transferred to eligible institutions or organizations pursuant to the provisions of section 203 (j) of the Act and implementing regulations.

(j) "Donee" means an eligible applicant who is a recipient of donable property.

(k) "Educational institution" means a tax-supported or nonprofit school system, school, college, university, school for the mentally retarded, school for the physically handicapped, radio or television station licensed by the Federal Communications Commission as an educational radio or an educational television station, and public libraries. School systems, schools, colleges, and universities must be approved or accredited.

(1) "Eligible applicant" means (1) a civil defense organization as defined in paragraph (d) of this section, (2) an approved or accredited tax-supported or nonprofit medical institution, hospital, clinic, health center, school system, school, college, or university, or (3) a tax-supported or nonprofit school for the mentally retarded, school for the physically handicapped, a radio station or a television station licensed by the Federal Communications Commission as an educational radio or an educational television station, or a public library. Nonprofit organizations must be exempt from taxation under section 501(c) (3) of the Internal Revenue Code of 1954.

(m) "Health center" means an approved facility utilized by a health unit for the provision of public health services, including related facilities such as laboratories and clinics.

(n) "Hospital" means an approved or accredited institution providing health services primarily for inpatient medical or surgical care of the sick or injured and includes related facilities such as laboratories, outpatient departments, training facilities, central services facilities, and staff offices which are an "integral part" of the hospital. The term "hospital" does not include institutions whose primary purpose is the furnishing of domiciliary care.

(o) "Medical institution" means an approved or accredited institution, facility, entity or organization which has for its primary function the provision of medical services, or the promotion of health through the conduct of research, investigations, experiments, training and demonstrations, relating to causes, prevention, and methods of diagnosis and treatment of diseases or injuries; the term includes hospitals, clinics, research and health centers, laboratories, medical, dental, and nursing schools, and similar institutions, but does not include those primarily engaged in domiciliary care.

(p) "Motor vehicles" means property in Federal Supply Classification Group 23.

(q) "Need" means a requirement for anything usable and necessary by eligible applicants in the conduct of educational, public health, or civil defense activities.

(r) "Nonprofit" used in connection with a medical institution, hospital, clinic health center, school, college, university, school for the mentally retarded, school for the physically handicapped,

or an educational television or educational radio station licensed by the Federal Communications Commission means one which is operated by one or more nonprofit corporations or associations, no part of the net earning of which inures or may lawfully inure to the benefit of any private shareholder individual, and which has been held by the Internal Revenue Service to be tax-exempt under the provisions of section 501(c) (3) of the 1954 Internal Revenue Code.

(s) "Personal property" means surplus property of any kind or any interest therein, except: Real property, records of the Federal Government and naval vessels of the folowing categories: "Battleships, cruisers, aircraft carriers, destroyers, and submarines; and merchant vessels of 1,500 gross tons or more subject to disposal by the U.S. Maritime Commission."

(t) "Public library" means a library that serves free all residents of a community, district, State, or region, and receives its financial support in whole or in part from public funds.

(u) Radio-"Educational radio station" means a radio station licensed by the Federal Communications Commission and operated exclusively for noncommercial educational purposes and the licensee of which is tax-supported or nonprofit and tax-exempt under section 501(c)(3) of the Internal Revenue Code of 1954.

(v) "Reimbursement to donees" means those costs and expenses for which the donee may recover monies from the proceeds of the sale of restricted donated items. These include (1) in such prorated amount, based on use, as may be prescribed by the Department (i) the certified costs of initially acquiring the property; (ii) the rehabilitation costs incurred in initially placing the property into operable condition; (2) the actual costs of listing and lotting property for sale; and (3) the actual costs of advertising the property when authorized by the Regional Representative to conduct the sale.

(w) "Reimbursement to State Agencies" means those costs and expenses for which the State Agency may recover monies from the proceeds of the sale of undistributed surplus property in the custody of the State Agency. These include only those costs of listing and lotting the property which are incurred subsequent to GSA authorization of the sales action, plus the actual cost of ad