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

Published date09 June 2020
Citation85 FR 35236
Record Number2020-10830
SectionProposed rules
CourtGeneral Services Administration
Federal Register, Volume 85 Issue 111 (Tuesday, June 9, 2020)
[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]
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                GENERAL SERVICES ADMINISTRATION
                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.
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                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.
                SUPPLEMENTARY INFORMATION:
                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
                parties.
                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:
                0
                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).
                PART 102-35--DISPOSITION OF PERSONAL PROPERTY
                0
                2. Amend Sec. 102-35.10 by revising paragraphs (e) thru (g) to read as
                follows:
                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).
                0
                3. Amend Sec. 102-35.20 by--
                0
                a. Adding, in alphabetical order, the definitions ``Commerce Control
                List Items (CCLIs)'' and ``Demilitarization'';
                0
                 b. Revising the definitions ``Excess personal property'', ``Exchange/
                sale'', and ``Executive agency'';
                0
                c. Adding, in alphabetical order, the definition of ``Fair Market
                Value'';
                0
                 d. Revising the definition ``Federal agency'';
                0
                 e. Adding, in alphabetical order, the definitions ``Hazardous personal
                property'', ``Holding agency'', and ``Munitions List Items'';
                0
                 f. Revising the definition ``Personal property'';
                0
                 g. Adding, in alphabetical order, the definition ``State agency for
                surplus property (SASP)'';
                0
                 h. Revising the definition ``Surplus personal property''; and
                0
                 i. Adding, in alphabetical order, the definition ``Surplus release
                date''.
                 The additions and revisions read as follows:
                Sec. 102-35.20 What definitions apply to GSA's personal property
                regulations?
                * * * * *
                 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
                condition.''
                 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-
                2609).
                 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
                State.
                * * * * *
                 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.
                * * * * *
                PART 102-36--DISPOSITION OF EXCESS PERSONAL PROPERTY
                Sec. 102-36.40 [Amended]
                0
                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''.
                PART 102-37--DONATION OF SURPLUS PERSONAL PROPERTY
                Sec. 102-37.25 [Amended]
                0
                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''.
                0
                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.
                * * * * *
                PART 102-38--SALE OF PERSONAL PROPERTY
                Sec. 102-38.35 [Amended]
                0
                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)''.
                PART 102-39--REPLACEMENT OF PERSONAL PROPERTY PURSUANT TO THE
                EXCHANGE/SALE AUTHORITY
                Sec. 102-39.20 [Amended]
                0
                8. Amend Sec. 102-39.20 by removing the definitions of ``Excess
                property'', ``Exchange/sale'', ``Executive agency'', and ``Federal
                agency''.
                PART 102-40--UTILIZATION AND DISPOSITION OF PERSONAL PROPERTY WITH
                SPECIAL HANDLING REQUIREMENTS
                Sec. 102-40.30 [Amended]
                0
                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]
                 BILLING CODE 6820-14-P
                

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