[Congressional Record Volume 145, Number 19 (Wednesday, February 3, 1999)]
[Senate]
[Pages S1163-S1165]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRAMS (for himself, Mr. Johnson, Mr. Sessions, and Mr. 
        Bennett):
  S. 351. A bill to provide that certain Federal property shall be made 
available to States for State and local organization use before being 
made available to other entities, and for other purposes; to the 
Committee on the Judiciary.


               taxpayer oversight of surplus property act

  Mr. GRAMS. Mr. President, I rise today to introduce the Taxpayer 
Oversight of Surplus Property Act. I am pleased that Congressman John 
Peterson of Pennsylvania will soon introduce companion legislation in 
the House of Representatives.
  Among the many programs administered by hundreds of federal agencies, 
there are some initiatives that depend

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upon the active involvement of both the federal government and the 
states in order to ensure the wisest use of taxpayer dollars and meet 
the needs of the American people. One such effective partnership 
involves the distribution of federal surplus personal property to 
states and local organizations.
  In 1976, President Ford signed legislation which established the 
current system for the fair and equitable donation of federal surplus 
personal property. Personal property declared ``surplus'' consists of 
items other than land or real property, naval vessels, and records of 
the federal government. This includes office supplies, furniture, 
medical supplies, hardware, motor vehicles, boats, airplanes, and 
construction equipment.
  Under the federal personal property utilization and donation program, 
the General Services Administration is responsible for the transfer of 
federal surplus personal property to the states. Each state agency for 
surplus property receives the transfer of property and distributes 
these items to eligible recipients. Property that is not selected by 
the states is offered for sale to the general public. Importantly, the 
interests of the American taxpayers guide this entire process.
  Mr. President, there are close to 70,000 recipients of federal 
surplus property located throughout the United States. Each day, 
cities, counties, Indian tribes, hospitals, schools, and public safety 
agencies are among the public and nonprofit organizations that look 
toward the state agencies for surplus property to help meet their 
needs.
  Last April, I had the opportunity to visit the Minnesota surplus 
property agency, where I was joined by the lieutenant governor, the 
executive director of the Minnesota Sheriffs Association, and the 
commissioner of the state Department of Corrections. While there, I 
quickly became more familiar with the success of the donation program 
throughout Minnesota. I am very confident that my Senate colleagues 
will find that the donation program has achieved a comparable level of 
success in each of their states.
  In fiscal year 1997, the Minnesota surplus property agency donated 
equipment and supplies with an original federal acquisition cost of 
$7.7 million to 1,700 eligible recipients, saving precious tax dollars 
if these items had been purchased new or on the open market. I was 
impressed to learn that 414 cities, 80 medical institutions, 19 
museums, 237 public schools, 110 county entities, 160 State agencies, 
and 353 townships are among the active participants in the donation 
program.

  Equally impressive is how effectively the state agencies for surplus 
property and the GSA have worked together to respond quickly and 
efficiently during times of natural disasters. Together they have 
successfully identified and transported sandbags, blankets, cots, 
tools, trucks and other items to disaster sites. I know that 
Minnesotans who suffered through the 1997 Midwest floods are gratified 
to have received over $3.7 million worth of federal surplus property to 
assist flood relief efforts during that horrible time.
  Quite simply, the donation program has provided taxpayers with the 
equipment, supplies and material used to educate our children, maintain 
roads and streets, keep utility rates reasonable, train the workers of 
tomorrow, protect families from crime, provide needed relief during 
natural disasters, and treat the health of our nation's sick and needy. 
In fact, the original acquisition value of property distributed through 
the state agencies for surplus property totaled over $1.5 billion 
between fiscal years 1995 through 1997.
  Because of the importance my constituents place upon the availability 
of this property, I am very concerned about current programs which 
limit the donation of property to the states. My concern is based in 
part upon comments expressed to me by constituents such as Mayor 
Richard Nelson of Warren, Minnesota.
  Mayor Nelson recently wrote,

       When we inquired about the shortage of heavy equipment we 
     were told that a large majority of that equipment is shipped 
     overseas to other countries for humanitarian aid. I feel that 
     our taxes paid for this equipment and it seems only fair that 
     we should have the first opportunity to benefit from it. 
     Being the mayor of a community that has suffered from four 
     floods within two years, I believe that we have unmet needs 
     in this country that need to be addressed before we can look 
     at any outside interests.

  Mr. President, Mayor Nelson's concerns go to the heart of the 
legislation that I am introducing today. I believe that the volume of 
distributed federal surplus property would increase if the intent of 
Congress when it passed the 1976 reforms was more closely followed.
  If Congress continues to allow surplus federal property to go abroad, 
or not make its way through proper channels to eligible recipients, 
taxpayers such as those in the community of Warren will stand to lose. 
As someone who has always worked to ensure the wisest possible use of 
taxpayer dollars, this gives me great concern. The legislation I am 
introducing will help to address these concerns through the following 
provisions.

  First, this measure would ensure that when distributing surplus 
federal personal property, domestic needs are met before we consider 
foreign interests. It would, however, grant the President the authority 
to make supplies available for humanitarian relief purposes before 
going to the states, in the case of emergencies or natural disasters.
  Under the Humanitarian Assistance Program (HAP), the Secretary of 
Defense is permitted to make nonlethal Department of Defense supplies 
available by the State Department to foreign countries as part of 
humanitarian relief activities. I was disturbed to learn that over $1 
billion worth of excess supplies was made available to the State 
Department between fiscal years 1987 through 1997 before GSA had been 
given an opportunity to review the property and make it available for 
donation to the states.
  Mr. President, I understand that some officials may argue that the 
Humanitarian Assistance Program is an important part of our nation's 
foreign assistance efforts. Many foreign countries and organizations 
clearly have benefited from nonlethal Department of Defense excess 
property finance by American taxpayers. Although I have serious 
concerns about this initiative, my legislation does not eliminate the 
Humanitarian Assistance Program.
  However, I believe we must prioritize the needs of disaster victims 
in Minnesota, rural hospitals in Arkansas, police departments in 
Washington state, school districts in Idaho, homeless assistance 
providers in Florida, and other communities and organizations which 
have invested their tax dollars in government property and the donation 
program. For these reasons, I oppose the continued priority status 
granted to foreign recipients under programs such as the Humanitarian 
Assistance Program.
  Second, my bill would amend the Foreign Assistance Act of 1961 to 
prohibit the transfer of Government-owned excess property to foreign 
countries or international organizations for environmental protection 
activities in foreign countries unless GSA determined that there is no 
federal or state use for the property.
  Third, this legislation would require GSA to report to Congress on 
the effectiveness of all statutes relating to the disposal and donation 
of personal property and recommend any changes that would further 
improve the Donation Program.
  Mr. President, my bill is based on the principle that eligible 
recipients should be able to maximize their tax dollars through 
expendable federal property that meets their needs. It takes an 
important step toward stopping publicly-owned property from being 
shipped abroad and given to other organizations before it is 
distributed through each state agency for surplus property.
  My legislation will fulfill the public's right to know how and where 
their tax dollars are being spent. In many ways, it will serve as the 
second phase of the reforms overwhelmingly passed by Congress in 1976, 
by preserving the active role of states in the handling and 
distribution of surplus federal property.
  Members of Congress and state and local officials all have an 
obligation to see that the government distributes this property fairly 
and equitably, ensuring accountability to the taxpayers. Too often, 
federal agencies forget that the owners of this property are the 
American people--the federal government is merely its public custodian.
  Mr. President, the best interests of America's taxpayers have always 
been at the top of my agenda. I look forward to improving Congressional 
oversight

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of government property and securing passage of this legislation during 
the 106th Congress.
                                 ______