40 U.S.C. § 549 — Donation of personal property through state agencies

**(a) Definitions.—** In this section, the following definitions apply: (1) **Public agency.—** — The term “public agency” means— (A) a State; (B) a political subdivision of a State (including a unit of local government or economic development district); (C) a department, agency, or instrumentality of a State (including instrumentalities created by compact or other agreement between States or political subdivisions); or (D) an Indian tribe, band, group, pueblo, or community located on a state reservation. (2) **State.—** — The term “State” means a State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa. (3) **State agency.—** — The term “state agency” means an agency designated under state law as the agency responsible for fair and equitable distribution, through donation, of property transferred under this section. **(b) Authorization.—** (1) **In general.—** — The Administrator of General Services, in the Administrator’s discretion and under regulations the Administrator may prescribe, may transfer property described in paragraph (2) to a state agency. (2) **Property.—** (A) *In general.—* — Property referred to in paragraph (1) is any personal property that— (i) is under the control of an executive agency; and (ii) has been determined to be surplus property. (B) *Special rule.—* — In determining whether the property is to be transferred for donation under this section, no distinction may be made between property capitalized in a working-capital fund established under [section 2208 of title 10](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2208&num=0&edition=prelim) (or similar fund) and any other property. (3) **No cost.—** — Transfer of property under this section is without cost, except for any costs of care and handling. **(c) Allocation and Transfer of Property.—** (1) **In general.—** — The Administrator shall allocate and transfer property under this section in accordance with criteria that are based on need and use and that are established after consultation with state agencies to the extent feasible. The Administrator shall give fair consideration, consistent with the established criteria, to an expression of need and interest from a public agency or other eligible institution within a State. The Administrator shall give special consideration to an eligible recipient’s request, transmitted through the state agency, for a specific item of property. (2) **Allocation among states.—** — The Administrator shall allocate property among the States on a fair and equitable basis, taking into account the condition of the property as well as the original acquisition cost of the property. (3) **Recipients and purposes.—** — The Administrator shall transfer to a state agency property the state agency selects for distribution through donation within the State— (A) to a public agency for use in carrying out or promoting, for residents of a given political area, a public purpose, including conservation, economic development, education, parks and recreation, public health, and public safety; (B) for purposes of education or public health (including research), to a nonprofit educational or public health institution or organization that is exempt from taxation under section 501 of the Internal Revenue Code of 1986 ([26 U.S.C. 501](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section501&num=0&edition=prelim)), including— (i) a medical institution, hospital, clinic, health center, or drug abuse treatment center; (ii) a provider of assistance to homeless individuals or to families or individuals whose annual incomes are below the poverty line (as that term is defined in section 673 of the Community Services Block Grant Act ([42 U.S.C. 9902](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section9902&num=0&edition=prelim))); (iii) a school, college, or university; (iv) a school for the mentally retarded or physically handicapped; (v) a child care center; (vi) a radio or television station licensed by the Federal Communications Commission as an educational radio or educational television station; (vii) a museum attended by the public, and, for purposes of determining whether a museum is attended by the public, the Administrator shall consider a museum to be public if the nonprofit educational or public health institution or organization, at minimum, accedes to any request submitted for access during business hours; (viii) a library serving free all residents of a community, district, State, or region; or (ix) a historic light station as defined under [section 305101(4) of title 54](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title54-section305101/4&num=0&edition=prelim), including a historic light station conveyed under [section 305103 of title 54](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title54-section305103&num=0&edition=prelim), notwithstanding the number of hours that the historic light station is open to the public; or (C) for purposes of providing services to veterans (as defined in [section 101 of title 38](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section101&num=0&edition=prelim)), to an organization whose— (i) membership comprises substantially veterans; and (ii) representatives are recognized by the Secretary of Veterans Affairs under [section 5902 of title 38](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section5902&num=0&edition=prelim). (4) **Exception.—** — This subsection does not apply to property transferred under subsection (d). **(d) Department of Defense Property.—** (1) **Determination.—** — The Secretary of Defense shall determine whether surplus personal property under the control of the Department of Defense is usable and necessary for educational activities which are of special interest to the armed services, including maritime academies, or military, naval, Air Force, or Coast Guard preparatory schools. (2) **Property usable for special interest activities.—** — If the Secretary of Defense determines that the property is usable and necessary for educational activities which are of special interest to the armed services, the Secretary shall allocate the property for transfer by the Administrator to the appropriate state agency for distribution through donation to the educational activities. (3) **Property not usable for special interest activities.—** — If the Secretary of Defense determines that the property is not usable and necessary for educational activities which are of special interest to the armed services, the property may be disposed of in accordance with subsection (c). **(e) State Plan of Operation.—** (1) **In general.—** — Before property may be transferred to a state agency, the State shall develop a detailed state plan of operation, in accordance with this subsection and with state law. (2) **Procedure.—** (A) *Consideration of needs and resources.—* — In developing and implementing the state plan of operation, the relative needs and resources of all public agencies and other eligible institutions in the State shall be taken into consideration. The Administrator may consult with interested federal agencies to obtain their views concerning the administration and operation of this section. (B) *Publication and period for comment.—* — The state plan of operation, and any major amendment to the plan, may not be filed with the Administrator until 60 days after general notice of the proposed plan or amendment has been published and interested persons have been given at least 30 days to submit comments. (C) *Certification.—* — The chief executive officer of the State shall certify and submit the state plan of operation to the Administrator. (3) **Requirements.—** (A) *State agency.—* — The state plan of operation shall include adequate assurance that the state agency has— (i) the necessary organizational and operational authority and capability including staff, facilities, and means and methods of financing; and (ii) established procedures for accountability, internal and external audits, cooperative agreements, compliance and use reviews, equitable distribution and property disposal, determination of eligibility, and assistance through consultation with advisory bodies and public and private groups. (B) *Equitable distribution.—* — The state plan of operation shall provide for fair and equitable distribution of property in the State based on the relative needs and resources of interested public agencies and other eligible institutions in the State and their abilities to use the property. (C) *Management control and accounting systems.—* — The state plan of operation shall require, for donable property transferred under this section, that the state agency use management control and accounting systems of the same type as systems required by state law for state-owned property. However, with approval from the chief executive officer of the State, the state agency may elect to use other management control and accounting systems that are effective to govern the use, inventory control, accountability, and disposal of property under this section. (D) *Return and redistribution for non-use.—* — The state plan of operation shall require the state agency to provide for the return and redistribution of donable property if the property, while still usable, has not been placed in use for the purpose for which it was donated within one year of donation or ceases to be used by the donee for that purpose within one year of being placed in use. (E) *Request by recipient.—* — The state plan of operation shall require the state agency, to the extent practicable, to select property requested by a public agency or other eligible institution in the State and, if requested by the recipient, to arrange shipment of the property directly to the recipient. (F) *Service charges.—* — If the state agency is authorized to assess and collect service charges from participating recipients to cover direct and reasonable indirect costs of its activities, the method of establishing the charges shall be set out in the state plan of operation. The charges shall be fair and equitable and shall be based on services the state agency performs, including screening, packing, crating, removal, and transportation. (G) *Terms, conditions, reservations, and restrictions.—* (i) *In general.—* — The state plan of operation shall provide that the state agency— (I) may impose reasonable terms, conditions, reservations, and restrictions on the use of property to be donated under subsection (c); and (II) shall impose reasonable terms, conditions, reservations, and restrictions on the use of a passenger motor vehicle and any item of property having a unit acquisition cost of $5,000 or more. (ii) *Special limitations.—* — If the Administrator finds that an item has characteristics that require special handling or use limitations, the Administrator may impose appropriate conditions on the donation of the property. (H) *Unusable property.—* (i) *Disposal.—* — The state plan of operation shall provide that surplus personal property which the state agency determines cannot be used by eligible recipients shall be disposed of— (I) subject to the disapproval of the Administrator within 30 days after notice to the Administrator, through transfer by the state agency to another state agency or through abandonment or destruction if the property has no commercial value or if the estimated cost of continued care and handling exceeds estimated proceeds from sale; or (II) under this subtitle, on terms and conditions and in a manner the Administrator prescribes. (ii) *Proceeds from sale.—* — Notwithstanding subchapter IV of this chapter and [section 702 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section702&num=0&edition=prelim), the Administrator, from the proceeds of sale of property described in subsection (b), may reimburse the state agency for expenses that the Administrator considers appropriate for care and handling of the property. **(f) Cooperative Agreements With State Agencies.—** (1) **Parties to the agreement.—** — For purposes of carrying out this section, a cooperative agreement may be made between a state surplus property distribution agency designated under this section and— (A) the Administrator; (B) the Secretary of Education, for property transferred under [section 550(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section550/c&num=0&edition=prelim); (C) the Secretary of Health and Human Services, for property transferred under [section 550(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section550/d&num=0&edition=prelim); or (D) the head of a federal agency designated by the Administrator, the Secretary of Education, or the Secretary of Health and Human Services. (2) **Shared resources.—** — The cooperative agreement may provide that the property, facilities, personnel, or services of— (A) a state agency may be used by a federal agency; and (B) a federal agency may be made available to a state agency. (3) **Reimbursement.—** — The cooperative agreement may require payment or reimbursement for the use or provision of property, facilities, personnel, or services. Payment or reimbursement received from a state agency shall be credited to the fund or appropriation against which charges would otherwise be made. (4) **Surplus property transferred to state agency.—** (A) *In general.—* — Under the cooperative agreement, surplus property transferred to a state agency for distribution pursuant to subsection (c) may be retained by the state agency for use in performing its functions. Unless otherwise directed by the Administrator, title to the retained property vests in the state agency. (B) *Conditions.—* — Retention of surplus property under this paragraph is subject to conditions that may be imposed by— (i) the Administrator; (ii) the Secretary of Education, for property transferred under [section 550(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section550/c&num=0&edition=prelim); or (iii) the Secretary of Health and Human Services, for property transferred under [section 550(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section550/d&num=0&edition=prelim).