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; ( printed 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.

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:

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).

2. Amend § 102-35.10 by revising paragraphs (e) thru (g) to read as follows:

3. Amend § 102-35.20 by—

a. Adding, in alphabetical order, the definitions “Commerce Control List Items (CCLIs)” and “Demilitarization”;

b. Revising the definitions “Excess personal property”, “Exchange/sale”, and “Executive agency”;

c. Adding, in alphabetical order, the definition of “Fair Market Value”;

d. Revising the definition “Federal agency”;

e. Adding, in alphabetical order, the definitions “Hazardous personal property”, “Holding agency”, and “Munitions List Items”;

f. Revising the definition “Personal property”;

g. Adding, in alphabetical order, the definition “State agency for surplus property (SASP)”;

h. Revising the definition “Surplus personal property”; and

i. Adding, in alphabetical order, the definition “Surplus release date”.

The additions and revisions read as follows:

4. Amend § 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”.

5. Amend § 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”.

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.

7. Amend § 102-38.35 by removing the definitions of “Estimated fair market value”, “Holding Agency”, “Personal property”, and “State Agency for Surplus Property (SASP)”.

8. Amend § 102-39.20 by removing the definitions of “Excess property”, “Exchange/sale”, “Executive agency”, and “Federal agency”.

9. Amend § 102-40.30 by removing the definitions of “Commerce Control List Item (CCLI)”, “Demilitarization”, and “Munitions List Item (MLI)”.

85 FR 35236