[Federal Register Volume 77, Number 162 (Tuesday, August 21, 2012)]
[Proposed Rules]
[Pages 50447-50449]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-20441]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 102-37

[FMR Case 2012-102-2; Docket 2012-0007; Sequence 1]
RIN 3090-AJ26


Federal Management Regulation; Donation of Surplus Personal 
Property

AGENCY: Office of Governmentwide Policy, General Services 
Administration (GSA).

ACTION: Proposed rule.

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SUMMARY: The General Services Administration is proposing to amend the 
Federal Management Regulation (FMR) by changing its personal property 
policy. The proposed changes will (1) include the addition of certain 
veterans organizations as eligible donation recipients as authorized by 
Public Law; (2) update and clarify language regarding the use of The 
United States Government Certificate to Obtain Title to a Vehicle, 
Standard Form 97 (SF 97); and (3) make minor clarifying edits to 
existing policies.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat at one of the addressees shown below on or 
before October 22, 2012 to be considered in the formation of the final 
rule.

ADDRESSES: Submit comments in response to FMR Case 2012-102-2 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by inputting ``FMR Case 
2012-102-2'' under the heading ``Enter Keyword or ID'' and selecting 
``Search.'' Select the link ``Submit a Comment'' that corresponds with 
``FMR Case 2012-102-2.'' Follow the instructions provided at the 
``Submit a Comment'' screen. Please include your name, company name (if 
any), and ``FMR Case 2012-102-2'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street NE., 7th 
Floor, Washington, DC 20417.
    Instructions: Please submit comments only and cite FMR Case 2012-
102-2, in all correspondence related to this case. All comments 
received will be posted without change to http://www.regulations.gov, 
including any personal and/or business confidential information 
provided.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Holcombe, Office of 
Governmentwide Policy, Office of Travel, Transportation, and Asset 
Management (MT), at (202) 501-3828 or by email at 
robert.holcombe@gsa.gov for clarification of content. For information 
pertaining to status or publication schedules contact the Regulatory 
Secretariat at (202) 501-4755. Please cite FMR Case 2012-102-2.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed amendment to part 102-37 of the Federal Management 
Regulation (41 CFR part 102-37) adds as potential recipients of Federal 
surplus property those organizations whose membership comprises 
substantially of veterans, as authorized by Public Law 111-338, 
codified at 40 U.S.C. 549(c)(3)(B)(x). This proposed amendment also 
adds two new subparts to part 102-37. The first proposed subpart 
updates and clarifies policy for Federal agencies and donation program 
customers regarding the use of SF 97, The United States Government 
Certificate to Obtain Title to a Vehicle. This proposed amendment 
clarifies that the SF 97 itself is not a motor vehicle registration or 
title; rather, it is only evidence of ownership required for the owner 
to obtain title to a vehicle. The second proposed subpart clarifies 
policy for Federal agencies, State Agencies for Surplus Property 
(SASPs), and donation program customers for insuring donated surplus 
property for liability or loss. This proposed amendment also contains 
administrative and minor clarifying changes. One of these 
administrative changes proposes to remove the policies on how SASPs 
screen for property at Federal facilities and how SASPs obtain 
authorizations for screening at these facilities. These sections are 
deleted as being outdated and unnecessarily prescriptive. Whereas SASP 
property screeners were previously required to apply to GSA to obtain 
screening authorization, under the proposed amendment, SASPs no longer 
need to coordinate with GSA, but instead must coordinate the on-site 
visit and screening with the individual holding agency or organization. 
Information related to screening is provided in amended section 102-
37.175 and in non-regulatory guidance published by GSA.

B. Executive Order 12866 and 13563

    Executive Orders 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). Executive 
Order 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 
Executive Order 12866, Regulatory Planning and Review, dated September 
30, 1993. This proposed rule is not a major rule under 5 U.S.C. 804.

C. Regulatory Flexibility Act

    This proposed rule will not have a significant economic impact on a 
substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. This proposed rule is 
also exempt from the

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Administrative Procedure Act per 5 U.S.C. 553(a)(2) because it applies 
to agency management and public property. However, this proposed rule 
is being published to provide transparency in the promulgation of 
Federal policies.

D. Paperwork Reduction Act

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

E. Small Business Regulatory Enforcement Fairness Act

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

List of Subjects in 41 CFR Part 102-37

    Donation of Surplus Personal Property.

    Dated: August 6, 2012.
Kathleen M. Turco,
Associate Administrator, Office of Governmentwide Policy.

    For the reasons set forth in the preamble, GSA proposes to amend 41 
CFR part 102-37 as set forth below:

PART 102-37--DONATION OF SURPLUS PERSONAL PROPERTY

    1. The authority for part 102-37 continues to read as follows:

    Authority:  40 U.S.C. 549 and 121(c).

    2. Amend Sec.  102-37.25 by alphabetically adding the definition 
``Allocation'' to read as follows:


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

    The following definitions apply to this part:
    Allocation means the process by which GSA identifies the SASP and/
or donee to receive and allow pick up of the surplus property offered 
under this part.
* * * * *
    3. Amend Sec.  102-37.50 by revising paragraph (c) to read as 
follows:


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

* * * * *
    (c) The American National Red Cross should submit requests to GSA 
as described in subpart G of this part when obtaining property under 
the authority of 40 U.S.C. 551.
* * * * *


Sec.  102-37.60  [Amended]

    4. Amend Sec.  102-37.60 in the first sentence by removing the 
words ``being notified that the property is available for pickup'' and 
adding the words ``GSA allocation'' in its place.
    5. Amend Sec.  102-37.125 by revising paragraph (a)(3) to read as 
follows:


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

    (a) * * *
    (3) Donations by the Small Business Administration (SBA) to small 
disadvantaged businesses under 13 CFR part 124 (although collaboration 
and agreement between the SBA, SASPs, and GSA is encouraged); and
* * * * *
    6. Amend Sec.  102-37.175 by--
    (a) Removing ``GSA's system, FEDS)'' and adding ``GSAXcess)'' in 
its place;
    (b) Designating the existing paragraph as paragraph (a); and
    (c) Adding a new paragraph (b) to read as follows:


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

* * * * *
    (b) For the SASP (or a SASP's representative) to perform onsite 
screening, the screener must coordinate the onsite visit and screening 
with the individual holding agency or organization. The screener should 
ascertain the identification required and any special procedures for 
access to the facility or location.
    Sec. Sec.  102-37.180 and 102-37.185 [Removed and Reserved]
    7. Remove and reserve Sec. Sec.  102-37.180 and 102-37.185 .
    8. Amend Sec.  102-37.380 by adding paragraph (b)(18) to read as 
follows:


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

* * * * *
    (b) * * *
    (18) Organizations whose membership comprises substantially 
veterans (as defined under 38 U.S.C. 101), and whose representatives 
are recognized by the Secretary of Veterans Affairs pursuant to the 
provisions of 38 U.S.C. 5902. In this subsection, ``substantially 
veterans'' means at least 30 percent of the members of the requesting 
organization are classified as veterans, as that term is defined by 38 
U.S.C. 101. The Department of Veterans Affairs maintains a searchable 
Web site of recognized organizations. The address is http://www.va.gov/ogc/apps/accreditation/index.asp.
* * * * *
    9. Amend Sec.  102-37.420 by adding a second and a third sentence 
to read as follows:


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?

    * * * In situations where there are no approvals, accreditation or 
licensing entities, the SASP may make a determination on conditional 
eligibility based on its State Plan and the provisions of this part. 
Conditional eligibility may be granted for a limited and reasonable 
time, not to exceed one year.
    10. Amend Sec.  102-37.430 by adding a third sentence to read as 
follows:


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

    * * * If property is provided to the donee with conditional 
eligibility, and the conditional eligibility lapses (see Sec.  102-
37.420), the property must be returned to the SASP for redistribution 
or disposal.
    11. Add Subparts I and J consisting of Sec. Sec.  102-37.585 
through 102-37.600 and Sec.  102-37.605 through 102-37.610 respectively 
to read as follows:
Subpart I--Transfer of Vehicle Title to A Donee
Sec.
102-37.585 In transferring donated surplus vehicles, what is the 
responsibility of the holding agency?
102-37.590 In transferring donated surplus vehicles, what is the 
responsibility of the SASP?
102-37.595 When transferring donated surplus vehicles, what is the 
responsibility of the donee?
102-37.600 When does title to a surplus donated vehicle change 
hands?

Subpart I--Transfer of Vehicle Title to A Donee


Sec.  102-37.585  In transferring donated surplus vehicles, what is the 
responsibility of the holding agency?

    The holding agency is responsible for preparing The United States 
Government Certificate to Obtain Title to a Vehicle, (Standard Form 97 
(SF 97)) upon notification by GSA that a vehicle has been allocated. 
The SF 97 may be prepared by GSA if mutually agreed upon by the holding 
agency and GSA. The holding agency is designated as the ``transferor.'' 
The SF 97 is a serially numbered, controlled form, stock number 7540-
00-634-4047, which can be obtained by Federal agencies from

[[Page 50449]]

GSA Global Supply or online at www.gsaglobalsupply.gsa.gov.


Sec.  102-37.590  In transferring donated surplus vehicles, what is the 
responsibility of the SASP?

    The SASP is responsible for facilitating the transfer of the 
surplus vehicle to the donee in accordance with this part. The SASP 
should not sign the SF 97 as ``transferee'' unless the vehicle will be 
used and titled by the SASP.


Sec.  102-37.595  When transferring donated surplus vehicles, what is 
the responsibility of the donee?

    The donee is responsible for processing the SF 97 in accordance 
with state licensing and titling authorities. The donee signs the SF 97 
as ``transferee.'' The donee is responsible for notifying the SASP if a 
SF 97 is not provided by the Government within a reasonable time after 
vehicle transfer.


Sec.  102-37.600  When does title to a surplus donated vehicle change 
hands?

    Title to the vehicle rests with the holding agency until the SF 97 
is signed by the transferee. At that point, the transferee will hold 
conditional title until the end of the period of restriction, if 
applicable, under the terms of the donation.
Subpart J--Insuring Donated Surplus Property
Sec.
102-37.605 Is insurance required for liability purposes?
102-37.610 If there is a property loss covered by insurance, who is 
entitled to reimbursement?

Subpart J--Insuring Donated Surplus Property


Sec.  102-37.605  Is insurance required for liability purposes?

    Yes, for vehicles, the SASP and/or the transferee must follow state 
laws for insurance requirements of state owned vehicles and state 
minimum insurance requirements for other than state owned vehicles. For 
other assets, insurance must be acquired to at least the minimum amount 
as mandated by applicable law or regulation.


Sec.  102-37.610  If there is a property loss covered by insurance, who 
is entitled to reimbursement?

    (a) If the loss occurs while the property is insured and in the 
possession (or under the control) of the SASP, the SASP may retain 
proceeds to cover the SASP's costs incurred to acquire and rehabilitate 
the property prior to its loss. GSA is entitled to proceeds in excess 
of the costs incurred by the state.
    (b) If the loss occurs while the property is insured and in the 
possession (or under the control) of the donee, the donee may retain 
proceeds to cover the costs that the donee incurred to acquire and 
rehabilitate the property prior to its loss. Entitlement to insurance 
proceeds in excess of the costs incurred by the donee depends on the 
time of the loss in relation to the period of restriction if the loss 
was incurred:
    (1) During the period of restriction imposed by GSA (e.g., 
typically up to the first year unless otherwise designated), the U.S. 
Government is entitled to the insurance proceeds, less any interest 
provided by the Government to the SASP to cover the SASP's expenses in 
enforcing the restriction up to the time of the loss.
    (2) During an additional period of restriction imposed by the SASP 
(e.g., beyond the one year usually imposed by GSA), the SASP is 
entitled to the proceeds.
    (3) After all periods of restriction imposed by the GSA and/or 
SASP, the donee is entitled to the proceeds.
    12. Amend Appendix C to part 102-37 by alphabetically adding the 
definition of ``Veterans Organizations'' to read as follows:

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

* * * * *
    Veterans Organizations means organizations eligible to receive 
Federal surplus property under Public Law 111-338, as codified at 40 
U.S.C. 549(c)(3)(B)(x), whose (1) membership comprises substantially 
veterans (as defined under 38 U.S.C.101); and (2) representatives 
are recognized by the Secretary of Veterans Affairs under 38 U.S.C. 
5902. The Department of Veterans Affairs maintains a searchable Web 
site of recognized organizations. The address is http://www.va.gov/ogc/apps/accreditation/index.asp.

[FR Doc. 2012-20441 Filed 8-20-12; 8:45 am]
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