[Federal Register Volume 85, Number 111 (Tuesday, June 9, 2020)]
[Proposed Rules]
[Pages 35236-35238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10830]



41 CFR Parts 102-35, 102-36, 102-37, 102-38, 102-39, and 102-40

[FMR Case 2018-102-6; Docket No. GSA-FMR-2019-0007; Sequence No.1]
RIN 3090-AJ98

Federal Management Regulation (FMR); Personal Property; Multiple 
Repeal or Replace Regulatory Actions; Multiple FMR Parts

AGENCY: Office of Government-wide Policy (OGP), General Services 
Administration (GSA).

ACTION: Proposed rule.


SUMMARY: The U.S. General Services Administration (GSA) is replacing, 
modifying, and consolidating provisions in multiple parts of the 
Federal Management Regulation (FMR), pursuant to an Executive Order, 
which requires agencies to make recommendations to the agency head 
regarding regulatory repeal, replacement, or modification, consistent 
with applicable law.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at the address shown below on or before 
August 10, 2020 to be considered in the formation of the final rule.

ADDRESSES: Submit comments in response to FMR Case 2018-102-6 by the 
following method:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal Rulemaking Portal by entering ``FMR Case 2018-
102-6'' under the heading ``Enter Keyword or ID'' and select 
``Search.'' Select the link ``Submit a Comment'' that corresponds with 
``FMR Case 2018-102-6'' and follow the instructions provided at the 
``Comment Now'' screen. Please include your name, company name (if 
any), and ``FMR Case 2018-102-6'' on your attached document.
    Instructions: Please submit comments only and cite FMR Case 2018-
102-6 in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and business confidential information provided. To confirm 
receipt of your comment(s), please check http://www.regulations.gov 
approximately two to three days after submission to verify posting.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. William Garrett, Program Director, Office of Government-wide 
Policy, at 202-368-8163. Contact the Regulatory Secretariat Division 
(MVCB), 1800 F Street NW, Washington, DC 20405, 202-501-4755, for 
information pertaining to status or publication schedules. Please cite 
FMR Case 2018-102-6.


A. Background

    Executive Order (E.O.) 13777, `Enforcing the Regulatory Reform 
Agenda,' was signed February 24, 2017. This E.O. tasked Executive 
Agencies to ``evaluate existing regulations (as defined in section 4 of 
Executive Order 13771) and make recommendations to the agency head 
regarding their repeal, replacement, or modification, consistent with 
applicable law.''
    Under the guidance of E.O. 13777, GSA sought public comments on 
improving FMR regulations through a Federal Register Notice (MA-2017-
03) published on May 30, 2017, at 82 FR 24651. Concurrently, GSA sought 
comments and recommendations from Federal agencies, GSA subject matter 
experts, and other stakeholders and customers.
    The comments and recommendations elicited from the Federal Register 
notice were reviewed and categorized by GSA as ``repeal'', ``replace'', 
or ``modify'' actions. In accordance with the guidance in E.O. 13777, 
GSA prioritized repeal and replace actions as more important than the 
modify actions. The comments and recommendations categorized as repeal 
and replace are addressed in this proposed rule. Two other repeal or 
replace recommendations addressing (1) agency asset management systems 
and (2) use of voluntary consensus standards were not included in this 
proposed rule as GSA determined that it does not have the legal 
authority to promulgate regulations addressing property in use by an 
agency before it is reported to GSA as excess.
    Provisions in this proposed rule make the FMR policies addressing 
personal property management more understandable and easier to read. 
This proposed rule addresses the following:
    1. Consolidation of duplicate occurrences of definitions across 
multiple FMR parts into FMR 102-35 for consistency in terminology and 
to avoid duplicative definitions in other parts of FMR Subchapter B. 
The FMR parts affected address personal property disposal activities 
including transfers among Federal agencies, donation of surplus 
property to eligible state and local donees, the sale of surplus 
property, and disposition of property requiring special handling;

[[Page 35237]]

    2. Revisions to the donation program to incorporate legislation 
regarding museums (Public Law 114-287, Section 23) to ensure 
consistency with Federal law. The donation program allows for the 
transfer of Federal surplus personal property to state agencies for 
surplus property for distribution to eligible recipients within their 
state; and
    3. An amendment to policy in FMR 102-35.10 by listing FMR parts in 
this section related to personal property disposal in sequence so that 
the listing of FMR parts follows the general life-cycle processes 
related to asset management and disposal.

B. Executive Orders 12866 and 13563

    E.O.s 12866 and 13563 direct agencies to assess all costs and 
benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). E.O. 13563 emphasizes the 
importance of quantifying both costs and benefits, of reducing costs, 
of harmonizing rules, and of promoting flexibility. This proposed rule 
is not a significant regulatory action and, therefore, was not subject 
to review under Section 6(b) of E.O. 12866, Regulatory Planning and 
Review, dated September 30, 1993. This proposed rule is not a major 
rule under 5 U.S.C. 804.

C. Executive Order 13771

    This proposed rule is not subject to the requirements of E.O. 13771 
because it is related to agency organization, management, or personnel.

D. Regulatory Flexibility Act

    This proposed rule will not have a significant economic impact on a 
substantial number of entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq. This proposed rule is also exempt 
from the Administrative Procedures Act per 5 U.S.C. 553(a)(2), because 
it applies to agency management or public property.

E. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FMR do not impose recordkeeping or information collection 
requirements, or the collection of information from offerors, 
contractors, or members of the public that require the approval of the 
Office of Management and Budget under 44 U.S.C. 3501 et seq.

F. Small Business Regulatory Enforcement Fairness Act

    This proposed rule is exempt from Congressional review under 5 
U.S.C. 801 since it relates to agency management and personnel and does 
not substantially affect the rights or obligations of non-agency 

List of Subjects in 41 CFR Parts 102-35, 102-36, 102-37, 102-38, 
102-39 and 102-40

    Government property management.

Jessica Salmoiraghi,
Associate Administrator, Office of Government-wide Policy.

    For the reasons set forth in the preamble, GSA proposes to amend 41 
CFR parts 102-35, 102-36, 102-37, 102-38, 102-39, and 102-40 as set 
forth below:

1. The authority for parts 102-35, 102-36, 102-37, 102-38, 102-39, and 
102-40 continues to read as follows:

    Authority:  40 U.S.C. 121(c).


2. Amend Sec.  102-35.10 by revising paragraphs (e) thru (g) to read as 

Sec.  102-35.10   How are these regulations for the disposal of 
personal property organized?

* * * * *
    (e) Utilization and disposal of personal property requiring special 
handling (part 102-40 of this subchapter B).
    (f) Disposition of seized and forfeited, voluntarily abandoned, and 
unclaimed personal property (part 102-41 of this subchapter B).
    (g) Utilization, donation, and disposal of foreign gifts and 
decorations (part 102-42 of this subchapter B).
3. Amend Sec.  102-35.20 by--
a. Adding, in alphabetical order, the definitions ``Commerce Control 
List Items (CCLIs)'' and ``Demilitarization'';
 b. Revising the definitions ``Excess personal property'', ``Exchange/
sale'', and ``Executive agency'';
c. Adding, in alphabetical order, the definition of ``Fair Market 
 d. Revising the definition ``Federal agency'';
 e. Adding, in alphabetical order, the definitions ``Hazardous personal 
property'', ``Holding agency'', and ``Munitions List Items'';
 f. Revising the definition ``Personal property'';
 g. Adding, in alphabetical order, the definition ``State agency for 
surplus property (SASP)'';
 h. Revising the definition ``Surplus personal property''; and
 i. Adding, in alphabetical order, the definition ``Surplus release 

    The additions and revisions read as follows:

Sec.  102-35.20  What definitions apply to GSA's personal property 

* * * * *
    Commerce Control List Item (CCLI) means property identified on the 
Commerce Control List (15 CFR part 774, Supp. 1) subject to export 
controls under the Export Administration Act of 1979, as amended (50 
U.S.C. 4601 et seq.) and implemented by the Export Administration 
Regulations (15 CFR part 730). Items may be placed on the list for 
reasons including, but not limited to, technology transfer, scarcity of 
materials, crime control, and national security.
* * * * *
    Demilitarization, as defined by U.S. Department of Defense (DoD) 
Manual 4160.28, Volume 2, is ``[t]he act of eliminating the functional 
capabilities and inherent military design features from DoD personal 
property that requires certification and verification. Methods and 
degree range from removal and destruction of critical features to total 
destruction by cutting, crushing, shredding, melting, burning, etc. 
Demilitarization (DEMIL) is required to prevent property from being 
used for its originally intended purpose and to prevent the release of 
inherent design information that could be used against the United 
States. DEMIL applies to material in both serviceable and unserviceable 
    Excess personal property (Excess) means any personal property under 
the control of any Federal agency that is no longer required for that 
agency's needs, as determined by the agency head or designee. An 
``agency's need'' can include the use of the asset in an Exchange/Sale 
transaction to acquire similar replacement personal property.
    Exchange/sale means the authority or process to exchange or sell 
personal property and apply the exchange allowance or proceeds of sale 
in whole or in part payment for the acquisition of similar property 
(see part 102-39 of this subchapter B for exchange/sale policy).
    Executive agency means any executive department or independent 
establishment in the executive branch of the Government, including any 
wholly owned Government corporation.
    Fair market value means the best estimate of the gross sales 
proceeds if the property were to be sold in a public sale.

[[Page 35238]]

    Federal agency means any executive agency or any establishment in 
the legislative or judicial branch of the Government (except the 
Senate, the House of Representatives, and the Architect of the Capitol 
and any activities under The Architect of the Capitol's direction).
* * * * *
    Hazardous personal property means property that is deemed a 
hazardous material, chemical substance or mixture, or hazardous waste 
under the Hazardous Materials Transportation Act (HMTA) (49 U.S.C. 
5101), the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 
6901-6981), or the Toxic Substances Control Act (TSCA) (15 U.S.C. 2601-
    Holding agency means the Federal agency having accountability for, 
and generally possession of, the property involved.
* * * * *
    Munitions List Items (MLIs) are commodities (usually defense 
articles/defense services) listed in the International Traffic in Arms 
Regulation (22 CFR part 121), published by the U.S. Department of 
* * * * *
    Personal property means any property, except real property. For 
purposes of this part, the term excludes records of the Federal 
Government and naval vessels of the following categories: Battleships, 
cruisers, aircraft carriers, destroyers, and submarines.
* * * * *
    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 
40 U.S.C. 549.
    Surplus personal property (Surplus) means excess personal property 
no longer required by the Federal agencies as determined by GSA.
    Surplus release date means the date when Federal screening has been 
completed and the excess property becomes surplus.
* * * * *


Sec.  102-36.40  [Amended]

4. Amend Sec.  102-36.40 by removing the definitions of ``Commerce 
Control List Items (CCLIs)'', ``Demilitarization'', ``Excess personal 
property'', ``Exchange/Sale property'', ``Executive agency'', ``Fair 
market value'', ``Federal agency'', ``Hazardous personal property'', 
``Holding agency'', ``Munitions List Items (MLIs)'', ``Personal 
property'', ``Surplus personal property (surplus)'', and ``Surplus 
release date''.


Sec.  102-37.25   [Amended]

5. Amend Sec.  102-37.25 by removing the definitions of ``Holding 
agency'', ``State agency for surplus property (SASP)'', ``Surplus 
personal property (surplus property)'', and ``Surplus release date''.
6. Amend appendix C to part 102-37, by revising the definition of 
``Museum'' to read as follows:

Appendix C to Part 102-37--Glossary of Terms for Determining 
Eligibility of Public Agencies and Nonprofit Organizations

* * * * *
    Museum means a public agency or nonprofit educational or public 
health 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; and cares for these objects. A museum is considered to be 
``attended by the public'' if the museum, at minimum, accedes to any 
request submitted for access during business hours. 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.
* * * * *


Sec.  102-38.35  [Amended]

7. Amend Sec.  102-38.35 by removing the definitions of ``Estimated 
fair market value'', ``Holding Agency'', ``Personal property'', and 
``State Agency for Surplus Property (SASP)''.


Sec.  102-39.20  [Amended]

8. Amend Sec.  102-39.20 by removing the definitions of ``Excess 
property'', ``Exchange/sale'', ``Executive agency'', and ``Federal 


Sec.  102-40.30   [Amended]

9. Amend Sec.  102-40.30 by removing the definitions of ``Commerce 
Control List Item (CCLI)'', ``Demilitarization'', and ``Munitions List 
Item (MLI)''.
[FR Doc. 2020-10830 Filed 6-8-20; 8:45 am]