[Federal Register Volume 67, Number 13 (Friday, January 18, 2002)]
[Rules and Regulations]
[Pages 2583-2602]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-880]


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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 101-44 and 102-37

[FPMR Amendment H-210]
RIN 3090-AH20


Donation of Surplus Personal Property

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Final rule.

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SUMMARY: The General Services Administration (GSA) 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.

EFFECTIVE DATE: January 18, 2002.

FOR FURTHER INFORMATION CONTACT: Peter B. Zuidema, Acting Director, 
Personal Property Management Policy Division (MTP), 202-501-3846.

SUPPLEMENTARY INFORMATION:

A. Background

    The purpose of this final rule is to update, streamline, and 
clarify FPMR part 101-44 and move it into the Federal Management 
Regulation (FMR) as FMR part 102-37. This 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 (Federal holding agency, State Agency for Surplus Property 
(SASP), public airport, etc.) must follow the language contained in 
both the question and its answer.
    This final rule includes the following changes:
    1. The establishment of a uniform dollar threshold ($500) for 
recipients to report overages or shortages of donated property, in 
addition to a shortened timeframe (30 days) for reporting such 
discrepancies to GSA.
    2. The removal of the provision that prohibits a SASP from 
recovering reimbursable costs from the sales proceeds of nondonable 
property that has been in its inventory for more than 2 years.
    3. The change of definition of ``museum'' to provide SASPs with 
more concrete guidance for making eligibility determinations for museum 
applicants.
    4. The reinstatement of a requirement that SASPs update donee 
eligibility files at 3-year intervals, plus the addition of a 
requirement for such updates to include a review of donee screener 
records.
    5. GSA approval of all Red Cross donations made under 40 U.S.C. 
484(l).
    6. The shift in responsibility from GSA to the Federal Aviation 
Administration to issue screening credentials for public airports.
    7. The consolidation of the Federal and donation screening periods.
    A proposed rule was published in the Federal Register on April 13, 
2000 (65 FR 20014). All public comments received were considered in the 
formulation of this final rule.

B. Executive Order 12866

    GSA has determined that this final 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 final rule be published in the Federal Register 
for notice and comment.

D. Paperwork Reduction Act

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

E. Small Business Regulatory Enforcement Fairness Act

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

[[Page 2584]]

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 amends 41 CFR 
chapters 101 and 102 as follows:
    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 102-37 (41 CFR part 102-37).

    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 this part and who can 
approve it?

Definitions

102-37.25   What definitions apply to this part?

Donation Overview

102-37.30   When does property become available for donation?
102-37.35   Who handles the donation of surplus property?
102-37.40   What type of surplus property is available for donation?
102-37.45   How long is property available for donation screening?
102-37.50   What is the general process for requesting surplus 
property for donation?
102-37.55   Who pays for transportation and other costs associated 
with a donation?
102-37.60   How much time does a transferee have to pick up or 
remove surplus property from holding agency premises?
102-37.65   What happens to surplus property that has been approved 
for transfer when the prospective transferee decides it cannot use 
the property and declines to pick it up?
102-37.70   How should a transferee account for the receipt of a 
larger or smaller number of items than approved by GSA on the SF 
123?
102-37.75   What should be included in a shortage report?
102-37.80   What happens to surplus property that isn't transferred 
for donation?
102-37.85   Can surplus property being offered for sale be withdrawn 
and approved for donation?
Subpart B--General Services Administration (GSA)
102-37.90   What are GSA's responsibilities in the donation of 
surplus property?
102-37.95   How will GSA resolve competing requests?
102-37.100   What factors will GSA consider in allocating surplus 
property among SASPs?
102-37.105   Is GSA required to compile any reports concerning the 
donation program?
Subpart C--Holding Agency
102-37.110   What are a holding agency's responsibilities in the 
donation of surplus property?
102-37.115   May a holding agency be reimbursed for costs incurred 
incident to a donation?
102-37.120   May a holding agency donate surplus property directly 
to eligible non-Federal recipients without going through GSA?
102-37.125   What are some donations that do not require GSA's 
approval?
Subpart D--State Agency for Surplus Property (SASP)
102-37.130   What are a SASP's responsibilities in the donation of 
surplus property?
102-37.135   How does a SASP become eligible to distribute surplus 
property to donees?

State Plan of Operation

102-37.140   What is a State plan of operation?
102-37.145   Who is responsible for developing, certifying, and 
submitting the plan?
102-37.150   What must a State legislature include in the plan?
102-37.155   When does a plan take effect?
102-37.160   Must GSA approve amendments or modifications to the 
plan?
102-37.165   Do plans or major amendments require public notice?
102-37.170   What happens if a SASP does not operate in accordance 
with its plan?

Screening and Requesting Property

102-37.175   How does a SASP find out what property is potentially 
available for donation?
102-37.180   Does a SASP need special authorization to screen 
property at Federal facilities?
102-37.185   How does a SASP obtain screening authorization for 
itself or its donees?
102-37.190   What records must a SASP maintain on authorized 
screeners?
102-37.195   Does a SASP have to have a donee in mind to request 
surplus property?
102-37.200   What certifications must a SASP make when requesting 
surplus property for donation?
102-37.205   What agreements must a SASP make?
102-37.210   Must a SASP make a drug-free workplace certification 
when requesting surplus property for donation?
102-37.215   When must a SASP make a certification regarding 
lobbying?

Justifying Special Transfer Requests

102-37.220   Are there special types of surplus property that 
require written justification when submitting a transfer request?
102-37.225   What information or documentation must a SASP provide 
when requesting a surplus aircraft or vessel?
102-37.230   What must a letter of intent for obtaining surplus 
aircraft or vessels include?
102-37.235   What type of information must a SASP provide when 
requesting surplus property for cannibalization?
102-37.240   How must a transfer request for surplus firearms be 
justified?

Custody, Care, and Safekeeping

102-37.245   What must a SASP do to safeguard surplus property in 
its custody?
102-37.250   What actions must a SASP take when it learns of damage 
to or loss of surplus property in its custody?
102-37.255   Must a SASP insure surplus property against loss or 
damage?

Distribution of Property

102-37.260   How must a SASP document the distribution of surplus 
property?
102-37.265   May a SASP distribute surplus property to eligible 
donees of another State?
102-37.270   May a SASP retain surplus property for its own use?

Service and Handling Charges

102-37.275   May a SASP accept personal checks and non-official 
payment methods in payment of service charges?
102-37.280   How may a SASP use service charge funds?
102-37.285   May a SASP use service charge funds to support non-SASP 
State activities and programs?

Disposing of Undistributed Property

102-37.290   What must a SASP do with surplus property it cannot 
donate?
102-37.295   Must GSA approve a transfer between SASPs?
102-37.300   What information must a SASP provide GSA when reporting 
unneeded usable property for disposal?
102-37.305   May a SASP act as GSA's agent in selling undistributed 
surplus property (either as usable property or scrap)?
102-37.310   What must a proposal to sell undistributed surplus 
property include?
102-37.315   What costs may a SASP recover if undistributed surplus 
property is retransferred or sold?
102-37.320   Under what conditions may a SASP abandon or destroy 
undistributed surplus property?

[[Page 2585]]

Cooperative Agreements

102-37.325   With whom and for what purpose(s) may a SASP enter into 
a cooperative agreement?
102-37.330   Must the costs of providing support under a cooperative 
agreement be reimbursed by the parties receiving such support?
102-37.335   May a SASP enter into a cooperative agreement with 
another SASP?
102-37.340   When may a SASP terminate a cooperative agreement?

Audits and Reviews

102-37.345   When must a SASP be audited?
102-37.350   Does coverage under the single audit process in OMB 
Circular A-133 exempt a SASP from other reviews of its program?
102-37.355   What obligations does a SASP have to ensure that donees 
meet Circular A-133 requirements?

Reports

102-37.360   What reports must a SASP provide to GSA?

Liquidating a SASP

102-37.365   What steps must a SASP take if the State decides to 
liquidate the agency?
102-37.370   Do liquidation plans require public notice?
Subpart E--Donations to Public Agencies, Service Educational Activities 
(SEAs), and Eligible Nonprofit Organizations
102-37.375   How is the pronoun ``you'' used in this subpart?
102-37.380  What is the statutory authority for donations of surplus 
Federal property made under this subpart?

Donee Eligibility

102-37.385   Who determines if a prospective donee applicant is 
eligible to receive surplus property under this subpart?
102-37.390   What basic criteria must an activity meet before a SASP 
can qualify it for eligibility?
102-37.395   How can a SASP determine whether an applicant meets any 
required approval, accreditation, or licensing requirements?
102-37.400   What type of eligibility information must a SASP 
maintain on donees?
102-37.405   How often must a SASP update donee eligibility records?
102-37.410   What must a SASP do if a donee fails to maintain its 
eligibility status?
102-37.415   What should a SASP do if an applicant appeals a 
negative eligibility decision?

Conditional Eligibility

102-37.420   May a SASP grant conditional eligibility to applicants 
who would otherwise qualify as eligible donees, but are unable to 
obtain approval, accreditation, or licensing because they are newly 
organized or their facilities are not yet constructed?
102-37.425   May a SASP grant conditional eligibility to a not-for-
profit organization whose tax-exempt status is pending?
102-37.430   What property can a SASP make available to a donee with 
conditional eligibility?

Terms and Conditions of Donation

102-37.435   For what purposes may donees acquire and use surplus 
property?
102-37.440   May donees acquire property for exchange?
102-37.445   What certifications must a donee make before receiving 
property?
102-37.450   What agreements must a donee make?

Special Handling or Use Conditions

102-37.455   On what categories of surplus property has GSA imposed 
special handling conditions or use limitations?
102-37.460   What special terms and conditions apply to the donation 
of aircraft and vessels?

Release of Restrictions

102-37.465   May a SASP modify or release any of the terms and 
conditions of donation?
102-37.470   At what point may restrictions be released on property 
that has been authorized for cannibalization?
102-37.475   What are the requirements for releasing restrictions on 
property being considered for exchange?

Compliance and Utilization

102-37.480   What must a SASP do to ensure that property is used for 
the purpose(s) for which it was donated?
102-37.485   What actions must a SASP take if a review or other 
information indicates noncompliance with donation terms and 
conditions?
102-37.490   When must a SASP coordinate with GSA on compliance 
actions?
102-37.495   How must a SASP handle funds derived from compliance 
actions?

Returns and Reimbursement

102-37.500   May a donee receive reimbursement for its donation 
expenses when unneeded property is returned to the SASP?
102-37.505   How does a donee apply for and receive reimbursement 
for unneeded property returned to a SASP?

Special Provisions Pertaining to SEAs

102-37.510   Are there special requirements for donating property to 
SEAs?
102-37.515   Do SEAs have a priority over other SASP donees for DOD 
property?
Subpart F--Donations to Public Airports
102-37.520   What is the authority for public airport donations?
102-37.525   What should a holding agency do if it wants a public 
airport to receive priority consideration for excess personal 
property it has reported to GSA?
102-37.530   What are FAA's responsibilities in the donation of 
surplus property to public airports?
102-37.535   What information must FAA provide to GSA on its 
administration of the public airport donation program?
Subpart G--Donations to the American National Red Cross
102-37.540   What is the authority for donations to the American 
National Red Cross?
102-37.545   What type of property may the American National Red 
Cross receive?
102-37.550   What steps must the American National Red Cross take to 
acquire property?
102-37.555   What happens to property the American National Red 
Cross does not request?
Subpart H--Donations to Public Bodies in Lieu of Abandonment/
Destruction
102-37.560   What is a public body?
102-37.565   What is the authority for donations to public bodies?
102-37.570   What type of property may a holding agency donate under 
this subpart?
102-37.575   Is there a special form for holding agencies to process 
donations?
102-37.580   QWho is responsible for costs associated with the 
donation?
Appendix A--Miscellaneous Donation Statutes
Appendix B--Elements of a State Plan of Operation
Appendix C--Glossary of Terms for Determining Eligibility of Public 
Agencies and Nonprofit Organizations

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

Subpart A--General Provisions


Sec. 102-37.5  What does this part cover?

    This part covers the donation of surplus Federal personal property 
located within a State, including foreign excess personal property 
returned to a State for handling as surplus property. For purposes of 
this part, the term State includes any of the 50 States, as well as 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.


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 (40 U.S.C. 484(j)(1)), 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?

    You must comply with this part if you are a holding agency or a 
recipient of Federal surplus personal property approved by GSA for 
donation (e.g., a State agency for surplus property (SASP) or a public 
airport).

[[Page 2586]]

Sec. 102-37.20  How do we request a deviation from this part 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:
    Cannibalization means to remove serviceable parts from one item of 
equipment in order to install them on another item of equipment.
    Donee means any of the following entities that receive Federal 
surplus personal property through a SASP:
    (1) A service educational activity (SEA).
    (2) A public agency (as defined in appendix C of this part) which 
uses surplus personal property to carry out or promote one or more 
public purposes. (Public airports are an exception and are only 
considered donees when they elect to receive surplus property through a 
SASP, but not when they elect to receive surplus property through the 
Federal Aviation Administration as discussed in subpart F of this 
part.)
    (3) An eligible nonprofit tax-exempt educational or public health 
institution (including a provider of assistance to homeless or 
impoverished families or individuals).
    (4) A State or local government agency, or a nonprofit organization 
or institution, that receives funds appropriated for a program for 
older individuals.
    Holding agency means the executive agency having accountability 
for, and generally possession of, the property involved.
    Period of restriction means the period of time for keeping donated 
property in use for the purpose for which it was donated.
    Property Act means the Federal Property and Administrative Services 
Act of 1949 (63 Stat. 377), as amended (codified as amended in 
scattered sections of titles 40 and 41 of the United States Code), the 
law that centralized Federal property management and disposal functions 
under the GSA.
    Screening means the process of physically inspecting property or 
reviewing lists or reports of property to determine whether property is 
usable or needed for donation purposes.
    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.
    Standard Form (SF) 123, Transfer Order Surplus Personal Property 
means the document used to request and document the transfer of Federal 
surplus personal property for donation purposes.
    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 (40 
U.S.C. 484(j)).
    Surplus personal property (surplus property) means excess personal 
property (as defined in Sec. 102-36.40 of this chapter) not required 
for the needs of any Federal agency, as determined by GSA.
    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.
    Transferee means a public airport receiving surplus property from a 
holding agency through the Federal Aviation Administration, or a SASP.
    You, when used in subparts D and E of this part, means SASP, unless 
otherwise specified.

Donation Overview


Sec. 102-37.30  When does property become available for donation?

    Excess personal property becomes available for donation the day 
following the surplus release date. This is the point at which the 
screening period has been completed without transfer to a Federal 
agency or other eligible recipient, and the GSA has determined the 
property to be surplus.


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

    (a) The SASPs handle the donation of most surplus property to 
eligible donees in their States in accordance with this part.
    (b) The GSA handles the donation of surplus property to public 
airports under a program administered by the Federal Aviation 
Administration (FAA) (see subpart F of this part). The GSA may also 
donate to the American National Red Cross surplus property that was 
originally derived from or through the Red Cross (see subpart G of this 
part).
    (c) Holding agencies may donate surplus property that they would 
otherwise abandon or destroy directly to public bodies in accordance 
with subpart H of this part.


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

    All surplus property (including property held by working capital 
funds established under 10 U.S.C. 2208 or in similar funds) is 
available for donation to eligible recipients, except for property in 
the following categories:
    (a) Agricultural commodities, food, and cotton or woolen goods 
determined from time to time by the Secretary of Agriculture to be 
commodities requiring special handling with respect to price support or 
stabilization.
    (b) Property acquired with trust funds (e.g., Social Security Trust 
Funds).
    (c) Non-appropriated fund property.
    (d) Naval vessels of the following categories: Battleships, 
cruisers, aircraft carriers, destroyers, and submarines.
    (e) 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 GSA Office 
of Governmentwide Policy.


Sec. 102-37.45  How long is property available for donation screening?

    Entities authorized to participate in the donation program may 
screen property, concurrently with Federal agencies, as soon as the 
property is reported as excess up until the surplus release date. The 
screening period is normally 21 calendar days, except as noted in 
Sec. 102-36.95 of this chapter.


Sec. 102-37.50  What is the general process for requesting surplus 
property for donation?

    The process for requesting surplus property for donation varies, 
depending on who is making the request.
    (a) Donees should submit their requests for property directly to 
the appropriate SASP.
    (b) SASPs and public airports should submit their requests to the 
appropriate GSA regional office. Requests must be submitted on a 
Standard Form (SF) 123, Transfer Order Surplus Personal Property, or 
its electronic equivalent. Public airports must have FAA certify their 
transfer requests prior to

[[Page 2587]]

submission to GSA for approval. GSA may ask SASPs or public airports to 
submit any additional information required to support and justify 
transfer of the property.
    (c) The American National Red Cross should submit requests to GSA 
as described in subpart G of this part.
    (d) Public bodies, when seeking to acquire property that is being 
abandoned or destroyed, should follow rules and procedures established 
by the donor agency (see subpart H of this part).


Sec. 102-37.55  Who pays for transportation and other costs associated 
with a donation?

    The receiving organization (the transferee) is responsible for any 
packing, shipping, or transportation charges associated with the 
transfer of surplus property for donation. Those costs, in the case of 
SASPs, may be passed on to donees that receive the property.


Sec. 102-37.60  How much time does a transferee have to pick up or 
remove surplus property from holding agency premises?

    The transferee (or the transferee's agent) must remove property 
from the holding agency premises within 15 calendar days after being 
notified that the property is available for pickup, unless otherwise 
coordinated with the holding agency. If the transferee decides prior to 
pickup or removal that it no longer needs the property, it must notify 
the GSA regional office that approved the transfer request.


Sec. 102-37.65  What happens to surplus property that has been approved 
for transfer when the prospective transferee decides it cannot use the 
property and declines to pick it up?

    When a prospective transferee decides it cannot use surplus 
property that has already been approved for transfer and declines to 
pick it up, the GSA regional office will advise any other SASP or 
public airport known to be interested in the property to submit a 
transfer request. If there is no transfer interest, GSA will release 
the property for other disposal.


Sec. 102-37.70  How should a transferee account for the receipt of a 
larger or smaller number of items than approved by GSA on the SF 123?

    When the quantity of property received doesn't agree with that 
approved by GSA on the SF 123, the transferee should handle the overage 
or shortage as follows:

------------------------------------------------------------------------
            If . . .                   And . . .          Then . . .
------------------------------------------------------------------------
(a) More property is received     The known or        Submit a SF 123
 than was approved by GSA for      estimated           for the
 transfer.                         acquisition cost    difference to GSA
                                   of the line         (Identify the
                                   item(s) involved    property as an
                                   is $500 or more.    overage and
                                                       include the
                                                       original transfer
                                                       order number.)
                                                       \1\
------------------------------------------------------------------------
(b) Less property is received     The acquisition     Submit a shortage
 than was approved by GSA for      cost of the         report to GSA,
 transfer.                         missing item(s)     with a copy to
                                   is $500 or more.    the holding
                                                       agency.\1\
------------------------------------------------------------------------
(c) The known or estimated                            Annotate on your
 acquisition cost of the                               receiving and
 property is less than $500                            inventory
                                                       records, a
                                                       description of
                                                       the property, its
                                                       known or
                                                       estimated
                                                       acquisition cost,
                                                       and the name of
                                                       the holding
                                                       agency.
------------------------------------------------------------------------
\1\ Submit the SF 123 or shortage report to the GSA approving office
  within 30 calendar days of the date of transfer.

Sec. 102-37.75  What should be included in a shortage report?

    The shortage report should include:
    (a) The name and address of the holding agency;
    (b) All pertinent GSA and holding agency control numbers, in 
addition to the original transfer order number; and
    (c) A description of each line item of property, the condition 
code, the quantity and unit of issue, and the unit and total 
acquisition cost.


Sec. 102-37.80  What happens to surplus property that isn't transferred 
for donation?

    Surplus property not transferred for donation is generally offered 
for sale under the provisions of part 101-45 of this title. Under the 
appropriate circumstances (see Sec. 102-36.305 of this chapter), such 
property might be abandoned or destroyed.


Sec. 102-37.85  Can surplus property being offered for sale be 
withdrawn and approved for donation?

    Yes, surplus property being offered for sale may be withdrawn for 
donation if approved by GSA. GSA will not approve requests for the 
withdrawal of property that has been advertised or listed on a sales 
offering if that withdrawal would be harmful to the overall outcome of 
the sale. GSA will only grant such requests prior to sales award, since 
an award is binding.

Subpart B--General Services Administration (GSA)


Sec. 102-37.90  What are GSA's responsibilities in the donation of 
surplus property?

    The General Services Administration (GSA) is responsible for 
supervising and directing the disposal of surplus personal property. In 
addition to issuing regulatory guidance for the donation of such 
property, GSA:
    (a) Determines when property is surplus to the needs of the 
Government;
    (b) Allocates and transfers surplus property on a fair and 
equitable basis to State agencies for surplus property (SASPs) for 
further distribution to eligible donees;
    (c) Oversees the care and handling of surplus property while it is 
in the custody of a SASP;
    (d) Approves all transfers of surplus property to public airports, 
pursuant to the appropriate determinations made by the Federal Aviation 
Administration (see subpart F of this part);
    (e) Donates to the American National Red Cross property (generally 
blood plasma and related medical materials) originally provided by the 
Red Cross to a Federal agency, but that has subsequently been 
determined surplus to Federal needs (see subpart G of this part);
    (f) Approves, after consultation with the holding agency, foreign 
excess

[[Page 2588]]

personal property to be returned to the United States for donation 
purposes;
    (g) Coordinates and controls the level of SASP and donee screening 
at Federal installations;
    (h) Imposes appropriate conditions on the donation of surplus 
property having characteristics that require special handling or use 
limitations 
(see Sec. 102-37.455); and
    (i) Keeps track of and reports on Federal donation programs 
(see Sec. 102-37.105).


Sec. 102-37.95  How will GSA resolve competing transfer requests?

    In case of requests from two or more SASPs, GSA will use the 
allocating criteria in Sec. 102-37.100. When competing requests are 
received from public airports and SASPs, GSA will transfer property 
fairly and equitably, based on such factors as need, proposed use, and 
interest of the holding agency in having the property donated to a 
specific public airport.


Sec. 102-37.100  What factors will GSA consider in allocating surplus 
property among SASPs?

    GSA allocates property among the SASPs on a fair and equitable 
basis using the following factors:
    (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 
service educational activity.
    (c) Need and usability of property, as reflected by requests from 
SASPs. GSA will also give special consideration to requests transmitted 
through the SASPs by eligible donees for specific items of property. 
(Requests for property to be used as is will be given preference over 
cannibalization requests.)
    (d) States in greatest need of the type of property to be allocated 
where the need is evidenced by a letter of justification from the 
intended donee.
    (e) Whether a SASP has already received similar property in the 
past, and how much.
    (f) Past performance of a SASP in effecting timely pickup or 
removal of property approved for transfer and making prompt 
distribution of property to eligible donees.
    (g) The property's condition and its original acquisition cost.
    (h) Relative neediness of each State based on the State's 
population and per capita income.


Sec. 102-37.105  Is GSA required to compile any reports concerning the 
donation program?

    Yes, biennially, GSA must compile a report containing:
    (a) A full and independent evaluation of the operation of programs 
for the donation of surplus property;
    (b) Statistical information on the amount of surplus property 
approved for transfer to the SASPs and donated to eligible non-Federal 
organizations during the report period (as well as the amount of excess 
personal property transferred to Federal agencies and provided to 
grantees and non-Federal organizations); and
    (c) Any recommendations GSA wishes to make on the donation program.

Subpart C--Holding Agency


Sec. 102-37.110  What are a holding agency's responsibilities in the 
donation of surplus property?

    Your donation responsibilities as a holding agency begin when you 
determine that property is to be declared excess. You must then:
    (a) Let GSA know if you have a donee in mind for foreign gift items 
or airport property, as provided for in 
Sec. 102-37.525 and Sec. 102-42.95(h) of this chapter;
    (b) Cooperate with all entities authorized to participate in the 
donation program and their authorized representatives in locating, 
screening, and inspecting excess or surplus property for possible 
donation;
    (c) Set aside surplus property selected by a screener pending GSA 
approval of the transfer;
    (d) Upon receipt of a GSA-approved transfer document, promptly ship 
or release property to the transferee (or the transferee's designated 
agent) in accordance with pickup or shipping instructions on the 
transfer document;
    (e) Notify the approving GSA regional office if surplus property to 
be picked up is not removed within 15 calendar days after you notify 
the transferee (or its agent) of its availability. (GSA will advise you 
of further disposal instructions.); and
    (f) Perform and bear the cost of care and handling of surplus 
property pending its disposal, except as provided in Sec. 102-37.115.


Sec. 102-37.115  May a holding agency be reimbursed for costs incurred 
incident to a donation?

    Yes, you, as a holding agency, may charge the transferee for the 
direct costs you incurred incident to a donation transfer, such as your 
packing, handling, crating, and transportation expenses. However, you 
may not include overhead or administrative costs in these charges.


Sec. 102-37.120  May a holding agency donate surplus property directly 
to eligible 
non-Federal recipients without going through GSA?

    Generally, a holding agency may not donate surplus property 
directly to eligible non-Federal recipients without going through GSA, 
except for the situations listed in Sec. 102-37.125.


Sec. 102-37.125  What are some donations that do not require GSA's 
approval?

    (a) Some donations of surplus property that do not require GSA's 
approval are:
    (1) Donations of condemned, obsolete, or other specified material 
by a military department or the Coast Guard to recipients eligible 
under 10 U.S.C. 2572, 10 U.S.C. 7306, 10 U.S.C. 7541, 10 U.S.C. 7545, 
and 14 U.S.C. 641a (see Appendix A of this part for details). However, 
such property must first undergo excess Federal and surplus donation 
screening as required in this part and part 102-36 of this chapter;
    (2) Donations by holding agencies to public bodies under subpart H 
of this part;
    (3) Donations by the Small Business Administration to small 
disadvantaged businesses under 13 CFR part 124; and
    (4) Donations by holding agencies of law enforcement canines to 
their handlers under 40 U.S.C. 484(r).
    (b) You may also donate property directly to eligible non-Federal 
recipients under other circumstances if you have statutory authority to 
do so. All such donations must be included on your annual report to GSA 
under 
Sec. 102-36.300 of this chapter.

Subpart D--State Agency for Surplus Property (SASP)


Sec. 102-37.130  What are a SASP's responsibilities in the donation of 
surplus property?

    As a SASP, your responsibilities in the donation of surplus 
property are to:
    (a) Determine whether or not an entity seeking to obtain surplus 
property is eligible for donation as a:
    (1) Public agency;
    (2) Nonprofit educational or public health institution; or
    (3) Program for older individuals.
    (b) Distribute surplus 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.

[[Page 2589]]

Sec. 102-37.135  How does a SASP become eligible to distribute surplus 
property to donees?

    In order to receive transfers of surplus property, a SASP must:
    (a) Have a GSA-approved State plan of operation; and
    (b) Provide the certifications and agreements as set forth in 
Secs. 102-37.200 and 102-37.205.

State Plan of Operation


Sec. 102-37.140  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. 102-37.145  Who is responsible for developing, certifying, and 
submitting the plan?

    The State legislature must develop the plan. The chief executive 
officer of the State must submit the plan to the Administrator of 
General Services for acceptance and certify that the SASP is authorized 
to:
    (a) Acquire and distribute property to eligible donees in the 
State;
    (b) Enter into cooperative agreements; and
    (c) Undertake other actions and provide other assurances as are 
required by subsection 203(j)(4) of the Property Act (40 U.S.C. 484(j)) 
and set forth in the plan.


Sec. 102-37.150  What must a State legislature include in the plan?

    The State legislature must ensure the plan conforms to the 
provisions of subsection 203(j)(4) of the Property Act (40 U.S.C. 
484(j)) and includes the information and assurances set forth in 
Appendix B of this part. It may also include in the plan other 
provisions not inconsistent with the purposes of the Property Act and 
the requirements of this part.


Sec. 102-37.155  When does a plan take effect?

    The plan takes effect on the date GSA notifies the chief executive 
officer of the State that the plan is approved.


Sec. 102-37.160  Must GSA approve amendments or modifications to the 
plan?

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


Sec. 102-37.165  Do plans or major amendments require public notice?

    Yes, proposed plans and major amendments to existing plans require 
general notice to the public for comment. A State must publish a 
general notice of the plan or amendment at least 60 calendar days in 
advance of filing the proposal with GSA and provide interested parties 
at least 30 calendar days to submit comments before filing the 
proposal.


Sec. 102-37.170  What happens if a SASP does not operate in accordance 
with its plan?

    If a SASP does not operate in accordance with its plan, GSA may 
withhold allocation and transfer of surplus property until the 
nonconformance is corrected.

Screening and Requesting Property


Sec. 102-37.175  How does a SASP find out what property is potentially 
available for donation?

    A SASP may conduct onsite screening at various Federal facilities, 
contact or submit want lists to GSA, or use GSA's or other agencies' 
computerized inventory system to electronically search for property 
that is potentially available for donation (see Sec. 102-36.90 for 
information on GSA's system, FEDS).


Sec. 102-37.180  Does a SASP need special authorization to screen 
property at Federal facilities?

    Yes, SASP personnel or donee personnel representing a SASP must 
have a valid screener-identification card (GSA Optional Form 92, 
Screener's Identification, or other suitable identification approved by 
GSA) before screening and selecting property at holding agencies. 
However, SASP or donee personnel do not need a screener-ID card to 
inspect or remove property previously set aside or approved by GSA for 
transfer.


Sec. 102-37.185  How does a SASP obtain screening authorization for 
itself or its donees?

    (a) To obtain screening authorization for itself or donees, a SASP 
must submit an Optional Form 92 (with the signature and an affixed 
passport-style photograph of the screener applicant) and a written 
request to the GSA regional office serving the area in which the 
intended screener is located. The request must:
    (1) State the prospective screener's name and the name and address 
of the organization he or she represents;
    (2) Specify the period of time and location(s) in which screening 
will be conducted; and
    (3) Certify that the applicant is qualified to screen property.
    (b) If the request is approved, GSA will complete the Optional Form 
92 and return it to the SASP for issuance to the screener.


Sec. 102-37.190  What records must a SASP maintain on authorized 
screeners?

    You must maintain a current record of all individuals authorized to 
screen for your SASP, including their names, addresses, telephone 
numbers, qualifications to screen, and any additional identifying 
information such as driver's license or social security numbers. In the 
case of donee screeners, you should place such records in the donee's 
eligibility file and review for currency each time a periodic review of 
the donee's file is undertaken.


Sec. 102-37.195  Does a SASP have to have a donee in mind to request 
surplus property?

    Generally yes, you should have a firm requirement or an anticipated 
demand for any property that you request.


Sec. 102-37.200  What certifications must a SASP make when requesting 
surplus property for donation?

    When requesting or applying for property, 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 (40 
U.S.C. 484(j)) 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 within the State 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 (26 
U.S.C. 501), for the purpose of education or public health (including 
research for any such purpose).
    (3) An eligible nonprofit activity for programs for older 
individuals.
    (4) A service educational activity (SEA), for DOD-generated 
property only.
    (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

[[Page 2590]]

regulations, and that the property is usable and needed by the donee.


Sec. 102-37.205  What agreements must a SASP make?

    With respect to surplus property picked up by or shipped to your 
SASP, you must agree to the following:
    (a) 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 (40 U.S.C. 484(j)) 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.
    (d) You may retain property to perform your donation program 
functions, but 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. 102-37.335) as an agent and authorized 
representative of an adjacent State, you will:
    (1) Make the certifications and agreements required in Sec. 102-
37.200 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 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.
    (g) You will not seek to hold the United States Government liable 
for consequential or incidental damages or the personal injuries, 
disabilities, or death to any person arising from the transfer, 
donation, use, processing, or final disposition of this property. The 
Government's liability in any event is limited in scope to that 
provided for by the Federal Tort Claims Act (28 U.S.C. 2671, et seq.).


Sec. 102-37.210  Must a SASP make a drug-free workplace certification 
when requesting surplus property for donation?

    No, you must certify that you will provide a drug-free workplace 
only as a condition for retaining surplus property for SASP use. Drug-
free workplace certification requirements are found at part 105-68, 
subpart 105-68.6, of this title.


Sec. 102-37.215  When must a SASP 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 surplus 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.

Justifying Special Transfer Requests


Sec. 102-37.220  Are there special types of surplus property that 
require written justification when submitting a transfer request?

    Yes, a SASP must obtain written justification from the intended 
donee, and submit it to GSA along with the transfer request, prior to 
allocation of:
    (a) Aircraft and vessels covered by Sec. 102-37.455;
    (b) Items requested specifically for cannibalization;
    (c) Foreign gifts and decorations (see part 102-42 of this 
chapter);
    (d) Items containing 50 parts per million or greater of 
polychlorinated biphenyl (see part 101-42 of this title);
    (e) Firearms as described in part 101-42 of this title; and
    (f) Any item on which written justification will assist GSA in 
making allocation to States with the greatest need.


Sec. 102-37.225  What information or documentation must a SASP provide 
when requesting a surplus aircraft or vessel?

    (a) For each SF 123 that you submit to GSA for transfer of a 
surplus aircraft or vessel covered by Sec. 102-37.455 include:
    (1) 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. 102-37.230 for information a 
donee has to include in the letter of intent); and
    (2) 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.
    (b) For each SF 123 that GSA approves, you must include:
    (1) Your distribution document, signed and dated by the authorized 
donee representative; and
    (2) A conditional transfer document, signed by you and the intended 
donee, and containing the special terms and conditions prescribed by 
GSA.


Sec. 102-37.230  What must a letter of intent for obtaining surplus 
aircraft or vessels include?

    A letter of intent for obtaining surplus aircraft or vessels must 
provide:
    (a) A description of the aircraft or vessel requested. If the item 
is an aircraft, the description must include the manufacturer, date of 
manufacture, model, and serial number. If the item is 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 the donee's program and the number 
and types of aircraft or vessels it currently owns;
    (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, the donee must specify a source of 
pilot(s) and where the aircraft will be housed. If an aircraft is 
requested for cannibalization, the donee 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,

[[Page 2591]]

disposition of unsalvageable parts, etc.) If a vessel is requested for 
waterway purposes, the donee 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, the donee 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 the donee's need for the aircraft or vessel.


Sec. 102-37.235  What type of information must a SASP provide when 
requesting surplus property for cannibalization?

    When a donee wants surplus property to cannibalize, include the 
following statement on the SF 123: ``Line Item Number(s)______requested 
for cannibalization.''. In addition to including this statement, 
provide a detailed justification concerning the need for the components 
or accessories and an explanation of the effect removal will have on 
the item. GSA will approve requests for cannibalization only when it is 
clear from the justification 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.


Sec. 102-37.240  How must a transfer request for surplus firearms be 
justified?

    To justify a transfer request for surplus firearms, the requesting 
SASP must obtain and submit to GSA a letter of intent from the intended 
donee that provides:
    (a) Identification of the donee applicant, including its legal name 
and complete address and the name, title, and telephone number of its 
authorized representative;
    (b) The number of compensated officers with the power to apprehend 
and to arrest;
    (c) A description of the firearm(s) requested;
    (d) Details on the planned use of the firearm(s); and
    (e) The number and types of donated firearms received during the 
previous 12 months through any other Federal program.

Custody, Care, and Safekeeping


Sec. 102-37.245  What must a SASP do to safeguard surplus property in 
its custody?

    To safeguard surplus property in your custody, you must provide 
adequate protection of property in your custody, including protection 
against the hazards of fire, theft, vandalism, and weather.


Sec. 102-37.250  What actions must a SASP take when it learns of damage 
to or loss of surplus property in its custody?

    If you learn that surplus property in your custody has been damaged 
or lost, you must always notify GSA and notify the appropriate law 
enforcement officials if a crime has been committed.


Sec. 102-37.255  Must a SASP insure surplus property against loss or 
damage?

    No, you are not required to carry insurance on Federal surplus 
property in your custody. However, if you elect to carry insurance and 
the insured property is lost or damaged, you must submit a check made 
payable to GSA for any insurance proceeds received in excess of your 
actual costs of acquiring and rehabilitating the property prior to its 
loss, damage, or destruction.

Distribution of Property


Sec. 102-37.260  How must a SASP document the distribution of surplus 
property?

    All SASPs must document the distribution of Federal surplus 
property on forms that are prenumbered, provide for donees to indicate 
the primary purposes for which they are acquiring property, and include 
the:
    (a) Certifications and agreements in Secs. 102-37.200 and 102-
37.205; and
    (b) Period of restriction during which the donee must use the 
property for the purpose for which it was acquired.


Sec. 102-37.265  May a SASP distribute surplus property to eligible 
donees of another State?

    Yes, you may distribute surplus 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 must be prepared as prescribed in Sec. 102-37.335 
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; and
    (b) Forward copies of executed distribution documents to the 
donee's home SASP.


Sec. 102-37.270  May a SASP retain surplus property for its own use?

    Yes, you can retain surplus property for use in operating the 
donation program, but only if you have a cooperative agreement with GSA 
that allows you to do so. You must obtain prior GSA approval before 
using any surplus property in the 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 SASP operations. GSA will 
notify you within 30 calendar days whether you may retain the property 
for use in your operations. Title to any surplus property GSA approves 
for your retention will vest in your SASP. You must maintain separate 
records for such property.

Service and Handling Charges


Sec. 102-37.275  May a SASP accept personal checks and non-official 
payment methods in payment of service charges?

    No, service charge payments must readily identify the donee 
institution as the payer (or the name of the parent organization when 
that organization pays the operational expenses of the donee). Personal 
checks, personal cashier checks, personal money orders, and personal 
credit cards are not acceptable.


Sec. 102-37.280  How may a SASP use service charge funds?

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


Sec. 102-37.285  May a SASP use service charge funds to support non-
SASP State activities and programs?

    No, except as provided in Sec. 102-37.495, 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.

Disposing of Undistributed Property


Sec. 102-37.290  What must a SASP do with surplus property it cannot 
donate?

    (a) As soon as it becomes clear that you cannot donate the surplus 
property, you should first determine whether or not the property is 
usable.
    (1) If you determine that the undistributed surplus property is not 
usable, you should seek GSA approval

[[Page 2592]]

to abandon or destroy the property in accordance with Sec. 102-37.320.
    (2) If you determine that the undistributed surplus property is 
usable, you should immediately offer it to other SASPs. If other SASPs 
cannot use the property, you should promptly report it to GSA for 
redisposal (i.e., disposition through retransfer, sale, or other 
means).
    (b) Normally, any property not donated within a 1-year period 
should be processed in this manner.


Sec. 102-37.295  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 will approve or disapprove the request 
within 30 calendar days of receipt of the transfer order.


Sec. 102-37.300  What information must a SASP provide GSA when 
reporting unneeded usable property for disposal?

    When reporting unneeded usable property that is not required for 
transfer to another SASP, provide GSA with the:
    (a) 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) Date you received each line item of property listed; and
    (c) Certification of reimbursement requested under Sec. 102-37.315.


Sec. 102-37.305  May a SASP act as GSA's agent in selling undistributed 
surplus property (either as usable property or scrap)?

    Yes, you may act as GSA's agent in selling undistributed surplus 
property (either as usable property or scrap) if an established 
cooperative agreement with GSA permits such an action. You must notify 
GSA each time you propose to conduct a sale under the cooperative 
agreement. You may request approval to conduct a sale when reporting 
the property to GSA for disposal instructions. If no formal agreement 
exists, you may submit such an agreement at that time for approval.


Sec. 102-37.310  What must a proposal to sell undistributed surplus 
property include?

    (a) Your request to sell undistributed surplus property must 
include:
    (1) The proposed sale date;
    (2) A listing of the property;
    (3) Location of the sale;
    (4) Method of sale; and
    (5) Proposed advertising to be used.
    (b) If the request is approved, the GSA regional sales office will 
provide the necessary forms and instructions for you to use in 
conducting the sale.


Sec. 102-37.315  What costs may a SASP recover if undistributed surplus 
property is retransferred or sold?

    (a) When undistributed surplus property is transferred to a Federal 
agency or another SASP, or disposed of by public sale, you are entitled 
to recoup:
    (1) Direct costs you initially paid to the Federal holding agency, 
including but not limited to, packing, preparation for shipment, and 
loading. You will not be reimbursed for actions following receipt of 
the property, including unloading, moving, repairing, preserving, or 
storage.
    (2) 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. You 
must document and certify the amount of reimbursement requested for 
these costs.
    (b) Reimbursable arrangements should be made prior to transfer of 
the property. In the case of a Federal transfer, GSA will secure 
agreement of the Federal agency to reimburse your authorized costs, and 
annotate the amount of reimbursement on the transfer document. You must 
coordinate and make arrangements for reimbursement when property is 
transferred to another SASP. If you and the receiving SASP cannot agree 
on an appropriate reimbursement charge, GSA will determine appropriate 
reimbursement. The receiving SASP must annotate the reimbursement 
amount on the transfer document prior to its being forwarded to GSA for 
approval.
    (c) When undistributed property is disposed of by public sale, GSA 
must approve the amount of sales proceeds you may receive to cover your 
costs. Generally, this will not exceed 50 percent of the total sales 
proceeds.


Sec. 102-37.320  Under what conditions may a SASP abandon or destroy 
undistributed surplus property?

    (a) You may abandon or destroy undistributed surplus property when 
you have made a written finding 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 abandonment or 
destruction finding must be sent to the appropriate GSA regional office 
for approval. You must include in the 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; and
    (5) The signature of the SASP director requesting approval for the 
abandonment or destruction.
    (b) GSA will notify you within 30 calendar days whether you may 
abandon or destroy the property. GSA will provide alternate disposition 
instructions if it disapproves your request for abandonment or 
destruction. If GSA doesn't reply to you within 30 calendar days of 
notification, the property may be abandoned or destroyed.

Cooperative Agreements


Sec. 102-37.325  With whom and for what purpose(s) may a SASP enter 
into a cooperative agreement?

    Section 203(n) of the Property Act (40 U.S.C. 484(n)) allows GSA, 
or Federal agencies designated by GSA, to enter into cooperative 
agreements with SASPs to carry out the surplus property donation 
program. Such agreements allow GSA, or the designated Federal agencies, 
to use the SASP's property, facilities, personnel, or services or to 
furnish such resources to the SASP. For example:
    (a) Regional GSA personal property management offices, or 
designated Federal agencies, may enter into a cooperative agreement to 
assist a SASP in distributing surplus property for donation. Assistance 
may include:
    (1) Furnishing the SASP with available GSA or agency office space 
and related support such as office furniture and information technology 
equipment needed to screen and process property for donation.
    (2) Permitting the SASP to retain items of surplus property 
transferred to the SASP that are needed by the SASP in performing its 
donation functions (see Sec. 102-37.270).
    (b) Regional GSA personal property management offices may help the 
SASP to enter into agreements with other GSA or Federal activities for 
the use of Federal telecommunications service or federally-owned real 
property and related personal property.
    (c) A SASP may enter into a cooperative agreement with GSA to 
conduct sales of undistributed property on behalf of GSA (see Sec. 102-
37.305).

[[Page 2593]]

Sec. 102-37.330  Must the costs of providing support under a 
cooperative agreement be reimbursed by the parties receiving such 
support?

    The parties to a cooperative agreement must decide among themselves 
the extent to which the costs of the services they provide must be 
reimbursed. Their decision should be reflected in the cooperative 
agreement itself. As a general rule, the Economy Act (31 U.S.C. 1535) 
would require a Federal agency receiving services from a SASP to 
reimburse the SASP for those services. Since SASPs are not Federal 
agencies, the Economy Act would not require them to reimburse Federal 
agencies for services provided by such agencies. In this situation, the 
Federal agencies would have to determine whether or not their own 
authorities would permit them to provide services to SASPs without 
reimbursement. If a Federal agency is reimbursed by a SASP for services 
provided under a cooperative agreement, it must credit that payment to 
the fund or appropriation that incurred the related costs.


Sec. 102-37.335  May a SASP enter into a cooperative agreement with 
another SASP?

    Yes, with GSA's concurrence and where authorized by State law, a 
SASP may enter into an agreement with an adjacent State to act as its 
agent and authorized representative in disposing of surplus Federal 
property. Interstate cooperative 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. 102-37.205(e).


Sec. 102-37.340  When may a SASP terminate a cooperative agreement?

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

Audits and Reviews


Sec. 102-37.345  When must a SASP be audited?

    For each year in which a SASP receives $300,000 or more a year in 
surplus property or other Federal assistance, it must be audited in 
accordance with the Single Audit Act (31 U.S.C. 7501-7507) as 
implemented by Office of Management and Budget (OMB) Circular A-133, 
``Audits of States, Local Governments, and Non-Profit Organizations'' 
(for availability see 5 CFR 1310.3). GSA's donation program should be 
identified by Catalog of Federal Domestic Assistance number 39.003 when 
completing the required schedule of Federal assistance.


Sec. 102-37.350  Does coverage under the single audit process in OMB 
Circular A-133 exempt a SASP from other reviews of its program?

    No, although SASPs are covered under the single audit process in 
OMB Circular A-133, 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. When requested, 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.


Sec. 102-37.355  What obligations does a SASP have to ensure that 
donees meet Circular A-133 requirements?

    SASPs, if they donate $300,000 or more in Federal property to a 
donee in a fiscal year, must ensure that the donee has an audit 
performed in accordance with Circular A-133. If a donee receives less 
than $300,000 in donated property, the SASP is not expected to assume 
responsibility for ensuring the donee meets audit requirements, beyond 
making sure the donee is aware that the requirements do exist. It is 
the donee's responsibility to identify and determine the amount of 
Federal assistance it has received and to arrange for audit coverage.

Reports


Sec. 102-37.360  What reports must a SASP provide to GSA?

    (a) Quarterly report on donations. Submit a GSA Form 3040, State 
Agency Monthly Donation Report of Surplus Personal Property, to the 
appropriate GSA regional office by the 25th day of the month following 
the quarter being reported. (OMB 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 other reports 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.

Liquidating a SASP


Sec. 102-37.365  What steps must a SASP take if the State decides to 
liquidate the agency?

    Before suspending operations, a SASP must submit to GSA 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.


Sec. 102-37.370  Do liquidation plans require public notice?

    Yes, a liquidation plan constitutes a major amendment of a SASP's 
plan of operation and, as such, requires public notice.

Subpart E--Donations to Public Agencies, Service Educational 
Activities (SEAs), and Eligible Nonprofit Organizations


Sec. 102-37.375  How is the pronoun ``you'' used in this subpart?

    The pronoun ``you,'' when used in this subpart, refers to the State 
agency for surplus property (SASP).


Sec. 102-37.380  What is the statutory authority for donations of 
surplus Federal property made under this subpart?

    The following statutes provide the authority to donate surplus 
Federal property to different types of recipients:
    (a) Subsection 203(j)(2) of the Property Act (40 U.S.C. 484(j)(2)) 
authorizes surplus property under the control of the Department of 
Defense (DOD) to be donated, through SASPs, to educational activities 
which are of special interest to the armed services (referred to in 
this part 102-37 as service educational activities or SEAs).
    (b) Subsection 203(j)(3) of the Property Act (40 U.S.C. 484(j)(3)) 
authorizes SASPs to donate surplus property to public agencies and to 
nonprofit educational or public health institutions, such as:
    (1) Medical institutions.

[[Page 2594]]

    (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) Section 213 of the Older Americans Act of 1965, as amended (42 
U.S.C. 3020d), authorizes donations of surplus property to State or 
local government agencies, or nonprofit organizations or institutions, 
that receive Federal funding to conduct programs for older individuals.

Donee Eligibility


Sec. 102-37.385  Who determines if a prospective donee applicant is 
eligible to receive surplus property under this subpart?

    (a) For most public and nonprofit activities, the SASP determines 
if an applicant is eligible to receive property as a public agency, a 
nonprofit educational or public health institution, or for a program 
for older individuals. A SASP may request GSA assistance or guidance in 
making such determinations.
    (b) For applicants that offer courses of instruction devoted to the 
military arts and sciences, the Defense Department will determine 
eligibility to receive surplus property through the SASP as a service 
educational activity or SEA.


Sec. 102-37.390  What basic criteria must an applicant meet before a 
SASP can qualify it for eligibility?

    To qualify for donation program eligibility through a SASP, an 
applicant must:
    (a) Conform to the definition of one of the categories of eligible 
entities listed in Sec. 102-37.380 (see appendix C of this part for 
definitions);
    (b) Demonstrate that it meets any approval, accreditation, or 
licensing requirements for operation of its program;
    (c) Prove that it is a public agency or a nonprofit and tax-exempt 
organization under section 501 of the Internal Revenue Code;
    (d) Certify that it is not debarred, suspended, or excluded from 
any Federal program, including procurement programs; and
    (e) Operate in compliance with applicable Federal nondiscrimination 
statutes.


Sec. 102-37.395  How can a SASP determine whether an applicant meets 
any required approval, accreditation, or licensing requirements?

    A SASP may accept the following documentation as evidence that an 
applicant has met established standards for the operation of its 
educational or health program:
    (a) A certificate or letter from a nationally recognized 
accrediting agency affirming the applicant meets the agency's standards 
and requirements.
    (b) The applicant's appearance on a list with other similarly 
approved or accredited institutions or programs when that list is 
published by a State, regional, or national accrediting authority.
    (c) Letters from State or local authorities (such as a board of 
health or a board of education) stating that the applicant meets the 
standards prescribed for approved or accredited institutions and 
organizations.
    (d) In the case of educational activities, letters from three 
accredited or State-approved institutions that students from the 
applicant institution have been and are being accepted.
    (e) In the case of public health institutions, licensing may be 
accepted as evidence of approval, provided the licensing authority 
prescribes the medical requirements and standards for the professional 
and technical services of the institution.
    (f) The awarding of research grants to the institution by a 
recognized authority such as the National Institutes of Health, the 
National Institute of Education, or by similar national advisory 
council or organization.


Sec. 102-37.400  What type of eligibility information must a SASP 
maintain on donees?

    In general, you must maintain the records required by your State 
plan to document donee eligibility (see appendix B of this part). For 
SEAs, you must maintain separate records that 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 that are needed or have been 
authorized by DOD for use in the SEA's program.


Sec. 102-37.405  How often must a SASP 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 nonprofit organizations whose eligibility depends on annual 
appropriations, annual licensing, or annual certification. Particular 
care must be taken to ensure that all records relating to the authority 
of donee representatives to receive and receipt for property, or to 
screen property at Federal facilities, are current.


Sec. 102-37.410  What must a SASP do if a donee fails to maintain its 
eligibility status?

    If you determine that a donee has failed to maintain its 
eligibility status, you must terminate distribution of property to that 
donee, recover any usable property still under Federal restriction (as 
outlined in Sec. 102-37.465), and take any other required compliance 
actions.


Sec. 102-37.415  What should a SASP do if an applicant appeals a 
negative eligibility determination?

    If an applicant appeals a negative eligibility determination, 
forward complete documentation on the appeal request, including your 
comments and recommendations, to the applicable GSA regional office for 
review and coordination with GSA headquarters. GSA's decision will be 
final.

Conditional Eligibility


Sec. 102-37.420  May a SASP grant conditional eligibility to applicants 
who would otherwise qualify as eligible donees, but have been unable to 
obtain approval, accreditation, or licensing because they are newly 
organized or their facilities are not yet constructed?

    You may grant conditional eligibility to such an applicant provided 
it submits a statement from any required approving, accrediting, or 
licensing authority confirming it will be approved, accredited, or 
licensed.


Sec. 102-37.425  May a SASP grant conditional eligibility to a not-for-
profit organization whose tax-exempt status is pending?

    No, under no circumstances may you grant conditional eligibility 
prior to receiving from the applicant a copy of

[[Page 2595]]

a letter of determination by the Internal Revenue Service stating that 
the applicant is exempt from Federal taxation under section 501 of the 
Internal Revenue Code.


Sec. 102-37.430  What property can a SASP make available to a donee 
with conditional eligibility?

    You may only make available surplus property that the donee can use 
immediately. You may not make available property that will only be used 
at a later date, for example, after the construction of the donee's 
facility has been completed.

Terms and Conditions of Donation


Sec. 102-37.435  For what purposes may donees acquire and use surplus 
property?

    A donee may acquire and use surplus property only for the following 
authorized purposes:
    (a) Public purposes. A public agency that acquires surplus property 
through a SASP must use such property to carry out or to promote one or 
more public purposes for the people it serves.
    (b) Educational and public health purposes, including related 
research. A nonprofit educational or public health institution must use 
surplus property for education or public health, including research for 
either purpose and assistance to the homeless or impoverished. While 
this does not preclude the use of donated surplus property for a 
related or subsidiary purpose incident to the institution's overall 
program, the property may not be used for a nonrelated or commercial 
purpose.
    (c) Programs for older individuals. An entity that conducts a 
program for older individuals must use donated surplus 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. 102-37.440  May donees acquire property for exchange?

    No, a donee may not acquire property with the intent to sell or 
trade it for other assets.


Sec. 102-37.445  What certifications must a donee make before receiving 
property?

    Prior to a SASP releasing property to a donee, the donee must 
certify that:
    (a) It is a public agency or a nonprofit organization meeting the 
requirements of the Property Act and/or regulations of GSA;
    (b) It is acquiring the property for its own use and will use the 
property for authorized purposes;
    (c) Funds are available to pay all costs and charges incident to 
the donation;
    (d) It will comply with the nondiscrimination regulations issued 
under title VI of the Civil Rights Act of 1964 (42 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); and
    (e) It isn't currently debarred, suspended, declared ineligible, or 
otherwise excluded from receiving the property.


Sec. 102-37.450  What agreements must a donee make?

    Before a SASP may release property to a donee, the donee must agree 
to the following conditions:
    (a) The property is acquired on an ``as is, where is'' basis, 
without warranty of any kind, and it 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) It will return to the SASP, at its own expense, any donated 
property:
    (1) That is not placed in use for the purposes for which it was 
donated within 1 year of donation; or
    (2) Which ceases to be used for such purposes within 1 year after 
being placed in use.
    (c) It will comply with the terms and conditions imposed by the 
SASP on the use of any item of property having a unit acquisition cost 
of $5,000 or more and any passenger motor vehicle or other donated 
item. (Not applicable to SEAs.)
    (d) It agrees that, upon execution of the SASP distribution 
document, it has conditional title only to the property during the 
applicable period of restriction. Full title to the property will vest 
in the donee only after the donee has met all of the requirements of 
this part.
    (e) It will comply with conditions imposed by GSA, if any, 
requiring special handling or use limitations on donated property.
    (f) It will use the property for an authorized purpose during the 
period of restriction.
    (g) It will obtain permission from the SASP before selling, 
trading, leasing, loaning, bailing, cannibalizing, encumbering or 
otherwise disposing of property during the period of restriction, or 
removing it permanently for use outside the State.
    (h) It 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.
    (i) 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.

Special Handling or Use Conditions


Sec. 102-37.455  On what categories of surplus property has GSA imposed 
special handling conditions or use limitations?

    GSA has imposed special handling or processing requirements on the 
property discussed 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.
------------------------------------------------------------------------

[[Page 2596]]

 
(2) Documentation needed by GSA to    Sec.  102-37.225.
 process requests for aircraft or
 vessels.
------------------------------------------------------------------------
(3) Special terms, conditions, and    Sec.  102-37.460.
 restrictions imposed on aircraft
 and vessels.
------------------------------------------------------------------------
(4) Guidelines on preparing letters   Sec.  102-37.230.
 of intent for aircraft or vessels.
------------------------------------------------------------------------

    (b) 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, in order to acquire the property. Include the BATF use-permit 
number on the SF 123, Transfer Order Surplus Personal Property.
    (2) You may not store tax-free or specially denatured alcohol in 
SASP facilities. You must make arrangements for this property to be 
shipped or transported directly from the holding agency to the 
designated donee.
    (c) 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.
    (d) Franked and penalty mail envelopes and official letterhead. 
Franked and penalty mail envelopes and official letterhead may not be 
donated without the SASP certifying that all Federal Government 
markings will be obliterated before use.


Sec. 102-37.460  What special terms and conditions apply to the 
donation of aircraft and vessels?

    The following special terms and conditions apply to the donation of 
aircraft and vessels:
    (a) There must be a period of restriction which will expire after 
the aircraft or vessel has been used for the purpose stated in the 
letter of intent (see Sec. 102-37.230) for a period of 5 years, except 
that the period of restriction for a combat-configured aircraft is in 
perpetuity.
    (b) The donee of an aircraft must apply to the 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 the SASP 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) or Coast Guard 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 the SASP 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 and conditions imposed by the 
conditional transfer document are breached, title may revert to the 
Government. GSA may require the donee to return the aircraft or vessel 
or pay for any unauthorized disposal, transaction, or use.
    (e) If, during the period of restriction, the aircraft or vessel is 
no longer needed by the donee, the donee must promptly notify the SASP 
and request disposal instructions. A SASP may not issue disposal 
instructions without the prior written concurrence of GSA.
    (f) Military aircraft previously used for ground instruction and/or 
static display (Category B aircraft, as designated by DOD) or that are 
combat-configured (Category C aircraft) 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, turn over to the 
SASP the remaining 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). The SASP in 
turn must transmit the records to GSA for forwarding to the FAA.

Release of Restrictions


Sec. 102-37.465  May a SASP modify or release 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 terms and conditions you are required by the Property Act 
to impose on the use of passenger motor vehicles and any item of 
property having a unit acquisition cost of $5,000 or more.
    (b) Any special handling condition or use limitation imposed by 
GSA, except with the prior written approval of GSA.
    (c) 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 1 year of donation or 
ceases to be used by the donee for those purposes within 1 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 use of the property and that the proposed 
action meets the standards prescribed in your plan of operation.
    (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.
    (ii) Authority to trade in one donated item for one like item 
having similar use potential.


Sec. 102-37.470  At what point may restrictions be released 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 
until the proposed cannibalization is completed. 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.

[[Page 2597]]

Sec. 102-37.475  What are the requirements for releasing restrictions 
on property being considered for exchange?

    GSA must consent to the exchange of donated property under Federal 
restrictions or special handling conditions. 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 must have remained in compliance with the terms and 
conditions of the donation. Otherwise, Sec. 102-37.485 applies. The 
item acquired by the donee must be:
    (a) Made subject to the period of restriction remaining on the item 
exchanged; and
    (b) Of equal or greater value than the item exchanged.

Compliance and Utilization


Sec. 102-37.480  What must a SASP do to ensure that property is used 
for the purpose(s) for which it was donated?

    You must conduct utilization reviews, as provided in your plan of 
operation, to ensure that donees are using surplus property during the 
period of restriction for the purposes for which it was donated. You 
must fully document your efforts and report all instances of 
noncompliance (misuse or mishandling of property) to GSA.


Sec. 102-37.485  What actions must a SASP take if a review or other 
information indicates noncompliance with donation terms and conditions?

    If a review or other information indicates noncompliance with 
donation terms and conditions, you must:
    (a) Promptly investigate any suspected failure to comply with the 
conditions of donated property;
    (b) Notify GSA immediately where there is evidence or allegation of 
fraud, wrongdoing by a screener, or nonuse, misuse, or unauthorized 
disposal or destruction of donated property;
    (c) Temporarily defer any further donations of property to any 
donee to be investigated for noncompliance allegations until such time 
as the investigation has been completed and:
    (1) A determination made that the allegations are unfounded and the 
deferment is removed.
    (2) The allegations are substantiated and the donee is proposed for 
suspension or debarment; and
    (d) Take steps to correct the noncompliance or otherwise enforce 
the conditions imposed on use of the property if a donee is found to be 
in noncompliance. Enforcement of compliance 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 property in cases where the 
property has been loaned or leased to an ineligible user or used for an 
unauthorized purpose.
    (5) Disposing of by public sale property no longer suitable, 
usable, or necessary for donation.


Sec. 102-37.490  When must a SASP coordinate with GSA on compliance 
actions?

    You must coordinate with GSA before selling or demanding payment of 
the fair market or fair rental value of donated property that is:
    (a) Subject to any special handling condition or use limitation 
imposed by GSA (see Sec. 102-37.455); or
    (b) Not properly used within 1 year of donation or which ceases to 
be properly used within 1 year of being placed in use.


Sec. 102-37.495  How must a SASP handle funds derived from compliance 
actions?

    You must handle funds derived from compliance actions as follows:
    (a) Enforcement of 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) Enforcement of 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.

Returns and Reimbursement


Sec. 102-37.500  May a donee receive reimbursement for its donation 
expenses when unneeded property is returned to the SASP?

    When a donee returns unneeded property to a SASP, the donee may be 
reimbursed for all or part of the initial cost of any repairs required 
to make the property usable if:
    (a) The property is transferred to a Federal agency or sold for the 
benefit of the U.S. Government;
    (b) No breach of the terms and conditions of donation has occurred; 
and
    (c) GSA authorizes the reimbursement.


Sec. 102-37.505  How does a donee apply for and receive reimbursement 
for unneeded property returned to a SASP?

    If the donee has incurred repair expenses for property it is 
returning to a SASP and wishes to be reimbursed for them, it will 
inform the SASP of this. The SASP will recommend for GSA approval a 
reimbursement amount, taking into consideration the benefit the donee 
has received from the use of the property and making appropriate 
deductions for that use.
    (a) If this property is subsequently transferred to a Federal 
agency, the receiving agency will be required to reimburse the donee as 
a condition of the transfer.
    (b) If the property is sold, the donee will be reimbursed from the 
sales proceeds.

Special Provisions Pertaining to SEAs


Sec. 102-37.510  Are there special requirements for donating property 
to SEAs?

    Yes, only DOD-generated property may be donated to SEAs. When 
donating DOD property to an eligible SEA, SASPs must observe any 
restrictions the sponsoring Military Service may have imposed on the 
types of property the SEA may receive.


Sec. 102-37.515  Do SEAs have a priority over other SASP donees for DOD 
property?

    Yes, SEAs have a priority over other SASP donees for DOD property, 
but only if DOD requests GSA to allocate surplus DOD property through a 
SASP for donation to a specific SEA. In such cases, DOD would be 
expected to clearly identify the items in question and briefly justify 
the request.

Subpart F--Donations to Public Airports


Sec. 102-37.520  What is the authority for public airport donations?

    The authority for public airport donations is 49 U.S.C. 47151. 49 
U.S.C. 47151 authorizes executive agencies to give priority 
consideration to requests from a public airport (as defined in 41 
U.S.C. 47102) for the donation of surplus property if the Department of 
Transportation (DOT) considers the property appropriate for airport

[[Page 2598]]

purposes and GSA approves the donation.


Sec. 102-37.525  What should a holding agency do if it wants a public 
airport to receive priority consideration for excess personal property 
it has reported to GSA?

    A holding agency interested in giving priority consideration to a 
public airport should annotate its reporting document to make GSA aware 
of this interest. In an addendum to the document, include the name of 
the requesting airport, specific property requested, and a brief 
description of how the airport intends to use the property.


Sec. 102-37.530  What are FAA's responsibilities in the donation of 
surplus property to public airports?

    In the donation of surplus property to public airports, the Federal 
Aviation Administration (FAA), acting under delegation from the DOT, is 
responsible for:
    (a) Determining the property requirements of any State, political 
subdivision of a State, or tax-supported organization for public 
airport use;
    (b) Setting eligibility requirements for public airports and making 
determinations of eligibility;
    (c) Certifying that property listed on a transfer request is 
desirable or necessary for public airport use;
    (d) Advising GSA of FAA officials authorized to certify transfer 
requests and notifying GSA of any changes in signatory authority;
    (e) Determining and enforcing compliance with the terms and 
conditions under which surplus personal property is transferred for 
public airport use; and
    (f) 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 (to include names, addresses, and 
telephone numbers, and additional identifying information such as 
driver's license or social security numbers) of screeners operating 
under FAA authority and making such records available to GSA upon 
request.
    (3) Recovering any expired or invalid screener authorizations.


Sec. 102-37.535  What information must FAA provide to GSA on its 
administration of the public airport donation program?

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

Subpart G--Donations to the American National Red Cross


Sec. 102-37.540  What is the authority for donations to the American 
National Red Cross?

    Subsection 203(l) of the Property Act (40 U.S.C. 484(l)) authorizes 
GSA to donate to the Red Cross, for charitable use, such property as 
was originally derived from or through the Red Cross.


Sec. 102-37.545  What type of property may the American National Red 
Cross receive?

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


Sec. 102-37.550  What steps must the American National Red Cross take 
to acquire surplus property?

    Upon receipt of information from GSA regarding the availability of 
surplus property for donation, the Red Cross will:
    (a) Have 21 calendar days to inspect the property or request it 
without inspection; and
    (b) Be responsible for picking up property donated to it or 
arranging and paying for its shipment.


Sec. 102-37.555  What happens to property the American National Red 
Cross does not request?

    Property the Red Cross declines to request will be offered to SASPs 
for distribution to eligible donees. If such 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. 102-37.560  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. 102-37.565  What is the authority for donations to public bodies?

    Subsection 202(h) of the Property Act (40 U.S.C. 483(h)) authorizes 
the abandonment, destruction, or donation to public bodies of property 
which has no commercial value or for which the estimated cost of 
continued care and handling would exceed the estimated proceeds from 
its sale.


Sec. 102-37.570  What type of property may a holding agency donate 
under this subpart?

    Only that property a holding agency has made a written 
determination to abandon or destroy (see process in part 102-36 of this 
chapter) may be donated under this subpart. A holding agency may not 
donate property that requires destruction for health, safety, or 
security reasons. When disposing of hazardous materials and other 
dangerous property, a holding agency must comply with all applicable 
laws and regulations and any special disposal requirements in part 101-
42 of this title.


Sec. 102-37.575  Is there a special form for holding agencies to 
process donations?

    There is no special form for holding agencies to process donations. 
A holding agency may use any document that meets its agency's needs for 
maintaining an audit trail of the transaction.


Sec. 102-37.580  Who is responsible 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 (as defined in 
Sec. 102-36.40 of this chapter), loading, and transportation to its 
site.

Appendix A--Miscellaneous Donation Statutes

    The following is a listing of statutes which authorize donations 
which do not require GSA's approval:
    Statute: 10 U.S.C. 2572.
    Donor Agency: Any military department (Army, Navy, and Air 
Force) or the Coast Guard.
    Type of Property: Books, manuscripts, works of art, historical 
artifacts, drawings, plans, models, and condemned or obsolete combat 
material.
    Eligible Recipients: Municipal corporations; soldiers' monument 
associations; museums, historical societies, or historical 
institutions of a State or foreign nation; incorporated museums that 
are operated and maintained for educational purposes only and the 
charters of which denies them the right to operate for profit; posts 
of the Veterans of Foreign Wars of the United States or of the 
American Legion or a unit of any other recognized war veterans' 
association; local or national units of any war veterans' 
association of a foreign nation which is recognized by the national 
government of that nation or a principal subdivision of that nation; 
and posts of the Sons of Veterans Reserve.

    Statute: 10 U.S.C. 7306.
    Donor Agency: Department of the Navy.

[[Page 2599]]

    Type of Property: Any vessel stricken from the Naval Vessel 
Register or any captured vessel in the possession of the Navy.
    Eligible Recipients: States, Commonwealths, or possessions of 
the United States; the District of Columbia; and not-for-profit or 
nonprofit entities.

    Statute: 10 U.S.C. 7541.
    Donor Agency: Department of the Navy.
    Type of Property: Obsolete material not needed for naval 
purposes.
    Eligible Recipients: Sea scouts of the Boy Scouts of America; 
Naval Sea Cadet Corps; and the Young Marines of the Marine Corps 
League.

    Statute: 10 U.S.C. 7545.
    Donor Agency: Department of the Navy.
    Type of Property: Captured, condemned, or obsolete ordnance 
material, books, manuscripts, works of art, drawings, plans, and 
models; other condemned or obsolete material, trophies, and flags; 
and other material of historic interest not needed by the Navy.
    Eligible Recipients: States, territories, commonwealths, or 
possessions of the United States, or political subdivisions or 
municipal corporations thereof; the District of Columbia; libraries; 
historical societies; educational institutions whose graduates or 
students fought in World War I or World War II; soldiers' monument 
associations; State museums; museums operated and maintained for 
educational purposes only, whose charter denies it the right to 
operate for profit; posts of the Veterans of Foreign Wars of the 
United States; American Legion posts; recognized war veterans' 
associations; or posts of the Sons of Veterans Reserve.

    Statute: 14 U.S.C. 641(a).
    Donor Agency: Coast Guard.
    Type of Property: Obsolete or other material not needed for the 
Coast Guard.
    Eligible Recipients: Coast Guard Auxiliary; sea scout service of 
the Boy Scouts of America; and public bodies or private 
organizations not organized for profit.

Appendix B--Elements of a State Plan of Operation

    The following is the information and assurances that must be 
included in a SASP's plan of operation:

                         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 surplus 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....  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.
------------------------------------------------------------------------
(c) Inventory control and      (1) Require the SASP to use a management
 accounting system.             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          (1) Require the SASP to provide for the
 property.                      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      (1) Set forth the means and methods for
 charges.                       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.

[[Page 2600]]

 
                               (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    (1) Require the SASP to identify terms
 donated property.              and conditions that will be imposed on
                                the donee for any item of donated
                                property with a unit acquisition cost of
                                $5,000 or more and any passenger motor
                                vehicle.
                               (2) Provide that the SASP may impose
                                reasonable terms and conditions on the
                                use of other donated property. If the
                                SASP elects to impose additional terms
                                and conditions, it should list them in
                                the plan. If the SASP wishes to provide
                                for amending, modifying, or releasing
                                any terms or conditions 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             Provide that, subject to GSA approval,
 undistributed property.        property in the possession of the SASP
                                which donees in the State cannot use
                                will be disposed of by:
                               (1) Transfer to another SASP or Federal
                                agency.
                               (2) Sale.
                               (3) Abandonment or destruction.
                               (4) Other arrangements.
------------------------------------------------------------------------
(h) Fair and equitable         (1) Provide that the SASP will make fair
 distribution.                  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
                                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, licensed, or meets any other
                                legal requirement for operation of its
                                program(s).
                               (vi) Financial information.
                               (vii) Written authorization by the
                                donee's governing body or chief
                                administrative officer designating at
                                least one person to act for the donee in
                                acquiring property.
                               (viii) Assurance that the donee will
                                comply with GSA's regulations on
                                nondiscrimination.
                               (ix) Types of property needed.
------------------------------------------------------------------------
(j) Compliance and             (1) Provide that the SASP conduct
 utilization.                   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.
                               (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          (1) Provide for consultation with
 advisory bodies and public     advisory bodies and public and private
 and private groups.            groups which can assist the SASP in
                                determining the relative needs and
                                resources of donees, the proposed
                                utilization of surplus property by
                                eligible donees, and how distribution of
                                surplus 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.
------------------------------------------------------------------------

[[Page 2601]]

 
(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.
------------------------------------------------------------------------

Appendix C--Glossary of Terms for Determining Eligibility of Public 
Agencies and Nonprofit Organizations

    The following is a glossary of terms for determining eligibility 
of public agencies and nonprofit organizations:
    Accreditation means the status of public recognition that an 
accrediting agency grants to an institution or program that meets 
the agency's standards and requirements.
    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.
    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.
    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, entity, or 
organization conducting educational programs or research for 
educational purposes, such as a child care center, school, college, 
university, school for the mentally or physically disabled, or an 
educational radio or television station.
    Educational radio or television station means a public or 
nonprofit radio or television station licensed by the Federal 
Communications Commission and operated exclusively for noncommercial 
educational purposes.
    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.
    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);
    (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

[[Page 2602]]

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 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.
    Nationally recognized accrediting agency means an accrediting 
agency that the Department of Education recognizes under 34 CFR part 
600. (For a list of accrediting agencies, see the Department's web 
site at http://www.ed.gov/offices/OPE/accreditation/index.html)
    Nonprofit means not organized for profit and exempt from Federal 
income tax under section 501 of the Internal Revenue Code (26 U.S.C. 
501).
    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 a program conducted by a 
State or local government agency or nonprofit activity that receives 
funds appropriated for services or 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.).
    Provider of assistance to homeless individuals means a public 
agency or a nonprofit 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 nonprofit 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 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, public safety, programs of assistance to 
the homeless or impoverished, and programs for older individuals.
    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.
    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.

    Dated: January 2, 2002.
Stephen A. Perry,
Administrator of General Services.
[FR Doc. 02-880 Filed 1-17-02; 8:45 am]
BILLING CODE 6820-24-P