with applicable law or regulations or with Department policy. Any question, unresolved after consultation with the originating unit, will be submitted by the Department Patents Officer to the Department Patents Board which shall either affirm or reverse the determination or return the same to the head of the constituent organization or office for further action. If the Board proposes to determine, or to approve a determination, that the invention shall be required to be assigned to the Government, it may in its discretion afford the employee an opportunity of a hearing. § 7.8 Employee's right of appeal. An employee who is aggrieved by a determination of the Department may appeal to the Commissioner of Patents, pursuant to section 4(d) of Executive Order 10096, as amended by Executive Order 10930, and regulations issued thereunder, by filing a written appeal with the Commissioner, in duplicate, and a copy of the appeal with the Department Patents Officer, within 30 days (or such longer period as the Commissioner may, for good cause, fix in any case) after receiving written notice of such determination. (c) Real property will be requested for assignment only when the Department has determined that the property is suitable and needed for public health or educational purposes. The amounts of both real and related personal property to be transferred shall not be excessive to normal operating requirements. Such property, except for transfers contemplated under § 12.10, will not be requested for assignment unless it is needed at the time of application for educational or for public health purposes, including research, or unless it will be so needed within the immediate foreseeable future. When construction is contemplated, the initiation of construction of the major functional facility in the approved program must begin within 18 months after the date of transfer. Construction shall be deemed to have been initiated when the transferee executes a contract providing a firm date in the reasonably near future for actual commencement of construction. The Department may, in its discretion, grant extensions of the 18 month period where the transferee can factually demonstrate that it has exercised due diligence in attempting to initiate construction within the said period and that such construction will be initiated during the period of any such extension. [Paragraph (c) amended, 25 F.R. 6622, July 14, 1960] (f) Only those activities devoted to academic, vocational or professional instruction, or organized and operated to promote and protect the public health, are eligible. Examples of such eligible activities are universities, colleges, junior colleges, junior or senior high schools, elementary schools or school systems, vocational or specialized schools, research activities, public libraries, and similar activities primarily educational in character; general and specialty hospitals, mental institutions, clinics, health sanitation activities (including water and sewer departments), facilities providing public health services, and similar activities devoted primarily to the protection and promotion of public health. The program of an institution eligible for a transfer must contemplate use of the property as an integral part of an activity of the kind above described. The activity must obtain such licenses for operations as may be required by State and local law. [Paragraph (f) amended, 25 F.R. 908, Feb. 3, 1960] (h) An applicant's plan of operation which includes use of the property for residential purposes shall not be approved unless it includes a provision that the applicant will not discriminate because of race, color, creed, or national origin in the use or occupancy of any portion of the property which is to be used for residential purposes (including land to be developed for residential purposes) such as, but not limited to, dormitories, faculty housing, and residences for nurses, interns and doctors. [Paragraph (h) added, 27 F.R. 12753, Dec. 27, 1962] § 12.4 Limitations. (b) Unless excepted by the General Services Administration from the assignment of property to this Department, mineral rights will, in all cases, be conveyed together with the surface rights. However, where the property to be conveyed overlies a known mineral structure of commercial value, the Department, in its discretion will: (1) Convey the mineral rights separately from the surface rights upon payment by the transferee of the fair value thereof, as determined by the Department, without application of the public benefit allowance; or (2) Convey the mineral rights together with the surface rights with the requirement in the conveyance instrument that, during the period of restricted use, all revenues or the reasonable value, as determined by the Department, of benefits to the transferee deriving directly or indirectly from any and all mineral leases or royalties shall be considered to have been received and held in trust by the transferee for the United States and shall be subject to direction and control of the Department, together with a reservation to the Government, in the conveyance instrument, at its option, to revert title to any and all mineral interests conveyed at any time during the period of restricted use. [Paragraph (b) amended, 25 F.R. 908, Feb. 3, 1960] § 12.11 Special terms and conditions. * (f) Where an eligible applicant for an on-site transfer proposes to construct new, or rehabilitate old facilities, the financing of which must be accomplished through issuance of revenue bonds having terms inconsistent with the terms and conditions of transfer prescribed in § 12.9 (c), (d) and (e), the Department may, in its discretion, impose such alternate terms and conditions of transfer in lieu thereof as may be appropriate and effective to assure utilization of the property for educational or public health purposes; provided, however, that the right to repossess in the event of national emergency, as set forth in § 12.9 (c) (7) shall be reserved in every transfer. [Paragraph (f) added, 25 F.R. 908, Feb. 3, 1960] PART 13-ALLOCATION AND UTILIZATION OF SURPLUS PERSONAL PROPERTY FOR EDUCATIONAL, PUBLIC HEALTH, AND CIVIL DEFENSE PURPOSES [REVISED] Sec. 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 Definitions. Basic policy. Geographic scope. Allocation of donable property. State agency agreements. re specting interstate distribution. Terms and conditions applicable to transfers or retransfers of donable property. Terms and conditions applicable to transfers or retransfers of aircraft. AUTHORITY: §§ 13.1 to 13.10 issued under sec. 203, 63 Stat. 385, as amended, 70 Stat. 493; 40 U.S.C. 484; 76 Stat. 805. Source: $13.1 to 13.10 appear at 27 F.R. 12261, Dec. 12, 1962. Prior Amendments 1960: 25 F.R. 909, Feb. 3; 25 F.R. 6622, July 14; 25 F.R. 7317, Aug. 4. (a) "Act" means the Federal Property and Administrative Services Act of 1949, Public Law 152, 81st Congress (63 Stat. 377), as amended (40 U.S.C. 471 et seq.). Terms defined in the act and not defined in this section, shall have in this part the meaning given to them in the act. (b) "Accredited" means approval by a recognized accrediting board or association on a regional, state, or national level such as a State Board of Education or Health, a regional or national accrediting association for universities, colleges, or secondary schools, the American Hospital Association, etc. (c) "Approved" means recognition and approval by the State Department of Education, State Department of Health, or other appropriate authority. With respect to an educational institution, such approval must relate to academic or instructional standards. An educational institution may be considered as approved if its credits are ac cepted by accredited or State approved institutions, or if it meets the academic or instructional standards prescribed for public schools in the State. (d) "Civil defense organization" means the official organization established by or pursuant to State law as being responsible for the civil defense program for such State, or political subdivisions and instrumentalities thereof. This term does not include a "State agency" as defined in paragraph (bb) of this section. (e) "Clinic" means an approved facility organized and operated for the primary purpose of providing outpatient health services and includes the customary related facilities such as laboratories, treatment rooms, etc. (f) "College" means an approved or accredited institution of higher learning offering organized study courses and credits leading to the baccalaureate or higher degrees. (g) "Department" means the Department of Health, Education, and Welfare. (h) "Donable property" means surplus equipment, materials, books, or other supplies under the control of any executive agency (including surplus property in working capital funds established pursuant to section 405 of the National Security Act of 1947, as amended, or in similar management-type funds) except: (1) Such property as may be specified from time to time by the Administrator of General Services; (2) Surplus agricultural commodities, food, and cotton or woolen goods determined from time to time by the Secretary of Agriculture to be commodities requiring special handling in order to assist him in carrying out his responsibilities with respect to price support or stabilization; (3) Property in the custody of an agency or an organizational unit thereof which is subject to the Government Corporation Control Act (59 Stat. 597; 31 U.S.C. 841); the donation of which is determined by the holding agency to be inconsistent with ts program responsibilities. (4) Property in trust funds. (i) "Donated property" means equipment, materials, books and other personal property transferred to eligible institutions or organizations pursuant to the provisions of § 203 (j) of the Act and implementing regulations. (j) "Donee" means an eligible applicant who is a recipient of donable property. (k) "Educational Institution" means a tax-supported or nonprofit school system, school, college university, school for the mentally retarded, school for the physically handicapped, radio or television station licensed by the Federal Communications Commission as an educational radio or an educational television station, and public libraries. School systems, schools, colleges and universities must be approved or accredited. (1) "Eligible applicant" means (1) a civil defense organization as defined in paragraph (d) of this section, (2) an approved or accredited tax-supported or nonprofit medical institution, hospital, clinic, health center, school system, school, college, or university, or (3) a tax-supported or nonprofit school for the mentally retarded, school for the physically handicapped, a radio station or a television station licensed by the Federal Communications Commission as an educational radio or an educational television station, or a public library. Nonprofit organizations must be exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954. (m) "Health center" means an approved facility utilized by a health unit for the provision of public health services, including related facilities such as laboratories and clinics. (n) "Hospital" means an approved or accredited institution providing health services primarily for inpatient medical or surgical care of the sick or injured and includes related facilities such as laboratories, outpatient departments, training facilities, central service facilities, and staff offices which are an "integral part" of the hospital. The term "hospital" does not include institutions whose primary purpose is the furnishing of domiciliary care. (o) "Medical institution" means an approved or accredited institution, facility, entity or organization which has for its primary function the provision of medical services, or the promotion of health through the conduct of research, investigations, experiments, training and demonstrations, relating to causes, prevention, and methods of diagnosis and treatment of diseases or injuries; the term includes hospitals, clinics, research and health centers, laboratories, medical, dental, and nursing schools, and similar institutions, but does not include those primarily engaged in domiciliary care. (p) "Motor vehicles" means property in Federal Supply Classification Group 23. (q) "Need" means a requirement for anything usable and necessary by eligible applicants in the conduct of educational, public health, or civil defense activities. (r) "Net proceeds" means the revenue realized by an authorized sale of donated personal property less (1) the certified costs or expenses of the donee in initially acquiring the property, in such pro-rated amount based on use as may be prescribed by the Department for reimbursement to the donee, (2) the actual costs of listing, lotting, and advertising the property for sale, and (3) such rehabilitation costs, paid by the donee, as are necessary to initially place the property in operable condition, in such pro-rated amount based on use as may be prescribed by the Department for reimbursement to the donee. (s) "Nonprofit" used in connection with a medical institution, hospital, clinic, health center, school, college, university, school for the mentally retarded, school for the physically handicapped, or an educational television or educational radio station licensed by the Federal Communications Commission means one which is operated by one or more nonprofit corporations or associations, no part of the net earnings of which inures or may lawfully inure to the benefit of any private shareholder or individual, and which has been held by the Internal Revenue Service to be tax-exempt under the provisions of section 501(c) (3) of the 1954 Internal Revenue Code. (t) "Personal property" means surplus property of any kind or any interest therein, except: Real property, records of the Federal Government and naval vessels of the following categories: "Battleships, cruisers, aircraft carriers, destroyers, and submarines; and merchant vessels of 1,500 gross tons or more subject to disposal by the United States Maritime Commission." (u) "Public library" means a library that serves free all residents of a community, district, state, or region, and receives its financial support in whole or in part from public funds. (v) Radio-"Educational radio station" means a radio station licensed by |