H. R. 2068—28
any property for which any part of the consideration
is real property.
(B) EXCEPTION.—An explanatory statement is not
required for a disposal of personal property under sub-
section (d), or for a disposal of real or personal property
authorized by any other law to be made without adver-
tising.
(2) TRANSMITTAL TO CONGRESS.—The explanatory statement
shall be transmitted to the appropriate committees of Congress
in advance of the disposal, and a copy of the statement shall
be preserved in the files of the executive agency making the
disposal.
(3) LISTING IN REPORT.—A report of the Administrator under
section 126 of this title must include a listing and description
of any negotiated disposals of surplus property having an esti-
mated fair market value of more than $15,000, in the case
of real property, or $5,000, in the case of any other property,
other than disposals for which an explanatory statement has
been transmitted under this subsection.
(f) APPLICABILITY OF OTHER LAW.—Section 3709 of the Revised
Statutes (41 U.S.C. 5) does not apply to a disposal or contract
for disposal made under this section.
§ 546. Contractor inventories
Subject to regulations of the Administrator of General Services,
an executive agency may authorize a contractor or subcontractor
with the agency to retain or dispose of contractor inventory.
§ 547. Agricultural commodities, foods, and cotton or woolen
goods
(a) POLICIES.—The Administrator of General Services shall con-
sult with the Secretary of Agriculture to formulate policies for
the disposal of surplus agricultural commodities, surplus foods proc-
essed from agricultural commodities, and surplus cotton or woolen
goods. The policies shall be formulated to prevent surplus agricul-
tural commodities, or surplus foods processed from agricultural
commodities, from being dumped on the market in a disorderly
manner and disrupting the market prices for agricultural commod-
ities.
(b) TRANSFERS TO DEPARTMENT OF AGRICULTURE.—
(1) IN GENERAL.—The Administrator shall transfer without
charge to the Department of Agriculture any surplus agricul-
tural commodities, foods, and cotton or woolen goods for dis-
posal, when the Secretary determines that a transfer is nec-
essary for the Secretary to carry out responsibilities for price
support or stabilization.
(2) DEPOSIT OF RECEIPTS.—Receipts resulting from disposal
by the Department under this subsection shall be deposited
pursuant to any authority available to the Secretary. When
applicable, however, net proceeds from the sale of surplus prop-
erty transferred under this subsection shall be credited pursu-
ant to section 572(a) of this title.
(3) LIMITATION OF SALES.—Surplus farm commodities trans-
ferred under this subsection may not be sold, other than for
export, in quantities exceeding, or at prices less than, the
applicable quantities and prices for sales of those commodities
by the Commodity Credit Corporation.
H. R. 2068—29
§ 548. Surplus vessels
The Maritime Administration shall dispose of surplus vessels
of 1,500 gross tons or more which the Administration determines
to be merchant vessels or capable of conversion to merchant use.
The vessels shall be disposed of in accordance with the Merchant
Marine Act, 1936 (46 App. U.S.C. 1101 et seq.), and other laws
authorizing the sale of such vessels.
§ 549. Donation of personal property through state agencies
(a) DEFINITIONS.—In this section, the following definitions apply:
(1) PUBLIC AGENCY.—The term ‘‘public agency’’ means—
(A) a State;
(B) a political subdivision of a State (including a unit
of local government or economic development district);
(C) a department, agency, or instrumentality of a State
(including instrumentalities created by compact or other
agreement between States or political subdivisions); or
(D) an Indian tribe, band, group, pueblo, or community
located on a state reservation.
(2) STATE.—The term ‘‘State’’ means a State of the United
States, the District of Columbia, Puerto Rico, the Virgin Islands,
Guam, the Northern Mariana Islands, and American Samoa.
(3) STATE AGENCY.—The term ‘‘state agency’’ means an agency
designated under state law as the agency responsible for fair
and equitable distribution, through donation, of property trans-
ferred under this section.
(b) AUTHORIZATION.—
(1) IN GENERAL.—The Administrator of General Services, in
the Administrator’s discretion and under regulations the
Administrator may prescribe, may transfer property described
in paragraph (2) to a state agency.
(2) PROPERTY.—
(A) IN GENERAL.—Property referred to in paragraph (1)
is any personal property that—
(i) is under the control of an executive agency; and
(ii) has been determined to be surplus property.
(B) SPECIAL RULE.—In determining whether the property
is to be transferred for donation under this section, no
distinction may be made between property capitalized in
a working-capital fund established under section 2208 of
title 10 (or similar fund) and any other property.
(3) NO COST.—Transfer of property under this section is with-
out cost, except for any costs of care and handling.
(c) ALLOCATION AND TRANSFER OF PROPERTY.—
(1) IN
GENERAL.—The Administrator shall allocate and
transfer property under this section in accordance with criteria
that are based on need and use and that are established after
consultation with state agencies to the extent feasible. The
Administrator shall give fair consideration, consistent with the
established criteria, to an expression of need and interest from
a public agency or other eligible institution within a State.
The Administrator shall give special consideration to an eligible
recipient’s request, transmitted through the state agency, for
a specific item of property.
(2) ALLOCATION
AMONG
STATES.—The Administrator shall
allocate property among the States on a fair and equitable
H. R. 2068—30
basis, taking into account the condition of the property as
well as the original acquisition cost of the property.
(3) RECIPIENTS
AND
PURPOSES.—The Administrator shall
transfer to a state agency property the state agency selects
for distribution through donation within the State—
(A) to a public agency for use in carrying out or pro-
moting, for residents of a given political area, a public
purpose, including conservation, economic development,
education, parks and recreation, public health, and public
safety; or
(B) for purposes of education or public health (including
research), to a nonprofit educational or public health
institution or organization that is exempt from taxation
under section 501 of the Internal Revenue Code of 1986
(26 U.S.C. 501), including—
(i) a medical institution, hospital, clinic, health
center, or drug abuse treatment center;
(ii) a provider of assistance to homeless individuals
or to families or individuals whose annual incomes
are below the poverty line (as that term is defined
in section 673 of the Community Services Block Grant
Act (42 U.S.C. 9902));
(iii) a school, college, or university;
(iv) a school for the mentally retarded or physically
handicapped;
(v) a child care center;
(vi) a radio or television station licensed by the Fed-
eral Communications Commission as an educational
radio or educational television station;
(vii) a museum attended by the public; or
(viii) a library serving free all residents of a commu-
nity, district, State, or region.
(4) EXCEPTION.—This subsection does not apply to property
transferred under subsection (d).
(d) DEPARTMENT OF DEFENSE PROPERTY.—
(1) DETERMINATION.—The Secretary of Defense shall deter-
mine whether surplus personal property under the control of
the Department of Defense is usable and necessary for edu-
cational activities which are of special interest to the armed
services, including maritime academies, or military, naval, Air
Force, or Coast Guard preparatory schools.
(2) PROPERTY USABLE FOR SPECIAL INTEREST ACTIVITIES.—
If the Secretary of Defense determines that the property is
usable and necessary for educational activities which are of
special interest to the armed services, the Secretary shall allo-
cate the property for transfer by the Administrator to the
appropriate state agency for distribution through donation to
the educational activities.
(3) PROPERTY
NOT
USABLE
FOR
SPECIAL
INTEREST
ACTIVI-
TIES.—If the Secretary of Defense determines that the property
is not usable and necessary for educational activities which
are of special interest to the armed services, the property
may be disposed of in accordance with subsection (c).
(e) STATE PLAN OF OPERATION.—
(1) IN GENERAL.—Before property may be transferred to a
state agency, the State shall develop a detailed state plan
H. R. 2068—31
of operation, in accordance with this subsection and with state
law.
(2) PROCEDURE.—
(A) CONSIDERATION OF NEEDS AND RESOURCES.—In devel-
oping and implementing the state plan of operation, the
relative needs and resources of all public agencies and
other eligible institutions in the State shall be taken into
consideration. 
The 
Administrator 
may 
consult 
with
interested federal agencies to obtain their views concerning
the administration and operation of this section.
(B) PUBLICATION AND PERIOD FOR COMMENT.—The state
plan of operation, and any major amendment to the plan,
may not be filed with the Administrator until 60 days
after general notice of the proposed plan or amendment
has been published and interested persons have been given
at least 30 days to submit comments.
(C) CERTIFICATION.—The chief executive officer of the
State shall certify and submit the state plan of operation
to the Administrator.
(3) REQUIREMENTS.—
(A) STATE AGENCY.—The state plan of operation shall
include adequate assurance that the state agency has—
(i) the necessary organizational and operational
authority and capability including staff, facilities, and
means and methods of financing; and
(ii) established procedures for accountability, internal
and external audits, cooperative agreements, compli-
ance and use reviews, equitable distribution and prop-
erty disposal, determination of eligibility, and assist-
ance through consultation with advisory bodies and
public and private groups.
(B) EQUITABLE DISTRIBUTION.—The state plan of oper-
ation shall provide for fair and equitable distribution of
property in the State based on the relative needs and
resources of interested public agencies and other eligible
institutions in the State and their abilities to use the
property.
(C) MANAGEMENT CONTROL AND ACCOUNTING SYSTEMS.—
The state plan of operation shall require, for donable prop-
erty transferred under this section, that the state agency
use management control and accounting systems of the
same type as systems required by state law for state-
owned property. However, with approval from the chief
executive officer of the State, the state agency may elect
to use other management control and accounting systems
that are effective to govern the use, inventory control,
accountability, and disposal of property under this section.
(D) RETURN
AND
REDISTRIBUTION
FOR
NON-USE.—The
state plan of operation shall require the state agency to
provide for the return and redistribution of donable prop-
erty if the property, while still usable, has not been placed
in use for the purpose for which it was donated within
one year of donation or ceases to be used by the donee
for that purpose within one year of being placed in use.
(E) REQUEST BY RECIPIENT.—The state plan of operation
shall require the state agency, to the extent practicable,
to select property requested by a public agency or other