Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1.
Items worth $2,000 or more.
The following general conditions, in conjunction with
conditions imposed by the terms of an individual sale of items, are imposed by
the state of Minnesota and are applicable to items with a unit acquisition cost
of $2,000 or more:
A. There shall be a
period of utilization restriction which shall expire after the property has
been used for the purpose for which acquired for a period of four years, except
that all state of Minnesota agencies shall be required to manage federal
surplus property in accordance with statewide inventory management
programs.
B. From the date it
receives the property, the donee shall not sell, trade, lease, lend, bail,
cannibalize, encumber, or otherwise dispose of such property or remove it
permanently for use outside the state, without prior written approval of the
FSP activity, until expiration of all utilization restrictions.
C. If at any time from the date it receives
the property until expiration of utilization restrictions, any of the property
is no longer suitable, usable, or further needed by the donee, the donee shall
promptly notify, in writing, the FSP activity and shall be directed, in
writing, by the FSP activity to return the property to the FSP activity,
release the property to another donee or another state agency, sell, or
otherwise dispose of the property.
D. In the event that any property acquired
through the FSP activity is sold, traded, leased, loaned, bailed, cannibalized,
encumbered, or otherwise disposed of contrary to state or federal law or
regulation, relating but not limited to the General Services Administration
special handling or use regulations, the donee shall pay the FSP activity the
proceeds of the disposal or the fair market value or the fair rental value of
the property at the time of such disposal as determined by the FSP activity.
"Fair market value" and "fair rental value" as used herein shall mean the value
of obtaining a like item in the local industrial, retail, or other
market.
E. The proceeds from any
authorized sale or transfer shall be reimbursed pursuant to part
1260.0800, subparts
1 to
3.
Subp. 2.
Items worth less than $2,000.
The following conditions are imposed by the state of
Minnesota, applicable to items with a unit acquisition cost of less than
$2,000:
A. Appropriate inventory
controls shall be established by each donee to ensure optimum property
utilization and control in conformance with federal and state law and
rules.
B. Except as listed in item
C, property with acquisition cost of less than $2,000 which is no longer needed
or suitable for use in the federal surplus program may be sold or junked by the
donee possessing such property, consistent with any laws and internal policies
and procedures governing such disposition. Donees shall be authorized to retain
all revenues derived from such sale of surplus property, assuming that all
aforementioned criteria have been met.
C. Consistent with federal statutory
requirements, all property must be placed in use within one year and be used
for one year after being placed in use. Donees in violation of this requirement
shall return such property to the FSP activity.
Subp. 3.
Penalty.
Failure to comply with all terms, conditions, and provisions
of state and federal law and regulation may subject donee to removal from FSP
eligibility.