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(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 accepted 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 (cc) 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 learn

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ing 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 10 U.S.C. 2208 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 trust funds.

(i) "Donated property" means equipment, materials, books and other personal property transferred to eligible institutions or organizations pursuant to the provisions of section 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 services 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.

(0) "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) "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 earning of which inures or may lawfully inure to the benefit of any private shareholder 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.

(s) "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 folowing categories: "Battleships, cruisers, aircraft carriers,

destroyers, and submarines; and merchant vessels of 1,500 gross tons or more subject to disposal by the U.S. Maritime Commission."

(t) "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.

(u) Radio-"Educational radio station" means a radio station licensed by the Federal Communications Commission and operated exclusively for noncommercial educational purposes and the licensee of which is tax-supported or nonprofit and tax-exempt under section 501(c)(3) of the Internal Revenue Code of 1954.

(v) "Reimbursement to donees" means those costs and expenses for which the donee may recover monies from the proceeds of the sale of restricted donated items. These include (1) in such prorated amount, based on use, as may be prescribed by the Department (i) the certified costs of initially acquiring the property; (ii) the rehabilitation costs incurred in initially placing the property into operable condition; (2) the actual costs of listing and lotting property for sale; and (3) the actual costs of advertising the property when authorized by the Regional Representative to conduct the sale.

(w) Reimbursement to State Agencies" means those costs and expenses for which the State Agency may recover monies from the proceeds of the sale of undistributed surplus property in the custody of the State Agency. These include only those costs of listing and lotting the property which are incurred subsequent to GSA authorization of the sales action, plus the actual cost of advertising in those cases where the State Agency is requested to conduct the sale.

(x) "School" (excepting schools for the "mentally retarded and schools for the physically handicapped") means an approved or accredited organizational entity devoted primarily to approved academic, vocational, or professional study and instruction, which operates primarily for educational purposes on a full-time basis for a minimum school year and employs a full-time staff of qualified instructors.

(y) "School for the mentally retarded" means a facility or institution operated primarily to provide specialized instruction to students of limited mental capacity. It must be tax-supported or non

profit and exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954. It must operate on a full-time basis for the equivalent of a minimum school year prescribed for public school instruction of the mentally retarded, with a staff of qualified instructors, and demonstrate that the facility meets the health and safety standards of the State or local governmental body.

(z) "School for the physically handicapped" means a school organized primarily to provide specialized instruction to students whose physical handicaps necessitate individual or group instruction. The school must be tax-supported or nonprofit and exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954. Such a school must operate on a full-time basis for the equivalent of a minimum school year prescribed for public school instruction for the physically handicapped, with a staff of qualified instructors, and demonstrate that the facility meets the health and safety standards of the State or local governmental body.

(aa) "School system" means a group of approved or accredited tax-supported schools operated under one administrative organization.

(bb) "Secretary" means the Secretary of Health, Education, and Welfare.

(cc) "State agency" means the agency designated by State statute or Executive order to make the certifications concerning and distribution of donable property to eligible applicants within the State, as provided for in section 203 (j) of the Act.

(dd) "State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a Territory or possession of the United States.

(ee) "Tax-supported" used in connection with a medical institution, hospital, clinic, health center, school, school system, college, university, school for the mentally retarded, school for the physically handicapped, or an educational television station or educational radio station licensed by the Federal Communications Commission means one which receives a major portion of its financial support from monies derived from State or local government revenues.

(ff) Television-"Educational television station" means a television station licensed by the Federal Communications Commission and operated exclusively for noncommercial educational purposes

and the licensee of which is tax-supported or nonprofit and tax-exempt under section 501 (c) (3) of the Internal Revenue Code of 1954.

(gg) "University" means an approved or accredited institution for instruction and study in the higher branches of learning and which is empowered to confer degrees in special departments or colleges.

§ 13.2 Basic policy.

It is the policy of the Department to strengthen and encourage the development and expansion of educational and public health programs and to promote a state of civil defense operational readiness by the equitable allocation among the States of donable property for educational, public health, and civil defense purposes, and the assuring thereafter of its maximum utilization for these purposes.

§ 13.3 Geographic scope.

This part is applicable to donable personal property located, needed and usable within the continental United States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.

§ 13.4 Allocation of donable property.

(a) Allocation of donable property will be made on the basis of need and usability of the property. The following factors will be taken into consideration in effecting equitable allocation of

property:

(1) Need and usability of property as reflected by requests from State Agencies.

(2) Areas or States in greatest need of the type of property to be allocated, where the particular important need is evidenced by a justification accompanying the expression of need.

(3) Extraordinary needs occasioned by disasters.

(4) Equity in allocations based on population percentages.

(5) The quantity of property of the type under consideration which has already been allocated or is potentially available to a State Agency.

(6) The ability or performance of State Agencies in meeting current transportation requirements.

(b) Judgment is necessary in the application of the factors and the weight that will be given each factor. However, factors other than those set forth will

not be used or applied by allocators. When using factor in paragraph (a)(2) of this section, it should not be applied to commonly available items. Its use must be confined to critical or special items not normally available, or to items required by the State to maintain the interest of its donees; in such cases, State Agencies must make statements of fact as justifications.

§ 13.5 Donations of personal property.

(a) Donations of personal property are authorized by the Administrator of General Services upon determination by the Department that the property applied for is usable and necessary for educational, public health, or civil defense purposes, including research for any such purpose. Property is allocated by the Department to State Agencies on the basis of need and utilization. All applications for property shall be made by State Agencies on Standard Form 123, "Application for Donation of Surplus Personal Property." Applications shall indicate that pickup will be made by or that shipment will be made to either a State Agency or an eligible donee. In its application, the State Agency shall make the certifications as provided in § 13.6(a) and shall agree to the terms and conditions as provided in §§ 13.7 and 13.11. When property is to be picked up by or shipped to a donee, in addition to the certifications made by the State Agency as above provided, the donee shall make the certifications as provided in § 13.6(b). The donee shall also indicate the purpose for which the property is being acquired and shall agree to the applicable terms and conditions as provided in §§ 13.9, 13.10, and 13.11. Prior to the release of property by the holding agency to a State Agency or donee, the Department must certify that the State Agency is elibigle to receive the property in accordance with the act and regulations promulgated thereunder, and that the property is usable and needed. When property is distributed by a State Agency to a donee, the donee shall make the certifications as provided in § 13.6 (b). The donee shall also indicate the purpose for which the property is being acquired, and shall agree to the applicable terms and conditions as provided in §§ 13.9, 13.10, and 13.11. The certifications and agreements of a donee shall be made through its authorized representative. The State Agency must make a finding that the donee is eligible and

that the property is usable and needed by the donee.

(b) An otherwise eligible applicant, except educational radio stations and educational television stations, may, in the discretion of the Department, receive donable property prior to "approval" or "accreditation" (as elsewhere defined in this part) of its operations only where it is unable to obtain such approval or accreditation because it is newly organized or because the facilities in which the health or educational activities are to be housed are not yet constructed or are being constructed. Also, schools for the mentally retarded and physically handicapped and public libraries which establish their eligibility under the Department's regulations may receive donable property during construction. In such cases, the applicant must demonstrate to the satisfaction of the Department, that upon completion of construction the facilities will be used for an eligible health or educational purpose and that such health or educational utilization will after operations in such facilities have commenced, receive such approval or accreditation, except schools for physically handicapped, mentally retarded, and public libraries. No property shall be so donated under this paragraph except upon submission of the application to the Department and the express written approval of the Department to such donation.

(c) Donation of property other than aircraft and vessels measuring 50 feet or more in length shall be effective and title shall pass from the United States of America to the donee, upon the taking of possession of the property by the donee and the execution by an authorized representative of the donee of a State Agency for Surplus Property Distribution Document containing the same certifications, terms and conditions as are applicable and set forth in the Department's regulations. Title to aircraft and vessels measuring 50 feet or more in length shall pass from the United States of America to the donee upon execution and delivery of either an Aircraft Conditional Transfer Document or a Vessel Conditional Transfer Document, whichever is appropriate, containing the terms and conditions provided in § 13.10.

(d) Retransfers and reallocations of donable property to other donees or to other State Agencies shall be subject to the applicable provisions set forth in §§ 13.6, 13.7, 13.9, 13.10, and 13.11.

(e) No donable property will be allocated until the Secretary has determined that the State Agency has conformed to the minimum standards of operation prescribed by the Secretary for the disposal of surplus property.

(f) Donable property received in State Agency warehouses shall be distributed promptly to eligible donees within the State, or shall be reallocated to another State Agency by the Department. Property not distributed within a 12-month period shall be reported to the Department for redisposal instructions.

(g) State Agencies shall make such reports to the Department on the use, condition, and location of donated property and other pertinent matters as the Department may from time to time require.

§ 13.6 Certifications by State Agencies and donees.

(a) A State Agency, in making application for donable surplus personal property, shall make a certification follows:

as

(1) The State Agency hereby certifies that:

(i) It is the agency of the State designated under State law and as such has legal authority within the meaning of section 203 (j) of the Act, and the regulations of the Department to receive surplus property for distribution within the State to eligible donees within the meaning of said Act and regulations.

(ii) Such property is usable and needed for educational, public health, or civil defense purposes, including research for any such purpose, in the State.

(2) When such property is picked up by or shipped to a State Agency, the State certifies that it has available adequate funds, facilities, and personnel to effect accountability, warehousing, proper maintenance, and distribution of such property.

(3) When such property is distributed by a State Agency to a donee, or when delivery is made direct from a holding agency to a donee, the State certifies that the donee who is acquiring the property is eligible within the meaning of the Act, and the regulations of the Department, and that such property is usable and needed by the donee.

(b) A donee, when acquiring donable surplus personal property shall certify as follows:

(1) It is a tax-supported or nonprofit and tax-exempt (under section 501(c)

(3) of the Internal Revenue Code of 1954, or section 101 (6) of the Internal Revenue Code of 1939) school system, school, college, university, school for the mentally retarded or physically handicapped, public library, educational radio, or educational television station, medical institution, hospital, clinic or health center, or a civil defense organization designated pursuant to State law, within the meaning of the Act, and the regulations of the Department.

(2) Such property is usable and necessary in the State for either educational, public health, or civil defense purposes, including research for any such purpose, is required for its own use to fill an existing need for one of such purposes, and is not being acquired for any other use or purpose, for use outside the State, or for sale.

(3) Funds are available to pay the costs of care and handling incident to donation, including packing, preparation for shipping, loading, and transporting such property.

§ 13.7 State Agency agreements.

With respect to property picked un by or shipped to State Agencies, the State Agency shall agree to the following:

(a) The right to possession only is granted and the State agrees to make prompt State-wide distribution of the same, on the basis of educational, public health, or civil defense usability and need, to donees eligible to acquire property under section 203 (j) of the Act, and regulations of the Department, after such eligible donees have properly executed the certifications and appropriate agreements.

(b) Title to such property shall remain in the United States of America although the State shall have taken possession thereof, except where State licensing laws require that title pass in order that State licensing or registration of the property may be effected. Title to the property shall pass to the eligible donees when it executes the certifications and appropriate agreements required by this part and has taken pɔssession of the property.

(c) The State further agrees that it will pay the cost of care, handling, and shipping incident to taking possession of such property and that during the time that title remains in the United States of America it will be responsible, as a bailee for mutual benefit, for such property from the time it is released to the

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