[Federal Register Volume 65, Number 72 (Thursday, April 13, 2000)]
[Proposed Rules]
[Pages 20014-20032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-9001]



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Part IV





General Services Administration





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41 CFR Parts 101-44 and 102-37



Donation of Surplus Personal Property; Proposed Rule

  Federal Register / Vol. 65, No. 72 / Thursday, April 13, 2000 / 
Proposed Rules  

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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 101-44 and 102-37

[FPMR Amendment H-]
RIN 3090-AH20


Donation of Surplus Personal Property

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Proposed rule.

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SUMMARY: The General Services Administration is revising the Federal 
Property Management Regulations (FPMR) by moving coverage on donation 
of surplus personal property into the Federal Management Regulation 
(FMR). A cross-reference is added to the FPMR to direct readers to the 
coverage in the FMR. The FMR is written in plain language to provide 
agencies with updated regulatory material that is easy to read and 
understand.

DATES: Send your written comments by June 12, 2000 to be considered in 
the formulation of a final rule.

ADDRESSES: Send written comments to: Ms. Sharon A. Kiser, Regulatory 
Secretariat (MVRS), Federal Acquisition Policy Division, General 
Services Administration, 1800 F Street, NW., Washington, DC 20405.
    Send comments by e-mail to: [email protected].

FOR FURTHER INFORMATION CONTACT: Martha Caswell, Director, Personal 
Property Management Policy Division (MTP), 202-501-3846.

SUPPLEMENTARY INFORMATION:   

A. Background

    This proposed rule updates, streamlines, and clarifies FPMR part 
101-44 and moves the part into the Federal Management Regulation (FMR). 
The proposed rule is written in a plain language question and answer 
format. In this format, a question and its answer combine to establish 
a rule. This means the employee and the agency must follow the language 
contained in both the question and its answer.
    Proposed updates include:
    1. The use of the same dollar thresholds for reporting overages and 
shortages of property, in addition to a shortened report period.
    2. The removal of the 2-year limit for reimbursing State surplus 
property agencies from the sale of undistributed property.
    3. The change of definition of ``museum.''
    4. The reinstatement of a requirement that donee eligibility files 
be updated at 3-year intervals.
    5. The approval of all Red Cross donations by GSA.
    6. The shift in responsibility from GSA to the Federal Aviation 
Administration to issue screening credentials for public airports.

B. Executive Order 12866

    GSA has determined that this proposed rule is not a significant 
rule for the purposes of Executive Order 12866 of September 30, 1993.

C. Regulatory Flexibility Act

    A regulatory flexibility analysis is not required under the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., because there is no 
requirement that this proposed rule be published in the Federal 
Register for notice and comment.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this proposed 
rule does not contain any information collection requirements that 
require the approval of the Office of Management and Budget (OMB).

E. Small Business Regulatory Enforcement Fairness Act

    This proposed rule is exempt from Congressional review prescribed 
under 5 U.S.C. 801 since it relates solely to agency management and 
personnel.

List of Subjects in 41 CFR Parts 101-44 and 102-37

    Government property management, Homeless, Reporting and 
recordkeeping requirements, Surplus Government property.

    For the reasons set forth in the preamble, GSA proposes to amend 41 
CFR chapters 101 and 102 as follows:

CHAPTER 101--[AMENDED]

    1. Part 101-44 is revised to read as follows:

PART 101-44--DONATION OF SURPLUS PERSONAL PROPERTY

    Authority: 40 U.S.C. 486(c); Sec. 205(c), 63 Stat. 390.


Sec. 101-44.000  Cross-reference to the Federal Management Regulation 
(FMR) (41 CFR chapter 102, parts 102-1 through 102-220).

    For information on donation of surplus personal property previously 
contained in this part, see FMR part 37 (41 CFR part 102-37).

CHAPTER 102--[AMENDED]

    2. Part 102-37 is added to subchapter B to read as follows:

PART 102-37--DONATION OF SURPLUS PERSONAL PROPERTY

Subpart A--General Provisions
Sec.
102-37.5  What does this part cover?
102-37.10  What is the primary governing authority for this part?
102-37.15  Who must comply with the provisions of this part?
102-37.20  How do we request a deviation from these requirements and 
who can approve it?

Definitions

102-37.25  What definitions apply to this part?

The Donation Process

102-37.30  When does property become surplus?
102-37.35  Who handles the donation of property?
102-37.40  What type of property is available for donation?
102-37.45  Are exchange/sale items eligible for donation?
102-37.50  How long is property available for donation purposes?
102-37.55  Is there a special form to request or transfer property?
102-37.60  Who pays for transportation and the costs incurred in 
packing, loading, or preparing the property for shipment?
102-37.65  What is the timeframe for removing property that has been 
approved for donation?
102-37.70  How should overages and shortages in shipments be 
handled?
Subpart B--GSA
102-37.75  What are GSA's responsibilities in the donation of 
property?
102-37.80  What happens when GSA receives multiple requests for the 
same property?
102-37.85  What factors will GSA consider in allocating property 
among the States?
102-37.90  What report is GSA required to compile concerning the 
donation program?
Subpart C--Holding Agency
102-37.95  To whom do ``we'', ``you'', and their variants refer?
102-37.100  What are our responsibilities in the donation of 
property?
102-37.105  May we get reimbursement for our costs?
102-37.110  May we donate property directly to eligible non-Federal 
recipients without going through GSA?
102-37.115  What are some of the donations that don't require GSA's 
approval?
102-37.120  May we withdraw property for Federal use once it enters 
the donation cycle?
102-37.125  May we recover property that has been picked up by a 
SASP?
Subpart D--State Agency for Surplus Property
102-37.130  To whom do ``we'', ``you'', and their variants refer?
102-37.135  What are our responsibilities in the donation of 
property?

[[Page 20015]]

102-37.140  How do we become eligible to distribute property to 
donees?

Certifications and Agreements

102-37.145  What certifications must we make before acquiring 
property for distribution?
102-37.150  What other requirements must we fulfill before acquiring 
property for distribution?
102-37.155  Must we make a drug-free workplace certification?
102-37.160  Must we make a certification regarding lobbying?

State Plan of Operation

102-37.165  What is a State plan of operation?
102-37.170  Who is responsible for developing and submitting the 
plan?
102-37.175  When does a State plan take effect?
102-37.180  Must GSA approve amendments or modifications to the 
plan?
102-37.185  Do plans or amendments require public notice?
102-37.190  What happens if we don't operate in accordance with our 
plan?
102-37.195  What must a State include in the plan of operation?
102-37.200  What steps must we take if the State decides to dissolve 
our SASP?

Screening and Requesting Property

102-37.205  Do we need special authorization to screen property?
102-37.210  How Do we obtain screener-ID cards for ourselves or 
donees?
102-37.215  May we request property that is in the sales cycle?
102-37.220  May we request property specifically for 
cannibalization?

Eligibility of Donees

102-37.225  Who may acquire property through a SASP?
102-37.230  Who determines if an activity is eligible to receive 
donated property?
102-37.235  Must we maintain eligibility records on SEAs?
102-37.240  How often must we update donee eligibility records?
102-37.245  What must we do if a donee fails to maintain its 
eligibility status?
102-37.250  May we grant eligibility to applicants who would 
otherwise qualify as eligible donees, but whose approval, 
accreditation, or licensing is pending?
102-37.255  Are we eligible to acquire property as a public agency 
donee?
102-37.260  What should we do if an applicant seeks an appeal of a 
negative determination of eligibility?

Distributing Property

102-37.265  Are there special requirements for distributing property 
to SEAs?
102-37.270  May we distribute property to eligible donees of another 
State?

Terms and Conditions

102-37.275  What terms and conditions must we impose on the donee?
102-37.280  May we waive any of the terms and conditions of 
donation?
102-37.285  Do restrictions remain on property that has been 
authorized for cannibalization?
102-37.290  May a donee exchange donated property during the period 
of restriction?
102-37.295  On what categories of property has GSA imposed special 
handling conditions or use limitations?
102-37.300  What documentation must we provide to acquire an 
aircraft or vessel?
102-37.305  What are the special terms, conditions, and restrictions 
regarding aircraft and vessels?

Service and Handling Charges

102-37.310  May we accept personal checks in payment of service 
charges?
102-37.315  Are there restrictions on how we may use service charge 
funds or other monies derived from donated Federal property?

Cooperative Agreements

102-37.320  What is a cooperative agreement?
102-37.325  Is there a fee for services and other support supplied 
under a cooperative agreement?
102-37.330 When  May we terminate cooperative agreements?

Reports

102-37.335  What reports must we provide to GSA?

Compliance and Audits

102-37.340  What actions must we take to report damaged or missing 
property in our custody?
102-37.345  What measures must we take to ensure that property is 
used for the purpose(s) for which donated?
102-37.350  What actions must we take if a review or other 
information indicates noncompliance with donation terms and 
conditions?
102-37.355  Must we coordinate with GSA on compliance actions?
102-37.360  How must we handle funds derived from compliance 
actions?
102-37.365  Does coverage under the Single Audit Act exempt us from 
other reviews of our program?

Disposing of Undistributed Property

102-37.370  When must we offer property to other SASPs?
102-37.375  Must GSA approve a transfer between SASPs?
102-37.380  May we recover our costs if property is transferred to 
another SASP?
102-37.385  When should we report undistributed property to GSA?
102-37.390  May we sell undistributed property?
102-37.395  Under what conditions may we abandon or destroy 
property?
102-37.400  May we get reimbursement if property is recovered for 
Federal use?
102-37.405  What costs may we recover if undistributed property is 
sold?
Subpart E--Donations to Public Agencies and Eligible Nonprofit 
Organizations
102-37.410  To whom do ``we'', ``you'', and their variants refer?

Eligibility

102-37.415  Who determines if we are eligible to receive property?
102-37.420  What basic criteria must we meet to qualify for 
eligibility?
102-37.425  What if there is no specific authority that can approve 
or accredit our program as required for qualification?

Terms and Conditions

102-37.430  What certifications must we make before acquiring 
property?
102-37.435  What agreements must we make before acquiring property?
102-37.440  May we use donated property for any purpose?
102-37.445  May we acquire property for exchange?

Screening and Requesting Property

102-37.450  Do we need special authorization to screen property for 
our program(s)?
102-37.455  How do we obtain a screener-ID card?
102-37.460  What type of information must we provide when requesting 
an aircraft or vessel?

Returns and Reimbursements

102-37.465  May we receive reimbursement for our donation expenses 
when we return property?
Subpart F--Donations to Public Airports
102-37.470  To whom do ``we'', ``you'', and their variants refer?
102-37.475  What is the authority for public airport donations?
102-37.480  What are our responsibilities in the donation of 
property?
102-37.485  What information must we provide to GSA?
Subpart G--Donations to the American National Red Cross
102-37.490  To whom do ``we'', ``you'', and their variants refer?
102-37.495  What is the authority for donations to the American 
National Red Cross?
102-37.500  What type of property may we receive?
102-37.505  What steps must we take to acquire property?
102-37.510  What happens to property we don't request?
Subpart H--Donations to Public Bodies in Lieu of Abandonment/
Destruction
102-37.515  To whom do ``we'', ``you'', and their variants refer?
102-37.520  What is a public body?
102-37.525  What type of property is donable under this subpart?
102-37.530  Is there a special form for processing donations?
102-37.535  Who pays for costs associated with the donation?

    Authority: 40 U.S.C. 486(c); Sec. 205(c), 63 Stat. 390.

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Subpart A--General Provisions


Sec. 102-37.5  What does this part cover?

    This part covers the donation of surplus personal property located 
within a State, including foreign excess personal property returned for 
handling as surplus personal property.


Sec. 102-37.10  What is the primary governing authority for this part?

    Subsection 203(j)(1) of the Federal Property and Administrative 
Services Act of 1949, as amended (the Property Act), gives the General 
Services Administration (GSA) discretionary authority to prescribe the 
necessary regulations for, and to execute the surplus personal property 
donation program.


Sec. 102-37.15  Who must comply with the provisions of this part?

    All executive agencies, State agencies for surplus property 
(SASPs), and donees must comply with this part.


Sec. 102-37.20  How do we request a deviation from these requirements 
and who can approve it?

    See Secs. 102-2.60 through 102-2.110 of this chapter to request a 
deviation from the requirements of this part.

Definitions


Sec. 102-37.25  What definitions apply to this part?

    The following definitions apply to this part:
    Accredited means approval by a recognized accrediting board or 
association on a regional, State, or national level, such as a State 
board of education or health; the American Hospital Association; a 
regional or national accrediting association for universities, 
colleges, or secondary schools; or another recognized accrediting 
association.
    Approved means recognition and approval by the State department of 
education, State department of health, or other appropriate authority 
where no recognized accrediting board, association, or other authority 
exists for the purpose of making an accreditation. For an educational 
institution or an educational program, approval must relate to academic 
or instructional standards established by the appropriate authority. 
For a public health institution or program, approval must relate to the 
medical requirements and standards for the professional and technical 
services of the institution established by the appropriate authority.
    Cannibalization means to remove serviceable parts from one item of 
equipment in order to install them on another item of equipment.
    Child care center means a public or nonprofit facility where 
educational, social, health, and nutritional services are provided to 
children through age 14, or as prescribed by State law, and that is 
approved or licensed by the State or other appropriate authority as a 
child day care center or child care center.
    Clinic means an approved public or nonprofit facility organized and 
operated for the primary purpose of providing outpatient public health 
services and includes customary related services such as laboratories 
and treatment rooms.
    College means an approved or accredited public or nonprofit 
institution of higher learning offering organized study courses and 
credits leading to a baccalaureate or higher degree.
    Conservation means a program or programs carried out or promoted by 
a public agency for public purposes involving directly or indirectly 
the protection, maintenance, development, and restoration of the 
natural resources of a given political area. These resources include 
but are not limited to the air, land, forests, water, rivers, streams, 
lakes and ponds, minerals, and animals, fish and other wildlife.
    Donation screening period means a period of time following the 
surplus release date during which surplus personal property may be 
determined to be usable and necessary for donation purposes.
    Donee means:
    (1) A service educational activity.
    (2) A State, political subdivision thereof, or tax-supported 
organization therein acting on behalf of a public airport.
    (3) A public agency using surplus personal property in carrying out 
or promoting one or more public purposes.
    (4) An eligible nonprofit tax-exempt educational or public health 
institution or organization.
    (5) A public or nonprofit program for older individuals.
    Drug abuse or alcohol treatment center means a clinic or medical 
institution that provides for the diagnosis, treatment, or 
rehabilitation of alcoholics or drug addicts. These centers must have 
on their staffs, or available on a regular visiting basis, qualified 
professionals in the fields of medicine, psychology, psychiatry, or 
rehabilitation.
    Economic development means a program(s) carried out or promoted by 
a public agency for public purposes to improve the opportunities of a 
given political area for the establishment or expansion of industrial, 
commercial, or agricultural plants or facilities and which otherwise 
assist in the creation of long-term employment opportunities in the 
area or primarily benefit the unemployed or those with low incomes.
    Education means a program(s) to develop and promote the training, 
general knowledge, or academic, technical, and vocational skills and 
cultural attainments of individuals in a community or given political 
area. Public educational programs may include public school systems and 
supporting facilities such as centralized administrative or service 
facilities.
    Educational institution means an approved, accredited, or licensed 
public or nonprofit institution, facility, organization conducting 
educational programs or research for educational purposes, such as a 
child care center, school, college, university, school for the mentally 
disabled, school for the physically disabled, or an educational radio 
or television station.
    Educational radio station means a radio station licensed by the 
Federal Communications Commission and operated exclusively for 
noncommercial educational purposes and which is public or nonprofit and 
tax exempt under section 501 of the Internal Revenue Code (26 U.S.C. 
501).
    Educational television station means a television station licensed 
by the Federal Communications Commission which operates exclusively for 
noncommercial educational purposes and which is public or nonprofit and 
tax exempt under section 501 of the Internal Revenue Code.
    Foreign excess personal property means any excess personal property 
located outside a State.
    GSA means the General Services Administration, acting by and 
through the Administrator of General Services or an official to whom 
functions under this part have been delegated by the Administrator of 
General Services.
    Health center means an approved public or nonprofit facility that 
provides public health services, including related facilities such as 
diagnostic and laboratory facilities and clinics.
    Holding agency means the executive agency having accountability 
for, and generally possession of, property.
    Homeless individual means:
    (1) An individual who lacks a fixed, regular, and adequate 
nighttime residence, or who has a primary nighttime residence that is:
    (i) A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters, and transitional housing for the mentally ill);

[[Page 20017]]

    (ii) An institution that provides a temporary residence for 
individuals intended to be institutionalized; or
    (iii) A public or private place not designed for, or ordinarily 
used as, a regular sleeping accommodation for human beings.
    (2) For purposes of this part, the term homeless individual does 
not include any individual imprisoned or otherwise detained pursuant to 
an Act of the Congress or a State law.
    Hospital means an approved or accredited public or nonprofit 
institution providing public health services primarily for inpatient 
medical or surgical care of the sick and injured and includes related 
facilities such as laboratories, outpatient departments, training 
facilities, and staff offices.
    Library means a public or nonprofit facility providing library 
services free to all residents of a community, district, State, or 
region.
    Licensed means recognition and approval by the appropriate State or 
local authority approving institutions or programs in specialized 
areas. Licensing generally relates to established minimum public 
standards of safety, sanitation, staffing, and equipment as they relate 
to the construction, maintenance, and operation of a health or 
educational facility, rather than to the academic, instructional, or 
medical standards for these institutions.
    Medical institution means an approved, accredited, or licensed 
public or nonprofit institution, facility, or organization whose 
primary function is the furnishing of public health and medical 
services to the public or promoting public health through the conduct 
of research, experiments, training, or demonstrations related to cause, 
prevention, and methods of diagnosis and treatment of diseases and 
injuries. The term includes, but is not limited to, hospitals, clinics, 
alcohol and drug abuse treatment centers, public health or treatment 
centers, research and health centers, geriatric centers, laboratories, 
medical schools, dental schools, nursing schools, and similar 
institutions. The term does not include institutions primarily engaged 
in domiciliary care, although a separate medical facility within such a 
domiciliary institution may qualify as a medical institution.
    Museum means a public or private nonprofit institution that is 
organized on a permanent basis for essentially educational or aesthetic 
purposes and which, using a professional staff, owns or uses tangible 
objects, either animate or inanimate; cares for these objects; and 
exhibits them to the public on a regular basis (at least 1000 hours a 
year). As used in this part, the term museum includes, but is not 
limited to, the following institutions if they satisfy all other 
provisions of this definition: Aquariums and zoological parks; 
botanical gardens and arboretums; nature centers; museums relating to 
art, history (including historic buildings), natural history, science, 
and technology; and planetariums. For the purposes of this definition, 
an institution uses a professional staff if it employs at least one 
fulltime staff member or the equivalent, whether paid or unpaid, 
primarily engaged in the acquisition, care, or public exhibition of 
objects owned or used by the institution. This definition of museum 
does not include any institution that exhibits objects to the public if 
the display or use of the objects is only incidental to the primary 
function of the institution.
    Nonappropriated fund property means property acquired by religious 
or morale, welfare or recreational activities, post exchanges, ship 
stores, military officer or enlisted clubs, veterans' canteens, and 
similar activities with funds generated by Government employees and 
their dependents for operation of these activities. Such property is 
not Federal property.
    Nonprofit means an entity not operated for profit that has been 
held by the Internal Revenue Service to be exempt from taxation under 
section 501 of the Internal Revenue Code.
    Parks and recreation means a program(s) carried out or promoted by 
a public agency for public purposes that involve directly or indirectly 
the acquisition, development, improvement, maintenance, and protection 
of park and recreational facilities for the residents of a given 
political area.
    Program for older individuals means any State or local government 
agency or any nonprofit tax-exempt activity that receives funds 
appropriated for programs for older individuals under the Older 
Americans Act of 1965, as amended, under title IV or title XX of the 
Social Security Act (42 U.S.C. 601 et seq.), or under titles VIII and X 
of the Economic Opportunity Act of 1964 (42 U.S.C. 2991 et seq.) and 
the Community Services Block Grant Act (42 U.S.C. 9901 et seq.).
    Property Act means the Federal Property and Administrative Services 
Act of 1949 (63 Stat. 377), as amended (codified as amended in 
scattered sections of 40 U.S.C. and 41 U.S.C.), the law that 
centralized Federal property management and disposal functions under 
the GSA.
    Provider of assistance to homeless individuals means a public 
agency or a nonprofit, tax-exempt institution or organization that 
operates a program which provides assistance such as food, shelter, or 
other services to homeless individuals.
    Provider of assistance to impoverished families and individuals 
means a public or private, nonprofit tax-exempt organization whose 
primary function is to provide money, goods, or services to families or 
individuals whose annual incomes are below the poverty line (as defined 
in section 673 of the Community Services Block Grant Act) (42 U.S.C. 
9902). Providers include food banks, self-help housing groups, and 
organizations providing services such as the following: Health care; 
medical transportation; scholarships and tuition assistance; tutoring 
and literacy instruction; job training and placement; employment 
counseling; child care assistance; meals or other nutritional support; 
clothing distribution; home construction or repairs; utility or rental 
assistance; and legal counsel.
    Public agency means any State; political subdivision thereof, 
including any unit of local government or economic development 
district; any department, agency, or instrumentality thereof, including 
instrumentalities created by compact or other agreement between States 
or political subdivisions; multijurisdictional substate districts 
established by or pursuant to State law; or any Indian tribe, band, 
group, pueblo, or community located on a State reservation.
    Public health means a program(s) to promote, maintain, and conserve 
the public's health by providing health services to individuals and/or 
by conducting research, investigations, examinations, training, and 
demonstrations. Public health services may include but are not limited 
to the control of communicable diseases, immunization, maternal and 
child health programs, sanitary engineering, sewage treatment and 
disposal, sanitation inspection and supervision, water purification and 
distribution, air pollution control, garbage and trash disposal, and 
the control and elimination of disease-carrying animals and insects.
    Public health institution means an approved, accredited, or 
licensed public or nonprofit institution, facility, or organization 
conducting a public health program(s) such as a hospital, clinic, 
health center, or medical institution, including research for such 
programs, the services of which are available to the public.
    Public purpose means a program(s) carried out by a public agency 
that is legally authorized in accordance with

[[Page 20018]]

the laws of the State or political subdivision thereof and for which 
public funds may be expended. Public purposes include but are not 
limited to programs such as conservation, economic development, 
education, parks and recreation, public health, and public safety.
    Public safety means a program(s) carried out or promoted by a 
public agency for public purposes involving, directly or indirectly, 
the protection, safety, law enforcement activities, and criminal 
justice system of a given political area. Public safety programs may 
include, but are not limited to those carried out by:
    (1) Public police departments.
    (2) Sheriffs' offices.
    (3) The courts.
    (4) Penal and correctional institutions (including juvenile 
facilities).
    (5) State and local civil defense organizations.
    (6) Fire departments and rescue squads (including volunteer fire 
departments and rescue squads supported in whole or in part with public 
funds).
    School (except schools for the mentally or physically disabled) 
means a public or nonprofit approved or accredited organizational 
entity devoted primarily to approved academic, vocational, or 
professional study and instruction, that operates primarily for 
educational purposes on a full-time basis for a minimum school year and 
employs a full-time staff of qualified instructors.
    School for the mentally or physically disabled means a facility or 
institution operated primarily to provide specialized instruction to 
students of limited mental or physical capacity. It must be public or 
nonprofit and must operate on a full-time basis for the equivalent of a 
minimum school year prescribed for public school instruction for the 
mentally or physically disabled, have a staff of qualified instructors, 
and demonstrate that the facility meets the health and safety standards 
of the State or local government.
    Service educational activity (SEA) means any educational activity 
designated by the Secretary of Defense as being of special interest to 
the armed forces; e.g., maritime academies or military, naval, Air 
Force, or Coast Guard preparatory schools.
    State means one of the 50 States, the District of Columbia, the 
U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of Puerto 
Rico, and the Commonwealth of the Northern Mariana Islands.
    State Agency for Surplus Property (SASP) means the agency 
designated under State law to receive Federal surplus personal property 
for distribution to eligible donees within the State as provided for in 
subsection 203(j) of the Property Act.
    Surplus personal property (property) means any excess personal 
property not required for the needs and the discharge of the 
responsibilities of all Federal agencies, as determined by the 
Administrator of General Services.
    Surplus release date means the date on which Federal utilization 
screening of excess personal property has been completed, and the 
property is available for donation.
    University means a public or nonprofit approved or accredited 
institution for instruction and study in the higher branches of 
learning and empowered to confer degrees in special departments or 
colleges.

The Donation Process


Sec. 102-37.30  When does property become surplus?

    Excess personal property becomes surplus at the close of business 
on the surplus release date. This is the point at which the excess 
screening period has been completed without transfer to a Federal 
agency or other eligible recipient.


Sec. 102-37.35  Who handles the donation of property?

    (a) The General Services Administration has overall responsibility 
for executing the Government's property donation program and transfers 
most property to State agencies for surplus property (SASP), who in 
turn, distribute it to eligible donees in their States. The General 
Services Administration also returns to the American National Red 
Cross, by donation, such property as was originally derived from or 
through it.
    (b) The Federal Aviation Administration (FAA), acting under 
delegation from the Department of Transportation, administers the 
program under which specified property is donated to States and tax-
supported organizations for public airport use under 49 U.S.C. 47151. 
At FAA's request, GSA transfers specified property directly to specific 
public airport applicants.
    (c) Donations to public bodies are made by holding agencies in 
accordance with subpart H of this part.


Sec. 102-37.40  What type of property is available for donation?

    All property (including property in working capital funds 
established under 10 U.S.C. 2208 or in similar funds) is available for 
donation to eligible recipients, except for the following categories:
    (a) Surplus agricultural commodities, food, and cotton or woolen 
goods determined from time to time by the Secretary of Agriculture to 
be commodities requiring special handling to assist him in carrying out 
his responsibilities with respect to price support or stabilization.
    (b) Property in trust funds.
    (c) Nonappropriated fund property.
    (d) Naval vessels of the following categories: Battleships, 
cruisers, aircraft carriers, destroyers, and submarines.
    (e) Surplus vessels of 1500 gross tons or more which the Maritime 
Administration determines to be merchant vessels or capable of 
conversion to merchant use.
    (f) Records of the Federal Government.
    (g) Property that requires reimbursement upon transfer (such as 
abandoned or other unclaimed property that is found on premises owned 
or leased by the Government).
    (h) Controlled substances.
    (i) Items as may be specified from time to time by the 
Administrator of General Services.


Sec. 102-37.45  Are exchange/sale items eligible for donation?

    No, exchange/sale items are not eligible for donation (see part 
101-46 of this title).


Sec. 102-37.50  How long is property available for donation purposes?

    Unless otherwise agreed to by the holding agency and GSA, 
authorized screeners have:
    (a) Twenty-one calendar days following the surplus release date to 
screen property for donation purposes; and
    (b) Ten calendar days to screen foreign excess personal property 
that is not required for further Federal use.


Sec. 102-37.55  Is there a special form to request or transfer 
property?

    Yes, requests from SASPs and public airports must be submitted on a 
Standard Form (SF) 123, Transfer Order Surplus Personal Property. 
Alternatively, submission of such information in electronic format must 
be as specified and approved by GSA. GSA may require additional 
information to support and justify a donation request.


Sec. 102-37.60  Who pays for transportation and the costs incurred in 
packing, loading, or preparing the property for shipment?

    Direct costs that the holding agency incurs in packing, loading, or 
preparing the property for shipment must be borne

[[Page 20019]]

by the transferee (SASP or public airport receiving the property). 
Where such costs are incurred, they must be reimbursed promptly by the 
transferee upon appropriate billing, unless the holding agency waives 
the amount involved as being uneconomical or impractical to collect. 
Payment of all transportation costs must also be borne by the 
transferee.


Sec. 102-37.65  What is the timeframe for removing property that has 
been approved for donation?

    The transferee or its agent must remove property within 15 calendar 
days from the date of notification of availability, unless otherwise 
coordinated with the holding agency. If the transferee decides prior to 
pickup or shipment that it cannot use the property, it must notify the 
GSA regional office that approved the donation request.


Sec. 102-37.70  How should overages and shortages in shipments be 
handled?

    (a) If you are a SASP or public airport and you receive more or 
less property than approved on the SF 123, and the total acquisition 
cost of the line items involved is less than $500, annotate your 
receiving and inventory records to document the discrepancy. If the 
total acquisition cost is $500 or more, you must submit a shortage 
report, or a SF 123 in the case of an overage, to the GSA approving 
office and include the following information:
    (1) Name and address of the holding agency.
    (2) All pertinent GSA and holding agency control numbers, in 
addition to the SASP or public airport transfer order number.
    (3) A description of each line item of property, the condition 
code, the quantity and unit of issue, and the unit and total 
acquisition cost.
    (b) Submit the SF 123 or shortage report to GSA, with a copy to the 
holding agency, within 30 calendar days of the date of transfer.

Subpart B-GSA


Sec. 102-37.75  What are GSA's responsibilities in the donation of 
property?

    GSA is responsible for supervising and directing the disposal of 
surplus personal property. In addition to issuing regulatory guidance 
for the donation of property, GSA:
    (a) Determines when property is surplus to the needs of the 
Government.
    (b) Allocates and transfers property on a fair and equitable basis 
to SASPs for further distribution to eligible donees.
    (c) Supervises the care and handling of property while it is in the 
custody of a SASP.
    (d) Approves all transfers of property to public airports.
    (e) Returns, by donation, property derived from or through the 
American National Red Cross.
    (f) Approves, after consultation with the holding agency, foreign 
excess personal property to be returned to the United States for 
donation purposes.
    (g) Coordinates and controls the level of donee screening activity 
at Federal installations.
    (h) Imposes appropriate conditions on the donation of property 
having characteristics that require special handling or use 
limitations.
    (i) Keeps track of and reports to Congress on Federal donation 
programs.


Sec. 102-37.80  What happens when GSA receives multiple requests for 
the same property?

    When requests for specific items of property are received from both 
a public airport and a SASP, GSA will exercise its discretion in 
determining where the property will provide the greatest public 
benefit. In case of two or more requests from SASPs, GSA will use the 
allocating criteria in Sec. 102-37.85.


Sec. 102-37.85  What factors will GSA consider in allocating property 
among the States?

    GSA allocates property among the SASPs on a fair and equitable 
basis using the following factors (listed in order of importance):
    (a) Extraordinary needs caused by disasters or emergency 
situations.
    (b) Requests from the Department of Defense (DOD) for DOD-generated 
property to be allocated through a SASP for donation to a specific SEA.
    (c) Need and usability of property, as reflected by requests from 
SASPs.

    Note to Sec. 102-37.85(c): Requests for property to be used as 
functional items will be given preference over cannibalization 
requests. GSA will give special consideration to requests 
transmitted through the SASPs by eligible donees for specific items 
of property.

    (d) States in greatest need of the type of property to be allocated 
where the need is evidenced by a letter of justification.
    (e) The quantity of property of the type under consideration which 
was previously allocated to or is potentially available to a SASP from 
a more advantageous source.
    (f) Performance of a SASP in effecting prompt distribution of 
property to eligible donees.
    (g) Equitable distribution based on the existing condition and the 
original acquisition cost of the property.
    (h) Performance of a SASP in effecting timely pickup or removal of 
property approved for transfer.
    (i) Equitable distribution based on the ratio of population and per 
capita income of each State.


Sec. 102-37.90  What report is GSA required to compile concerning the 
donation program?

    Biennially, GSA must transmit to Congress and the Comptroller 
General of the United States a report containing:
    (a) A full and independent evaluation of the operation of programs 
for the donation of Federal property;
    (b) Statistical information on the amount of property approved for 
transfer to the SASPs and donated to eligible non-Federal organizations 
during each succeeding biennial period (and the amount of excess 
personal property transferred to Federal agencies and provided to 
grantees and non-Federal organizations); and
    (c) Any necessary or desirable recommendations of GSA.

Subpart C--Holding Agency


Sec. 102-37.95  To whom do ``we'', ``you'', and their variants refer?

    Use of pronouns ``we'', ``you'', and their variants throughout this 
subpart refers to the executive agency that has accountability and 
custody of the surplus personal property.


Sec. 102-37.100  What are our responsibilities in the donation of 
property?

    Your responsibilities in the donation of property are:
    (a) Cooperating with all entities authorized to participate in the 
donation program and their authorized representatives in locating, 
screening, and inspecting property for donation. Upon reasonable 
request, you must make available to these agencies and their 
representatives information regarding the quantity, description, 
condition, and location of donable property in your inventory.
    (b) Setting aside property upon notification that there is a 
potential donation requirement, and holding it from further disposal 
pending processing of the transfer document approved by GSA.
    (c) Notifying and subsequently releasing property to the transferee 
(or the transferee's designated agent) upon receipt of a GSA-approved 
SF 123.
    (d) Notifying the approving GSA regional office if the property is 
not removed within 15 calendar days after the transferee is notified of 
its availability. GSA will advise you of further disposal instructions.

[[Page 20020]]

    (e) Performing and bearing the cost of care and handling of 
property pending its disposal, except as provided in Sec. 102-37.105.


Sec. 102-37.105  May we get reimbursement for our costs?

    You may recover from the transferee (SASP or public airport) direct 
costs you incurred incident to a donation, such as packing, handling, 
crating, and transportation expenses. No overhead or administrative 
costs are to be included in the billing.


Sec. 102-37.110  May we donate property directly to eligible non-
Federal recipients without going through GSA?

    No, you may not donate property directly to eligible non-Federal 
recipients unless you have statutory authority to do so. All such 
donations must be included on your annual report to GSA under Sec. 101-
43.4701(c) of this title.


Sec. 102-37.115  What are some of the donations that don't require 
GSA's approval?

    The following donations do not require GSA's approval:
    (a) Donations of condemned, obsolete, or other specified material 
under 10 U.S.C. 2572, 10 U.S.C. 7308, 10 U.S.C. 7541, 10 U.S.C. 7545, 
and 14 U.S.C. 641a. However, such property must first undergo excess 
Federal and surplus donation screening as required in this part and 
part 101-43 of this title.
    (b) Donations to public bodies under subpart H of this part.
    (c) Donations to small disadvantaged businesses under 13 CFR Part 
124.
    (d) Donation of law enforcement canines under 40 U.S.C. 484(r).


Sec. 102-37.120  May we withdraw property for Federal use once it 
enters the donation cycle?

    Yes, with the prior approval of GSA, you may withdraw property that 
has been set aside or approved for donation, but not yet removed. You 
may withdraw property to meet emergency or critical requirements 
without prior approval of GSA, but you must notify GSA immediately of 
such actions. GSA will notify the SASP of any withdrawals of property 
that has been approved for donation.


Sec. 102-37.125  May we recover property that has been picked up by a 
SASP?

    Yes, you may request, through GSA, property that is in the 
possession of a SASP. However, you will be responsible for reimbursing 
the SASP the costs of care and handling, including transportation 
costs, the SASP incurred in initially acquiring the property.

Subpart D--State Agency for Surplus Property


Sec. 102-37.130  To whom do ``we'', ``you'', and their variants refer?

    Use of pronouns ``we'', ``you'', and their variants throughout this 
subpart refers to the SASP.


Sec. 102-37.135  What are our responsibilities in the donation of 
property?

    Your responsibilities in the donation of property are to:
    (a) Determine the eligibility of entities seeking to obtain Federal 
property as a:
    (1) Public agency.
    (2) Nonprofit educational or public health institution or 
organization.
    (3) Program for older individuals.
    (b) Distribute property fairly, equitably, and promptly to eligible 
donees in your State based on their relative needs and resources, and 
ability to use the property, and as provided in your State plan of 
operation.
    (c) Enforce compliance with the terms and conditions imposed on 
donated property.


Sec. 102-37.140  How do we become eligible to distribute property to 
donees?

    In order to receive transfers of donable property, you must:
    (a) Have a GSA-approved State plan of operation; and
    (b) Provide the certifications and agreements as set forth in 
Secs. 102-37.145 and 102-37.150.

Certifications and Agreements


Sec. 102-37.145  What certifications must we make before acquiring 
property for distribution?

    Before acquiring property for distribution, you must certify that:
    (a) You are the agency of the State designated under State law that 
has legal authority under subsection 203(j) of the Property Act and GSA 
regulations, to receive property for distribution within the State to 
eligible donees as defined in this part.
    (b) No person with supervisory or managerial duties in your State's 
donation program is debarred, suspended, ineligible, or voluntarily 
excluded from participating in the donation program.
    (c) The property is usable and needed by:
    (1) A public agency for one or more public purposes.
    (2) An eligible nonprofit organization or institution which is 
exempt from taxation under section 501 of the Internal Revenue Code, 
for the purpose of education or public health (including research for 
any such purpose) within the State.
    (3) An eligible nonprofit, tax-exempt activity for programs for 
older individuals.
    (d) When property is picked up by or shipped to your SASP, you have 
adequate and available funds, facilities, and personnel to provide 
accountability, warehousing, proper maintenance, and distribution of 
the property.
    (e) When property is distributed by your SASP to a donee, or when 
delivery is made directly from a holding agency to a donee pursuant to 
a State distribution document, you have determined that the donee 
acquiring the property is eligible within the meaning of the Property 
Act and GSA regulations, and that the property is usable and needed by 
the donee.


Sec. 102-37.150  What other requirements must we fulfill before 
acquiring property for distribution?

    With respect to property picked up by or shipped to your SASP, you 
must agree to the following:
    (a) You are granted the right to possession only. You will make 
prompt statewide distribution of such property, on a fair and equitable 
basis, to donees eligible to acquire property under section 203(j) of 
the Property Act and GSA regulations. You will distribute property only 
after such eligible donees have properly executed the appropriate 
certifications and agreements established by your SASP and/or GSA.
    (b) Title to the property remains in the United States Government 
although you have taken possession of it. Conditional title to the 
property will pass to the eligible donee when the donee executes the 
required certifications and agreements and takes possession of the 
property.
    (c) You will:
    (1) Promptly pay the cost of care, handling, and shipping incident 
to taking possession of the property.
    (2) During the time that title remains in the United States 
Government, be responsible as a bailee for the property from the time 
it is released to you or to the transportation agent you have 
designated.
    (3) In the event of any loss of or damage to any or all of the 
property during transportation or storage at a place other than a place 
under your control, take the necessary action to obtain restitution 
(fair market value) for the Government. In the event of loss or damage 
due to negligence or willful misconduct on your part, repair, replace, 
or pay to the GSA the fair market value of any such property, or take 
such other action as the GSA may direct.

[[Page 20021]]

    (d) You may retain property for use in performing your donation 
program functions only when authorized by GSA in accordance with the 
provisions of a cooperative agreement entered into with GSA.
    (e) When acting under an interstate cooperative distribution 
agreement (see Sec. 102-37.320) as an agent and authorized 
representative of an adjacent State with which you share a common 
boundary, you will:
    (1) Make the certifications and agreements required in Sec. 102-
37.145 and this section on behalf of the adjacent SASP.
    (2) Require the donee to execute the distribution documents of the 
State in which the donee is located.
    (3) Forward copies of the distribution documents to the 
corresponding SASP.
    (f) You will not discriminate on the basis of race, color, national 
origin, sex, age, or handicap in the distribution of the property, and 
will comply with GSA regulations on nondiscrimination as set forth in 
part 101-6, subpart 101-6.2, and part 101-8 of this title.


Sec. 102-37.155  Must we make a drug-free workplace certification?

    If you have a cooperative agreement with GSA that allows you to 
retain Federal property for SASP use, you must certify that you will 
provide a drug-free workplace as a condition for receiving such 
property. Drug-free workplace certification requirements are found at 
part 105-68, subpart 105-68.6, of this title.


Sec. 102-37.160  Must we make a certification regarding lobbying?

    You are subject to the anti-lobbying certification and disclosure 
requirements in part 105-69 of this title when all of the following 
conditions apply:
    (a) You have entered into a cooperative agreement with GSA that 
provides for your SASP to retain donable Federal property for use in 
performing donation functions or any other cooperative agreement.
    (b) The cooperative agreement was executed after December 23, 1989.
    (c) The fair market value of the property requested under the 
cooperative agreement is more than $100,000.

State Plan of Operation


Sec. 102-37.165  What is a State plan of operation?

    A State plan of operation is a document developed under State law 
and approved by GSA in which the State sets forth a plan for the 
management and administration of the SASP in the donation of property.


Sec. 102-37.170  Who is responsible for developing and submitting the 
plan?

    The State legislature must develop the plan. The chief executive 
officer of the State must certify and submit the plan to GSA for 
acceptance and certify that you are authorized to acquire and 
distribute property to eligible donees in the State, to enter into 
cooperative agreements, and to undertake other actions and provide 
other assurances as are required by subsection 203(j)(4) of the 
Property Act and set forth in the plan. Send the plan to:

    General Services Administration
    Office of Transportation and Property Management (FB)
    Washington, DC 20406


Sec. 102-37.175  When does a State plan take effect?

    The plan takes effect on the date GSA notifies the chief executive 
officer of the State that the plan conforms to the provisions of 
subsection 203(j)(4) of the Property Act and the requirements of this 
part and that allocation and transfer of donable surplus property to 
the State will begin.


Sec. 102-37.180  Must GSA approve amendments or modifications to the 
plan?

    Yes, GSA must approve amendments or modifications to the plan.


Sec. 102-37.185  Do plans or amendments require public notice?

    No plan of operation, and no major amendment to the plan, may be 
filed with GSA until 60 calendar days after general notice of the 
proposed plan or amendment has been published and interested persons 
have been given at least 30 calendar days to submit comments.


Sec. 102-37.190  What happens if we don't operate in accordance with 
our plan?

    If you don't operate in accordance with your plan, GSA may withhold 
allocation and transfer of surplus property until the nonconformance is 
corrected.


Sec. 102-37.195  What must a State include in the plan of operation?

    You must ensure the plan conforms to the provisions of subsection 
203(j)(4) of the Property Act and includes the following information 
and assurances. (You may include in the plan other provisions not 
inconsistent with the purposes of the Property Act and the requirements 
of this part.):

                         State Plan Requirements
------------------------------------------------------------------------
              Regarding--                        The plan must--
------------------------------------------------------------------------
(a) Designation of a SASP..............  (1) Name the State agency that
                                          will be responsible for
                                          administering the plan.
                                         (2) Describe the
                                          responsibilities vested in the
                                          agency which must include the
                                          authorities to acquire,
                                          warehouse and distribute
                                          property to eligible donees,
                                          carry out other requirements
                                          of the State plan, and provide
                                          details concerning the
                                          organization of the agency,
                                          including supervision,
                                          staffing, structure, and
                                          physical facilities.
                                         (3) Indicate the organizational
                                          status of the agency within
                                          the State governmental
                                          structure and the title of the
                                          State official who directly
                                          supervises the State agent.
------------------------------------------------------------------------
(b) Operational authority..............  (1) Include copies of existing
                                          State statutes and/or
                                          executive orders relative to
                                          the operational authority of
                                          the SASP. Where express
                                          statutory authority does not
                                          exist or is ambiguous, or
                                          where authority exists by
                                          virtue of executive order, the
                                          plan must include also the
                                          opinion of the State's
                                          Attorney General regarding the
                                          existence of such authority.
------------------------------------------------------------------------

[[Page 20022]]

 
(c) Inventory control and accounting     (1) Require the SASP to use a
 systems..                                management control and
                                          accounting system that
                                          effectively governs the
                                          utilization, inventory
                                          control, accountability, and
                                          disposal of property.
                                         (2) Provide a detailed
                                          explanation of the inventory
                                          control and accounting system
                                          that the SASP will use.
                                         (3) Provide that property
                                          retained by the SASP to
                                          perform its functions be
                                          maintained on separate records
                                          from those of donable
                                          property.
------------------------------------------------------------------------
(d) Return of donated property.........  (1) Require the SASP to provide
                                          for the return of donated
                                          property from the donee, at
                                          the donee's expense, if the
                                          property is still usable as
                                          determined by the SASP, and:
                                           (i) The donee has not placed
                                          the property into use for the
                                          purpose for which it was
                                          donated within 1 year of
                                          donation; or (ii) The donee
                                          ceases to use the property
                                          within 1 year after placing it
                                          in use.
                                           (2) Specify that return of
                                          property can be accomplished
                                          by:
                                           (i) Physical return to the
                                          SASP facility, if required by
                                          the SASP.
                                           (ii) Retransfer directly to
                                          another donee, SASP, or
                                          Federal agency, as required by
                                          the SASP.
                                           (iii) Disposal (by sale or
                                          other means) as directed by
                                          the SASP.
                                           (3) Set forth procedures to
                                          accomplish property returns to
                                          the SASP, retransfers to other
                                          organizations, or disposition
                                          by sale, abandonment, or
                                          destruction.
------------------------------------------------------------------------
(e) Financing and service charges......  (1) Set forth the means and
                                          methods for financing the
                                          SASP. When the State
                                          authorizes the SASP to assess
                                          and collect service charges
                                          from participating donees to
                                          cover direct and reasonable
                                          indirect costs of its
                                          activities, the method of
                                          establishing the charges must
                                          be set forth in the plan.
                                         (2) Affirm that service
                                          charges, if assessed, are fair
                                          and equitable and based on
                                          services performed (or paid
                                          for) by the SASP, such as
                                          screening, packing, crating,
                                          removal, and transportation.
                                          When the SASP provides minimal
                                          services in connection with
                                          the acquisition of property,
                                          except for document processing
                                          and other administrative
                                          actions, the State plan must
                                          provide for minimal charges to
                                          be assessed in such cases and
                                          include the bases of
                                          computation.
                                         (3) Provide that property made
                                          available to nonprofit
                                          providers of assistance to
                                          homeless individuals be
                                          distributed at a nominal cost
                                          for care and handling of the
                                          property.
                                         (4) Set forth how funds
                                          accumulated from service
                                          charges, or from other sources
                                          such as sales or compliance
                                          proceeds are to be used for
                                          the operation of the SASP and
                                          the benefit of participating
                                          donees.
                                         (5) Affirm, if service charge
                                          funds are to be deposited or
                                          invested, that such deposits
                                          or investments are permitted
                                          by State law and set forth the
                                          types of depositories and/or
                                          investments contemplated.
                                         (6) Cite State authority to use
                                          service charges to acquire or
                                          improve SASP facilities and
                                          set forth disposition to be
                                          made of any financial assets
                                          realized upon the sale or
                                          other disposal of the
                                          facilities.
                                         (7) Indicate if the SASP
                                          intends to maintain a working
                                          capital reserve. If one is to
                                          be maintained, the plan should
                                          provide the provisions and
                                          limitations for it.
                                         (8) State if refunds of service
                                          charges are to be made to
                                          donees when there is an excess
                                          in the SASP's working capital
                                          reserve and provide details of
                                          how such refunds are to be
                                          made, such as a reduction in
                                          service charges or a cash
                                          refund, prorated in an
                                          equitable manner.
------------------------------------------------------------------------
(f) Terms and conditions on donable      (1) Require the SASP to impose
 property..                               terms, conditions,
                                          reservations, and restrictions
                                          on the donee for any item of
                                          donated property with a unit
                                          acquisition cost of $5,000 or
                                          more and any passenger motor
                                          vehicle. The specific terms,
                                          conditions, reservations, and
                                          restrictions that the SASP
                                          requires must be set forth in
                                          the plan.

[[Page 20023]]

 
                                         (2) Provide that the SASP may
                                          impose reasonable terms,
                                          conditions, reservations, and
                                          restrictions on the use of
                                          other donated property. If the
                                          SASP elects to impose
                                          additional terms, conditions,
                                          reservations, and
                                          restrictions, it should list
                                          them in the plan. If the SASP
                                          wishes to provide for
                                          amending, modifying, or
                                          releasing any terms,
                                          conditions, reservations, or
                                          restrictions it has elected to
                                          impose, it must state in the
                                          plan the standards it will use
                                          to grant such amendments,
                                          modifications or releases.
                                         (3) Provide that the SASP will
                                          impose on the donation of
                                          property, regardless of unit
                                          acquisition cost, such
                                          conditions involving special
                                          handling or use limitations as
                                          GSA may determine necessary
                                          because of the characteristics
                                          of the property.
------------------------------------------------------------------------
(g) Nonutilized or undistributed         (1) The plan must provide that,
 property..                               subject to GSA approval,
                                          property in the possession of
                                          the SASP which donees in the
                                          State cannot use will be
                                          disposed of by:
                                           (i) Transfer to another SASP
                                          or Federal agency.
                                           (ii) Sale.
                                           (iii) Abandonment or
                                          destruction.
                                           (iv) Other arrangements.
------------------------------------------------------------------------
(h) Fair and equitable distribution....  (1) Provide that the SASP will
                                          make fair and equitable
                                          distribution of property to
                                          eligible donees in the State
                                          based on their relative needs
                                          and resources and ability to
                                          use the property.
                                         (2) Set forth the policies and
                                          detailed procedures for
                                          effecting a prompt, fair, and
                                          equitable distribution.
                                         (3) Require that the SASP,
                                          insofar as practicable, select
                                          property requested by eligible
                                          donees and, if requested by
                                          the donee, arrange for
                                          shipment of the property
                                          directly to the donee.
------------------------------------------------------------------------
(i) Eligibility........................  (1) Set forth procedures for
                                          the SASP to determine the
                                          eligibility of applicants for
                                          the donation of surplus
                                          personal property.
                                         (2) Provide for donee
                                          eligibility records to include
                                          at a minimum:
                                           (i) Legal name and address of
                                          the donee.
                                           (ii) Status of the donee as a
                                          public agency or as an
                                          eligible nonprofit, tax-exempt
                                          activity.
                                           (iii) Details on the scope of
                                          the donee's program.
                                           (iv) Proof of tax exemption
                                          under section 501 of the
                                          Internal Revenue Code if the
                                          donee is nonprofit.
                                           (v) Proof that the donee is
                                          approved, accredited, or
                                          licensed if it is a
                                          requirement for operation of
                                          the donee's program(s); or
                                          certification of funding if
                                          the donee is a nonprofit
                                          activity that conducts
                                          programs for older
                                          individuals.
                                           (vi) Financial resources.
                                           (vii) Written designation of
                                          a representative(s) to act for
                                          the donee in acquiring
                                          property from the SASP signed
                                          by the chief administrative
                                          officer or by resolution of
                                          the donee's governing body.
                                           (viii) Nondiscrimination
                                          assurance.
                                           (ix) Types of property
                                          needed.
------------------------------------------------------------------------
(j) Compliance and utilization.........  (1) Provide that the SASP
                                          conduct utilization reviews
                                          for donee compliance with the
                                          terms, conditions,
                                          reservations, and restrictions
                                          imposed by GSA and the SASP on
                                          property having a unit
                                          acquisition cost of $5,000 or
                                          more and any passenger motor
                                          vehicle.
                                         (2) Provide for the reviews to
                                          include a survey of donee
                                          compliance with any special
                                          handling conditions or use
                                          limitations imposed on items
                                          of property by GSA.
                                         (3) Set forth the proposed
                                          frequency of such reviews and
                                          provide adequate assurances
                                          that the SASP will take
                                          effective action to correct
                                          noncompliance or otherwise
                                          enforce such terms,
                                          conditions, reservations, and
                                          restrictions.

[[Page 20024]]

 
                                         (4) Require the SASP to prepare
                                          reports on utilization reviews
                                          and compliance actions and
                                          provide assurance that the
                                          SASP will initiate appropriate
                                          investigations of alleged
                                          fraud in the acquisition of
                                          donated property or misuse of
                                          such property.
------------------------------------------------------------------------
(k) Consultation with advisory bodies    (1) Provide for consultation
 and public and private groups..          with advisory bodies and
                                          public and private groups
                                          which can assist the SASP in
                                          determining the relative needs
                                          and resources of donees, the
                                          proposed utilization of
                                          donable property by eligible
                                          donees, and how distribution
                                          of donable property can be
                                          effected to fill existing
                                          needs of donees.
                                         (2) Provide details of how the
                                          SASP will accomplish such
                                          consultation.
------------------------------------------------------------------------
(l) Audit..............................  (1) Provide for periodic
                                          internal audits of the
                                          operations and financial
                                          affairs of the SASP.
                                         (2) Provide for compliance with
                                          the external audit
                                          requirements of Office of
                                          Management and Budget Circular
                                          No. A-133, ``Audits of States,
                                          Local Governments, and Non-
                                          Profit
                                          Organizations''(available at
                                          www.whitehouse.gov/OMB), and
                                          make provisions for the SASP
                                          to furnish GSA with:
                                           (i) Two copies of any audit
                                          report made pursuant to the
                                          Circular, or with two copies
                                          of those sections that pertain
                                          to the Federal donation
                                          program.
                                           (ii) An outline of all
                                          corrective actions and
                                          scheduled completion dates for
                                          the actions.
                                         (3) Provide for cooperation in
                                          GSA or Comptroller General
                                          conducted audits.
------------------------------------------------------------------------
(m) Cooperative agreements.............  If the SASP wishes to enter
                                          into, renew, or revise
                                          cooperative agreements with
                                          GSA or other Federal agencies:
                                         (1) Affirm the SASP's
                                          intentions to enter into
                                          cooperative agreements.
                                         (2) Cite the authority for
                                          entering into such agreements.
------------------------------------------------------------------------
(n) Liquidation........................  Provide for the SASP to submit
                                          a liquidation plan prior to
                                          termination of the SASP
                                          activities if the State
                                          decides to dissolve the SASP.
------------------------------------------------------------------------
(o) Forms..............................  Include copies of distribution
                                          documents used by the SASP.
------------------------------------------------------------------------
(p) Records............................  Affirm that all official
                                          records of the SASP will be
                                          retained for a minimum of 3
                                          years, except that:
                                         (1) Records involving property
                                          subject to restrictions for
                                          more than 2 years must be kept
                                          1 year beyond the specified
                                          period of restriction.
                                         (2) Records involving property
                                          with perpetual restriction
                                          must be retained in
                                          perpetuity.
                                         (3) Records involving property
                                          in noncompliance status must
                                          be retained for at least 1
                                          year after the noncompliance
                                          case is closed.
------------------------------------------------------------------------

Sec. 102-37.200  What steps must we take if the State decides to 
dissolve our SASP?

    If the State decides to dissolve your SASP, submit a liquidation 
plan that includes:
    (a) Reasons for the liquidation;
    (b) A schedule for liquidating the agency and the estimated date of 
termination;
    (c) Method of disposing of property on hand under the requirements 
of this part;
    (d) Method of disposing of the agency's physical and financial 
assets;
    (e) Retention of all available records of the SASP for a 2-year 
period following liquidation; and
    (f) Designation of another governmental entity to serve as the 
agency's successor in function until continuing obligations on property 
donated prior to the closing of the agency are fulfilled.

Screening and Requesting Property


Sec. 102-37.205  Do we need special authorization to screen property?

    Yes, you must have a valid screener-identification card (GSA Form 
2946, Screener's Identification) prior to screening and freezing 
property at holding agencies. However, you and donee representatives do 
not need a screener-ID card to inspect, evaluate, or remove specific 
property approved for donation.


Sec. 102-37.210  How do we obtain screener-ID cards for ourselves or 
donation?

    To obtain screening authorization you must:
    (a) Submit a written request to the GSA regional office serving the 
area in which the intended screener is located. The request must state 
the name and address of your SASP or the donee the prospective screener 
represents, and certify that the applicant is qualified to screen as an 
authorized representative of the cited organization. A list of the 
Federal installations the screener will be authorized to visit must 
accompany

[[Page 20025]]

each request. The list of Federal installations should be limited to 
those within the applicable State, except where there are particular 
reasons why a screener should regularly visit installations outside the 
State.
    (b) Accompany each request for authorization with a completed GSA 
Form 2946 that contains an affixed passport-style photograph of the 
prospective screener. Copies of the form are available from the GSA 
regional office servicing your State.


Sec. 102-37.215  May we request property that is in the sales cycle?

    Yes, you may request property that is in the sales cycle if the 
property involved was not previously made available for donation or the 
property is needed to fill an emergency or critical requirement. You 
must submit such requests to GSA for consideration and coordination 
with the holding agency so that such action is not harmful to the 
overall outcome of the sale. Such requests may only be granted prior to 
sales award.


Sec. 102-37.220  May we request property specifically for 
cannibalization?

    Yes; however, you must provide justification and include the 
following statement on the SF 123: ``Item(s)__________requested for 
cannibalization.'' Your request for cannibalization will be approved 
only when it is clear that disassembly of the item for use of its 
component parts will provide greater potential benefit than use of the 
item in its existing form.

Eligibility of Donees


Sec. 102-37.225  Who may acquire property through a SASP?

    You may distribute property to the following classes of donees:
    (a) Public agencies.
    (b) Nonprofit educational or public health institutions or 
organizations, such as:
    (1) Medical institutions.
    (2) Hospitals.
    (3) Clinics.
    (4) Health centers.
    (5) Drug abuse or alcohol treatment centers.
    (6) Providers of assistance to homeless individuals.
    (7) Providers of assistance to impoverished families and 
individuals.
    (8) Schools.
    (9) Colleges.
    (10) Universities.
    (11) Schools for the mentally disabled.
    (12) Schools for the physically disabled.
    (13) Child care centers.
    (14) Radio and television stations licensed by the Federal 
Communications Commission as educational radio or educational 
television stations.
    (15) Museums attended by the public.
    (16) Libraries, serving free all residents of a community, 
district, State or region.
    (c) Public or nonprofit programs for older individuals.
    (d) Service educational activities.


Sec. 102-37.230  Who determines if an activity is eligible to receive 
donated property?

    (a) Public agencies and nonprofit tax-exempt activities. You 
determine if an applicant is eligible to receive property as a public 
agency, a nonprofit educational or public health institution, or a 
program for older individuals under the requirements of this part. You 
may request GSA assistance or guidance in making such determinations.
    (b) Service educational activities (SEAs). The Department of 
Defense (DOD) sets eligibility requirements for SEAs and makes 
eligibility determinations.


Sec. 102-37.235  Must we maintain eligibility records on SEAs?

    Yes, you must maintain eligibility records on SEA's, but maintain 
them separately from your other eligibility files and make sure they 
include:
    (a) Documentation verifying that the activity has been designated 
as eligible by DOD to receive surplus DOD property.
    (b) A statement designating one or more donee representative(s) to 
act for the SEA in acquiring property.
    (c) A listing of the types of property needed or authorized for use 
in the SEA's program.


Sec. 102-37.240  How often must we update donee eligibility records?

    You must update donee eligibility records as needed, but no less 
than every 3 years, to ensure that all documentation supporting the 
donee's eligibility is current and accurate. Annually you must update 
files for programs whose eligibility depend on annual appropriations, 
annual licensing, or annual certification.


Sec. 102-37.245  What must we do if a donee fails to maintain its 
eligibility status?

    If a donee fails to maintain its eligibility status, you must 
terminate distribution of property to the activity, recover any usable 
property still under Federal restriction, and take any other required 
compliance actions.


Sec. 102-37.250  May we grant eligibility to applicants who would 
otherwise qualify as eligible donees, but whose approval, 
accreditation, or licensing is pending?

    You may grant conditional eligibility to those applicants whose 
programs are required to be approved, accredited, or licensed, but who 
are unable to obtain accreditation, approval, or licensing because they 
are newly organized or because the facilities in which their activities 
are to be housed are not yet constructed. If the construction of an 
applicant's facility or physical plant has not been completed, and 
after evaluating the progress and potential of the applicant, you may 
at your discretion make available property that can be immediately 
utilized at this point in the applicant's program. You may accept 
letters from public authorities, either local or State, that you deem 
competent (such as a board of health or a board of education) stating 
that the applicant otherwise meets the standards prescribed for 
approved, accredited or licensed institutions and organizations. Under 
no circumstances can the SASP grant conditional eligibility prior to 
receiving evidence of nonprofit status.


Sec. 102-37.255  Are we eligible to acquire property as a public agency 
donee?

    No, you are not eligible to acquire property as a public agency 
donee, but you can retain surplus personal property for use in 
operating the donation program if you have a cooperative agreement with 
GSA that allows you to do so. You must obtain prior GSA approval before 
using any donable property in your operation of the SASP. Make your 
needs known by submitting a listing of needed property to the 
appropriate GSA regional office for approval. GSA will review the list 
to ensure that it is of the type and quantity of property that is 
reasonably needed and useful in performing your SASP operations. Unless 
GSA disapproves the retention of the property within 30 calendar days 
of receipt of the listing, title to the property will vest in your 
SASP. You must maintain separate records for the property.


Sec. 102-37.260  What should we do if an applicant seeks an appeal of a 
negative determination of eligibility?

    You should forward complete documentation on all appeal requests, 
including your comments and recommendations, to the applicable GSA 
regional office for review and coordination with GSA headquarters.

[[Page 20026]]

Distributing Property


Sec. 102-37.265  Are there special requirements for distributing 
property to SEAs?

    Yes, only DOD-generated property may be donated to SEAs. Property 
generated by Federal civil agencies are not eligible for donation to 
SEAs, unless the SEAs also qualify under Sec. 102-37.225(b) to receive 
donations of property. When donating DOD property to eligible SEAs, you 
must observe any restrictions the sponsoring Military Services may have 
imposed on the types of property the SEAs may receive.


Sec. 102-37.270  May we distribute property to eligible donees of 
another State?

    Yes, you may distribute property to eligible donees of another 
State, if you and the other SASP determine that such an arrangement 
will be of mutual benefit to you and the donees concerned. Where such 
determinations are made, an interstate distribution cooperative 
agreement as prescribed in Sec. 102-37.320 must be prepared and 
submitted to the appropriate GSA regional office for approval. When 
acting under an interstate distribution cooperative agreement, you 
must:
    (a) Require the donee recipient to execute the distribution 
documents of its home SASP.
    (b) Forward copies of executed distribution documents to the 
donee's home SASP.

Terms and Conditions


Sec. 102-37.275  What terms and conditions must we impose on the donee?

    You must impose the terms and conditions on the donee required in 
your State plan of operation.


Sec. 102-37.280  May we waive any of the terms and conditions of 
donation?

    You may alter or grant releases from State-imposed restrictions, 
provided your State plan of operation sets forth the standards by which 
such actions will be taken. You may not grant releases from, or 
amendments or corrections to:
    (a) The statutory requirement that usable property be returned by 
the donee to the SASP if the property has not been placed in use for 
the purposes for which it was donated within one year of donation or 
ceases to be used by the donee for those purposes within one year of 
being placed in use, except that:
    (1) You may grant authority to the donee to cannibalize property 
items subject to this requirement when you determine that such action 
will result in increased utilization of the property and that the 
proposed action meets the standards prescribed in your plan of 
operation with respect to amendments, modifications, or releases of the 
terms and conditions imposed on donated property; or
    (2) You may, with the written concurrence of GSA, grant donees:
    (i) A time extension to place property into use if the delay in 
putting the property into use was beyond the control and without the 
fault or negligence of the donee; or
    (ii) Authority to trade in one donated item for one like item 
having similar use potential.
    (b) The terms, conditions, reservations, and restrictions the 
Property Act requires you to impose on the use of passenger motor 
vehicles and any item of property having a unit acquisition cost of 
$5,000 or more.
    (c) Any special handling condition or use limitation imposed by 
GSA, except with the prior written approval of GSA.


Sec. 102-37.285  Do restrictions remain on property that has been 
authorized for cannibalization?

    Property authorized for cannibalization must remain under the 
period of restriction imposed by the transfer/distribution document 
pending completion of the proposed cannibalization. Components 
resulting from the cannibalization, which have a unit acquisition cost 
of $5,000 or more, must remain under the restrictions imposed by the 
transfer/distribution document. Components with a unit acquisition cost 
of less than $5,000 may be released upon cannibalization from the 
additional restrictions imposed by the State. However, these components 
must continue to be used or be otherwise disposed of in accordance with 
this part.


Sec. 102-37.290  May a donee exchange donated property during the 
period of restriction?

    Yes, a donee may exchange donated property during the period of 
restriction with the approval of GSA. The donee must have used the 
donated item for its acquired purpose for a minimum of 6 months prior 
to being considered for exchange, and it must be demonstrated that the 
exchange will result in increased utilization value to the donee. As a 
condition of approval of the exchange, the item being exchanged cannot 
be in a noncompliance status. The item acquired by the donee must be:
    (a) Made subject to the period of restriction remaining on the item 
exchanged.
    (b) Of equal or greater value than the item exchanged.


Sec. 102-37.295  On what categories of property has GSA imposed special 
handling conditions or use limitations?

    GSA has imposed special handling or processing requirements on the 
property categorized in this section. GSA may, on a case-by-case basis, 
prescribe additional restrictions for handling or using these items or 
prescribe special processing requirements on items in addition to those 
listed in this section.
    (a) Aircraft and vessels. The requirements of this section apply to 
the donation of any fixed-or rotary-wing aircraft and donable vessels 
that are 50 feet or more in length, having a unit acquisition cost of 
$5,000 or more, regardless of the purpose for which donated. Such 
aircraft or vessels may be donated to public agencies and eligible 
nonprofit activities provided the aircraft or vessel is not classified 
for reasons of national security and any lethal characteristics are 
removed. The following table provides locations of other policies and 
procedures governing aircraft and vessels:

------------------------------------------------------------------------
               For--                                See--
------------------------------------------------------------------------
(1) Policies and procedures          Part 101-37, subpart 101-37.6, of
 governing the donation of aircraft   this title.
 parts.
------------------------------------------------------------------------
(2) Documentation needed by GSA to   Sec.  102-37.300.
 process requests for aircraft or
 vessels.
------------------------------------------------------------------------
(3) Special terms, conditions, and   Sec.  102-37.305.
 restrictions imposed on aircraft
 and vessels.
------------------------------------------------------------------------
(4) Guidelines on preparing plans    Sec.  102-37.460.
 of utilization for aircraft or
 vessels.
------------------------------------------------------------------------


[[Page 20027]]

    (b) Tax-free alcohol or specially denatured alcohol. (1) When tax-
free or specially denatured alcohol is requested for donation, the 
donee must have a special permit issued by the Assistant Regional 
Commissioner of the appropriate regional office, Bureau of Alcohol, 
Tobacco, and Firearms (BATF), Department of the Treasury, to acquire 
the property. You must include the BATF use-permit number on the SF 
123.
    (2) You may not store tax-free or specially denatured alcohol in 
your facilities. You must make arrangements for this property to be 
shipped or transported directly from the holding agency to the 
designated donee.
    (c) M-151 vehicles. M-151 vehicles have been identified as a hazard 
to the safety of public highway users, and eligible donees may not 
acquire these vehicles without mutilation. Mutilation must result in 
the unitized body of the vehicle being cut, crushed, or mangled in such 
a manner as to completely preclude rebuilding into a usable unitized 
body. When acquiring M-151 components and parts, the donee recipient 
must certify on the distribution document that the components and parts 
will not be reassembled as a vehicle for highway use.
    (d) Hazardous materials, firearms, and property with unsafe or 
dangerous characteristics. For hazardous materials, firearms, and 
property with unsafe or dangerous characteristics, see part 101-42 of 
this title.
    (e) Franked and penalty envelopes and official letterheads. Franked 
and penalty envelopes and official letterheads may not be donated 
without the SASP or donee certifying that all Federal Government 
markings will be obliterated before use.


Sec. 102-37.300  What documentation must we provide to acquire an 
aircraft or vessel?

    The following documentation must be submitted to GSA, along with 
the SF 123, when you request an aircraft or vessel covered by Sec. 102-
37.295:
    (a) A letter of intent, signed and dated by the authorized 
representative of the proposed donee setting forth a detailed plan of 
utilization for the property. (See Sec. 102.37.460.)
    (b) A letter, signed and dated by you, confirming and certifying 
the applicant's eligibility and containing an evaluation of the 
applicant's ability to use the aircraft or vessel for the purpose 
stated in its letter of intent and any other supplemental information 
concerning the needs of the donee which supports making the allocation;
    (c) Your distribution document, signed and dated by the authorized 
donee representative; and
    (d) A conditional transfer document, signed by you and the intended 
donee, and containing the special terms, conditions, and restrictions 
prescribed by GSA. The conditional transfer document may include 
additional terms, conditions, and restrictions imposed by you on the 
use of the aircraft or vessel that are consistent with any Federal 
requirements or your plan of operation. However, none of the Federal 
terms, conditions, and restrictions outlined in the executed 
conditional transfer document, including the requirement for an 
additional 48-month period of approved use, may be modified, amended, 
waived, released, or abrogated by you without the prior written 
approval of GSA.


Sec. 102-37.305  What are the special terms, conditions, and 
restrictions regarding aircraft and vessels?

    (a) The aircraft or vessel must be placed in use for the purpose 
for which acquired no later than 12 months after acquisition and used 
for the same purpose for a 12-month period thereafter. There shall be 
an additional 48-month period of restriction which will expire after 
the aircraft or vessel has been used for the purpose for which 
acquired, except that the period of restriction for combat-configured 
aircraft (aircraft having no commercial flight application based upon 
their military design characteristics) runs in perpetuity.
    (b) The donee of an aircraft must apply to the Federal Aviation 
Administration (FAA) for registration of an aircraft intended for 
flight use within 30 calendar days of receipt of the aircraft. The 
donee of a vessel must, within 30 calendar days of receipt of the 
vessel, apply for documentation of the vessel under applicable Federal, 
State, and local laws and must record each document with the U.S. Coast 
Guard at the port of documentation. The donee's application for 
registration or documentation must include a fully executed copy of the 
conditional transfer document and a copy of its letter of intent. The 
donee must provide you and GSA with a copy of the FAA registration (and 
a copy of its FAA Standard Airworthiness Certificate if the aircraft is 
to be flown as a civil aircraft) and all the required documentation.
    (c) The aircraft or vessel must be used solely in accordance with 
the executed conditional transfer document and the plan of utilization 
set forth in the donee's letter of intent, unless the donee has amended 
the letter, and it has been approved in writing by you and GSA and a 
copy of the amendment recorded with FAA or the U.S. Coast Guard, as 
applicable.
    (d) In the event any of the terms, conditions, and restrictions 
imposed by the conditional transfer document are breached, title and 
right to the possession of the aircraft or vessel will, at the option 
of GSA, revert to the United States Government. The donee, at the 
option of GSA, will be liable to the Government for the proceeds from 
any unauthorized disposal or for the fair market value or fair rental 
value of the aircraft or vessel at the time of any unauthorized 
transaction or use, as determined by GSA.
    (e) If, during the period of restriction, the aircraft or vessel is 
no longer suitable, usable, or further needed by the donee for the 
purpose for which the donee acquires it, the donee must promptly notify 
you and request disposal instructions. You may not issue disposal 
instructions, except with the prior written concurrence of GSA.
    (f) Combat-configured aircraft, as designated by DOD, may not be 
donated for flight purposes.
    (g) For all aircraft donated for nonflight use, the donee must, 
within 30 calendar days of receipt of the aircraft, remove and turn 
over to you the manufacturer's data plate and the aircraft historical 
records (except the records of the major components/life limited parts; 
e.g., engines, transmissions, rotor blades, etc., necessary to 
substantiate their reuse). You must send the records and data plate to 
GSA for forwarding to the FAA.

Service and Handling Charges


Sec. 102-37.310  May we accept personal checks in payment of service 
charges?

    No, you may accept payments only in the form of warrants, checks, 
or other official instruments drawn or issued by, and in the name of, 
the respective donee institution. If eligible donees have their 
operational expenses paid by a parent institution or organization, you 
may accept checks issued by such parent institutions in payment of the 
charges.


Sec. 102-37.315  Are there restrictions on how we may use service 
charge funds or other monies derived from donated Federal property?

    Except as provided in Sec. 102-37.360, you must use funds collected 
from service charges, or from other sources such as proceeds from sale 
of undistributed property or funds collected from compliance cases, 
solely for the operation of the SASP and the benefit of participating 
donees. Funds

[[Page 20028]]

may be deposited, invested, or used in accordance with State law to:
    (a) Cover direct and indirect costs of your operation.
    (b) Purchase necessary equipment for the SASP.
    (c) Maintain a reasonable working capital reserve.
    (d) Rehabilitate donable surplus property, including the purchase 
of replacement parts.
    (e) Make refunds of service charges in excess of your working 
capital reserve to your participating donees.
    (f) Acquire or improve office or distribution center facilities.
    (g) Pay for the costs of internal and external audits.

Cooperative Agreements


Sec. 102-37.320  What is a cooperative agreement?

    A cooperative agreement is an agreement you enter into with GSA or 
a Federal agency designated by GSA or another SASP for the use of 
property, facilities, personnel, or services to carry out the functions 
of the donation program. For example:
    (a) You and GSA may cooperate under the terms of an agreement for 
the provision or use of property, facilities, personnel, or services to 
facilitate the allocation, transfer, and distribution of donable 
surplus property. After such an agreement is executed, GSA may assist 
you by:
    (1) Helping you to enter into agreements with other designated 
Federal agencies for the use of property, facilities, personnel, or 
services as are necessary and useful in aiding you to carry out the 
functions of the donation program.
    (2) Furnishing available office space and related support such as 
office furniture and information technology equipment to assist you in 
screening and processing property for donation.
    (3) Permitting you to retain items of property transferred to you 
for distribution that are needed by you in performing your donation 
functions.
    (b) With GSA's concurrence and where authorized by State law, you 
may enter into an interstate distribution cooperative agreement to act 
as an agent and authorized representative of an adjacent State with 
which you share a common boundary. Agreements may be considered when 
donees, because of their geographic proximity to the property 
distribution centers of the adjoining State, could be more efficiently 
and economically serviced by surplus property facilities in the 
adjacent State. You and the other SASP must agree to the payment or 
reimbursement of service charges by the donee and you also must agree 
to the requirements of Sec. 102-37.150(e).
    (c) You may enter into a cooperative agreement with GSA to conduct 
sales of nondonated or undistributed property for and on behalf of GSA.


Sec. 102-37.325  Is there a fee for services and other support supplied 
under a cooperative agreement?

    Payment or reimbursement under a cooperative agreement will be a 
matter for resolution between you and the Federal agency. GSA will 
provide assistance, to the extent possible, without reimbursement. 
However, any extraordinary costs incurred in providing assistance will 
be on a reimbursable basis.


Sec. 102-37.330  When may we terminate cooperative agreements?

    You may terminate a cooperative agreement with GSA upon a 60-
calendar day written notice. For other authorized agreements, you or 
the other party may terminate the agreement as mutually agreed. You 
must promptly notify GSA when such other agreements are terminated.

Reports


Sec. 102-37.335  What reports must we provide to GSA?

    (a) Quarterly report on donations. Submit a GSA Form 3040, State 
Agency Monthly Donation Report of Surplus Personal Property, in 
duplicate, to the appropriate GSA regional office by the 25th day of 
the month following the quarter being reported. (Office of Management 
and Budget Control Number 3090-0112 has been assigned to this form.) 
Forms and instructions for completing the form are available from your 
servicing GSA office.
    (b) Additional reports. Make such reports as GSA may require to 
carry out its discretionary authority to transfer surplus personal 
property for donation and to report to the Congress on the status and 
progress of the donation program.

Compliance and Audits


Sec. 102-37.340  What actions must we take to report damaged or missing 
property in our custody?

    You must immediately notify GSA and appropriate law officials of 
any damage to or loss of property in your custody due to theft, 
vandalism, or other unusual circumstances. You must inform GSA of any 
other type of damage to or loss of property in your custody.


Sec. 102-37.345  What measures must we take to ensure that property is 
used for the purpose(s) for which donated?

    You must make utilization surveys and reviews, as provided in your 
plan of operation, to ensure that donees are using donated property 
during the period of restriction for the purposes for which it was 
acquired, including any special handling conditions or use limitations 
imposed by GSA or you. You must fully document your efforts and report 
all instances of noncompliance to GSA.


Sec. 102-37.350  What actions must we take if a review or other 
information indicates noncompliance with donation terms and conditions?

    (a) Promptly investigate any suspected failure to comply with the 
conditions of donated property.
    (b) Notify GSA immediately where there is evidence or allegations 
of fraud, nonuse, misuse, or unauthorized disposal of donated property.
    (c) Temporarily defer any further donations of property where 
noncompliance allegations have been made and the donee is to be 
investigated, until such time as the investigation has been completed 
and a determination made that the allegations are either unfounded, or 
the allegations are substantiated, and the donee is proposed for 
suspension or debarment.
    (d) Take action to correct the noncompliance or otherwise enforce 
the conditions imposed on use of the property if a donee is found to be 
in noncompliance. Such action may involve:
    (1) Ensuring the property is used by the present donee for the 
purpose for which it was donated.
    (2) Recovering the property from the donee for:
    (i) Redistribution to another donee within the State;
    (ii) Transfer through GSA to another SASP; or
    (iii) Transfer through GSA to a Federal agency.
    (3) Recovering fair market value or the proceeds of disposal in 
cases of unauthorized disposal or destruction.
    (4) Recovering fair rental value for the time property was used in 
an unauthorized manner.
    (5) Disposing of by public sale property no longer suitable, 
usable, or necessary for donation.


Sec. 102-37.355  Must we coordinate with GSA on compliance actions?

    In enforcing compliance with the terms and conditions imposed on 
donated property, you must coordinate with GSA before undertaking the 
sale of, or making demand for payment of the

[[Page 20029]]

fair market value or fair rental value of donated property that:
    (a) Is subject to any special handling condition or use limitation 
imposed by GSA; or
    (b) Has not been placed into use by the donee, for the purposes for 
which it was donated, within one year of donation, or where the donee 
ceased using the property for authorized purposes during the one-year 
period after being placed in use.


Sec. 102-37.360  How must we handle funds derived from compliance 
actions?

    You must handle funds derived from compliance actions as follows:
    (a) Federal restrictions. You must promptly remit to GSA any funds 
derived from the enforcement of compliance involving a violation of any 
Federal restriction, for deposit in the Treasury of the United States. 
You must also submit any supporting documentation indicating the source 
of the funds and essential background information.
    (b) State restrictions. You may retain any funds derived from a 
compliance action involving violation of any State-imposed restriction 
and use such funds as provided in your State plan of operation.


Sec. 102-37.365  Does coverage under the Single Audit Act exempt us 
from other reviews of our program?

    No, although you are covered under the Single Audit Act (31 U.S.C. 
7501-7507), from time to time the General Accounting Office (GAO), GSA, 
or other authorized Federal activities may audit or review the 
operations of a SASP. GSA will notify the chief executive officer of 
the State of the reasons for a GSA audit. You must make available 
financial records and all other records of the SASP for inspection by 
representatives of GSA, GAO, or other authorized Federal activities.

Disposing of Undistributed Property


Sec. 102-37.370  When must we offer property to other SASPs?

    When you determine that property in your possession is usable, but 
not needed by eligible donees within your State, you must offer the 
property for transfer to other SASPs. You may arrange for 
representatives of other SASPs to visit your distribution facilities to 
inspect and select unneeded property. GSA encourages prompt transfer of 
property between the States, and will assist you, upon request, in 
making known to other SASPs undistributed property that is available 
for transfer.


Sec. 102-37.375  Must GSA approve a transfer between SASPs?

    Yes, the requesting SASP must submit a SF 123, Transfer Order 
Surplus Personal Property, to the GSA regional office in which the 
releasing SASP is located. GSA then has 30 calendar days to approve or 
disapprove the request.


Sec. 102-37.380  May we recover our costs if property is transferred to 
another SASP?

    You and the receiving SASP must mutually agree on the reimbursement 
of costs incurred by you in acquiring the property from the Federal 
government. If there is no agreement, GSA will determine appropriate 
reimbursement.


Sec. 102-37.385  When should we report undistributed property to GSA?

    You should report at any time property in your possession that is 
not needed by you or another SASP to the GSA regional office for 
disposal instructions. You are encouraged, however, to promptly report 
any property that has been in your custody longer than a year, unless a 
predictable requirement exists for that property. When reporting 
property to GSA, provide:
    (a) The best possible description of each line item of property, 
its current condition code, quantity, unit and total acquisition cost, 
State serial number, demilitarization code, and any special handling 
conditions;
    (b) The date you received each line item of property listed; and
    (c) Certification of reimbursement requested under Sec. Sec. 102-
37.400 and 102-37.405.


Sec. 102-37.390  May we sell undistributed property?

    Yes, you may sell undistributed property, provided you have a 
cooperative agreement with GSA to sell undistributed Federal property, 
and GSA approves your request to conduct a sale. Your request to sell 
property should include the proposed sale date, a listing of the 
property, location of the sale, method of sale, and proposed 
advertising to be used. If a request is approved, the GSA regional 
sales office will provide the necessary forms and instructions for you 
to use in conducting the sale.


Sec. 102-37.395  Under what conditions may we abandon or destroy 
property?

    (a) You may abandon or destroy undistributed property when you 
determine that the property has no commercial value or the estimated 
cost of its continued care and handling would exceed the estimated 
proceeds from its sale. The determination must be based on a finding 
made in writing by an authorized official of your agency and sent to 
the appropriate GSA regional office for approval. You must include in 
the written finding:
    (1) The basis for the abandonment or destruction;
    (2) A detailed description of the property, its condition, and 
total acquisition cost;
    (3) The proposed method of destruction (burning, burying, etc.) or 
the abandonment location;
    (4) A statement confirming that the proposed abandonment or 
destruction will not be detrimental or dangerous to public health or 
safety and will not infringe on the rights of other persons;
    (5) The signature of the SASP director requesting approval for the 
abandonment or destruction; and
    (6) The title, telephone number, and signature of the SASP 
reviewing authority if a line item of the property to be disposed of at 
any one location at any one time has a known or estimated acquisition 
cost of more than $1,000.
    (b) GSA will notify you within 30 calendar days whether you may 
proceed with the abandonment or destruction. GSA will provide alternate 
disposition instructions if your request for abandonment or destruction 
is disapproved.


Sec. 102-37.400  May we get reimbursement if property is recovered for 
Federal use?

    (a) You may be reimbursed for the costs you incurred in acquiring 
the property, including packing, handling, and transportation costs, at 
the time the property is transferred to the Federal activity, except as 
noted in paragraph (b) of this section. GSA will secure agreement of 
the Federal agency to pay these charges prior to the release of the 
property, and annotate the amount of reimbursement on the transfer 
document.
    (b) When the Federal Emergency Management Agency requests property 
for a presidentially declared emergency or major disaster, you are 
entitled to reimbursement of documented expenses originally incurred in 
the screening, transporting, and receipt of the property. You should 
coordinate and make arrangements for reimbursement with the State 
official in charge of disaster relief.


Sec. 102-37.405  What costs may we recover if undistributed property is 
sold?

    When undistributed property is disposed of by public sale, GSA may 
authorize reimbursement for care and handling expenses you incurred in 
acquiring the property from within or outside a State. You must certify 
the costs incurred and support them with

[[Page 20030]]

documentation if requested by GSA. You will not be reimbursed for costs 
subsequent to the receipt of property, including unloading, moving, 
repairing, preserving, or storage. You will not be reimbursed for costs 
of transporting property to a location outside a SASP distribution 
facility for the purpose of a sale, unless GSA specifically requires 
transportation. Reimbursement may not exceed 50 percent of total sales 
proceeds and is limited to:
    (a) Direct costs you initially paid to the Federal holding agency, 
including but not limited to packing, preparation for shipment, and 
loading; and
    (b) Transportation costs you incurred, but were not reimbursed by a 
donee, for initially moving the property from the Federal holding 
agency to your distribution facility or other point of receipt.

Subpart E--Donations to Public Agencies and Eligible Nonprofit 
Organizations


Sec. 102-37.410  To whom do ``we'', ``you'', and their variants refer?

    Use of pronouns ``we'', ``you'', and their variants throughout this 
subpart refers to the donee.

Eligibility


Sec. 102-37.415  Who determines if we are eligible to receive property?

    If you are a public agency or a nonprofit tax-exempt activity, the 
SASP within your State determines if you are eligible as a public 
agency, nonprofit educational or public health institution, or a 
program for older individuals. If you offer courses of instruction 
devoted to the military arts and sciences, the Department of Defense 
will determine your eligibility to acquire property through the SASP as 
a service educational activity (SEA).


Sec. 102-37.420  What basic criteria must we meet to qualify for 
eligibility?

    To qualify for eligibility:
    (a) Your organization must conform to the definition of one of the 
categories of eligible entities listed in Sec. 102-37.225 (see 
Sec. 102-37.25 for definitions).
    (b) You must be approved, accredited, or licensed if it is a 
requirement for operation of your program.
    (c) You must be a public agency or nonprofit and tax-exempt under 
section 501 of the Internal Revenue Code.
    (d) You must not be debarred, suspended, or excluded from any 
Federal procurement or nonprocurement program.
    (e) Your program must operate or be conducted in compliance with 
applicable Federal nondiscrimination statutes.


Sec. 102-37.425  What if there is no specific authority that can 
approve or accredit our program as required for qualification?

    In considering your eligibility, a SASP may accept letters from 
public authorities, either local or State, which it deems competent 
(such as a board of health or a board of education) stating that your 
organization meets the standards prescribed for approved or accredited 
institutions and organizations. Other documentation the SASP may accept 
as evidence of your approval include the following:
    (a) In the case of educational activities, a SASP may deem letters 
from three accredited or State-approved institutions that students from 
your institution have been and are being accepted as sufficient 
evidence of your eligibility for the donation program. Or the SASP may 
consider you approved if you furnish evidence showing you meet the 
academic or instructional standards prescribed for public schools in 
the State; i.e., your organizational entity or program is devoted 
primarily to approved academic, vocational (including technical or 
occupational), or professional study and instruction, which operates 
primarily for educational purposes on a full-time basis for a minimum 
school year as prescribed by the State and employs a full-time staff of 
qualified instructors.
    (b) In the case of public health institutions or organizations, a 
SASP may accept licensing as evidence of approval, provided the 
licensing authority prescribes the medical requirements and standards 
for the professional and technical services of your institution.
    (c) The awarding of research grants to your institution or 
organization by a recognized authority such as the National Institutes 
of Health, the National Institute of Education, or by similar national 
advisory council or organization may also constitute approval of your 
institution or program, provided all other criteria are met.

Terms and Conditions


Sec. 102-37.430  What certifications must we make before acquiring 
property?

    Before you acquire property, you must certify that:
    (a) You are a public agency or a nonprofit organization meeting the 
requirements of the Property Act and/or regulations of GSA.
    (b) You are acquiring the property for your own use and will use 
the property for authorized purposes.
    (c) You are not acquiring the property for any other use or 
purpose, for use outside the State, or for sale.
    (d) Funds are available to pay all costs and charges incident to 
the donation.
    (e) You will comply with the nondiscrimination regulations issued 
under title VI of the Civil Rights Act of 1964 (52 U.S.C. 2000d-2000d-
4), section 606 of title VI of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 476), as amended, section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794), as amended, title IX of the 
Education Amendments of 1972 (20 U.S.C. 1681-1688), as amended, and 
section 303 of the Age Discrimination Act of 1975 (42 U.S.C. 6101-
6107).
    (f) You are not currently debarred, suspended, declared ineligible, 
or voluntarily excluded from receiving the property.


Sec. 102-37.435  What agreements must we make before acquiring 
property?

    You must agree to the following conditions when acquiring property:
    (a) The property is acquired on an ``as is, where is'' basis, 
without warranty of any kind, and you will hold the Government harmless 
from any or all debts, liabilities, judgments, costs, demands, suits, 
actions, or claims of any nature arising from or incident to the 
donation of the property, its use, or final disposition.
    (b) You will return to the SASP, at your expense, any donated 
property that is not placed in use for the purposes for which it was 
donated within one year of donation, or which ceases to be used for 
such purposes within one year of being placed in use.
    (c) You will comply with the terms, conditions, reservations, and 
restrictions, imposed by your SASP on the use of any item of property 
having a unit acquisition cost of $5,000 or more and any passenger 
motor vehicle. (If you are an SEA, this requirement does not apply to 
you.)
    (d) You agree that upon execution of the SASP distribution document 
you have conditional title only to the property during the applicable 
period of restriction. Full title to the property will vest in you only 
after you have met all of the requirements of this part.
    (e) You will comply with the terms, conditions, reservations, or 
restrictions imposed on any other donated item by the SASP. (Not 
applicable to SEAs.)
    (f) You will comply with conditions imposed by GSA, if any, 
requiring special handling or use limitations on donated property.
    (g) You will use the property for an authorized purpose during the 
period of restriction (see Sec. 101-37.440).
    (h) You will obtain permission from the SASP before selling, 
trading, leasing,

[[Page 20031]]

loaning, bailing, cannibalizing, encumbering or otherwise disposing of 
property during the period of restriction, or removing it permanently 
for use outside the State.
    (i) You will report to the SASP on the use, condition, and location 
of donated property, and on other pertinent matters as the SASP may 
require from time to time.
    (j) If an insured loss of the property occurs during the period of 
restriction, GSA or the SASP (depending on which agency has imposed the 
restriction) will be entitled to reimbursement out of the insurance 
proceeds of an amount equal to the unamortized portion of the fair 
market value of the damaged or destroyed item.


Sec. 102-37.440  May we use donated property for any purpose?

    You may use donated property only for the following purposes:
    (a) Public purposes. A public agency that acquires property through 
a SASP must use such property to carry out or to promote for the 
residents of a given political area one or more public purposes.
    (b) Educational and public health purposes. A nonprofit educational 
or public health institution or organization must use property for 
purposes of education or public health, including research for any such 
purpose. While this does not preclude the use of donated property for a 
related or subsidiary purpose incident to the institution's overall 
program, the property must be used essentially for the primary 
educational or public health function for which the activity receives 
donable property and not for a nonrelated or commercial purpose.
    (c) Programs for older individuals. Public and nonprofit programs 
for older individuals must use donated property to provide services 
that are necessary for the general welfare of older individuals, such 
as social services, transportation services, nutrition services, legal 
services, and multipurpose senior centers.


Sec. 102-37.445  May we acquire property for exchange?

    No, you may not acquire property for exchange.

Screening and Requesting Property


Sec. 102-37.450  Do we need special authorization to screen property 
for our program(s)?

    Yes, you must have a valid screener-identification card (GSA Form 
2946) before screening and freezing property at holding agencies. 
However, you do not need a screener-ID card to inspect, evaluate, or 
remove specific property already set aside or approved for donation.


Sec. 102-37.455  How do we obtain a screener-ID card?

    To obtain screening authorization, you must ask your SASP to submit 
a written request to the GSA regional office serving the area in which 
you are located.


Sec. 102-37.460  What type of information must we provide when 
requesting an aircraft or vessel?

    Requests for donation of aircraft and vessels must be supported 
with a letter of intent, signed and dated by your authorized 
representative, that sets forth a detailed plan of utilization for the 
property. The letter of intent must provide the following information:
    (a) A description of the aircraft or vessel requested. If an 
aircraft, the description must include the type, model or size, and the 
serial number, if known. If a vessel, it must include the type, name, 
class, size, displacement, length, beam, draft, lift capacity, and the 
hull or registry number, if known;
    (b) A detailed description of your program and the number and types 
of aircraft or vessels you currently own;
    (c) A detailed description of how the aircraft or vessel will be 
used, its purpose, how often and for how long. If an aircraft is 
requested for flight purposes, you must specify a source of pilot(s) 
and where the aircraft will be housed. If an aircraft is requested for 
cannibalization, you must provide details of the cannibalization 
process (time to complete the cannibalization process, how recovered 
parts are to be used, method of accounting for usable parts, etc.) If a 
vessel is requested for waterway purposes, you must specify a source of 
pilot(s) and where the vessel will be docked. If a vessel is requested 
for permanent docking on water or land, you must provide details of the 
process, including the time to complete the process; and
    (d) Any supplemental information (such as geographical area and 
population served, number of students enrolled in educational programs, 
etc.) supporting your need for the aircraft or vessel.

Returns and Reimbursements


Sec. 102-37.465  May we receive reimbursement for our donation expenses 
when we return property?

    When you return unneeded property that is still under a period of 
restriction, and you have not breached any of the conditions or 
limitations, you may be reimbursed for the initial cost you incurred 
for repairs required to make the property usable if the property is 
transferred to a Federal agency or sold for the benefit and account of 
the U.S. Government. Your SASP must recommend for GSA approval the 
amount of reimbursement which you are requesting, taking into 
consideration the benefit you have received from the use of the 
property and making appropriate deductions for that use. In the case of 
sale, your reimbursement for any item of property may not exceed the 
proceeds of the sale of the item.

Subpart F--Donations to Public Airports


Sec. 102-37.470  To whom do ``we'', ``you'', and their variants refer?

    Use of pronouns ``we'', ``you'', and their variants throughout this 
subpart refers to the Federal Aviation Administration (FAA).


Sec. 102-37.475  What is the authority for public airport donations?

    The authority for public airport donations is 49 U.S.C. 47151.


Sec. 102-37.480  What are our responsibilities in the donation of 
property?

    Your responsibilities in the donation of property are as follows:
    (a) Determining the property requirements of any State, political 
subdivision of a State, or tax-supported organization for public 
airport use (as defined in 49 U.S.C. 47102).
    (b) Setting eligibility requirements for public airports and making 
determinations of eligibility.
    (c) Certifying on the transfer document that property requested for 
donation is desirable or reasonably necessary to fulfill the immediate 
or foreseeable future requirements for developing, improving, 
operating, or maintaining a public airport, or needed for developing 
sources of revenue from non-aviation businesses at a public airport.
    (d) Determining and enforcing compliance with the terms and 
conditions under which surplus personal property is transferred for 
public airport use.
    (e) Authorizing public airports to visit holding agencies for the 
purpose of screening and selecting property for transfer. This 
responsibility includes:
    (1) Issuing a screening pass or letter of authorization to only 
those persons who are qualified to screen.
    (2) Maintaining a current record of screeners operating under your 
authority and making such records available to GSA upon request.
    (3) Recovering any expired or invalid authorizations.

[[Page 20032]]

Sec. 102-37.485  What information must we provide to GSA?

    So that GSA has information on which to base its discretionary 
authority to approve the donation of surplus personal property, you 
must:
    (a) Provide copies of internal instructions that outline the scope 
of your oversight program for enforcing compliance with the terms and 
conditions of transfer.
    (b) Report any compliance actions involving donations to public 
airports.

Subpart G--Donations to the American National Red Cross


Sec. 102-37.490  To whom do ``we'', ``you'', and their variants refer?

    Use of pronouns ``we'', ``you'', and their variants throughout this 
subpart refers to the Red Cross National Headquarters.


Sec. 102-37.495  What is the authority for donations to the American 
National Red Cross?

    Subsection 203(l) of the Property Act authorizes donations, for 
charitable purposes, to the American National Red Cross.


Sec. 102-37.500  What type of property may we receive?

    You may receive surplus gamma globulin, dried plasma, albumin, 
antihemophilic globulin, fibrin foam, surgical dressings, or other 
products or materials you processed, produced, or donated to a Federal 
agency.


Sec. 102-37.505  What steps must we take to acquire property?

    Upon receipt of information from GSA regarding the availability of 
property for donation, you have 21 calendar days to inspect the 
property or request it without inspection. Include pickup, shipping or 
delivery instructions in your request.


Sec. 102-37.510  What happens to property we don't request?

    Property you decline to request will be offered to SASPs for 
distribution to eligible donees. If the property is transferred, GSA 
will require the SASP to ensure that all Red Cross labels or other Red 
Cross identifications are obliterated or removed from the property 
before it is used.

Subpart H--Donations to Public Bodies in Lieu of Abandonment/
Destruction


Sec. 102-37.515  To whom do ``we'', ``you'', and their variants refer?

    Use of pronouns ``we'', ``you'', and their variants throughout this 
subpart refers to the holding agency.


Sec. 102-37.520  What is a public body?

    A public body is any department, agency, special purpose district, 
or other instrumentality of a State or local government; any Indian 
tribe; or any agency of the Federal Government.


Sec. 102-37.525  What type of property is donable under this subpart?

    Only property you have assigned for abandonment or destruction (see 
guidelines in part 101-45, subpart 101-45.9, of this title) may be 
donated under this subpart. You may not donate property that requires 
destruction for health, safety, or security reasons. You must comply 
with all applicable laws and regulations and any special disposal 
requirements in part 101-42 of this title when disposing of hazardous 
materials and other dangerous property.


Sec. 102-37.530  Is there a special form for processing donations?

    No, in processing donations you may use any document that meets 
your agency's needs for maintaining an audit trail of the transaction.


Sec. 102-37.535  Who pays for costs associated with the donation?

    The recipient public body is responsible for paying the disposal 
costs incident to the donation, such as packing, preparation for 
shipment, demilitarization (the act of destroying the military 
offensive or defensive advantage inherent in certain types of 
property), loading, and transportation to its site.

    Dated: March 24, 2000.
G. Martin Wagner,
Associate Administrator for Governmentwide Policy.
[FR Doc. 00-9001 Filed 4-12-00; 8:45 am]
BILLING CODE 6820-24-P