such other agency as may be designated by the State, which would distribute the property to the political subdivisions and instrumentalities of the State. The sales price would not exceed 5 percent of the cost to the United States of acquiring the property. The Department of Defense is primarily interested in making surplus personal property available to States, and State agencies, for civil defense purposes, to educational institutions conducting approved military training programs and to the Civil Air Patrol. In each of these cases the property is used for programs of direct interest and benefit to the Department of Defense. Under subsection 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended, donation for these purposes is authorized and, except for the allocation of surplus property for these purposes, the responsibility for making determinations as to recipients of surplus property and the authority to dispose of surplus property are placed in agencies outside the Department of Defense. Accordingly, the Department of Defense defers to the views of the other Federal agencies more directly concerned. The Bureau of the Budget advises that, from the standpoint of the administration's program, there is no objection to the presentation of this report for the consideration of the committee. Sincerely. L. NIEDERLEHNER, GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE, Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations, Washington, D.C., July 20, 1965. DEAR MR. CHAIRMAN: This is in reply to your request for the views of the Department of Defense on H.R. 1460, 89th Congress, a bill to authorize the disposal of surplus equipment, materials, books, and supplies under section 203 (j) of the Federal Property and Administrative Services Act of 1949 to the Arizona Boys' Ranch and Epi-Hab Phoenix, Inc. The purpose of the bill is to require that the Arizona Boys' Ranch and Epi-Hab Phoenix, Inc., be considered eligible for the donation without cost (except for the direct costs of care and handling) of surplus property under the control of any executive agency of the Government pursuant to section 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended. The Department of Defense is primarily interested in the donation of surplus personal property for civil defense purposes and to educational institutions conducting approved military training programs and to the Civil Air Patrol, each of which conveys a direct benefit to the Department of Defense. The educational institutions provide trained manpower. The Civil Air Patrol maintains a capability to assist both civil and military operations during emergency and during periods when no emergency exists, by the voluntary efforts of senior members who operate and maintain light aircraft, mobile support units, and a nationwide communication network. Except for the donation of surplus property for civil defense purposes and the allocation of surplus property under the control of the Department of Defense to educational activities which are of special interest to the armed services as authorized by existing law, the responsibilities for making determinations of and allocations to recipients of surplus property are placed in agencies outside the Department of Defense. Accordingly, the Department of Defense defers to the views of the other Federal agencies more directly concerned. The Bureau of the Budget advises that, from the standpoint of the administration's program, there is no objection to the presentation of this report for the consideration of the committee. Sincerely, L. NIEDERLEHNER, GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE, Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This is in reply to your request for the views of the Department of Defense on H.R. 2421, a bill to amend section 203(e) of the Federal Property and Administrative Services Act of 1949 to facilitate the procurement of certain surplus personal property by State agencies. The Department of Defense is opposed to enactment of H.R. 2421. The bill would amend section 203(e) of the Federal Property and Administrative Services Act of 1949, as amended, to require the preparation and furnishing to State agencies of lists of surplus items available, by category, containing (a) a full and complete description of each item listed and (b) an accurate statement as to the (1) number of the items available, (2) condition thereof, (3) location thereof, (4) time and place at which the items will be available for inspection, and (5) price at which the items, if excess property, would have been transferred to Federal agencies. The preparation of these detailed lists would present an additional burdensome and costly administrative workload. Section 203 (e) would further be amended by H.R. 2421 to prohibit the disposal of any property described on such lists to other than States, territories, possessions, political subdivisions thereof, or tax-supported agencies therein for a period of 30 days after the date on which the notice of availability is received by all State agencies and for another 30 days thereafter if any eligible agency has entered into negotiations for the purchase of such property during the initial 30-day period. by prohibiting disposal of the property for 30 days after receipt of the notice of availability of the property by all State agencies, the bill imposes a restriction that is difficult to administer. It would be necessary to ascertain that all intended recipients received the notice and the date the notice was received in each case so as to begin the 30-day waiting period. Such a waiting period would also delay the orderly and expeditious disposal of unneeded items during the time required for preparation of the lists, plus the period of 30 days after receipt of the lists by the State agencies and an additional 30-day period thereafter if an eligible agency has entered into negotiations for purchase of any of the property. Such delays could result in damage or deterioration of stock outside in storage and increased costs in the use of warehouse space, in care and handling of the property, and in the administration of the holding office and would result in an overall delay in the disposal program. In addition, the bill would limit the price charged a State, political subdivision thereof, or tax-supported agency therein, to an amount not exceeding the price at which excess property would be transferred to a Federal agency. Since excess personal property generally is transferred among Federal agencies without reimbursement, the effect of the legislation would be to make surplus property available to State agencies on a donation basis but without limiting such donations for educational, public health, and civil defense purposes as is now prescribed by 203 (j)(1) of the act. The Bureau of the Budget advises that, from the standpoint of the administration's program, there is no objection to the presentation of this report for the consideration of the committee. Sincerely, L. NIEDERLEHNER, GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE, Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This is in reply to your request for the views of the Department of Defense on H. R. 3947, 89th Congress, a bill to amend the Federal Property and Administrative Services Act of 1949 to make certain medical institutions and hospitals engaged primarily in furnishing domiciliary care eligible for donations of surplus property. These donees would be in addition to educational, public health, and civil defense organizations already eligible to receive surplus property. The Department of Defense has two primary interests with respect to surplus: personal property. It is interested in assuring that usable surplus personal property is made available for civil defense purposes in the States and political subdivisions. These purposes include the carrying out of State and local emergency civil defense responsibilities including shelter, chemical, bacteriological, and radiological defense, warning, communications, monitoring, and other emergency assistance including fire, health, traffic, police, evacuation, water, and debrisclearance capabilities. The Department is also interested in the donation of surplus personal property to educational institutions conducting approved military training programs and to the Civil Air Patrol, each of which conveys a direct benefit to the military functions of the Department of Defense. The educational institutions provide trained manpower. The Civil Air Patrol maintains a capability to assist both civil and military operations during emergency and during periods when no emergency exists, by the voluntary efforts of senior members who operate and maintain light aircraft, mobile support units, and a nationwide communication network. As a result of the increased emphasis being placed on our national defense posture both in the area of civil defense as well as military readiness, there has. been increased demand for surplus property for these purposes while the amount available has been reduced substantially so that the volume is not sufficient to meet the current demand. While the added purposes included in H.R. 3947 are undoubtedly praiseworthy, some selectivity in donees is necessary. The national interest programs which are assisted under present law would be adversely affected by enlarging the class of donees without a commensurate benefit to the new recipients. Further enlargement has been opposed by those agencies directly concerned with the administration of the Federal Property and Administrative Services Act. Accordingly, the Department of Defense opposes enactment of H.R. 3947. The Bureau of the Budget advises that, from the standpoint of the administration's program, there is no objection to the presentation of this report for the consideration of the committee. Sincerely, L. NIEDERLEHNER, Washington, D.C., July 20, 1965. GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE, Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This is in reply to your request for the views of the Department of Defense on H.R. 6541 and H.R. 7115, 89th Congress, bills to amend the Federal Property and Administrative Services Act of 1949, as amended, to promote the welfare of the Indian tribes by making available to them surplus personal property. The purpose of the bills is to add Indian tribes, bands, or groups under Federal supervision to the list of eligible donees for Federal surplus personal property when the Secretary of the Interior determines that the property is needed by the tribe, band, or group for an approved program. The Department of Defense has two primary interests with respect to surplus personal property. It is interested in assuring that usable surplus personal property is made available for civil defense purposes in the States and political subdivisions. These purposes include the carrying out of State and local emergency civil defense responsibilities including shelter, chemical, bacteriological and radiological defense, warning, communications, monitoring, and other emergency assistance including fire, health, traffic, police, evacuation, water, and debris clearance capabilities. The Department of Defense is also interested in the donation of surplus personal property to educational institutions conducting approved military training programs and to the Civil Air Patrol, each of which conveys a direct benefit to the military functions of the Department. The educational institutions provide trained manpower. The Civil Air Patrol maintains a capability to assist both civil and military operations during emergency and during periods when no emergency exists, by the voluntary efforts of senior members who operate and maintain light aircraft, mobile support units, and a nationwide communication network. As a result of the emphasis being placed on our national defense posture both in the area of civil defense as well as minitary readiness, there has been increased demand for surplus property for these purposes while the amount available has been reduced substantially so that the volume is not sufficient to meet the current demand. While the added purposes included in the bills are undoubtedly praiseworthy, some selectivity in donees is necessary. The national interest programs which are assisted under present law would be adversely affected by enlarging the class of donees without a commensurate benefit to the new recipients. Further enlargement has been opposed by those agencies directly concerned with the administration of the Federal Property and Administrative Services Act. Accordingly, the Department of Defense opposes enactment of either bill. The Bureau of the Budget advises that, from the standpoint of the administration's program, there is no objection to the presentation of this report for the consideration of the committee. Sincerely, L. NIEDERLEHNER, Acting General Counsel. GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE, Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This is in reply to your request for the views of the Department of Defense on H.R. 9163, 89th Congress, a bill to amend section 203 (j) of the Federal Property and Administrative Services Act of 1949 to provide that certain surplus property which is not used in the donable property program shall be offered for sale to levee districts. The purpose of the bill is to authorize the negotiated sale to nonprofit levee districts of surplus personal property usable for heavy construction purposes. The bill would authorize such property to be sold at estimated fair market value on such terms and conditions as the Administrator of the General Services Administration determines to be necessary to insure that the property would be utilized by the levee district in the performance of their duties. The bill would give preference to nonprofit levee districts over the public at large by requiring that suitable surplus personal property be offered to the levee districts before it is offered for sale to the public. Organizations authorized to receive property under the donation programs authorized by section 203(j) of the act (40 U.S.C. 484(1)–(7)) would not be adversely affected by the proposed change. Authority now exists under section 203e (3) (H) of the act (40 U.S.C. 484e(3) (H)) for the negotiated sale of surplus property on satisfactory terms of disposal to States, territories, possessions, political subdivisions thereof, or tax-supported agencies therein, at the estimated fair market value of the property. The Department of Defense has no objection to the addition of nonprofit levee districts as additional preferred customers for suitable surplus property as described in the bill. Since, however, surplus property may be available to levee districts through State agencies under existing provisions of section 203 of the act, the Department of Defense defers to the views of the General Services Administration which has primary responsibility for the administration of these provisions. The Bureau of the Budget advises that, from the standpoint of the adminis tration's program, there is no objection to the presentation of this report for the consideration of the committee. Sincerely, L. NIEDERLEHNER, EXHIBIT 3.-REPORTS FROM THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This letter isi n response to your requests for reports on the following bills: H.R. 456, to amend the Federal Property and Administrative Services Act of 1949 to make certain nonprofit organizations eligible for donations of surplus property. H.R. 514, to amend the Federal Property and Administrative Services Act of 1949 to permit donations of surplus property to volunteer firefighting organizations, and for other purposes. H.R. 682, to amend the Feder..l Property and Administrative Services Act of 1949 to permit donations of surplus property to municipalities and to volunteer firefighting organizations, and for other purposes. H.R. 809, to amend the Federal Property and Administrative Services Act of 1949 to permit donations of surplus personal property to State agencies for use by volunteer firefighting organizations. H.R. 1067, to amend the Federal Property and Administrative Services Act of 1949 to permit donations of surplus property to volunteer firefighting organizations and volunteer rescue squads, and for other purposes. H.R. 2253, to amend the Federal Property and Administrative Services Act of 1949 to permit donations of surplus personal property to State agencies for use by volunteer firefighting organizations. H.R. 3947, to amend the Federal Property and Administrative Services Act of 1949 to make certain medical in titutions and hospitals engaged primarily in furnishing domiciliary care eligible for donations of surplus property. H.R. 6541, to amend the Federal Property and Administrative Services Act of 1949, as amended, to promote the welfare of the Indian tribes by making available to them surplus personal property. H.R. 7115, to amend the Federal Property and Administrative Services Act of 1949, as amended, to promote the welfare of the Indian tribes by making available to them surplus personal property. All of these bills would provide for the donation of Federal personal property to specified classes of organizations and activities in addition to those eligible for such donations under present law. H. R. 456 would allow surplus property to be donated to nonprofit organizations which are determined to be engaged primarily in promoting the welfare of elderly persons. The purposes of the rest of the bills are evident from their titles. Two of the bills, H. R. 456 and H. R. 3947, would authorize conveyances of real property under section 203 (k) of the Federal Property and Administrative Services Act of 1949, as well as donations of surplus personal property under section 203(j). It should be noted that H. R. 6541 and H. R. 7115 would establish a separate Indian tribe surplus property donation program parallel with and independent of the present section 203(j) (3) program and would for these purposes confer upon the Secretary of the Interior allocation functions similar to those vested in the Secretary of Health, Education, and Welfare for the purposes of the section 203 (j) (3) program. While recognizing that the purposes for which surplus property would be donable under these bills are all worthy ones, we believe that in view of the considerations set forth below enactment of these bills would not be desirable. Under section 203(j) of the act, Federal surplus personal property usable and necessary for education or public health purposes, including research, may be donated by the Administrator of General Services through State surplus property distribution agencies to tax-supported school systems, to tax-supported or nonprofit tax-exempt medical institutions, hospitals, clinics, health centers, schools (including schools for the mentally retarded and schools for the physically handicapped), colleges, universities, and radio and television stations licensed by the Federal Communications Commission as educational radio or educational television stations, and to public libraries. In like manner, the Administrator may donate surplus personal property which is usable and necessary for civil defense organizations which are established pursuant to State law. With respect to both of these programs-in the latter case by delegation from the Federal Civil Defense |