To conform the State Plan of Operation with requirements of Federal Management Regulations (FMR) 102-37.465.
Text of proposed rule:
§ 298.6 Terms and conditions on donable property.
(a)(1) The SASP will require each eligible donee, as a condition of eligibility, to file with the agency the appropriate application, a certification of eligibility and an agreement to abide by certain terms and conditions as set forth by the GSA. Each form must be signed by the chief executive officer of the donee, agreeing to these requirements prior to the donation of any surplus property.
(2) In addition, the certification of eligibility and terms and conditions will be printed on the reverse side of each, executed to cover each donation transaction and signed by an authorized representative of the donee (forms CS 403 and CS 404).
(3) The following periods of restriction are established by the SASP on all items of property with a unit acquisition cost of $5,000 or more, and on all passenger vehicles:
(i) passenger vehicles[-]-18 months from the date the property is placed in use;
(ii) items with a unit acquisition cost of $5,000 or more -18 months from the date the property is placed in use;
(iii) aircraft (except combat type) and vessels (50 feet or more in length) - 60 months from the date the property is placed in use. Donation of noncombat aircraft and vessels of 50’ or more in length shall be subject to the requirements of a Conditional Transfer Document (CTD);
(iv) aircraft (combat type) restricted in perpetuity. Donation of combat-type aircraft shall be subject to the requirements of a conditional transfer document (form CS 408).
(4) The SASP will impose or reinforce any and all conditions involving special handling or use limitations set by the GSA due to the characteristics of the property regardless of the unit acquisition cost.
[(5) The SASP may reduce the period of restriction on items of property falling within the provisions of subparagraphs (3)(i)-(ii) of this subdivision at the time of donation for good and sufficient reasons, such as the condition of the property, or the proposed use (secondary, cannibalization, etc.).]
[(6)](5) The SASP, at its discretion, and when considered appropriate, may impose [such] additional terms, conditions, reservations and restrictions as it deems reasonable on the use of donable property [other than items with a unit acquisition cost of $5,000 or more, and passenger motor vehicles] beyond what GSA and the FMR requires.
[(7)](6) The SASP will impose on all donees the statutory requirement that all items donated must be placed into use or, if the property ceases to be used for a full year and the property is still usable, the property must be returned to the SASP or otherwise transferred as the SASP shall direct.
(b)(1) The SASP [may] must seek GSA’s approval to amend, modify, or grant releases of, any term, condition, reservation or restriction it has imposed on donated items of personal property [in accordance with the standards prescribed in subpart 4 of this subsection, provided that the circumstances pertinent to each situation have been affirmatively demonstrated to the prior satisfaction of SASP and made a matter of public record.] which is mandated by GSA or the FMR. The SASP may amend, modify, or grant release of, any item, any “additional” conditions, reservations or restrictions which the SASP has imposed above and beyond what GSA or the FMR requires.
[(2) The GSA standards for amending the terms, conditions, require that:
(i) at a minimum of 12 months from the date of being placed into use, the trade-in will result in increased utilization value to the donee,
(ii) the trade-in is on a one-for-one basis only (one donated item being traded for one like item having similar use potential) and
(iii) the item being acquired has an estimated market value at least equal to the estimated market value of the item being traded in.]
(c) Restrictions on Property. The SASP may amend or grant releases, during the period of restriction, from [the] any “additional” SASP imposed terms, conditions, reservations or restrictions [it] the SASP has imposed on donated property, in accordance with the following standards, provided that the conditions pertinent to each situation have been affirmatively demonstrated to the satisfaction of the SASP, and have been made a matter of public record[:].
(1) Secondary Utilization or Cannibalization. Secondary utilization or cannibalization may be accomplished, provided that:
(i) disassembly of the item, for use of its component parts for secondary use or repair and maintenance of a similar item, has greater potential benefit than utilization of the item in its existing form;
(ii) components with a single item acquisition cost of $5,000 or more will remain under the restrictions imposed by the transfer document. Components with a single item acquisition cost of less than $5,000 will be released from the restrictions imposed by the transfer document. All components, regardless of acquisition cost will continue to be used or be otherwise disposed of in accordance with applicable law and regulations;
(iii) a written report of such action is made by the donee to the SASP, including a list of all components, resulting from the secondary utilization or cannibalization.
Text of proposed rule and any required statements and analyses may be obtained from:
Arthur K. Posluszny, NYS Office of General Services, 41st fl Corning Tower, The Governor Nelson A. Rockefeller ESP, Albany, 12242, (518) 474-0571, email: arthur.posluszny@ogs.ny.gov
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
Consensus Rule Making Determination
This rule is being proposed as a consensus rule because, in accordance with State Administrative Procedure Act § 102(11)(b), no person is likely to object to its adoption because it merely conforms the New York State Plan of Operation (State Plan) for federal surplus property to the requirements of Federal Management Regulations (FMR) § 102-37.465. There was no discretion in developing the text for these regulations since they were required to mirror the provisions of the FMR.
Job Impact Statement
The Office of General Services (“OGS”) projects there will be no substantial adverse impact on jobs or employment opportunities in the State of New York as a result of this rule. The subject regulations are simply being made in response to a review conducted by the General Services Administration, Federal Acquisition Service, Personal Property Management Division, pursuant to Federal Management Regulations (FMR) § 102-37.465. During such review, recommended as well as required changes to the New York State Plan were provided in a report provided to OGS. Since nothing in the proposed regulations will increase or decrease the number of jobs in New York State, have an adverse impact on any specific region in New York State, and no adverse impact is anticipated on jobs in New York State, no further steps were needed to ascertain these facts and none were taken. Accordingly, a job impact statement is not required and one has not been prepared.
