H. R. 2068—32
eligible institution in the State and, if requested by the
recipient, to arrange shipment of the property directly to
the recipient.
(F) SERVICE CHARGES.—If the state agency is authorized
to assess and collect service charges from participating
recipients to cover direct and reasonable indirect costs of
its activities, the method of establishing the charges shall
be set out in the state plan of operation. The charges
shall be fair and equitable and shall be based on services
the state agency performs, including screening, packing,
crating, removal, and transportation.
(G) TERMS, CONDITIONS, RESERVATIONS, AND
RESTRIC-
TIONS.—
(i) IN GENERAL.—The state plan of operation shall
provide that the state agency—
(I) may impose reasonable terms, conditions, res-
ervations, and restrictions on the use of property
to be donated under subsection (c); and
(II) shall impose reasonable terms, conditions,
reservations, and restrictions on the use of a pas-
senger motor vehicle and any item of property
having a unit acquisition cost of $5,000 or more.
(ii) SPECIAL LIMITATIONS.—If the Administrator finds
that an item has characteristics that require special
handling or use limitations, the Administrator may
impose appropriate conditions on the donation of the
property.
(H) UNUSABLE PROPERTY.—
(i) DISPOSAL.—The state plan of operation shall pro-
vide that surplus personal property which the state
agency determines cannot be used by eligible recipients
shall be disposed of—
(I) subject to the disapproval of the Adminis-
trator within 30 days after notice to the Adminis-
trator, through transfer by the state agency to
another state agency or through abandonment or
destruction if the property has no commercial
value or if the estimated cost of continued care
and handling exceeds estimated proceeds from
sale; or
(II) under this subtitle, on terms and conditions
and in a manner the Administrator prescribes.
(ii) PROCEEDS
FROM
SALE.—Notwithstanding sub-
chapter IV of this chapter and section 702 of this
title, the Administrator, from the proceeds of sale of
property described in subsection (b), may reimburse
the state agency for expenses that the Administrator
considers appropriate for care and handling of the prop-
erty.
(f) COOPERATIVE AGREEMENTS WITH STATE AGENCIES.—
(1) PARTIES TO THE AGREEMENT.—For purposes of carrying
out this section, a cooperative agreement may be made between
a state surplus property distribution agency designated under
this section and—
(A) the Administrator;
(B) the Secretary of Education, for property transferred
under section 550(c) of this title;
H. R. 2068—33
(C) the Secretary of Health and Human Services, for
property transferred under section 550(d) of this title; or
(D) the head of a federal agency designated by the
Administrator, the Secretary of Education, or the Secretary
of Health and Human Services.
(2) SHARED RESOURCES.—The cooperative agreement may pro-
vide that the property, facilities, personnel, or services of—
(A) a state agency may be used by a federal agency;
and
(B) a federal agency may be made available to a state
agency.
(3) 
REIMBURSEMENT.—The 
cooperative 
agreement 
may
require payment or reimbursement for the use or provision
of property, facilities, personnel, or services. Payment or
reimbursement received from a state agency shall be credited
to the fund or appropriation against which charges would other-
wise be made.
(4) SURPLUS
PROPERTY
TRANSFERRED
TO
STATE
AGENCY.—
(A) IN GENERAL.—Under the cooperative agreement, sur-
plus property transferred to a state agency for distribution
pursuant to subsection (c) may be retained by the state
agency for use in performing its functions. Unless otherwise
directed by the Administrator, title to the retained property
vests in the state agency.
(B) CONDITIONS.—Retention of surplus property under
this paragraph is subject to conditions that may be imposed
by—
(i) the Administrator;
(ii) the Secretary of Education, for property trans-
ferred under section 550(c) of this title; or
(iii) the Secretary of Health and Human Services,
for property transferred under section 550(d) of this
title.
§ 550. Disposal of real property for certain purposes
(a) DEFINITION.—In this section, the term ‘‘State’’ includes the
District of Columbia, Puerto Rico, and the territories and posses-
sions of the United States.
(b) ENFORCEMENT AND REVISION OF INSTRUMENTS TRANSFERRING
PROPERTY UNDER THIS SECTION.—
(1) IN GENERAL.—Subject to disapproval by the Administrator
of General Services within 30 days after notice of a proposed
action to be taken under this section, except for personal prop-
erty transferred pursuant to section 549 of this title, the official
specified in paragraph (2) shall determine and enforce compli-
ance with the terms, conditions, reservations, and restrictions
contained in an instrument by which a transfer under this
section is made. The official shall reform, correct, or amend
the instrument if necessary to correct the instrument or to
conform the transfer to the requirements of law. The official
shall grant a release from any term, condition, reservation
or restriction contained in the instrument, and shall convey,
quitclaim, or release to the transferee (or other eligible user)
any right or interest reserved to the Federal Government by
the instrument, if the official determines that the property
no longer serves the purpose for which it was transferred
or that a release, conveyance, or quitclaim deed will not prevent
H. R. 2068—34
accomplishment of that purpose. The release, conveyance, or
quitclaim deed may be made subject to terms and conditions
that the official considers necessary to protect or advance the
interests of the Government.
(2) SPECIFIED OFFICIAL.—The official referred to in paragraph
(1) is—
(A) the Secretary of Education, for property transferred
under subsection (c) for school, classroom, or other edu-
cational use;
(B) the Secretary of Health and Human Services, for
property transferred under subsection (d) for use in the
protection of public health, including research;
(C) the Secretary of the Interior, for property transferred
under subsection (e) for public park or recreation area
use;
(D) the Secretary of Housing and Urban Development,
for property transferred under subsection (f) to provide
housing or housing assistance for low-income individuals
or families; and
(E) the Secretary of the Interior, for property transferred
under subsection (h) for use as a historic monument for
the benefit of the public.
(c) PROPERTY FOR SCHOOL, CLASSROOM, OR OTHER EDUCATIONAL
USE.—
(1) ASSIGNMENT.—The Administrator, in the Administrator’s
discretion and under regulations that the Administrator may
prescribe, may assign to the Secretary of Education for disposal
surplus real property, including buildings, fixtures, and equip-
ment situated on the property, that the Secretary recommends
as needed for school, classroom, or other educational use.
(2) SALE OR LEASE.—Subject to disapproval by the Adminis-
trator within 30 days after notice to the Administrator by
the Secretary of Education of a proposed transfer, the Secretary,
for school, classroom, or other educational use, may sell or
lease property assigned to the Secretary under paragraph (1)
to a State, a political subdivision or instrumentality of a State,
a tax-supported educational institution, or a nonprofit edu-
cational institution that has been held exempt from taxation
under section 501(c)(3) of the Internal Revenue Code of 1986
(26 U.S.C. 501(c)(3)).
(3) FIXING VALUE.—In fixing the sale or lease value of prop-
erty disposed of under paragraph (2), the Secretary of Education
shall take into consideration any benefit which has accrued
or may accrue to the Government from the use of the property
by the State, political subdivision or instrumentality, or institu-
tion.
(d) PROPERTY FOR USE IN THE PROTECTION OF PUBLIC HEALTH,
INCLUDING RESEARCH.—
(1) ASSIGNMENT.—The Administrator, in the Administrator’s
discretion and under regulations that the Administrator may
prescribe, may assign to the Secretary of Health and Human
Services for disposal surplus real property, including buildings,
fixtures, and equipment situated on the property, that the
Secretary recommends as needed for use in the protection of
public health, including research.
(2) SALE OR LEASE.—Subject to disapproval by the Adminis-
trator within 30 days after notice to the Administrator by
H. R. 2068—35
the Secretary of Health and Human Services of a proposed
transfer, the Secretary, for use in the protection of public
health, including research, may sell or lease property assigned
to the Secretary under paragraph (1) to a State, a political
subdivision or instrumentality of a State, a tax-supported med-
ical institution, or a hospital or similar institution not operated
for profit that has been held exempt from taxation under section
501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C.
501(c)(3)).
(3) FIXING VALUE.—In fixing the sale or lease value of prop-
erty disposed of under paragraph (2), the Secretary of Health
and Human Services shall take into consideration any benefit
which has accrued or may accrue to the Government from
the use of the property by the State, political subdivision or
instrumentality, or institution.
(e) PROPERTY FOR USE AS A PUBLIC PARK OR RECREATION AREA.—
(1) ASSIGNMENT.—The Administrator, in the Administrator’s
discretion and under regulations that the Administrator may
prescribe, may assign to the Secretary of the Interior for dis-
posal surplus real property, including buildings, fixtures, and
equipment situated on the property, that the Secretary rec-
ommends as needed for use as a public park or recreation
area.
(2) SALE OR LEASE.—Subject to disapproval by the Adminis-
trator within 30 days after notice to the Administrator by
the Secretary of the Interior of a proposed transfer, the Sec-
retary, for public park or recreation area use, may sell or
lease property assigned to the Secretary under paragraph (1)
to a State, a political subdivision or instrumentality of a State,
or a municipality.
(3) FIXING VALUE.—In fixing the sale or lease value of prop-
erty disposed of under paragraph (2), the Secretary of the
Interior shall take into consideration any benefit which has
accrued or may accrue to the Government from the use of
the property by the State, political subdivision or instrumen-
tality, or municipality.
(4) DEED OF CONVEYANCE.—The deed of conveyance of any
surplus real property disposed of under this subsection—
(A) shall provide that all of the property be used and
maintained for the purpose for which it was conveyed in
perpetuity, and that if the property ceases to be used
or maintained for that purpose, all or any portion of the
property shall, in its then existing condition, at the option
of the Government, revert to the Government; and
(B) may contain additional terms, reservations, restric-
tions, and conditions the Secretary of the Interior deter-
mines are necessary to safeguard the interests of the
Government.
(f) PROPERTY FOR LOW INCOME HOUSING ASSISTANCE.—
(1) ASSIGNMENT.—The Administrator, in the Administrator’s
discretion and under regulations that the Administrator may
prescribe, may assign to the Secretary of Housing and Urban
Development for disposal surplus real property, including
buildings, fixtures, and equipment situated on the property,
that the Secretary recommends as needed to provide housing
or housing assistance for low-income individuals or families.