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declared excess to the peacetime needs of the Boston Naval Shipyard and has been recommended for sale or outlease. Staff appraisals have indicated a difference in valuation of the properties to be exchanged in favor of the Navy. It is therefore recommended that the bill be amended to provide for payment of an amount equal to the difference in value of the properties as determined by the Secretary of the Navy after fair market value appraisals.

Subject to the above recommendations, the Department of the Navy, on behalf of the Department of Defense, has no objection to the enactment of H.R. 5888.

The enactment of H.R. 5888 would not involve the expenditure of any Department of Defense funds.

This report has been coordinated within the Department of Defense in accordance with procedures prescribed by the Secretary of Defense. The Department of the Navy has been advised by the Bureau of the Budget that while there is no objection to the submission of this report on H.R. 5888, the Bureau of the Budget wishes to call the attention of the committee to the provisions of the Federal Property Act which prescribes the procedure to be followed in the handling of excess property. That act provides that property excess to the needs of a Federal agency shall be reported to the General Services Administration for screening for other Federal needs. If there is no need for the property, it then becomes surplus to the Federal Government and is eligible for disposal administratively. This procedure provides some assurance that one agency will not be disposing of property in a given area at the same time another agency is purchasing other property for a requirement which could be met through utilization of the property disposed of.

Sincerely yours,

JOHN S. MCCAIN, JR.,
Rear Admiral, U.S. Navy,

Chief of Legislative Affairs
(For the Secretary of the Navy).

86TH CONGRESS 1st Session

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HOUSE OF REPRESENTATIVES

{ No. 667

REPORT

AUTHORIZING THE COAST GUARD TO SELL CERTAIN UTILITIES TO PURCHASERS IN IMMEDIATE VICINITY

JULY 15, 1959.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. BONNER, from the Committee on Merchant Marine and Fisheries, submitted the following

REPORT

[To accompany S. 577]

The Committee on Merchant Marine and Fisheries, to whom was referred the bill (S. 577) to amend title 10, United States Code, section 2481, to authorize the U.S. Coast Guard to sell certain utilities in the immediate vicinity of a Coast Guard activity not available from local sources, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

PURPOSE OF THE BILL

S. 577 would grant to the Secretary of the Treasury authority regarding Coast Guard facilities that has heretofore been provided by statute to the Departments of the Navy, including the Marine Corps, the Army, and the Air Force.

A SUMMARY OF THE NEED FOR THE LEGISLATION

The Secretaries of these Departments are now authorized to sell certain utility services to purchasers adjacent to their military bases when these utilities are unavailable from other sources, provided, of course, that the sale made thereof is always in the interest of national defense or public interest. This law grants to these Departments the further right for minor extensions of utility services when necessary, with the provision that all revenues derived therefrom are directed to be applied to departmental appropriations.

The Coast Guard has been in a rather peculiar position in that this right was granted to it during times of war or national emergency, when, of course, it would be operating as a service of the Navy. This

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authority, however, would always terminate when the war or emergency period terminated and the Coast Guard reverted to the control of the Department of the Treasury.

The necessity for having the Coast Guard placed on an equal footing with the other armed services is a factor easily understood by all. A great many of our Coast Guard facilities are by their very nature located in isolated areas and the enactment of this proposed legislation will go far toward meeting the needs of persons dependent on these Coast Guard facilities and the activities engendered thereby.

Enactment of S. 577 is favored by the Department of the Navy, reporting for the Defense Establishment. No objection has been registered on the part of government departments, or from any other

source.

The executive communication from the Department of the Treasury which was the subject of House companion bill H,R. 2732 is as follows: OFFICE OF THE SECRETARY OF THE TREASURY, Washington, D.C., January 7, 1959.

The SPEAKER OF THE HOUSE OF REPRESENTATIVES.

SIR: There is transmitted herewith a draft of a proposed bill to amend title 10, United States Code, section 2481, to authorize the U.S. Coast Guard to sell certain utilities in the immediate vicinity of a Coast Guard activity not available from local sources.

The purpose of the proposed legislation is to provide legislative authority for the Coast Guard to sell utilities and services to the same extent and under the same conditions as the military departments. With this authority existing utilities and water services in many instances would be extended to isolated inhabitants, in many cases servicemen, whose close association with the Coast Guard is highly desirable.

It would be appreciated if you would lay the proposed bill before the House of Representatives. A similar proposed bill has been transmitted to the President of the Senate. Bills identical to that proposed herein were introduced during the 2d session of the 85th Congress as H.R. 12328 and S. 3737 but were not acted upon by the Congress. The Department has been advised by the Bureau of the Budget that there is no objection to the submission of this proposed legislation to the Congress.

Very truly yours,

(Signed) A. GILMORE FLUES, Acting Secretary of the Treasury.

CHANGES IN EXISTING LAW

In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as passed the Senate, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, existing law in which no change is proposed is shown in roman):

CHAPTER 147-UTILITIES AND SERVICES

Sec. 2481. Utilities and services: sale; expansion and extension of systems and facilities.

(a) Under such regulations and for such periods and at such prices as he may prescribe, the Secretary [of a military department] concerned or his designee may sell or contract to sell to purchasers within or in the immediate vicinity of an activity of the Army, Air Force, [or] Marine Corps, or Coast Guard, as the case may be, any of the following utilities and related services, if it is determined that they are not available from another local source and that the sale is in the interest of national defense or in the public interest:

(b)

(1) Electric power.

(2) Steam.

(3) Compressed air.

(4) Water.

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(c) To meet local needs the Secretary [of the military department] concerned may make minor expansions and extensions of any distributing system or facility within an activity through which a utility or service is furnished under subsection (a). (August 10, 1956, ch.

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