[Federal Register Volume 71, Number 140 (Friday, July 21, 2006)]
[Rules and Regulations]
[Pages 41369-41375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-11584]



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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 101-48 and 102-41

[FPMR Amendment 2006-05; FPMR Case 2004-101-1; FMR Case 2004-102-2]
RIN 3090-AH11


Federal Property Management Regulations; Disposition of Seized, 
Forfeited, Voluntarily Abandoned, and Unclaimed Personal Property

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

ACTION: Final rule.

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SUMMARY: The General Services Administration (GSA) is amending the 
Federal Property Management Regulations (FPMR) by revising coverage on 
utilization, donation, or disposal of abandoned and forfeited personal 
property and moving it into the Federal Management Regulation (FMR). A 
cross-reference is added to the FPMR to direct readers to the coverage 
in the FMR. The FMR is written in plain language to provide agencies 
with updated regulatory material that is easy to read and understand.

DATES: Effective Date: July 21, 2006.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat, Room 4035, 
GS Building, Washington, DC 20405, at (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Robert A. Holcombe, Office of Governmentwide 
Policy, Office of Travel, Transportation, and Asset Management (MT), at 
(202) 501-3828, or Internet e-mail at [email protected]. Please 
cite FPMR Amendment 2006-05, FPMR case 2004-101-1, FMR case 2004-102-2.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule updates, streamlines, and clarifies FPMR part 101-
48 and moves the part into the Federal Management Regulation (FMR). The 
final rule is written in a plain language question and answer format. 
This style uses an active voice, shorter sentences, and pronouns. A 
question and its answer combine to establish a rule. The employee and 
the agency must follow the language contained in both the question and 
its answer.
    A proposed rule was published in the Federal Register (70 FR 15792, 
March 29, 2005). The only activity providing comments was the General 
Services Administration's Federal Supply Service (FSS). The FSS had 15 
comments that are summarized, along with our responses, below:
    1. Title of part 102-41. Comment to confirm that the title 
correctly uses the term ``disposition,'' as the title to FPMR part 101-
48 uses the word ``disposal''.
    Response: Agreed. The term ``disposition'' includes disposal and 
more accurately portrays the scope of the discussion of this part.
    2. Section 102-41.5. Comment that ``disposition'' should be used 
instead of ``disposal'' to be consistent with the title of this part.
    Response: Agreed. This change was made.
    3. Section 102-41.5. Comment that the text should make clear that 
GSA does not normally accept responsibility for the disposal of 
overseas excess property.
    Response: Agreed. Clarifying text has been added.
    4. Section 102-41.20. Comment that the term ``beer'' is defined in 
this part, whereas ``malted beverage'' was defined in FPMR part 101-48.
    Response: No change. The term ``malted beverage'' does not appear 
in this part, and does not need to be defined.
    5. Section 102-41.20. Comment that the definition for ``unclaimed 
property'' should include the provision that the owner may file a claim 
for up to three years.
    Response: No change. The definition for ``unclaimed property'' does 
not need to include this provision. This aspect of the property is 
discussed in section 102-41.180.
    6. Section 102-41.20. Comment that the definition for ``voluntarily 
abandoned property'' should specify that evidence of voluntary 
abandonment can be either in writing or circumstantial.
    Response: Agreed. This change has been made.
    7. Section 102-41.30(a). Comment that the reference to ``GSA 
regional office'' be changed to ``GSA Region3/NCR'' as Region 3/NCR has 
primary responsibility to file appropriate applications with the 
Federal district court.
    Response: Agreed. This change has been made.
    8. Section 102-41.30(b)(4). Comment that this provision should 
specify the possibility of abandoning or destroying the property, not 
just destruction.
    Response: Agreed. This change has been made.
    9. Section 102-41.35. Comment that individual agencies may have 
their own legislative authorities that may not require these agencies 
to report personal property to GSA as excess.
    Response: Agreed. A general statement was added that allowed for 
special authorities outside 40 U.S.C.
    10. Section 102-41.75. Comment about GSA's ability to retain sales 
proceeds.
    Response: No change. If an agency has specific legislative 
authority to retain proceeds from the sale of forfeited property, the 
agency may retain sales proceeds. This is addressed in the provision.
    11. Section 102-41.80. Comment regarding ``voluntarily abandoned 
property'' and that evidence relating to the abandonment of this 
property may not always be formally documented.
    Response: Agreed. The definition of ``voluntarily abandoned 
property'' has been changed to take into account that evidence of 
voluntary abandonment can be circumstantial.
    12. Section 102-41.105. Comment regarding the inclusion of a 
provision for ``abandonment or destruction.''
    Response: Agreed. This provision has been added.
    13. Section 102-41.115. Comment regarding GSA's ability to retain 
sales proceeds upon the sale of ``voluntarily abandoned property.''
    Response: No change. Similar to the comment and response to comment 
number 10, an agency that has specific statutory authority to retain 
proceeds may retain proceeds.
    14. Section 102-41.130(b). Comment regarding the disposition of 
unclaimed property and how the owner filing a claim would obtain a 
reimbursement.
    Response: No change. The provisions of these subparts relating to 
the disposition of unclaimed property provide for the finding agency to 
obtain reimbursement for the transfer of this property or set aside 
sales proceeds to reimburse the owner filing a claim within 3 years. 
The finding agency is responsible to pay the reimbursement to the owner 
filing a claim.
    15. Section 102-41.180. Comment regarding GSA's ability to retain 
sales proceeds from the sale of unclaimed property on behalf of the 
finding agency.
    Response: No change. The finding agency must deposit proceeds from 
the sale of unclaimed personal property in a special account for three 
years pending a possible claim by the owner. After three years, the 
ability of an agency to retain the proceeds depends on whether an 
agency has specific legislative authority to do so. Otherwise, if an 
agency does not have specific legislative authority, the proceeds are 
deposited as miscellaneous receipts in the U.S. Treasury.

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    During the final review process with the Office of Management and 
Budget, additional clarifications were made regarding the use or 
disposal of voluntarily abandoned personal property and unclaimed 
personal property. Provisions are added to allow the agency to abandon 
or destroy property of low value if there is no anticipated use for the 
property in order to save storage and handling costs.

B. Executive Order 12866

    GSA has determined that this proposed rule is not a significant 
regulatory action for the purposes of Executive Order 12866 dated 
September 30, 1993.

C. Regulatory Flexibility Act

    This final rule is not required to be published in the Federal 
Register for notice and comment; therefore the Regulatory Flexibility 
Act, 5 U.S.C. 601, et seq., does not apply.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this final rule 
does not impose recordkeeping or information collection requirements, 
or the collection of information from offerors, contractors, or members 
of the public which require the approval of the Office of Management 
and Budget (OMB) under 44 U.S.C. 3501, et seq.

E. Small Business Regulatory Enforcement Fairness Act

    This final rule is exempt from Congressional review prescribed 
under 5 U.S.C. 801 since it relates solely to agency management and 
personnel.

List of Subjects in 41 CFR Parts 101-48 and 102-41

    Government property management.

    Dated: February 23, 2006.
David L. Bibb,
Acting Administrator of General Services.

0
For the reasons set forth in the preamble, GSA amends 41 CFR chapters 
101 and 102 as set forth below:

CHAPTER 101--FEDERAL PROPERTY MANAGEMENT REGULATIONS

0
1. Part 101-48 is revised to read as follows:

PART 101-48--UTILIZATION, DONATION, OR DISPOSAL OF ABANDONED AND 
FORFEITED PERSONAL PROPERTY

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


Sec.  101-48.000  Cross-reference to the Federal Management Regulation 
(FMR) (41 CFR chapter 102, part 102-41).

    For information on the disposition of seized, forfeited, 
voluntarily abandoned, and unclaimed personal property, see FMR part 
102-41 (41 CFR part 102-41).

CHAPTER 102--FEDERAL MANAGEMENT REGULATION

0
2. Part 102-41 is added to subchapter B of chapter 102 to read as 
follows:

PART 102-41--DISPOSITION OF SEIZED, FORFEITED, VOLUNTARILY 
ABANDONED, AND UNCLAIMED PERSONAL PROPERTY

Subpart A--General Provisions

Sec.
102-41.5 What does this part cover?
102-41.10 To whom do ``we'', ``you'', and their variants refer?
102-41.15 How do we request a deviation from these requirements and 
who can approve it?

Definitions

102-41.20 What definitions apply to this part?

Responsibility

102-41.25 Who retains custody and is responsible for the reporting, 
care, and handling of property covered by this part?
102-41.30 What is GSA's role in the disposition of property covered 
by this part?
102-41.35 Do we report to GSA all seized personal property subject 
to judicial forfeiture as well as forfeited, voluntarily abandoned, 
or unclaimed personal property not retained for official use?
Subpart B--Seized or Forfeited Personal Property
102-41.40 How is personal property forfeited?
102-41.45 May we place seized personal property into official use 
before the forfeiture process is completed?
102-41.50 May we retain forfeited personal property for official 
use?
102-41.55 Where do we send the reports for seized or forfeited 
personal property?
102-41.60 Are there special requirements in reporting seized or 
forfeited personal property to GSA?
102-41.65 What happens to forfeited personal property that is 
transferred or retained for official use?
102-41.70 Are transfers of forfeited personal property reimbursable?
102-41.75 May we retain the proceeds from the sale of forfeited 
personal property?
Subpart C--Voluntarily Abandoned Personal Property
102-41.80 When is personal property voluntarily abandoned?
102-41.85 What choices do I have for retaining or disposing of 
voluntarily abandoned personal property?
102-41.90 What happens to voluntarily abandoned personal property 
retained for official use?
102-41.95 Where do we send the reports for voluntarily abandoned 
personal property?
102-41.100 What information do we provide when reporting voluntarily 
abandoned personal property to GSA?
102-41.105 What happens to voluntarily abandoned personal property 
when reported to GSA?
102-41.110 Are transfers of voluntarily abandoned personal property 
reimbursable?
102-41.115 May we retain the proceeds received from the sale of 
voluntarily abandoned personal property?
Subpart D--Unclaimed Personal Property
102-41.120 How long must we hold unclaimed personal property before 
disposition?
102-41.125 What choices do I have for retaining or disposing of 
unclaimed personal property?
102-41.130 What must we do when we retain unclaimed personal 
property for official use?
102-41.135 How much reimbursement do we pay the former owner when he 
or she files a claim for unclaimed personal property that we no 
longer have?
102-41.140 When do we report to GSA unclaimed personal property not 
retained for official use?
102-41.145 Where do we send the reports for unclaimed personal 
property?
102-41.150 What special information do we provide on reports of 
unclaimed personal property?
102-41.155 Is unclaimed personal property available for transfer to 
another Federal agency?
102-41.160 May we retain the reimbursement from transfers of 
unclaimed personal property?
102-41.165 May we require reimbursement for the costs incurred in 
the transfer of unclaimed personal property?
102-41.170 Is unclaimed personal property available for donation?
102-41.175 May we sell unclaimed personal property?
102-41.180 May we retain the proceeds from the sale of unclaimed 
personal property?
Subpart E--Personal Property Requiring Special Handling
102-41.185 Are there certain types of forfeited, voluntarily 
abandoned, or unclaimed property that must be handled differently 
than other property addressed in this part?

Firearms

102-41.190 May we retain forfeited, voluntarily abandoned, or 
unclaimed firearms for official use?
102-41.195 How do we dispose of forfeited, voluntarily abandoned, or 
unclaimed firearms not retained for official use?
102-41.200 Are there special disposal provisions for firearms that 
are seized and forfeited for a violation of the National Firearms 
Act?



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Forfeited Distilled Spirits, Wine, and Beer

102-41.205 Do we report all forfeited distilled spirits, wine, and 
beer to GSA for disposal?

Drug Paraphernalia

102-41.210 What are some examples of drug paraphernalia?
102-41.215 Do we report to GSA all forfeited, voluntarily abandoned, 
or unclaimed drug paraphernalia not required for official use?
102-41.220 Is drug paraphernalia forfeited under 21 U.S.C. 863 
available for transfer to other Federal agencies or donation through 
a State agency for surplus property (SASP)?
102-41.225 Are there special provisions to reporting and 
transferring drug paraphernalia forfeited under 21 U.S.C. 863?
102-41.230 May SASPs pick up or store donated drug paraphernalia in 
their distribution centers?
102-41.235 May we sell forfeited drug paraphernalia?

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

Subpart A--General Provisions


Sec.  102-41.5  What does this part cover?

    (a) This part covers the disposition of seized, forfeited, 
voluntarily abandoned, and unclaimed personal property under the 
custody of any Federal agency located in the United States, the U.S. 
Virgin Islands, American Samoa, Guam, the Commonwealth of Puerto Rico, 
the Northern Mariana Islands, the Federated States of Micronesia, the 
Marshall Islands, and Palau. Disposition of such personal property 
located elsewhere must be in accordance with holding agency 
regulations. Please see Sec.  102-36.380 of this subchapter B regarding 
the disposal of foreign excess. The General Services Administration 
(GSA) does not normally accept responsibility for disposal of property 
located outside the United States and its territories. Additional 
guidance on disposition of seized, forfeited, voluntarily abandoned, 
and unclaimed personal property that requires special handling (e.g., 
firearms, hazardous materials) is contained in part 101-42 of this 
title. Additional guidance on the disposition of firearms (as scrap 
only), distilled spirits, wine, beer, and drug paraphernalia is 
provided in subpart E of this part.
    (b) These regulations do not include disposal of seized, forfeited, 
voluntarily abandoned, and unclaimed personal property covered under 
authorities outside of the following statutes:
    (1) 40 U.S.C. 552, Abandoned or Unclaimed Property on Government 
Premises.
    (2) 40 U.S.C. 1306, Disposition of Abandoned or Forfeited Property.
    (3) 26 U.S.C. 5688, Forfeited Distilled Spirits, Wines, and Beer.
    (4) 26 U.S.C. 5872, Forfeited Firearms.
    (5) 21 U.S.C. 863, Drug Paraphernalia.


Sec.  102-41.10  To whom do ``we'', ``you'', and their variants refer?

    Use of pronouns ``we'', ``you'', and their variants throughout this 
part refer to the agency having custody of the personal property.


Sec.  102-41.15  How do we request a deviation from these requirements 
and who can approve it?

    See Sec. Sec.  102-2.60 through 102-2.110 of this chapter to 
request a deviation from the requirements of this part.

Definitions


Sec.  102-41.20  What definitions apply to this part?

    The following definitions apply to this part:
    Beer means an alcoholic beverage made from malted cereal grain, 
flavored with hops, and brewed by slow fermentation.
    Distilled spirits, as defined in the Federal Alcohol Administration 
Act (27 U.S.C. 211), means ethyl alcohol; hydrated oxide of ethyl; or 
spirits of wine, whiskey, rum, brandy, gin, and other distilled 
spirits, including all dilutions and mixtures thereof, for non-
industrial use.
    Drug paraphernalia means any equipment, product, or material 
primarily intended or designed for use in manufacturing, compounding, 
converting, concealing, processing, preparing, or introducing into the 
human body a controlled substance in violation of the Controlled 
Substances Act (see 21 U.S.C. 863). It includes items primarily for use 
in injecting, ingesting, inhaling, or otherwise introducing marijuana, 
cocaine, hashish, hashish oil, PCP, or amphetamines into the human 
body.
    Eleemosynary institution means any nonprofit health or medical 
institution that is organized and operated for charitable purposes.
    Firearms means any weapon, silencer, or destructive device designed 
to, or readily convertible to, expel a projectile by the action of an 
explosive, as defined in the Internal Revenue Code (26 U.S.C. 5845). 
Excludes antique firearms as defined in 26 U.S.C. 5845(g).
    Forfeited property means personal property that the Government has 
acquired ownership of through a summary process or court order pursuant 
to any law of the United States.
    Seized property means personal property that has been confiscated 
by a Federal agency, and whose care and handling will be the 
responsibility of the agency until final ownership is determined by the 
judicial process.
    Unclaimed property means personal property unknowingly abandoned 
and found on premises owned or leased by the Government, i.e., lost and 
found property.
    Voluntarily abandoned property means personal property abandoned to 
any Federal agency in a way that immediately vests title to the 
property in the Government. There must be written or circumstantial 
evidence that the property was intentionally and voluntarily abandoned. 
This evidence should be clear that the property was not simply lost by 
the owner.
    Wine means the fermented juice of a plant product, as defined in 27 
U.S.C. 211.

Responsibility


Sec.  102-41.25  Who retains custody and is responsible for the 
reporting, care, and handling of property covered by this part?

    You, the holding agency, normally retain physical custody of the 
property and are responsible for its care and handling pending final 
disposition. With the exception of property listed in Sec.  102-41.35, 
you must report promptly to the GSA forfeited, voluntarily abandoned, 
or unclaimed personal property not being retained for official use and 
seized property on which proceedings for forfeiture by court decree are 
being started or have begun. In general, the procedures for reporting 
such property parallel those for reporting excess personal property 
under part 102-36 of this subchapter B.


Sec.  102-41.30  What is GSA's role in the disposition of property 
covered by this part?

    (a) Seized property subject to court proceedings for forfeiture. 
(1) If the seizing agency files a request for the property for its 
official use, the GSA Region 3/National Capital Region will apply to 
the court for an order to turn the property over to the agency should 
forfeiture be decreed. If no such request has been filed, GSA will 
determine whether retention of the property for Federal official use is 
in the Government's best interest, and, if so, will apply to the court 
to order delivery of the property to--
    (i) Any other Federal agency that requests it; or
    (ii) The seizing agency to be retained for a reasonable time in 
case the

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property may later become necessary to any agency for official use.
    (2) In the event that the property is not ordered by competent 
authority to be forfeited to the United States, it may be returned to 
the claimant.
    (b) Forfeited, voluntarily abandoned, or unclaimed property. When 
forfeited, voluntarily abandoned, or unclaimed property is reported to 
GSA for disposal, GSA will direct its disposition by--
    (1) Transfer to another Federal agency;
    (2) Donation to an eligible recipient, if the property is not 
needed by a Federal agency and there are no requirements for 
reimbursement to satisfy the claims of owners, lien holders, or other 
lawful claimants;
    (3) Sale; or
    (4) Abandonment and destruction in accordance with Sec.  102-36.305 
of this subchapter B.


Sec.  102-41.35  Do we report to GSA all seized personal property 
subject to judicial forfeiture as well as forfeited, voluntarily 
abandoned, or unclaimed personal property not retained for official 
use?

    Yes, send GSA reports of excess (see Sec.  102-36.125 of this 
subchapter B) for all seized personal property subject to judicial 
forfeiture as well as forfeited, voluntarily abandoned, or unclaimed 
personal property not required for official use, except the following, 
whose disposition is covered under other statutes and authorities:
    (a) Forfeited firearms or munitions of war seized by the Department 
of Commerce and transferred to the Department of Defense (DOD) pursuant 
to 22 U.S.C. 401.
    (b) Forfeited firearms directly transferable to DOD by law.
    (c) Seeds, plants, or misbranded packages seized by the Department 
of Agriculture.
    (d) Game animals and equipment (other than vessels, including 
cargo) seized by the Department of the Interior.
    (e) Files of papers and undeliverable mail in the custody of the 
United States Postal Service.
    (f) Articles in the custody of the Department of Commerce Patent 
and Trademark Office that are in violation of laws governing trademarks 
or patents.
    (g) Unclaimed and voluntarily abandoned personal property subject 
to laws and regulations of the U.S. Customs and Border Protection, 
Department of Homeland Security.
    (h) Property seized in payment of or as security for debts arising 
under the internal revenue laws.
    (i) Lost, abandoned, or unclaimed personal property the Coast Guard 
or the military services are authorized to dispose of under 10 U.S.C. 
2575.
    (j) Property of deceased veterans left on a Government facility 
subject to 38 U.S.C. 8501.
    (k) Controlled substances reportable to the Drug Enforcement 
Administration, Department of Justice, Washington, DC 20537.
    (l) Forfeited, condemned, or voluntarily abandoned tobacco, snuff, 
cigars, or cigarettes which, if offered for sale, will not bring a 
price equal to the internal revenue tax due and payable thereon; and 
which is subject to destruction or delivery without payment of any tax 
to any hospital maintained by the Federal Government for the use of 
present or former members of the military.
    (m) Property determined appropriate for abandonment/destruction 
(see Sec.  102-36.305 of this subchapter B).
    (n) Personal property where handling and disposal is governed by 
specific legislative authority notwithstanding Title 40 of the United 
States Code.

Subpart B--Seized or Forfeited Personal Property


Sec.  102-41.40  How is personal property forfeited?

    Personal property that has been seized by a Federal agency may be 
forfeited through court decree (judicial forfeiture) or 
administratively forfeited if the agency has specific authority without 
going through the courts.


Sec.  102-41.45  May we place seized personal property into official 
use before the forfeiture process is completed?

    No, property under seizure and pending forfeiture cannot be placed 
into official use until a final determination is made to vest title in 
the Government.


Sec.  102-41.50  May we retain forfeited personal property for official 
use?

    Yes, you may retain for official use personal property forfeited to 
your agency, except for property you are required by law to sell. 
Retention of large sedans and limousines for official use is only 
authorized under the provisions of part 102-34 of this subchapter B. 
Except for the items noted in Sec.  102-41.35, report to GSA all 
forfeited personal property not being retained for official use.


Sec.  102-41.55  Where do we send the reports for seized or forfeited 
personal property?

    (a) Except for the items noted in paragraph (b) of this section, 
report seized or forfeited personal property not retained for official 
use to the General Services Administration, Property Management Branch 
(3FPD), Washington, DC 20407.
    (b) Report aircraft, firearms, and vessels to the regional GSA 
Property Management Branch office specified in Sec.  102-36.125 of this 
subchapter B.


Sec.  102-41.60  Are there special requirements in reporting seized or 
forfeited personal property to GSA?

    Yes, in addition to the information required in Sec.  102-36.235 of 
this subchapter B for reporting excess, you must indicate--
    (a) Whether the property--
    (1) Was forfeited in a judicial proceeding or administratively 
(without going through a court);
    (2) Is subject to pending court proceedings for forfeiture, and, if 
so, the name of the defendant, the place and judicial district of the 
court from which the decree will be issued, and whether you wish to 
retain the property for official use;
    (b) The report or case number under which the property is listed; 
and
    (c) The existence or probability of a lien, or other accrued or 
accruing charges, and the amount involved.


Sec.  102-41.65  What happens to forfeited personal property that is 
transferred or retained for official use?

    Except for drug paraphernalia (see Sec. Sec.  102-41.210 through 
102-41.235), forfeited personal property retained for official use or 
transferred to another Federal agency under this subpart loses its 
identity as forfeited property. When no longer required for official 
use, you must report it to GSA as excess for disposal in accordance 
with part 102-36 of this subchapter B. You must follow the additional 
provisions of subpart E of this part and part 101-42 of Chapter 101, 
Federal Property Management Regulations in this title when disposing of 
firearms, distilled spirits, wine, beer, and drug paraphernalia.


Sec.  102-41.70  Are transfers of forfeited personal property 
reimbursable?

    Recipient agencies do not pay for the property. However, you may 
charge the recipient agency all costs you incurred in storing, packing, 
loading, preparing for shipment, and transporting the property. If 
there are commercial charges incident to forfeiture prior to the 
transfer, the recipient agency must pay these charges when billed by 
the commercial organization. Any payment due to lien holders or other 
lawful claimants under a judicial forfeiture must be made in accordance 
with provisions of the court decree.

[[Page 41373]]

Sec.  102-41.75  May we retain the proceeds from the sale of forfeited 
personal property?

    No, you must deposit the sales proceeds in the U.S. Treasury as 
miscellaneous receipts, unless otherwise directed by court decree or 
specifically authorized by statute.

Subpart C--Voluntarily Abandoned Personal Property


Sec.  102-41.80  When is personal property voluntarily abandoned?

    Personal property is voluntarily abandoned when the owner of the 
property intentionally and voluntarily gives up title to such property 
and title vests in the Government. The receiving agency ordinarily 
documents receipt of the property to evidence its voluntary 
relinquishment. Evidence of the voluntary abandonment may be 
circumstantial.


Sec.  102-41.85  What choices do I have for retaining or disposing of 
voluntarily abandoned personal property?

    You may either retain or dispose of voluntarily abandoned personal 
property based on the following circumstances:
    (a) If your agency has a need for the property, you may retain it 
for official use, except for large sedans and limousines which may only 
be retained for official use as authorized under part 102-34 of this 
subchapter B. See Sec.  102-41.90 for how retained property must be 
handled.
    (b) If your agency doesn't need the property, you should determine 
whether it may be abandoned or destroyed in accordance with the 
provisions at FMR 102-36.305 through 102-36.330. Furthermore, in 
addition to the circumstances when property may be abandoned or 
destroyed without public notice at FMR 102-36.330, voluntarily 
abandoned property may also be abandoned or destroyed without public 
notice when the estimated resale value of the property is less than 
$500.
    (c) If the property is not retained for official use or abandoned 
or destroyed, you must report it to GSA as excess in accordance with 
Sec.  102-41.95.


Sec.  102-41.90  What happens to voluntarily abandoned personal 
property retained for official use?

    Voluntarily abandoned personal property retained for official use 
or transferred to another Federal agency under this subpart loses its 
identity as voluntarily abandoned property. When no longer required for 
official use, you must report it to GSA as excess, or abandon/destroy 
the property, in accordance with part 102-36 of this subchapter B.


Sec.  102-41.95  Where do we send the reports for voluntarily abandoned 
personal property?

    Except for aircraft, firearms, and vessels, report voluntarily 
abandoned personal property to the regional GSA Property Management 
Branch office for the region in which the property is located. Report 
aircraft, firearms, and vessels to the regional GSA Property Management 
Branch office specified in Sec.  102-36.125 of this subchapter B.


Sec.  102-41.100  What information do we provide when reporting 
voluntarily abandoned personal property to GSA?

    When reporting voluntarily abandoned personal property to GSA, you 
must provide a description and location of the property, and annotate 
that the property was voluntarily abandoned.


Sec.  102-41.105  What happens to voluntarily abandoned personal 
property when reported to GSA?

    Voluntarily abandoned personal property reported to GSA will be 
made available for transfer, donation, sale, or abandonment/destruction 
in accordance with parts 102-36, 102-37, 102-38, and Sec. Sec.  102-
36.305 through 102-36.330 of this subchapter B, respectively. You must 
follow the additional provisions of Sec. Sec.  102-41.190 through 102-
41.235 and part 101-42 of Chapter 101, Federal Property Management 
Regulations in this title when disposing of firearms and other property 
requiring special handling.


Sec.  102-41.110  Are transfers of voluntarily abandoned personal 
property reimbursable?

    No, all transfers of voluntarily abandoned personal property will 
be without reimbursement. However, you may charge the recipient agency 
all costs you incurred in storing, packing, loading, preparing for 
shipment, and transporting the property.


Sec.  102-41.115  May we retain the proceeds received from the sale of 
voluntarily abandoned personal property?

    No, you must deposit the sales proceeds in the U.S. Treasury as 
miscellaneous receipts unless your agency has specific statutory 
authority to do otherwise.

Subpart D--Unclaimed Personal Property


Sec.  102-41.120  How long must we hold unclaimed personal property 
before disposition?

    You must generally hold unclaimed personal property for 30 calendar 
days from the date it was found. Unless the previous owner files a 
claim, title to the property vests in the Government after 30 days, and 
you may retain or dispose of the property in accordance with this part. 
However, see the following sections for handling of unclaimed personal 
property under specific circumstances.


Sec.  102-41.125  What choices do I have for retaining or disposing of 
unclaimed personal property?

    You may either retain or dispose of unclaimed abandoned personal 
property based on the following circumstances:
    (a) If your agency has a need for the property, you may retain it 
for official use if you have held the unclaimed property for 30 
calendar days and the former owner has not filed a claim. After 30 
days, title vests in the Government and you may retain the unclaimed 
property for official use. Large sedans and limousines which may only 
be retained for official use as authorized under part 102-34 of this 
subchapter B. See Sec.  102-41.130 for how retained property must be 
handled.
    (b) If your agency doesn't need the property, you should determine 
whether it may be immediately abandoned or destroyed in accordance with 
the provisions at FMR 102-36.305 through 102-36.330. You are not 
required to hold unclaimed property for 30 days, if you decide to 
abandon or destroy it. Title to the property immediately vests in the 
Government in these circumstances. In addition to the circumstances 
when property may be abandoned or destroyed without public notice at 
FMR 102-36.330, unclaimed personal property may also be abandoned or 
destroyed without public notice when the estimated resale value of the 
property is less than $500. See Sec.  102-41.135 for procedures to be 
followed if a claim is filed.
    (c) If the property is not retained for official use or abandoned 
or destroyed, you must report it to GSA as excess in accordance with 
Sec.  102-41.140.


Sec.  102-41.130  What must we do when we retain unclaimed personal 
property for official use?

    (a) You must maintain records of unclaimed personal property 
retained for official use for 3 years after title vests in the 
Government to permit identification of the property should the

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former owner file a claim for the property. You must also deposit funds 
received from disposal of such property in a special account to cover 
any valid claim filed within this 3-year period.
    (b) When you no longer need the unclaimed property which you have 
placed in official use, report it as excess in the same manner as other 
excess property under part 102-36 of this subchapter B.


Sec.  102-41.135  How much reimbursement do we pay the former owner 
when he or she files a claim for unclaimed personal property that we no 
longer have?

    If the property was sold, reimbursement of the property to the 
former owner must not exceed any proceeds from the disposal of such 
property, less the costs of the Government's care and handling of the 
property. If the property was abandoned or destroyed in accordance with 
Sec.  102-41.125, or otherwise used or transferred, reimbursement of 
the property to the former owner must not exceed the estimated resale 
value of the property at the time of the vesting of the property with 
the Government, less costs incident to the care and handling of the 
property, as determined by the General Services Administration, Office 
of Travel, Transportation, and Asset Management (MT), Washington DC, 
20405.


Sec.  102-41.140  When do we report to GSA unclaimed personal property 
not retained for official use?

    After you have held the property for 30 calendar days and no one 
has filed a claim for it, the title to the property vests in the 
Government. If you decide not to retain the property for official use, 
report it as excess to GSA in accordance with part 102-36 of this 
subchapter B.


Sec.  102-41.145  Where do we send the reports for unclaimed personal 
property?

    Except for the items noted in Sec.  102-36.125 of this subchapter 
B, report unclaimed personal property to the regional GSA Property 
Management Branch office for the region in which the property is 
located.


Sec.  102-41.150  What special information do we provide on reports of 
unclaimed personal property?

    On reports of unclaimed personal property, you must provide the 
report or case number assigned by your agency, property description and 
location, and indicate the property as unclaimed and the estimated fair 
market value.


Sec.  102-41.155  Is unclaimed personal property available for transfer 
to another Federal agency?

    Yes, unclaimed personal property is available for transfer to 
another Federal agency, but only after 30 calendar days from the date 
of finding such property and no claim has been filed by the former 
owner, and with fair market value reimbursement from the recipient 
agency. The transferred property then loses its identity as unclaimed 
property and becomes property of the Government, and when no longer 
needed it must be reported excess in accordance with part 102-36 of 
this subchapter B.


Sec.  102-41.160  May we retain the reimbursement from transfers of 
unclaimed personal property?

    No, you must deposit the reimbursement from transfers of unclaimed 
personal property in a special account for a period of 3 years pending 
a claim from the former owner. After 3 years, you must deposit these 
funds into miscellaneous receipts of the U.S. Treasury unless your 
agency has statutory authority to do otherwise.


Sec.  102-41.165  May we require reimbursement for the costs incurred 
in the transfer of unclaimed personal property?

    Yes, you may require reimbursement from the recipient agency of any 
direct costs you incur in the transfer of the unclaimed property (e.g., 
storage, packing, preparation for shipping, loading, and 
transportation).


Sec.  102-41.170  Is unclaimed personal property available for 
donation?

    No, unclaimed personal property is not available for donation 
because reimbursement at fair market value is required.


Sec.  102-41.175  May we sell unclaimed personal property?

    Yes, you may sell unclaimed personal property after title vests in 
the Government (as provided for in Sec.  102-41.120) and when there is 
no Federal interest. You may sell unclaimed personal property subject 
to the same terms and conditions as applicable to surplus personal 
property and in accordance with part 102-38 of this subchapter B.


Sec.  102-41.180  May we retain the proceeds from the sale of unclaimed 
personal property?

    No, you must deposit proceeds from the sale of unclaimed personal 
property in a special account to be maintained for a period of 3 years 
pending a possible claim by the former owner. After the 3-year period, 
you must deposit the funds in the U.S. Treasury as miscellaneous 
receipts or in such other agency accounts when specifically authorized 
by statute.

Subpart E--Personal Property Requiring Special Handling


Sec.  102-41.185  Are there certain types of forfeited, voluntarily 
abandoned, or unclaimed property that must be handled differently than 
other property addressed in this part?

    Yes, you must comply with the additional provisions in this subpart 
when disposing of the types of property listed here.

Firearms


Sec.  102-41.190  May we retain forfeited, voluntarily abandoned, or 
unclaimed firearms for official use?

    Generally, no; you may retain forfeited, voluntarily abandoned, or 
unclaimed firearms only when you are statutorily authorized to use 
firearms for official purposes.


Sec.  102-41.195  How do we dispose of forfeited, voluntarily 
abandoned, or unclaimed firearms not retained for official use?

    Report forfeited, voluntarily abandoned, or unclaimed firearms not 
retained for official use to the General Services Administration, 
Property Management Branch (7FP-8), Denver, CO 80225-0506 for disposal 
in accordance with Sec.  101-42.1102-10 of the Federal Property 
Management Regulations in this title.


Sec.  102-41.200  Are there special disposal provisions for firearms 
that are seized and forfeited for a violation of the National Firearms 
Act?

    Yes, firearms seized and forfeited for a violation of the National 
Firearms Act (26 U.S.C. 5801--5872) are subject to the disposal 
provisions of 26 U.S.C. 5872(b). When there is no contrary judgment or 
action under such forfeiture, GSA will direct the disposition of the 
firearms. GSA may--
    (a) Authorize retention for official use by the Treasury 
Department;
    (b) Transfer to an executive agency for use by it; or
    (c) Order the firearms destroyed.

Forfeited Distilled Spirits, Wine, and Beer


Sec.  102-41.205  Do we report all forfeited distilled spirits, wine, 
and beer to GSA for disposal?

    (a) Yes, except do not report distilled spirits, wine, and beer not 
fit for human consumption or for medicinal, scientific, or mechanical 
purposes. When reporting, indicate quantities and kinds, proof rating, 
and condition for

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shipping. GSA (3FPD) may transfer such property to another Federal 
agency for official purposes, or donate it to eligible eleemosynary 
institutions for medicinal purposes only.
    (b) Forfeited distilled spirits, wine, and beer that are not 
retained for official use by the seizing agency or transferred or 
donated to eligible recipients by GSA must be destroyed. You must 
document the destruction with a record of the time and location, 
property description, and quantities destroyed.

Drug Paraphernalia


Sec.  102-41.210  What are some examples of drug paraphernalia?

    Some examples of drug paraphernalia are--
    (a) Metal, wooden, acrylic, glass, stone, plastic or ceramic pipes 
with or without screens, permanent screens, hashish heads, or punctured 
metal bowls;
    (b) Water pipes;
    (c) Carburetion tubes and devices;
    (d) Smoking and carburetion masks;
    (e) Roach clips (objects used to hold burning material, such as a 
marijuana cigarette, that has become too small or too short to be held 
in the hand);
    (f) Miniature spoons with level capacities of one-tenth cubic 
centimeter or less;
    (g) Chamber pipes;
    (h) Carburetor pipes;
    (i) Electric pipes;
    (j) Air-driven pipes;
    (k) Chillums;
    (l) Bongs;
    (m) Ice pipes or chillers;
    (n) Wired cigarette papers; or
    (o) Cocaine freebase kits.


Sec.  102-41.215  Do we report to GSA all forfeited, voluntarily 
abandoned, or unclaimed drug paraphernalia not required for official 
use?

    No, only report drug paraphernalia that has been seized and 
forfeited for a violation of 21 U.S.C. 863. Unless statutorily 
authorized to do otherwise, destroy all other forfeited, voluntarily 
abandoned, or unclaimed drug paraphernalia. You must ensure the 
destruction is performed in the presence of two witnesses (employees of 
your agency), and retain in your records a signed certification of 
destruction.


Sec.  102-41.220  Is drug paraphernalia forfeited under 21 U.S.C. 863 
available for transfer to other Federal agencies or donation through a 
State Agency for Surplus Property (SASP)?

    Yes, but GSA will only transfer or donate forfeited drug 
paraphernalia for law enforcement or educational purposes and only for 
use by Federal, State, or local authorities. Federal or State Agencies 
for Surplus Property (SASP) requests for such items must be processed 
through the General Services Administration, Property Management Branch 
(3FPD), Washington, DC 20407. The recipient must certify on the 
transfer document that the drug paraphernalia will be used for law 
enforcement or educational purposes only.


Sec.  102-41.225  Are there special provisions to reporting and 
transferring drug paraphernalia forfeited under 21 U.S.C. 863?

    Yes, you must ensure that such drug paraphernalia does not lose its 
identity as forfeited property. Reports of excess and transfer 
documents for such drug paraphernalia must include the annotation that 
the property was seized and forfeited under 21 U.S.C. 863.


Sec.  102-41.230  May SASPs pick up or store donated drug paraphernalia 
in their distribution centers?

    No, you must release donated drug paraphernalia directly to the 
donee as designated on the transfer document.


Sec.  102-41.235  May we sell forfeited drug paraphernalia?

    No, you must destroy any forfeited drug paraphernalia not needed 
for transfer or donation and document the destruction as specified in 
Sec.  102-41.215.
[FR Doc. E6-11584 Filed 7-20-06; 8:45 am]
BILLING CODE 6820-14-S