Current through Register Vol. XLI, No. 50, December 13, 2024
Section 148-4-8 - Terms and Conditions on Donated Property8.1. Period of use restrictions. The following period of restrictions are established by the SASP. 8.1.a. Property with the unit acquisition cost of five thousand dollars ($5,000) or more is restricted from sale or disposal by the donee for eighteen (18) months from the date the property is placed into use; 8.1.b. All passenger motor vehicles, regardless of acquisition cost, are restricted from sale or disposal by the donee for eighteen (18) months from the date the property is placed into use;8.1.c. Noncombat aircraft and vessels (fifty (50) feet or more in length) with a unit cost of five thousand dollars ($5,000) or more are restricted from sale or disposal by the donee for a period of five (5) years from the date the property is placed into use. Such donations will be subject to the conditional transfer document requirements. The conditional transfer document is located in Appendix C of the State Plan of Operation.8.1.d. Combat aircraft are restricted from sale or disposal by the donee in perpetuity. This type of aircraft is also subject to conditional transfer document requirements. The conditional transfer document is located in Appendix C of the State Plan of Operation.8.2. SASP may impose reasonable terms and conditions on use of other donated property The SASP may place restrictions on items with a unit acquisition cost under five thousand dollars ($5,000). If such restrictions are deemed necessary, they will be listed on the distribution document. The distribution document can be found in Appendix C of the State Plan of Operation. The SASP may amend, modify or grant release on any terms, conditions, reservations or restrictions it has imposed on donated property in accordance with the following standard provided that the conditions pertinent to each situation have been affirmatively demonstrated to the prior satisfaction of the SASP and made a matter of public record.
8.2.a. Secondary utilization or cannibalization may be accomplished provided that: 8.2.a.1. 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.8.2.a.2. Items approved for disassembly or cannibalization will remain under the period of restriction imposed by the transfer document pending completion of the proposed secondary use or cannibalization.8.2.a.3. A written report of such action is made by the donee to the SASP, listing all components resulting from the secondary utilization or cannibalization which have a single acquisition cost of five thousand dollars ($5,000) or more. These components will remain under the restrictions imposed by the transfer document. Components with a single acquisition cost or less than five thousand dollars ($5,000) will be released from the restrictions imposed by the transfer document. However, these components will continue to be used or be otherwise disposed of in accordance with applicable law and regulations.8.2.b. Trade-in of an item on a similar replacement: An item of donated personal property may be traded in or used as whole or part payment for another like item of property provided that: 8.2.b.1. The item traded in is not, when the request is made, in non-state plan status for violation of the terms, conditions, reservations or restrictions placed upon it.8.2.b.2. The item traded in has been used by the donee for eligible purposes for at least twelve (12) months from the date of being placed into use, and it has been demonstrated that the trade-in will result in increased utilization value to the donee.8.2.b.3. The trade-in is on a one-for-one basis only, i.e., one (1) donated item being traded for one (I) like item having similar use potential.8.2.b.4. The item being acquired has an estimated market value at least equal to the estimated market value of the item being traded in.8.2.b.5. The item acquired is made subject to the period of restriction remaining on the item trade-in.8.2.b.6. Prior written approved of the GSA is required for property under federal restrictions or special handling conditions or use limitations imposed by GSA.8.2.c. Abrogation: Except in cases involving the failure to use or the misuse of donated property, abrogation of restrictions imposed by the SASP in the transfer document may be authorized upon payment to the SASP of an amount representing the fair market value at the time of donation less a credit for the time the property was used for the purpose for which donated, during the period of restriction. Provided that the SASP determines that such action will not result in excessive revenue to the donee and provided further, that the property has been used for at least twelve (12) months from the date of being placed in use.8.2.d. Revision of the acquisition cost. The acquisition cost of a donated item may be revised provided that the request is made in writing by the donee, and it is determined by the SASP that the listed acquisition cost is unrealistic in view of its research and development costs, its incompleteness due to missing parts or its generally deteriorated condition. This revision will be coordinated with the GSA in order to affect fair adjustment of entitlement statistics.8.2.e. Destruction and abandonment: A donated item of personal property may be destroyed or abandoned by a donee when it is determined that the item has no commercial value or the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale. The determination will be based on a finding made in writing by the SASP and, in accordance with 41 CFR 102-37, the SASP will prescribe the means and methods whereby the property is destroyed or abandoned.8.3. Enforcement of State Plan: The enforcement of the terms and conditions, reservations and restrictions imposed by the SASP of donated property, or the remedy of breaches of such terms and conditions, may be satisfied:8.3.a. When payment is made to the SASP for any and all fair rental values due and payable for any unauthorized use of donated property; or,8.3.b. When payment is made to the SASP for either the fair market value or gross proceeds of sale, whichever is in the best interest of the State, for the unauthorized disposal or destruction of donated property; or,8.3.c. When donated property is recovered by the SASP, custody accountability and distribution of such reverted property are the responsibilities of the SASP; or,8.3.d. When payment collected is remitted to the GSA for deposit in the U.S. Treasury, in accordance with 41 CFR 102-37.8.4. Reduction in the Period of Restriction: Provided an item of donated property is not in State plan status, a reduction in the period of restriction may be authorized when a revised standard covering the period of restriction is promulgated by the SASP. The reduction in the period of restriction only applies to those imposed by the State over those imposed by law and /or GSA.8.5. The SASP will impose on the donation of any surplus item of property, regardless of acquisition cost, such conditions involving special handling or use limitations as GSA may determine necessary because of the characteristics of the property. The SASP will impose on all donees the statutory requirement that all items donated must be placed into use within one (1) year of donation and be used for one (1) year thereafter or otherwise returned to the SASP while the property is still usable.8.6. SASP will impose on donation of property regardless of unit acquisition cost, such conditions involving special handling or use limitations as determined by GSA. The application for eligibility outlines the terms, conditions, reservations and restrictions under which all federal surplus personal property will be donated. This form must be signed by the chief executive officer of the donee agreeing to these requirements prior to the donation of any surplus property. The terms and conditions stated in the form will also be printed on the distribution document. For the application for eligibility, see Appendix C.