(h) Disposal of agricultural commodities.-This subsection requires the Administrator to transfer to the Department of Agriculture without charge any surplus agricultural commodities, foods, or cotton or woolen goods, whenever the Secretary determines it necessary in carrying out his responsibilities with respect to price support or stabilization, and further requires that the receipts from disposals by the Department of Agriculture shall be deposited pursuant to authority available to the Secretary of Agriculture except that net proceeds of sales of property so transferred shall be credited pursuant to the provisions relating to proceeds in section 204 (b) when applicable. It also provides that, except when sold for export, surplus farm commodities so transferred may not be sold in quantities in excess of or at prices less than those relating to such commodities when sold by the Commodity Credit Corporation.

(i) Disposal of vessels for merchant use. This subsection establishes the United States Maritime Commission as the statutory disposal agency for surplus vessels of 1,500 gross tons or more, which it determines to be merchant vessels or capable of conversion to merchant use. Such vessels are to be disposed of in accordance with the Merchant Marine Act, 1936, as amended, and other laws relating to the sale of such vessels.

(j) Donations for educational and public health purposes.-This subsection authorizes the Administrator of General Services, in his discretion, to donate surplus personal property usable and necessary for educational purposes or public health purposes as determined by the Federal Security Administrator, who shall allocate such property on the basis of needs and utilization for transfer by the Administrator of General Services, either direct or through State departments of education or health, to tax-supported and nonprofit medical institutions, hospitals, clinics, health centers, school systems, schools, colleges, and universities. Prior to the amendment of paragraphs (1) and (2) of this subsection by section 4 of Public Law 754, adding the authority to donate for public health purposes, the scope of the subsection was limited to education.

Provision is also made for allocation by the Secretary of Defense, for transfer by the Administrator to educational activities of special interest to the armed services, such as maritime academies or military or naval preparatory schools, of surplus property of the Department of Defense which the Secretary determines to be usable and necessary for such activities.

(k) Transfers of surplus property for public use.-(1) Under the Surplus Property Act of 1944, as amended, surplus real property has been transferred for public health and educational purposes subject to a public-benefit allowance to States and political subdivisions thereof and to tax-supported and nonprofit educational and medical institutions which have been held exempt from taxation under section 101 (6) of the Internal Revenue Code. This paragraph authorizes the Administrator in his discretion to assign to the Federal Security Administrator for disposal, subject to disapproval by the Administrator of General Services, to such entities surplus real property which has been recommended by the Federal Security Administrator as being needed for public health or education. It further provides that the Federal Security Administrator in fixing the sale or lease value of such property shall take into consideration any benefit which has accrued or may accrue to the United States from the use of such property by any eligible State, political subdivision, instrumentality, or institution.

(2) Under the Surplus Property Act of 1944, as amended, surplus property has been transferred, and under this Act will continue to be transferred, to States and political subdivisions thereof, and to tax-supported or nonprofit educational and medical institutions for specified uses, subject to various terms, conditions and reservations. This paragraph would permit the head of the interested Government agency, subject to disapproval by the Administrator of General Services, to enforce compliance with such terms, conditions, or reservations; to reform, correct, or amend the instruments of transfer; and to grant releases (including conveyances by quitclaim deed, in the case of real estate) from such conditions, reservations, and restrictions to the original transferee or to another eligible user. Such releases are to be conditioned upon findings that the property no longer serves the purpose for which the transfer was made or that release will not prevent accomplishment of the purpose of such transfer, and upon such other conditions as may be necessary to protect or advance the interests of the United States. The words "transferred, or that" appearing above in section 203 (k) (2) (iii) were substituted by subsection (j) of section 1 of Public Law 522, 82d Congress, approved July 12, 1952, for the words "transferred, and that" appearing in Public Law 152 as originally enacted. This amendment was made for the purpose of rectifying an apparent drafting error

in the use of the word "and" rather than "or". In the case of transfers of surplus property for health, education, and similar public purposes section 203 (k) (2) of Public Law 152 authorized releases from reservations and restrictions in the original conveyance and transfers of any reserved interest upon a determination that the property no longer served the purpose for which it was transferred and that such release or conveyance would not prevent the accomplishment of such purpose. Cases may arise, however, where the property is still serving the purpose of the transfer and yet the release is necessary to permit the full accomplishment of that purpose; e. g., where property transferred for a hospital must be released from a reverter clause before a financing institution is willing to accept a mortgage on the property as security for a loan to construct an addition to the hospital.

(1) Abandoned property.-This subsection authorizes the Administrator to take possession of abandoned and other unclaimed property on Government premises, to determine when title thereto vested in the United States, and to utilize, transfer, or otherwise dispose of such property. Former owners of such property will have 3 years from the date of vesting of title in the United States to file claim and, if such claim is found proper, are to be paid the proceeds realized from the disposition of the property, or, if the property is used or transferred, its fair value as of the time title vested in the United States as determined by the Administrator, less in either case the costs incident to the care and handling of such property as determined by the Administrator. It was contemplated that amounts and proceeds realized from dispositions will be covered into the Treasury as miscellaneous receipts pursuant to section 204 (a). Under other authority in the Act appropriations may be made for payment of any claims presented by the rightful owners.

PROCEEDS FROM TRANSFER OR DISPOSITION OF PROPERTY

SEC. 204. (a) All proceeds under this title from any transfer of excess property to a Federal agency for its use, or from any sale, lease, or other disposition of surplus property, shall be covered into the Treasury as miscellaneous receipts, except as provided in subsections (b), (c), (d), and (e) of this section.

(b) Where the property transferred or disposed of was acquired by the use of funds either not appropriated from the general fund of the Treasury or appropriated therefrom but by law reimbursable from assessment, tax, or other revenue or receipts, then the net proceeds of the disposition or transfer shall be credited to the reimbursable fund or appropriation or paid to the Federal agency which determined such property to be excess: Provided, That the proceeds shall be credited to miscellaneous receipts in any case when the agency which determined the property to be excess shall deem it uneconomical or impractical to ascertain the amount of net proceeds. As used in this subsection, the term "net proceeds of the disposition or transfer" means the proceeds of the disposition or transfer minus all expenses incurred for care and handling and disposition or transfer.

(c) Any Federal agency disposing of surplus property under this title (1) may deposit, in a special account with the Treasurer of the United States, such amount of the proceeds of such dispositions as it deems necessary to permit appropriate refunds to purchasers when any disposition is rescinded or does not become final, or payments for breach of any warranty, and (2) may withdraw therefrom amounts so to be refunded or paid, without regard to the origin of the funds withdrawn.

(d) Where any contract entered into by an executive agency or any subcontract under such contract authorizes the proceeds of any sale of property in the custody of the contractor or subcontractor to be credited to the price or cost of the work covered by such contract or subcontract, the proceeds of any such sale shall be credited in accordance with the contract or subcontract.

(e) Any executive agency entitled to receive cash under any contract covering the lease, sale or other disposition of surplus property may in its discretion accept, in lieu of cash, any property determined by the Munitions Board to be strategic or critical material at the prevailing market price thereof at the time the cash payment or payments became or become due.

(f) Where credit has been extended in connection with any disposition of surplus property under this title or by War Assets Administration (or its predecessor agencies) under the Surplus Property Act of 1944, or where such disposition has been by lease or permit, the Administrator shall administer and manage such credit, lease, or permit, and any security therefor, and may enforce, adjust, and settle

any right of the Government with respect thereto in such manner and upon such terms as he deems in the best interest of the Government.

ANALYSIS

Section 204. Proceeds from transfer or disposition of property (Sec. 204, 63 Stat. 388; 40 U. S. C. 485)

(a) Deposit of proceeds into miscellaneous receipts.-This subsection requires all proceeds from the transfer of excess property to a Federal agency or from the sale, lease, or other disposition of surplus property to be covered into the Treasury as miscellaneous receipts with the exceptions noted in subsections (b), (c), (d) and (e).

(b) Crediting of reimbursable funds.-This subsection provides that in cases where the property was acquired by funds either not appropriated from the general fund of the Treasury, or appropriated therefrom and by law reimbursable from assessments, taxes, or other revenues, the net proceeds of the disposition or transfer of such property shall be credited to the reimbursable fund or appropriation or paid to the Federal agency declaring such property excess. It further provides that the proceeds shall be credited to miscellaneous receipts if the agency declaring the property excess shall deem it uneconomical or impracticable to ascertain the amount of net proceeds.

(c) Refunds to purchasers.-This subsection provides that Federal agencies disposing of surplus property may deposit in a special account with the Treasury whatever amounts they deem necessary to permit refunds to purchasers when any disposition is rescinded, or for breaches of warranty, and may withdraw the amounts so to be refunded or paid. Funds received from any specific contract are not earmarked in the special deposit account, but are commingled with all other receipts from sales. The language which provides for withdrawal of "amounts so to be refunded or paid, without regard to the origin of the funds withdrawn" permits refunds to be made from any money remaining in the special deposit account whether or not the money collected under the particular contract remains in the special deposit account or has been transferred to general fund revenues as miscellaneous receipts.

(d) Proceeds from contractors' sales.-This subsection recognizes that the contractual provisions authorizing the proceeds of sales of property to be credited to price or cost of the work covered by the contract are controlling and are not subject to the requirements of the Act relating to covering proceeds into the Treasury as miscellaneous receipts.

(e) Acceptance of strategic and critical material in lieu of cash.-This subsection permits any executive agency to accept on a projected basis strategic or critical material, as determined by the Munitions Board, in lieu of cash, in payment of amounts due the Government for rent, interest, or principal installments under leases or sales of surplus property. The price to be allowed in computing the value of the strategic or critical material shall be the prevailing market price thereof at the time the cash payment or payments become or became due.

(f) Management of credit and security. This subsection makes it clear that the Administrator is authorized to administer and manage any credit, lease, or permit, and security therefor, taken in connection with the disposition of surplus property, and authorizes him to enforce, or suitably adjust, or settle the rights of the Government with respect thereto, as he considers in the best interests of the Government.

POLICIES, REGULATIONS, AND DELEGATIONS

SEC. 205. (a) The President may prescribe such policies and directives, not inconsistent with the provisions of this Act, as he shall deem necessary to effectuate the provisions of this Act, which policies and directives shall govern the Administrator and executive agencies in carrying out their respective functions hereunder.

(b) The Comptroller General after considering the needs and requirements of the executive agencies shall prescribe principles and standards of accounting for property, cooperate with the Administrator and with the executive agencies in the development of property accounting systems, and approve such systems when deemed to be adequate and in conformity with prescribed principles and standards. From time to time the General Accounting Office shall examine such property accounting systems as are established by the executive agencies to determine the extent of compliance with prescribed principles and standards and approved systems, and the Comptroller General shall report to the Congress any failure to comply with such principles and standards or to adequately account for property.

(c) The Administrator shall prescribe such regulations as he deems necessary to effectuate his functions under this Act, and the head of each executive agency shall cause to be issued such orders and directives as such head deems necessary to carry out such regulations.

(d) The Administrator is authorized to delegate and to authorize successive redelegation of any authority transferred to or vested in him by this Act (except for the authority to issue regulations on matters of policy having application to executive agencies, the authority contained in section 106, and except as otherwise provided in this Act) to any official in the General Services Administration or to the head of any other Federal agency.

(e) With respect to any function transferred to or vested in the General Services Administration or the Administrator by this Act, the Administrator may (1) direct the undertaking of its performance by the General Services Administration or by any constituent organization therein which he may designate or establish; or (2) designate and authorize any executive agency to perform such function for itself; or (3) designate and authorize any other executive agency to perform such function; or (4) provide for such performance by any combination of the foregoing methods. Any designation or assignment of functions or delegation of authority to another executive agency under this section shall be made only with the consent of the executive agency concerned or upon direction of the President.

(f) When any executive agency (including the General Services Administration and constituent organizations thereof) is authorized and directed by the Administrator to carry out any function under this Act, the Administrator may, with the approval of the Director of the Bureau of the Budget, provide for the transfer of appropriate