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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 primarily 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 one 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 § 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

sonal property located, needed and of approved or accredited tax-supported

usable within the continental United

States, the District of Columbia, the schools operated under one administrative organization.

Commonwealth of Puerto Rico, and the (bb) "Secretary" means the Secretary

territories and possessions of the United

States. of Health, Education, and Welfare.

(cc) "State agency” means the agency 3 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 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. 133 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 & 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 i'rom the United States of America to the donee upon execution and delivery of either an Aircraft Con. ditional Transfer Document or a Vessel conditional Transfer Document, whichever is appropriate, containing the terms and conditions provided in 8 13.10.

(d) Retransfers and reallocations of donable property to other donees or to other State Agencies shall be subject to the applicable provisions set forth in $8.13.6, 13.7, 13.9, 13.10, and 13.11.

(e) No donable property will be allocated until the Secretary has determined that the State Agency has conformed to the minimum standards of operation prescribed by the Secretary for the disposal of surplus property.

(f) Donable property received in State Agency warehouses shall be distributed promptly to eligible donees within the State, or shall be reallocated to another State Agency by the Department. Property not distributed within a 12-month period shall be reported to the Department for redisposal instructions.

(g) State Agencies shall make such reports to the Department on the use, condition, and location of donated property and other pertinent matters as the Department may from time to time require. § 13.6 Certifications by State Agencies

and donees. (a) A State Agency, in making application for donable surplus personal property, shall make a certification as follows:

(1) The State Agency hereby certifies that:

(1) It is the agency of the State designated under State law and as such has legal authority within the meaning of section 203(j) of the Act, and the regulations of the Department to receive surplus property for distribution within the State to eligible donees within the meaning of said Act and regulations.

(ii) Such property is usable and needed for educational, public health, or civil defense purposes, including research for any such purpose, in the State. , (2) When such property is picked up by or shipped to a State Agency, the State certifies that it has available adequate funds, facilities, and personnel to effect accountability, warehousing, proper maintenance, and distribution of such property.

(3) When such property is distributed by a State Agency to a donee, or when delivery is made direct from a holding agency to a donee, the State certifies that the donee who is acquiring the property is eligible within the meaning of the Act, and the regulations of the Department, and that such property is usable and needed by the donee.

(b) A donee, when acquiring donable surplus personal property shall certify as follows:

(1) It is a tax-supported or nonprofit and tax-exempt (under section 501(c) (3) of the Internal Revenue Code of 1954, or section 101 (6) of the Internal Revenue Code of 1939) school system, school, college, university, school for the mentally retarded or physically handicapped, public library, educational radio, or educational television station, medical insti. tution, hospital, clinic or health center, or a civil defense organization designated pursuant to State law, within the meaning of the Act, and the regulations of the Department.

(2) Such property is usable and necessary in the State for either educational, public health, or civil defense purposes, including research for any such purpose, is required for its own use to All an existing need for one of such purposes, and is not being acquired for any other use or purpose, for use outside the State, or for sale.

(3) Funds are available to pay the costs of care and handling incident to donation, including packing, preparation for shipping, loading, and transporting such property. § 13.7 State Agency agreements.

With respect to property picked up by or shipped to State Agencies, the State Agency shall agree to the following:

(a) The right to possession only is granted and the State agrees to make prompt State-wide distribution of the same, on the basis of educational, public health, or civil defense usability and need, to donees eligible to acquire property under section 203(j) of the Act, and regulations of the Department, after such eligible donees have properly executed the certifications and appropriate agreements.

(b) Title to such property shall remain in the United States of America although the State shall have taken possession thereof, except where State licensing laws require that title pass in order that State licensing or registration of the property may be effected. Title to the property shall pass to the eligible donees when it executes the certifications and appropriate agreements required by this part and has taken possession of the property.

(c) The State further agrees that it will pay the cost of care, handling, and shipping incident to taking possession of

such property and that during the time pose for which acquired, including rethat title remains in the United States search for any such purpose, and for no of America it will be responsible, as a other purpose. bailee for mutual benefit, for such prop- (2) Such property shall be placed in erty from the time it is released to the use for the purpose for which acquired State or to the transportation agent no later than 12 months after acquisidesignated by the State; and that in the tion thereof. In the event such properevent of any loss of, or damage to any ty is not placed in use within 12 months or all of the property, it will file such of receipt, the donee, within 30 days after claim and/or institute and prosecute to the expiration of the 12-month perio, conclusion such proceedings as may be shall notify the Department in writing necessary to receive, for the account of through the State Agency. Title and the United States of America, the fair right to the possession of such property value of any such property lost or not so placed in use within the above damaged.

mentioned period shall, at the option of (d) No surplus property hereafter ap the Department revert to the United proved for donation by the Administra States of America, and upon demand the tor of General Services shall be available donee shall release such property to such to State Agencies for their own adminis- person as the Department or its designee trative purposes unless such property is

h property is shall direct. approved for such use by the Secretary (3) There shall be a period of restricand the Administrator, and the State tion which will expire after such propAgency shall have entered into a Cooper erty has been used for the purpose for ative Agreement with the Department which acquired for a period of 4 years, providing for such use.

except that the period of restriction on 8 13.8

motor vehicles will expire after a period Certifications and agreements re

of 2 years of such use. specting interstate distribution.

(4) During the period of restriction, Where an applicant State Agency is the donee shall not sell, trade, lease, lend, acting (under an interstate distribution bail, cannibalize or disassemble for secagreement approved by the Department) ondary utilization purposes, encumber or as an agent and authorized representa otherwise dispose of such property or retive of an adjacent State with which it move it for use outside the State without shares a common boundary, the certifi prior written approval of the Departcations and agreements required by ment. Any sale, trade, lease, loan, bail$$ 13.6 and 13.7 shall also be made by ment, encumbrance, or other disposal of such applicant State Agency respecting the property, when such action is authorthe donees in such adjacent State to ized by the Department shall be for the which distribution will be made and the benefit and account of the United States property to be distributed in such adja of America and the gross proceeds therecent State, and such certifications and of shall be received and held in trust for agreements shall constitute the certifi the United States of America and be cations and agreements of the adjacent transmitted through the State Agency State on whose behalf and as whose for Surplus Property promptly to the authorized representative the applicant Department. Reimbursement to the State Agency is acting.

donee will be made by the Department $ 13.9 Terms and conditions applicable

in accordance with the provisions of this to transfers or retransfers of donable

part. property.

(5) In the event such property is sold,

traded, leased, loaned, bailed, encum(a) Property acquired by a donee, re

bered, or otherwise disposed of during gardless of acquisition cost, donated for

the period of restriction without prior public health or educational purposes,

approval, all proceeds shall be deemed shall be on an "as is," "where is” basis to have been received and held in trust without warranty of any kind.

for the United States and the donee (b) Property having a single item shall promptly remit the same to the Deacquisition cost of $2,500 or more, do- partment. When the fair market value nated for public health or educational of the property at the time of the unaupurposes shall be subject to the follow thorized action is greater than the proing additional terms and conditions: ceeds derived from such action, the donee

(1) Such property shall be used only shall, at the option of the Department, for the public health or educational pur- also be liable for and promptly remit the

difference between such proceeds and the fair market value.

(6) If during the period of restriction, property is no longer suitable, usable, or further needed by the donee for the purpose for which acquired, the donee shall promptly notify the Department through the State Agency, and shall, as directed by the Department or State Agency, either return the property to the State Agency for Surplus Property, retransfer the property to another donee, a department or agency of the United States, sell or otherwise dispose of the property. Any sale shall be for the benefit and account of the United States of America and the gross proceeds thereof shall be received and held in trust for the United States of America and shall be transmitted promptly through the State Agency to the Department. Reimbursement by the Department will be made to the donee in accordance with the provisions of this part.

(7) Donee shall make reports to the State Agency on the use, condition, and location of such property and on other pertinent matters as may be required from time to time by the State Agency or the Department.

(8) At the option of the Department, the donee may abrogate the terms and conditions set forth in subparagraphs (1) through (7) of this paragraph by payment of an amount as determined by the Department.

(c) Aircraft (FSC Group 15) are a specific exception to the provisions of paragraphs (a) and (b) of this section. The special terms and conditions provided in 13.10 shall apply to the donation of aircraft.

(d) Vessels measuring 50 feet or more in length are also a specific exception to the provisions of paragraphs (a) and (b) of this section. The special terms and conditions provided in § 13.10 shall apply to the donation of such vessels.

(e) Property donated for civil defense purposes shall be subject to the terms and conditions set forth in Title 32, Chapter XVIII, Part 1802, OCD Regulations.

(f) Butler-type storage warehouses, house trailers (without undercarriages), and quonset huts, located on nonexcess land, donated under this section, shall be subject to the terms and conditions applicable to the transfer or retransfer of donable property for public health, ed. ucational, or civil defense purposes. The

State Agency and/or the donee, as applicable, shall comply with all conditions which may be required by the holding agency for the removal of such property. Whenever the holding agency requires the site upon which such property is located to be cleared after removal of such property, the State Agency shall post performance bonds, or make performance guaranty deposits, or give whatever assurances may be required by the Department or the holding agency that the site will be cleared. The State Agency in lieu of posting such performance bonds, or making such performance guaranty deposits, or giving such other assurances that the site will be cleared, may require these actions to be taken by the donee.

(g) When surplus property in the custody of a State Agency is sold, it shall be sold for the benefit and account of the United States of America, and the gross proceeds thereof will be deposited in the Federal Depository. The Department may reimburse a State Agency for its documented costs of listing and lotting the propeaty which are incurred subsequent to the authorization of the sales action, plus the actual cost of advertising in those cases where the State Agency is requested to conduct the sale. Listing, as used here, means preparing a list of the items of property to be advertised for sale with a description of each item. Lotting, as used here, means segregating the property to be sold and dividing the property into lots, if by such a grouping a greater return may be expected from the sale. Advertising. as used here, means any form of public announcement Intended to give wide circularization and publicity to prospective purchasers. $ 13.10 Terms and conditions applicable

to transfers or retransfers of aircraft and vessels measuring 50 feet or

more in length. (a) Aircraft or vessels donated pursuant to this part, regardless of acquisition cost, shall be on an “as is," "where is” basis without warranty of any kind.

(b) Aircraft having a single item acquisition cost of $2,500 or more, or those vessels measuring 50 feet or more in length and having a single item acquisition cost of $2,500 or more, regardless of the purpose for which donated, shall be subject to the following additional terms and conditions:

(1) An Aircraft Conditional Transfer Document or Vessel Conditional Trans

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