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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
Inadequacy of existing
1 This public benefit allowance applies only to surplus real property being sold for
2 Applicable when this is the primary use to be made of the property. The public
PART 13-ALLOCATION AND UTILI- (d) "Civil defense organization"
means the official organization estab
lished by or pursuant to State law as PROPERTY FOR EDUCATIONAL,
being responsible for the civil defense PUBLIC HEALTH, AND CIVIL DE
program for such State, or political subFENSE PURPOSES
divisions and instrumentalities thereof.
This term does not include a "State
agency” as defined in paragraph (cc)
of this section. 13.3 Geographic scope.
(e) “Clinic" means an approved fa13.4 Allocation of donable property.
cility organized and operated for the 13.5 Donations of personal property.
primary purpose of providing outpatient 13.6 Certifications by State Agencies and
health services and includes the cusdonees. 13.7 State Agency agreements.
tomary related facilities such as labora13.8 Certifications and agreements respect
tories, treatment rooms, etc. ing interstate distribution.
(f) “College' means an approved or 13.9 Terms and conditions applicable to accredited institution of higher learn
transfers or retransfers of donable ing offering organized study courses and
credits leading to the baccalaureate or 13.10 Terms and conditions applicable to
(g) "Department" means the Depart-
ment of Health, Education, and Welfare. 13.11 Additional terms and conditions.
(h) "Donable property" means sur13.12 Insurance.
plus equipmentmaterials, books, or
other supplies under the control of any AUTHORITY: The provisions of this part 13 issued under sec. 203, 63 Stat. 385, as
agency (including surplus amended, 70 Stat. 493; 40 U.S.C. 484; 76 Stat. property in working capital funds estab805.
lished pursuant to 10 U.S.C. 2203 or in SOURCE: The provisions of this Part 13 ap
similar management-type funds) except: pear at 32 F.R. 4572, Mar. 28, 1967, unless (1) Such property as may be specified otherwise noted.
from time to time by the Administrator
of General Services; $ 13.1 Definitions.
(2) Surplus agricultural commodities, (a) "Act” means the Federal Prop- food, and cotton or woolen goods detererty and Administrative Services Act of mined from time to time by the Secre1949, Public Law 152, 81st Congress (63 tary of Agriculture to be commodities Stat. 377), as amended (40 U.S.C. 471 requiring special handling in order to et seq.). Terms defined in the Act and assist him in carrying out his responnot defined in this section, shall have in sibilities with respect to price support this part the meaning given to them in or stabilization; the Act.
(3) Property in trust funds. (b) "Accredited" means approval by a (i) “Donated property" means equiprecognized accrediting board or asso- ment, materials, books and other perciation on a regional, State, or National sonal property transferred to eligible inlevel such as a State Board of Education stitutions or organizations pursuant to or Health, a regional or national accred- the provisions of section 203(j) of the Act iting association for universities, colleges, and implementing regulations. or secondary schools, the American Hos- (j) "Donee" means an eligible applipital Association, etc.
cant who is a recipient of donable (c) "Approved" means recognition property. and approval by the State Department (k) “Educational institution" means a of Education, State Department of tax-supported or nonprofit school sysHealth, or other appropriate authority. tem, school, college, university, school with respect to an educational institu- for the mentally retarded, school for the tion, such approval must relate to aca- physically handicapped, radio or teledemic or instructional standards. An vision station licensed by the Federal educational institution may be consid- Communications Commission as an ered as approved if its credits are ac- educational radio or an educational telecepted by accredited or State approved vision station, and public libraries. institutions, or if it meets the academic School systems, schools, colleges, and or instructional standards prescribed for universities must be approved or public schools in the State.
(1) "Eligible applicant” means (1) a or an educational television or educacivil defense organization as defined in tional radio station licensed by the Fedparagraph (d) of this section, (2) an eral Communications Commission means approved or accredited tax-supported or one which is operated by one or more nonprofit medical institution, hospital, nonprofit corporations or associations, clinic, health center, school system, no part of the net earning of which school, college, or university, or (3) a inures or may lawfully inure to the benetax-supported or nonprofit school for the fit of any private shareholder individual, mentally retarded, school for the physi- and which has been held by the Internal cally handicapped, a radio station or a Revenue Service to be tax-exempt untelevision station licensed by the Federal der the provisions of section 501(c)(3) Communications Commission as an edu- of the 1954 Internal Revenue Code. cational radio or an educational tele- (s) "Personal property” means survision station, or a public library. Non- plus property of any kind or any interest profit organizations must be exempt therein, except: Real property, records from taxation under section 501(c)(3) of the Federal Government and naval of the Internal Revenue Code of 1954. vessels of the folowing categories:
(m) “Health center" means an ap- "Battleships, cruisers, aircraft carriers, proved facility utilized by a health unit destroyers, and submarines; and merfor the provision of public health serv- chant vessels of 1,500 gross tons or more ices, including related facilities such as subject to disposal by the U.S. Maritime laboratories and clinics.
Commission." (n) "Hospital" means an approved or (t) “Public library” means a library accredited institution providing health that serves free all residents of a comservices primarily for inpatient medical munity, district, State, or region, and reor surgical care of the sick or injured ceives its financial support in whole or in and includes related facilities such as part from public funds. laboratories, outpatient departments, (u) Radio "Educational radio statraining facilities, central services facil- tion" means a radio station licensed by ities, and staff offices which are an "in- the Federal Communications Commistegral part” of the hospital. The term sion and operated exclusively for non"hospital" does not include institutions commercial educational purposes and whose primary purpose is the furnishing the licensee of which is tax-supported or of domiciliary care.
nonprofit and tax-exempt under section (0) “Medical institution" means an 501(c)(3) of the Internal Revenue Code approved or accredited institution, facil- of 1954. ity, entity or organization which has for (v) “Reimbursement to donees" means its primary function the provision of those costs and expenses for which the medical services, or the promotion of donee may recover monies from the prohealth through the conduct of research, ceeds of the sale of restricted donated investigations, experiments, training items. These include (1) in such proand demonstrations, relating to causes, rated amount, based on use, as may be prevention, and methods of diagnosis prescribed by the Department (i) the and treatment of diseases or injuries; the certified costs of initially acquiring the term includes hospitals, clinics, research property; (ii) the rehabilitation costs inand health centers, laboratories, medical, curred in initially placing the property dental, and nursing schools, and similar into operable condition; (2) the actual institutions, but does not include those costs of listing and lotting property for primarily engaged in domiciliary care. sale; and (3) the actual costs of adver(p) “Motor vehicles” means property
tising the property when authorized by in Federal Supply Classification Group
the Regional Representative to conduct 23.
the sale. (q) “Need" means a requirement for
(w) “Reimbursement to State
Agencies" means those costs and exanything usable and necessary by eligible
penses for which the State Agency may applicants in the conduct of educational,
recover monies from the proceeds of the public health, or civil defense activities.
sale of undistributed surplus property in (r) "Nonprofit" used in connection
the custody of the State Agency. These with a medical institution, hospital, include only those costs of listing and clinic health center, school, college, uni- lotting the property which are incurred versity, school for the mentally retarded, subsequent to GSA authorization of the school for the physically handicapped, sales action, plus the actual cost of ad
vertising in those cases where the State Territory or possession of the United Agency is requested to conduct the sale. States.
(x) "School” (excepting schools for (ee) “Tax-supported” used in connecthe "mentally retarded and schools for tion with a medical institution, hospital, the physically handicapped") means an clinic, health center, school, school sysapproved or accredited organizational tem, college, university, school for the entity devoted primarlly to approved mentally retarded, school for the physiacademic, vocational or professional cally handicapped, or an educational study and instruction, which operates television station or educational radio primarily for educational purposes on a station licensed by the Federal Comfull-time basis for a minimum school munications Commission means year and employs a full-time staff of which receives a major portion of its qualified instructors.
financial support from monies derived (y) "School for the mentally retarded" from State or local government revenues. means a facility or institution operated (ff) Television,"Educational televiprimarily to provide specialized instruc- sion station" means a television station tion to students of limited mental capac- licensed by the Federal Communications ity. It must be tax-supported or non- Commission and operated exclusively for profit and exempt from taxation under noncommercial educational purposes section 501(c)(3) of the Internal Rev- and the licensee of which is tax-supenue Code of 1954. It must operate on ported or nonprofit and tax-exempt a full-time basis for the equivalent of a under section 501(c)(3) of the Internal minimum school year prescribed for Revenue Code of 1954. public school instruction of the mentally (gg) "University" means an approved retarded, with a staff of qualified instruc- or accredited Institution for instruction tors, and demonstrate that the facility and study in the higher branches of meets the health and safety standards of learning and which is empowered to the State or local governmental body. confer degrees in special departments or
(z) "School for the physically handi- colleges. capped” means a school organized pri
$ 13.2 Basic policy. marily to provide specialized instruction to students whose physical handicaps It is the policy of the Department to necessitate individual or group instruc
strengthen and encourage the develoption. The school must be tax-supported ment and expansion of educational and or nonprofit and exempt from taxation public health programs and to promote under section 501(c)(3) of the Internal a state of civil defense operational readiRevenue Code of 1954. Such a school
ness by the equitable allocation among must operate on a full-time basis for the
the States of donable property for educaequivalent of a minimum school year
tional, public health, and civil defense prescribed for public school instruction purposes, and the assuring thereafter of for the physically handicapped, with a
its maximum utilization for these purstaff of qualified instructors, and dem- poses. onstrate that the facility meets the 8 13.3 Geographic scope. health and safety standards of the State or local governmental body.
This part is applicable to donable per(aa) "School system” means a group
property located, needed and
usable within the continental United of approved or accredited tax-supported schools operated under one administra
States, the District of Columbia, the
Commonwealth of Puerto Rico, and the tive organization. (bb) "Secretary" means the Secretary
territories and possessions of the United
States. of Health, Education, and Welfare. (cc) "State agency” means the agency
& 13.4 Allocation of donable property. designated by State statute or Executive Allocation of donable property will be order to make the certifications concern- made on the basis of need and usability ing and distribution of donable property of the property. The following factors to eligible applicants within the State, will be taken into consideration in efas provided for in section 203(j) of the fecting equitable allocation of property: Act.
(a) Need and usability of property as (dd) “State" means a State of the reflected by requests from State agencies. United States, the District of Columbia, (b) Regions or States in greatest need the Commonwealth of Puerto Rico, or a of the type of property to be allocated,
where the particular important need is in $$ 13.9, 13.10, and 13.11. The certievidenced by a justification accompany- fications and agreements of a donee shall Ing the expression of need.
be made through its authorized repre(c)
Extraordinary needs occasioned sentative. The State Agency must make by disasters.
a finding that the donee is eligible and (d) The quantity of property of the that the property is usable and needed type under consideration, which was by the donee. previously allocated to or is potentially (b) An otherwise eligible applicant, available to a State agency from a more except educational radio stations and advantageous point.
educational television stations, may, in (e) Performance of State agencies in the discretion of the Department, receive effecting timely pickup of property. donable property prior to "approval" or
(f) Equity in allocation based on ratio "accreditation" (as elsewhere defined in of population and per capita income. this part) of its operations only where 133 F.R. 17786, Nov. 28, 1968]
it is unable to obtain such approval or
accreditation because it is newly orga$ 13.5 Donations of personal property.
nized or because the facilities in which (a) Donations of personal property the health or educational activities are to are authorized by the Administrator of
be housed are not yet constructed or are General Services upon determination by
being constructed. Also, schools for the the Department that the property ap- mentally retarded and physically handiplied for is usable and necessary for edu- capped and public libraries which estabcational, public health, or civil defense
lish their eligibility under the Departpurposes, including research for any such
ment's regulations may receive donable purpose. Property is allocated by the
property during construction. In such Department to State Agencies on the
cases, the applicant must demonstrate basis of need and utilization. All appli- to the satisfaction of the Department, cations for property shall be made by
that upon completion of construction the State Agencies on Standard Form 123,
facilities will be used for an eligible “Application for Donation of Surplus health or educational purpose and that Personal Property.” Applications shall
such health or educational utilization indicate that pickup will be made by or
will after operations in such facilities that shipment will be made to either a have commenced, receive such approval State Agency or an eligible donee. In
or accreditation, except schools for physits application, the State Agency shall ically handicapped, mentally retarded, make the certifications as provided in and public libraries. No property shall $ 13.6(a) and shall agree to the terms be so donated under this paragraph exand conditions as provided in 88 13.7 and
cept upon submission of the application 13.11. When property is to be picked up to the Department and the express by or shipped to a donee, in addition to
written approval of the Department to the certifications made by the State such donation. Agency as above provided, the donee (c) Donation of property other than shall make the certifications as provided aircraft and vessels measuring 50 feet in $ 13.6(b). The donee shall also in- or more in length shall be effective and dicate the purpose for which the prop- title shall pass from the United States of erty is being acquired and shall agree America to the donee, upon the taking to the applicable terms and conditions
of possession of the property by the as provided in $$ 13.9, 13.10, and 13.11. donee and the execution by an authorPrior to the release of property by the ized representative of the donee of a holding agency to a State Agency or State Agency for Surplus Property Disdonee, the Department must certify that tribution Document containing the same the State Agency is elibigle to receive the certifications, terms and conditions as property in accordance with the act and
are applicable and set forth in the Deregulations promulgated thereunder, and partment's regulations. Title to aircraft that the property is usable and needed. and vessels measuring 50 feet or more in When property is distributed by a State length shall pass from the United States Agency to a donee, the donee shall make of America to the donee upon execution the certifications as provided in § 13.6 and delivery of either an Aircraft Con(b). The donee shall also indicate the ditional Transfer Document or a Vessel purpose for which the property is being Conditional Transfer Document, which. acquired, and shall agree to the appli- ever is appropriate, containing the terms cable terms and conditions as provided and conditions provided in 13.10.