EXHIBIT B.-DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, OFFICE OF SURPLUS PROPERTY UTILIZATION 1 This public benefit allowance applies only to surplus real property being sold for onsite use. When surplus real property is to be moved from the site, a basis public benefit allowance of 100 percent will be granted. 2 Applicable when this is the primary use to be made of the property. The public benefit allowance for the overall program is applicable when such facilities are conveyed as a minor component of other facilities. [36 F.R. 14134, July 30, 1971] PART 13-ALLOCATION AND UTILIZATION OF SURPLUS PERSONAL PROPERTY FOR EDUCATIONAL, PUBLIC HEALTH, AND CIVIL DEFENSE PURPOSES Sec. 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 Definitions. Geographic scope. Allocation of donable property. State Agency agreements. Certifications and agreements respect- Terms and conditions applicable to Additional terms and conditions. AUTHORITY: The provisions of this Part 13 issued under sec. 203, 63 Stat. 385, as amended, 70 Stat. 493; 40 U.S.C. 484; 76 Stat. 805. SOURCE: The provisions of this Part 13 appear at 32 F.R. 4572, Mar. 28, 1967, unless otherwise noted. (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. (0) "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 proIceeds 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 vertising in those cases where the State Agency is requested to conduct the sale. (x) "School" (excepting schools for the "mentally retarded and schools for the physically handicapped") means an approved or accredited organizational entity devoted primarily to approved academic, vocational, or professional study and instruction, which operates primarily for educational purposes on a full-time basis for a minimum school year and employs a full-time staff of qualified instructors. (y) "School for the mentally retarded" means a facility or institution operated primarily to provide specialized instruction to students of limited mental capacity. It must be tax-supported or nonprofit and exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954. It must operate on a full-time basis for the equivalent of a minimum school year prescribed for public school instruction of the mentally retarded, with a staff of qualified instructors, and demonstrate that the facility meets the health and safety standards of the State or local governmental body. (z) "School for the physically handicapped" means a school organized primarily to provide specialized instruction to students whose physical handicaps necessitate individual or group instruction. The school must be tax-supported or nonprofit and exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954. Such a school must operate on a full-time basis for the equivalent of a minimum school year prescribed for public school instruction for the physically handicapped, with a staff of qualified instructors, and demonstrate that the facility meets the health and safety standards of the State or local governmental body. (aa) "School system" means a group of approved or accredited tax-supported schools operated under one administrative organization. (bb) "Secretary" means the Secretary of Health, Education, and Welfare. (cc) "State agency" means the agency designated by State statute or Executive order to make the certifications concerning and distribution of donable property to eligible applicants within the State, as provided for in section 203(j) of the Act. (dd) "State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a Territory or possession of the United States. (ee) "Tax-supported" used in connection with a medical institution, hospital, clinic, health center, school, school system, college, university, school for the mentally retarded, school for the physically handicapped, or an educational television station or educational radio station licensed by the Federal Communications Commission means one which receives a major portion of its financial support from monies derived from State or local government revenues. (ff) Television-"Educational television station" means a television 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. (gg) “University” means an approved or accredited institution for instruction and study in the higher branches of learning and which is empowered to confer degrees in special departments or colleges. § 13.2 Basic policy. It is the policy of the Department to strengthen and encourage the development and expansion of educational and public health programs and to promote a state of civil defense operational readiness by the equitable allocation among the States of donable property for educational, public health, and civil defense purposes, and the assuring thereafter of its maximum utilization for these purposes. § 13.3 Geographic scope. This part is applicable to donable personal property located, needed and usable within the continental United States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States. where the particular important need is evidenced by a justification accompanying the expression of need. (c) Extraordinary needs occasioned by disasters. (d) The quantity of property of the type under consideration, which was previously allocated to or is potentially available to a State agency from a more advantageous point. (e) Performance of State agencies in effecting timely pickup of property. (f) Equity in allocation based on ratio of population and per capita income. [33 F.R. 17786, Nov. 28, 1968] § 13.5 Donations of personal property. (a) Donations of personal property are authorized by the Administrator of General Services upon determination by the Department that the property applied for is usable and necessary for educational, public health, or civil defense purposes, including research for any such purpose. Property is allocated by the Department to State Agencies on the basis of need and utilization. All applications for property shall be made by State Agencies on Standard Form 123, "Application for Donation of Surplus Personal Property." Applications shall indicate that pickup will be made by or that shipment will be made to either a State Agency or an eligible donee. In its application, the State Agency shall make the certifications as provided in § 13.6(a) and shall agree to the terms and conditions as provided in §§ 13.7 and 13.11. When property is to be picked up by or shipped to a donee, in addition to the certifications made by the State Agency as above provided, the donee shall make the certifications as provided in § 13.6(b). The donee shall also indicate the purpose for which the property is being acquired and shall agree to the applicable terms and conditions as provided in §§ 13.9, 13.10, and 13.11. Prior to the release of property by the holding agency to a State Agency or donee, the Department must certify that the State Agency is elibigle to receive the property in accordance with the act and regulations promulgated thereunder, and that the property is usable and needed. When property is distributed by a State Agency to a donee, the donee shall make the certifications as provided in § 13.6 (b). The donee shall also indicate the purpose for which the property is being acquired, and shall agree to the applicable terms and conditions as provided in §§ 13.9, 13.10, and 13.11. The certifications and agreements of a donee shall be made through its authorized representative. The State Agency must make a finding that the donee is eligible and that the property is usable and needed by the donee. (b) An otherwise eligible applicant, except educational radio stations and educational television stations, may, in the discretion of the Department, receive donable property prior to “approval" or "accreditation" (as elsewhere defined in this part) of its operations only where it is unable to obtain such approval or accreditation because it is newly organized or because the facilities in which the health or educational activities are to be housed are not yet constructed or are being constructed. Also, schools for the mentally retarded and physically handicapped and public libraries which establish their eligibility under the Department's regulations may receive donable property during construction. In such cases, the applicant must demonstrate to the satisfaction of the Department, that upon completion of construction the facilities will be used for an eligible health or educational purpose and that such health or educational utilization will after operations in such facilities have commenced, receive such approval or accreditation, except schools for physically handicapped, mentally retarded, and public libraries. No property shall be so donated under this paragraph except upon submission of the application to the Department and the express written approval of the Department to such donation. (c) Donation of property other than aircraft and vessels measuring 50 feet or more in length shall be effective and title shall pass from the United States of America to the donee, upon the taking of possession of the property by the donee and the execution by an authorized representative of the donee of a State Agency for Surplus Property Distribution Document containing the same certifications, terms and conditions as are applicable and set forth in the Department's regulations. Title to aircraft and vessels measuring 50 feet or more in length shall pass from the United States of America to the donee upon execution and delivery of either an Aircraft Conditional Transfer Document or a Vessel Conditional Transfer Document, whichever is appropriate, containing the terms and conditions provided in § 13.10. |