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Elson, Sol, Director, Office of Surplus Property Utilization, Department of
Health, Education, and Welfare, accompanied by Manuel B. Hiller, Page
Assistant General Counsel.

Flint, Weldon, president, National Association of State Agencies for Surplus
Property, accompanied by Stanley Izbicky and Ray Underwood......

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IV

DONABLE SURPLUS PROPERTY PROGRAM

WEDNESDAY, JULY 9, 1969

U.S. SENATE,

AD HOC SUBCOMMITTEE,

COMMITTEE ON GOVERNMENT OPERATIONS,

Washington, D.C. The subcommittee met, pursuant to call, at 2:11 p.m., in room 3302, New Senate Office Building, Senator James B. Allen (chairman) presiding.

Present: Senators Allen, Metcalf, and Gurney.

Also present: James R. Calloway, chief counsel and staff director; Ann M. Grickis, assistant chief clerk; Glenn K. Shriver, professional staff member; Charles M. Ryan, professional staff member; and Arthur A. Sharp, editor.

Senator ALLEN. The subcommittee will please come to order.

OPENING STATEMENT OF THE CHAIRMAN

I should like at this time to make a brief statement regarding the purpose, background, and procedure to be followed during our consideration of the bills which were referred to the subcommittee.

Senator John L. McClellan, chairman of the Committee on Government Operations, recently established this ad hoc subcommittee, consisting of Senators Metcalf, Gurney, and myself as chairman, for the purpose of considering the merits of each bill and to make such recommendations as is deemed necessary to the full committee.

I would like to insert Senator McClellan's letter of June 4, 1969, addressed to me with copies to Senator Metcalf and Senator Gurney regarding our appointment to the ad hoc subcommittee.

(The letter follows:)

Hon. JAMES B. ALLEN,
U.S. Senate,

Washington, D.C.

JUNE 4, 1969.

DEAR SENATOR: This will confirm preliminary discussions regarding your appointment as Chairman of an ad hoc subcommittee to consider the attached list of bills relating to the Federal surplus property program. Senators Metcalf and Gurney have also agreed to serve on the subcommittee and I am sure that your efforts will expedite the processing of these bills.

The committee staff has been directed to furnish you with every possible assist

ance.

With kindest personal regards, I am,

Sincerely yours,

JOHN L. MCCLELLAN, Chairman.

Senator ALLEN. Seven bills have been referred to this ad hoc subcommittee, of which three provide for amending section 203 (j), and

one proposes to amend section 201 of the Federal Property and Administrative Services Act of 1949, which is the basic authority for the disposal of surplus real and personal property. The other three bills are intended to transfer certain parcels of real property to the State or local instrumentality, or to clear the title on a small plot of land. Briefly, the bills are identified as follows:

S. 406

S. 406 (Senator Proxmire)-would amend section 201 of the Federal Property and Administrative Services Act of 1949, as amended, so as to give the head of each executive agency who has control over medical materials or medical supplies, which are held for a national emergency, to declare them "excess" and available for transfer to another Federal agency, if he believes that the remaining storage period is too short for continued retention. It is believed that the rotation procedure envisioned under this bill will make possible substantial savings and contribute to a more efficient use of the reserve medical supplies.

S. 1366

S. 1366 (Senator Moss)—this bill would release the conditions in a deed with respect to the use of a part of the land heretofore conveyed by the United States to the Salt Lake City Corp.

The sponsor of this bill stated that about 50 years ago a large concrete U-shaped form was erected on a hillside overlooking Salt Lake City, Utah. This form was placed on the hill as a reminder or symbol of the University of Utah. In 1961 the land on which the "U" is located was conveyed to the Salt Lake City Corp. with a proviso that the property be used for public park and recreational purposes. Now the corporation and alumni association of the university wishes to reconstruct the monument, and install floodlights so that it will be visible at night, but there is some question or uncertainty as to whether this work can be made under such restrictions on the use of the property.

S. 1632

S. 1632 (Senator Stevens)-to amend the Federal Property and Administrative Services Act of 1949, as amended, and for other pur

poses.

The bill would amend section 203 (j) (1) of the Federal Property and Administrative Services Act of 1949, as amended, for the purpose of giving State agencies for surplus property first choice on excess personal property acquired by the Agency for International Development and held in storage for issuance to foreign countries receiving economic assistance from the United States.

S. 1718

S. 1718 (Senator Hansen)-to provide for the conveyance of approximately 28 acres of land to the city of Cheyenne, Wyo., certain real property of the United States heretofore donated to the United States, by such city of Cheyenne.

S. 2114

S. 2114 (Senator Inouye)-to provide for the conveyance of certain real property to the State of Hawaii for low-rent public housing or public airport use.

S. 2170

S. 2170 (Senator McClellan) (by request)—to amend the Federal Property and Administrative Services Act of 1949, as amended, with respect to the disposal of excess and surplus property and for other purposes.

This bill is intended to clarify certain phases of the surplus property program by defining more precisely those eligible to receive such property. It would strengthen and support the main objectives of the basic surplus property statute, and at the same time eliminate some of the administrative interpretations which have hindered rather than helped the program. The bill is designed to incorporate almost all of the authority over surplus property disposition in the Federal Property and Administrative Services Act of 1949; modify or eliminate some priorities which cause considerable delay and confusion; and to promote efficiency by eliminating or minimizing competition, duplication, and overlapping of functions between the Federal agencies.

8. 2210

S. 2210 (Senator Hansen)-This bill would make public museums eligible to receive and make use of surplus personal property. Under the provisions of this bill public museums would become eligible to receive surplus property in the same manner as such property is now made available to public libraries.

We are glad to have with us this morning Senators Proxmire, Moss, and Hansen, who sponsored some of the bills which we will consider during these hearings.

Before we hear from Senator Proxmire, who will be the first witness, I would like to insert in the record staff memorandum No. 91-1-26, dated June 26, 1969, together with a copy of each bill which has been referred to the subcommittee.

(The documents follow:)

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Staff Memorandum No. 91-1-26

June 26, 1969. SUBJECT: Summary of surplus property bills scheduled for hearings on July 9, and 10, 1969-(S. 406, S. 1366, S. 1632, S. 1718, S. 2114, S. 2170 and S. 2210).

1. S. 406 (Senator Proxmire): to amend the Federal Property and Administrative Services Act of 1949 to permit the rotation of certain property whenever its remaining storage or shelf life is too short to justify its retention, and for other purposes. (Senator Proxmire offered a similar bill in the 90th Congress, S. 1717.)

S. 406 would amend section 201 of the Federal Property and Administrative Services Act of 1949, as amended, so as to give the head of each executive agency who has custody or control over medical materials or medical supplies, which are held for a national emergency, authority to declare them "excess" and available for transfer to another Federal Agency, if he believes that the remaining storage period is too short for continued retention and that disposal thereof would be in the interest of the United States.

The bill further provides that excess stocks of medical supplies could be transferred to, or exchanged with any other Federal agency and the proceeds thereof be credited to the appropriation or fund of the transferor agency for replenishment of its inventory.

The bill also would permit the head of each Federal agency having excess medical supplies in foreign countries to donate them to non-profit, medical or health organizations abroad as provided by sections 214 (b) and 607 of the Foreign Assistance Act of 1961, or return such materials to the United States for transfer to another Federal agency, or for donation to health, education or civil defense as authorized by section 203 of the Federal Property and Administrative Services Act of 1949.

To date, no agency recommendations have been received on S. 406, however, the Bureau of the Budget, General Services Administration and the Department of Health, Education and Welfare did approve identical language last year when reporting on S. 1717.

2. S. 1366 (Senator Moss): to release the conditions in a deed with respect to a certain portion of the land heretofore conveyed by the United States to the Salt Lake City Corporation.

The purpose of this bill is to remove a restriction on the use of 3.73 acres of land which was conveyed to the Salt Lake City Corporation by the Federal Government in 1961. The sponsor of this bill stated that about fifty years ago a large concrete "U"-shaped form was erected on a hillside overlooking Salt Lake City, Utah. This form was placed on the hill as a reminder or symbol of the University of Utah. In 1961 the land on which the "U" is located was conveyed to the Salt Lake City Corporation with a proviso that the property be used for public park and recreational purposes. Now the Corporation and Alumni Association of the University wishes to reconstruct the monument and install flood lights so that it will be visible at night, but the Bureau of Outdoor Recreation has held that no repair or improvement can be made until the Corporation obtains clear title to the property.

To date no reports or recommendations have been received from any of the Executive departments or agencies on the proposed legislation.

3. S. 1632 (Senator Stevens): to amend the Federal Property and Administrative Services Act of 1949, as amended, and for other purposes.

This bill is identical to S. 1974 which was introduced in the 90th Congress, reported by the Committee on Government Operations and passed the Senate on June 18, 1968.

The bill would amend Section 203 (j) (1) of the Federal Property and Administrative Services Act of 1949, as amended, for the purpose of giving State agencies for surplus property first choice on excess personal property acquired by the Agency for International Development and held in storage for issuance to foreign countries receiving economic assistance from the United States.

No reports have been received from the executive departments or agencies on the bill, however, the Bureau of the Budget recommended against enactment of an identical measure last year, "because it would cause the needs of an approved Federal program to be subordinated to the prior claims of non-Federal institutions.

4. S. 1718 (Senator Hansen): to provide for the conveyance to the City of Cheyenne, Wyoming, of certain real property of the United States heretofore donated to the United States by such city.

S. 1718 expressly provides that the Administrator of General Services shall without monetary consideration therefor, convey to the city of Cheyenne, Wyoming, all right, title, and interest of the United States in and to a portion of a 600 acre tract of land heretofore donated to the United States by such city as a site for a Veterans' Administration hospital, which portion has been declared excess to the needs of the Veterans Administration.

The property proposed to be conveyed pursuant to S. 1718, consists of approximately 28 acres which, except for 78.8 acres of land occupied by the Veterans Administration facility, is the last remaining portion of the 600 acre tract donated to the United States by the city in 1932. All of the other land has been reconveyed to the city of Cheyenne without monetary consideration.

The fair market value of the 28 acres, which was declared surplus to the needs of the Federal Government in 1965, has been appraised at $150,000.

The General Services Administration has proposed to exchange the 28 acres covered by S. 1718, to a commercial developer for some land that GSA wishes to

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