Creation of Surplus Property Commission

To accept, administer, sell, and dispose of surplus property acquired by the Philippine government from the United States under the September 11, 1946 Agreement.
Surplus properties refer to those owned by the U.S. in the Philippines and deemed excess to their needs.

Accept all properties sold and granted to the Philippines pursuant to the 1946 Agreement.
Ensure care, custody, and protection of such properties.
Administer and sell properties not needed by the government or its subdivisions, including government-owned or controlled corporations.
Sales should promote rehabilitation of industry, business, and agriculture.
Preference in sales given to local manufacturers, businessmen, and farmers.
Sales exceeding P100,000 require Presidential approval.

Can appropriate from the sales proceeds a special budget for administration, custody, and operational expenses with Presidential approval.
Proceeds that are not used for operational expenses are deposited in the Philippine National Bank into a special fund for purposes mandated by law.

Authority to appoint and fix salaries of the executive officer, heads of service units, and other personnel.
Local bases of surplus properties should have parallel local committees composed of one local member and two others.
Government agencies, instrumentalities, and local governments must assist the Commission.
Government personnel assigned to the Commission maintain salaries fixed by the Commission and receive differential pay if temporarily assigned.

Abolished the Government Procurement Commission created under Executive Order No. 85 (January 7, 1946).
All functions, properties, records, funds, appropriations, and personnel from the Government Procurement Commission transferred to the Surplus Property Commission.

Authorized to enter into contracts and to sue or be sued in the performance of its duties.