An Act to amend the Federal Property and Administrative Services Act of 1949 to permit the donation of Federal surplus personal property to the States and local organizations for public purposes, and for other purposes.
PL 94-519 (H.R.14451), enacted 10/17/1976

PUBLIC LAW 94-519—OCT. 17, 1976 
90 STAT. 2451 
Public Law 94-519 
94th Congress 
An Act 
To amend the Federal Property and Administrative Services Act of 1949 to permit 
the donation of Federal surplus personal property to the States and local 
organizations for public purposes, and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That section 203 of 
the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 484) is amended as follows: 
(1) Subsection (j) is amended to read as follows: 
"(]) (1) Under such regulations as he may prescribe, the Adminis-
trator is authorized in his discretion to transfer, without cost (except 
for costs of care and handling), any personal property under the 
control of any executive agency which has been determined to be 
surplus property to the State agency in each State designated under 
State law as the agency responsible for the fair and equitable distribu-
tion, through donation, of all property transferred in accordance with 
the provisions of paragraphs (2) and (3) of this subsection. In deter-
mining whether the property is to be transferred for donation under 
this subsection, no distinction shall be made between property capi-
talized in a working-capital fund established under section 2208 of 
title 10, United States Code, or any similar fund, and any other 
property. 
"(2) In the case of surplus personal property under the control of 
the Department of Defense, the Secretary of Defense shall determine 
whether such property is usable and necessary for educational activi-
ties which are of special interest to the armed services, such as mari-
time academies, or military, naval, Air Force, or Coast Guard 
preparatory schools. If the Secretary determines that such property 
is usable and necessary for said purposes, the Secretary shall allocate 
it for transfer by the Administrator to the appropriate State agency 
for distribution, through donation, to such educational activities. If 
the Secretary determines that such property is not usable and neces-
sary for such purposes, it may be disposed of in accordance with 
paragraph (3) of this subsection. 
"(3) Except for surplus personal property transferred pursuant 
to paragraph (2) of this subsection, the Administrator shall, pursuant 
to criteria which are based on need and utilization and established 
after such consultation with State agencies as is feasible, allocate such 
property among the States in a fair and equitable basis (taking into 
account the condition of the property as well as the original acquisi-
tion cost thereof), and transfer to the State agency property selected 
by it for distribution through donation within the State— 
" (A) to any public agency for use in carrying out or promoting 
for the residents of a given political area one or more public 
purposes, such as conservation, economic development, education, 
parks and recreation, public health, and public safety; or 
"(B) to nonprofit educational or public health institutions or 
organizations, such as "medical institutions, hospitals, clinics, 
health centers, schools, colleges, universities, schools for the men-
tally retarded, schools for the physically handicapped, child 
Oct. 17, 1976 
[H.R. 144511' 
Federal surplus 
property. 
Donation to 
States and local 
organizations. 
90 STAT. 2452 
PUBLIC LAW 94-519—OCT. 17, 1976 
care centers, radio and television stations licensed by the Federal 
Communications Commission as educational radio or educa-
tional television stations, museums attended by the public, and 
libraries serving free all residents of a community, district, State, 
or region, which are exempt from taxation under section 501 
26 use 501. 
of the Internal Revenue Code of 1954, for purposes of education 
or public health (including research for any such purpose). 
The Administrator, in allocating and transferring property under 
this paragraph, shall give fair consideration, consistently with the 
established criteria, to expressions of need and interest on the part 
of public agencies and other eligible institutions within that State, 
and shall give special consideration to requests by eligible recipients, 
transmitted through the State agency, for specific items of property. 
"(4) (A) Before property may be transferred to any State agency, 
such State shall develop, according to State law, a detailed plan of 
operation, developed in conformity with the provisions of this subsec-
tion, which shall include adequate assurance that the State agency has 
the necessary organizational and operational authority and capability, 
including staff, facilities, means and methods of financing, and pro-
cedures with respect to: accountability, internal and external audits, 
cooperative agreements, compliance and utilization reviews, equitable 
distribution and property disposal, determination of eligibility, and 
assistance through consultation with advisory bodies and public and 
private groups. The chief executive officer shall certify and submit 
the plan to the Administrator. In the event that a State legislature 
has not developed, according to State law, a State plan within two 
hundred and seventy calendar days after the date of enactment of 
this Act, the chief executive officer of the State shall approve, and 
submit to the Administrator, a temporary State plan. No such j)lan, 
and no major amendment thereof, shall be filed with the Adminis-
trator until sixty days after general notice of the proposed plan or 
amendment has been published and interested persons have been 
given at least thirty days during which to submit comments. In devel-
oping and implementing the State plan, the relative needs and 
resources of all public agencies and other eligible institutions within 
the State shall be taken into consideration. The Administrator may 
consult with interested Federal agencies for purposes of obtaining 
their views concerning the administration and operation of this 
subsection. 
"(B) The State plan shall provide for the fair and equitable dis-
tribution of property within such State based on the relative needs 
and resources of interested public agencies and other eligible institu-
tions within the State and their abilities to utilize the property. 
"(C) (i) The State plan of operation shall require the State agency 
to utilize a management control system and accounting system for 
donable property transferred under this section of the same types 
as are required by State law for State-owned property, except that 
the State agency, with the approval of the chief executive officer of 
the State, may elect, in lieu of such systems, to utilize such other 
management control and accounting systems as are effective to govern 
the utilization, inventory control, accountability, and disposal of 
property under this subsection. 
"(ii) The State plan of operation shall requi;?^the State agency to 
provide for the return of donable property fpi^further distribution if 
such 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 such purposes within one year of being 
placed in use. 
PUBLIC LAW 94-519—OCT. 17, 1976 
90 STAT. 2453 
"(iii) The State plan shall require the State agency, insofar as 
practicable, to select property requested by a public agency or other 
eligible institution within the State and, if so requested by the 
recipient, to arrange shipment of that property, when acquired, 
directly to the recipient. 
"(U) Where 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 
such charges shall be set out in the State plan of operation. Such 
charges shall be fair and equitable and shall be based on services per-
formed by the State agency, including, but not limited to, screening, 
packing, crating, removal, and transportation. 
" ( E ) The State plan of operation shall provide that the State 
agency may impose reasonable terms, conditions, reservations, and 
restrictions on the use of property to be donated under paragraph (3) 
of this subsection and shall impose such terms, conditions, reservations, 
and restrictions in the case of any passenger motor vehicle and any 
item of other property having a unit acquisition cost of $3,000 or more. 
If the Administrator finds that an item or items have characteristics 
that require special handling or use limitations, he may impose appro-
priate conditions on the donation of such property. 
" ( F ) The State plan of operation shall provide that surplus prop-
erty which the State agency determines cannot be utilized by eligible 
recipients shall be disposed of—• 
"(i) subject to the disapproval of the Administrator within 
thirty days after notice to him, through transfer by the State 
agency to another State agency or through abandonment or 
destruction where the property has no commercial value or the 
estimated cost of its continued care and handling would exceed 
the estimated proceeds from its sale; or 
"(ii) otherwise pursuant to the provisions of this Act under 
such terms and conditions and in such manner as may be prescribed 
by the Administrator. 
Notwithstanding sections 204 and 402(c) of this Act, the Adininis- 
40 USC 485, 
trator, from the proceeds of sale of any such property, may reimburse 
512. 
the State agency for such expenses relating to the care and handling 
of such property as he shall deem appropriate. 
"(5) As used in this subsection, (A) the term 'public agency' means 
"Public agency." 
any State, political subdivision thereof (including any unit of local 
government or economic development district), or any department, 
agency, instrumentality thereof (including instrumentalities created 
, 
by compact or other agreement between States or political subdivi-
sions) , or any Indian tribe, band, group, pueblo, or community located 
on a State reservation and (B) the term 'State' means the several 
"State." 
States, the District of Columbia, the Commonwealth of Puerto Rico, 
Virgin Islands, Guam, and American Samoa.". 
(2) Subsection (k) is amended— 
(A) in the first sentence of paragraph (4), immediately follow-
ing the word "subsection", by adding ", except with respect to 
personal property transferred pursuant to subsection ( j ) " ; 
(B) in subparagraph (4)(C), by inserting "or" immediately 
after the semicolon; 
(C) in subparagraph (4) (D), immediately following the words 
"armed forces", by striking o u t " ; or" and inserting in lieu thereof 
a period; and 
(D) by striking out subparagraph (4) ( E ) . 
(3) Subsection (n) is amended to read as follows: 
90 STAT. 2454 
PUBLIC LAW 94-519—OCT. 17, 1976 
"(n) For the purpose of carrying into effect the provisions of sub-
section (j), the Administrator or the head of any Federal agency 
designated by the Administrator, and, with respect to subsection 
(k) (1), the Secretary of Health, Education, and Welfare or the head 
of any Federal agency designated by the Secretary, are authorized to 
enter into cooperative agreements with State surplus property distribu-
tion agencies designated in conformity with subsection (j). Such coop-
erative agreements may provide for utilization by such Federal agency, 
w4th or without payment or reimbursement, of the property, facilities, 
personnel, and services of the State agency in carrying out any such 
program, and for making available to such State agency, with or 
without payment or reimbursement, property, facilities, pereonnel, or 
services of such Federal agency in connection with such utilization. 
Payment or reimbursement, if any, from the State agency shall be 
credited to the fund or appropriation against which charges would be 
made if no payment or reimbursement were received. In addition, under 
such cooperative agreements and subject to such other conditions as 
may be imposed by the Administrator, or with respect to subsection 
(k)(l) by the Secretary of Health, Education, and Welfare, any 
surplus property transferred to the State agency for distribution 
pursuant to subsection (j)(3) may be retained by the State agency 
for use in performing its functions. Unless otherwise directed by the 
Administrator, title to property so retained shall vest in the State 
agency.". 
(4) Subsection (o) is amended to read as follows; 
Report to 
"(o) The Administrator with respect to personal property donated 
Congress. 
under subsection (j), and the head of each executive agency disposing 
of real property under subsection (k), shall submit during the calendar 
quarter following the close of each fiscal year a report to the Senate 
(or to the Secretary of the Senate if the Senate is not in session) and 
to the House of Representatives (or to the Clerk of the House if the 
House is not in session) showing the acquisition cost of all personal 
property so donated and of all real property so disposed of during the 
preceding fiscal year. Such reports shall also show donations and 
transfers of property according to State, and may include such other 
information and recommendations as the Administrator or other exec-
utive agency head concerned deems appropriate,". 
40 use 484 note. 
SEC. 2. Except to the extent that the Administrator of General Serv-
ices, in the case of specific items or categories of property, has deter-
mined otherwise, no term, condition, reservation, or restriction imposed 
pursuant to subsection (j) (5) of section 203 of the Federal Property 
40 use 484. 
and Administrative Services Act of 1949 (as in effect prior to the date 
of enactment of this Act), on the use of any item of personal property 
donated pursuant to subsection (j) (3) or (j) (4) of section 203 prior 
to the effective date of this Act as provided in section 9(a), shall 
remain in effect beyond the thirtieth day after such effective date. This 
section shall not be deemed to terminate any civil or criminal liability 
arising out of a violation of such a term, condition, reservation, or 
restriction which occurred prior to such effective date if a judicial 
proceeding to enforce such liability is pending on such effective date, 
or is commenced within one year after such date. 
SEC. 3. Section 202 of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 483) is amended by adding the follow-
ing new subsections: 
"(d) Notwithstanding any other provisionr, of law. Federal agencies 
are prohibited from obtaining excess personal property for purposes 
of furnishing such property to grantees of such agencies, except as 
follows: 
PUBLIC LAW 94-519—OCT. 17, 1976 
90 STAT. 2455 
22 use 2358. 
Ante, p. 2451. 
"(1) Under such regulations as the Administrator may pre- 
Regulations, 
scribe, any Federal agency may obtain excess personal property 
for purposes of furnishing it to any institution or organization 
which is a public agency or is nonprofit and exempt from taxation 
under section 501 of the Internal Revenue Code of 1954, and which 
26 USC 501. 
is conducting a federally sponsored project pursuant to a grant 
made for a specific purpose with a specific termination made: 
Provided, 
That— 
" (A) such property is to be furnished for use in connection 
with the grant; and 
"(B) the sponsoring Federal agency pays an amount 
equal to 25 per centum of the original acquisition cost (except 
for costs of care and handling) of the excess property fur-
nished, such funds to be covered into the Treasury as miscel-
laneous receipts. 
Title to excess property obtained under this paragraph shall vest 
in the grantees and shall be accounted for and disposed of in 
accordance with procedures governing the accountability of per-
sonal property acquired under grant agreements. 
"(2) Under such regulations and restrictions as the Admin- 
Regulations, 
istrator may prescribe, the provisions of this subsection shall not 
apply to the following: 
" (A) property furnished under section 608 of the Foreign 
Assistance Act of 1961, as amended, where and to the extent 
that the Administrator of General Services determines that 
the property to be furnished under such Act is not needed for 
donation pursuant to section 203 (j) of this Act; 
"(B) scientific equipment furnished under section 11(e) 
of the National Science Foundation Act of 1950, as amended 
(42 U.S.C. 1870(e)); _ 
"(C) property furnished under section 203 of the Depart-
ment of Agriculture Organic Act of 1944 (16 U.S.C. 580a), 
in connection with the Cooperative Forest Fire Control Pro-
gram, where title is retained in the United States; or 
" ( D ) property furnished in connection with grants to 
Indian tribes as defined in section 3(c) of the Indian Financ-
ing Act (25 U.S.C. 1452 (c)). 
This paragraph shall not preclude any Federal agency obtaining 
property and furnishing it to a grantee of that agency under para-
graph (1) of this subsection. 
" (e) Each executive agency shall submit during the calendar quar-
t€.r following the close of each fiscal year a report to the Administrator 
showing, with respect to personal property— 
" (1) obtained as excess property or as personal property deter-
mined to be no longer required for the purposes of the appropria-
tion from which it was purchased, and 
"(2) furnished in any manner whatsoever within the United 
States to any recipient other than a Federal agency, 
the acquisition cost, categories of equipment, recipient of all such 
property, and such other information as the Administrator may 
require. The Administrator shall submit a report to the Senate (or to 
Report to 
the Secretary of the Senate if the Senate is not in session) and to the 
Congress. 
House of Representatives (or to the Clerk of the House if the House 
is not in session) summarizing and analyzing the reports of the execu-
tive agencies.". 
SEC. 4. Section 402(c) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 512(c)) is amended by striking out 
Report to 
Administrator. 
90 STAT. 2456 
PUBLIC LAW 94-519—OCT. 17, 1976 
"whenever the head of the executive agency concerned determines that 
it is in the interest of the United States to do so" and inserting in lieu 
thereof ", whenever the head of the executive agency concerned, or the 
Administrator after consultation with such agency head, determines 
that return of the property to the United States for such handling is 
in the interest of the United States". 
40 use 483c. 
SEC. 5. Notwithstanding any other provision of law, and except as 
the Administrator of General Services may otherwise provide on 
recommendation of the head of an affected Federal agency, excess 
personal property acquired by a Federal agency pursuant to the 
authority of section 202 of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 483) and furnished to and held by 
a grantee of such agency prior to the effective date of this Act (as 
provided in section 9(b)) under grants made pursuant to programs 
established by law shall be regarded as surplus property. The Admin-
istrator of General Services upon receipt of a certification by the 
head of an agency that the property is being used by the grantee for 
the purposes for which it was furnished shall transfer title to the 
property to the grantee. The grantor agency shall survey Federal 
property acquired from excess sources in the possession of its grantees 
and shall notify the Administrator of General Services, not later than 
two hundred and forty days from the date of enactment of this Act, 
of those items of property which are being used by each grantee for 
the purpose for which it was furnished, and those items which are 
not being used by each grantee. If the property is not being so used, 
the Administrator shall transfer such property to an appropriate 
State agency, upon its request, for distribution in accordance with 
subsection 203 (j) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 484(j)). Property not so transferred shall be 
otherwise disposed of pursuant to the provisions of that Act.". 
SEC. 6. Section 514 of the Public Works and Economic Development 
Act of 1965 (88 Stat. 1162) is repealed. 
SEC. 7. (a) So much of the personnel, property, records, and unex-
pended balance of appropriations, allocations, and other funds as are, 
in the judgment of the Director of the Office of Management and 
Budget, employed, used, held, available, or to be made available in 
relation to those personal property functions which the Secretary of 
Health, Education, and Welfare was authorized to perform under 
section 203 of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 484) immediately prior to the date of enactment 
of this Act and which under this Act become vested in the Admin-
istrator of General Services shall be transferred to the General Services 
Administration at such time or times as the Director shall direct. 
(b) Such further measures and dispositions as the Director of the 
Office of Management and Budget deems necessary to effectuate trans-
fers referred to in subsection (a) of this section shall be carried out 
in such manner as the Director shall direct. 
SEC. 8. Title V I of the Federal Property and Administrative 
Services Act of 1949 is amended by adding after section 605 the fol-
lowing new section: 
"SEX DISCRIMINATION 
40 use 476. 
"SEC. 606. No individual shall on the ground of sex be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity carried on or receiving 
Federal assistance under this Act. This provision shall be enforced 
through agency provisions and rules similar to those already estab-
Repeal. 
42 u s e 3193. 
Transfer of 
personnel, 
records, etc. 
40 u s e 484c. 
PUBLIC LAW 94-519—OCT. 17, 1976 
90 STAT. 2457 
lished with respect to racial and other discrimination under title VI 
of the Civil Rights Act of 1964. However, this remedy is not exclusive 
and will not prejudice or remove any other legal remedies available 
to any individual alleging discrimination.". 
SEC. 9. The provisions of this Act shall become effective one year 
after the date of enactment of this Act. 
SEC. 10. Not later than thirty months after the effective date of 
this Act, and biennially thereafter, the Administrator and the Comp-
troller General of the United States shall each transmit to the Congress 
reports which cover the two-year period from such effective date and 
contain (1) a full and independent evaluation of the operation of this 
Act, (2) the extent to which the objectives of this Act have been 
fulfilled, (3) how the needs served by prior Federal personal property 
distribution programs have been met, (4) an assessment of the degree 
to which the distribution of surplus property has met the relative 
needs of the various public agencies and other eligible institutions, 
and (5) such recommendations as the Administrator and the Comp-
troller General, respectively, determine to be necessary or desirable. 
Approved October 17, 1976. 
42 u s e 2000d. 
Effective date. 
40 u s e 484 note. 
Reports to 
eongress. 
40 u s e 493. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-1429 (eomm. on Government Operations). 
SENATE REPORT No. 94-1323 (eomm. on Government Operations). 
CONGRESSIONAL REGORD, Vol. 122 (1976): 
Aug. 24, considered and passed House. 
Sept. 28, considered and passed Senate, amended. 
Sept. 29, House agreed to Senate amendments.