[Federal Register: July 24, 2000 (Volume 65, Number 142)]
[Rules and Regulations]
[Page 45539-45543]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24jy00-15]
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GENERAL SERVICES ADMINISTRATION
41 CFR Parts 101-49 and 102-42
[FPMR Amendment H-206]
RIN 3090-AH09
Utilization, Donation, and Disposal of Foreign Gifts and
Decorations
AGENCY: Office of Governmentwide Policy, GSA.
ACTION: Final rule.
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SUMMARY: The General Services Administration (GSA) is revising the
Federal Property Management Regulations (FPMR) by moving coverage on
the utilization, donation, and disposal of foreign gifts and
decorations 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.
EFFECTIVE DATE: July 24, 2000.
FOR FURTHER INFORMATION CONTACT: Martha Caswell, Director, Personal
Property Management Policy Division (MTP), 202-501-3846.
SUPPLEMENTARY INFORMATION:
A. Background
The purpose of this final rule is to update, streamline, and
clarify part 101-49 and move the part into the Federal Management
Regulation (FMR). The rule is written in a plain language question and
answer format. In this format, a question and its answer combine to
establish a rule. This means the employee and the agency must follow
the language contained in both the question and its answer.
B. Executive Order 12866
GSA has determined that this final rule is not a significant rule
for the purposes of Executive Order 12866 of 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 101-49 and 102-42
Conflict of interests, Decorations, medals, awards, Foreign
relations, Government property, Government property management.
For the reasons set forth in the preamble, GSA amends 41 CFR
chapters 101 and 102 as follows:
CHAPTER 101--[AMENDED]
1. Part 101-49 is revised to read as follows:
PART 101-49--UTILIZATION, DONATION, AND DISPOSAL OF FOREIGN GIFTS
AND DECORATIONS
Authority: Sec. 205(c), 63 Stat. 390 (40 U.S.C. 486(c)); sec.
515, 91 Stat. 862 (5 U.S.C. 7342).
Sec. 101-49.000 Cross-reference to the Federal Management Regulation
(FMR) (41 CFR chapter 102, parts 102-1 through 102-220).
For information on utilization, donation, and disposal of foreign
gifts and decorations previously contained in this part, see FMR part
42 (41 CFR part 102-42).
CHAPTER 102--[AMENDED]
2. Part 102-42 is added to subchapter B of chapter 102 to read as
follows:
PART 102-42--UTILIZATION, DONATION, AND DISPOSAL OF FOREIGN GIFTS
AND DECORATIONS
Subpart A--General Provisions
Sec.
102-42.5 What does this part cover?
Definitions
102-42.10 What definitions apply to this part?
Care, Handling and Disposition
102-42.15 Under what circumstances may an employee retain a
foreign gift or decoration?
102-42.20 What is the typical disposition process for gifts and
decorations that employees are not authorized to retain?
102-42.25 Who retains custody of gifts and decorations pending
disposal?
102-42.30 Who is responsible for the security, care and handling,
and delivery of gifts and decorations to GSA, and all costs
associated with such functions?
102-42.35 Can the employing agency be reimbursed for transfers of
gifts and decorations?
Appraisals
102-42.40 When is a commercial appraisal necessary?
102-42.45 Who obtains a commercial appraisal?
102-42.50 Is there a special format for a commercial appraisal?
102-42.55 What does the employing agency do with the appraisal?
Special Disposals
102-42.60 Who is responsible for gifts and decorations received by
Senators and Senate employees?
102-42.65 What happens if the Commission on Art and Antiquities
does not dispose of a gift or decoration?
102-42.70 Who handles gifts and decorations received by the
President or a member of the President's family?
102-42.75 How are gifts containing hazardous materials handled?
Subpart B--Utilization of Foreign Gifts and Decorations
102-42.80 To whom do ``we'', ``you'', and their variants refer?
102-42.85 What gifts or decorations must we report to GSA?
102-42.90 What is the requirement for reporting gifts or
decorations that were retained for official use but are no longer
needed?
102-42.95 How do we report gifts and decorations as excess
personal property?
102-42.100 How can we obtain an excess gift or decoration from
another agency?
102-42.105 What special information must be included on the
transfer request (SF 122)?
102-42.110 How must we justify a transfer request?
102-42.115 What must we do when the transferred gifts and
decorations are no longer required for official use?
Subpart C--Donation of Foreign Gifts and Decorations
102-42.120 When may gifts or decorations be donated to State
agencies?
102-42.125 How is donation of gifts or decorations accomplished?
102-42.130 Are there special requirements for the donation of
gifts and decorations?
Subpart D--Sale or Destruction of Foreign Gifts and Decorations
102-42.135 Whose approval must be obtained before a foreign gift
or decoration is offered for public sale?
102-42.140 How is a sale of a foreign gift or decoration to an
employee conducted?
102-42.145 When is public sale of a foreign gift or decoration
authorized?
102-42.150 What happens to proceeds from sales?
102-42.155 Can foreign gifts or decorations be destroyed?
[[Page 45540]]
Authority: Sec. 205(c), 63 Stat. 390 (40 U.S.C. 486(c)); sec.
515, 91 Stat. 862 (5 U.S.C. 7342).
Subpart A--General Provisions
Sec. 102-42.5 What does this part cover?
This part covers the acceptance, utilization, donation, and
disposal of gifts and decorations from foreign governments under 5
U.S.C. 7342. If you receive gifts other than from a foreign government
you should refer to Sec. 102-36.405.
Definitions
Sec. 102-42.10 What definitions apply to this part?
The following definitions apply to this part:
Decoration means an order, device, medal, badge, insignia, emblem,
or award offered by or received from a foreign government.
Employee means:
(1) An employee as defined by 5 U.S.C. 2105 and an officer or
employee of the United States Postal Service or of the Postal Rate
Commission;
(2) An expert or consultant who is under contract under 5 U.S.C.
3109 with the United States or any agency, department, or establishment
thereof, including, in the case of an organization performing services
under that section, any individual involved in the performance of such
services;
(3) An individual employed by or occupying an office or position in
the government of a territory or possession of the United States or the
government of the District of Columbia;
(4) A member of a uniformed service as specified in 10 U.S.C 101;
(5) The President and the Vice President;
(6) A Member of Congress as defined by 5 U.S.C. 2106 (except the
Vice President) and any Delegate to the Congress; and
(7) The spouse of an individual described in paragraphs (1) through
(6) of this definition of employee (unless this individual and his or
her spouse are separated) or a dependent (within the meaning of section
152 of the Internal Revenue Code of 1986 (26 U.S.C. 152)) of this
individual, other than a spouse or dependent who is an employee under
paragraphs (1) through (6) of this definition of employee.
Employing agency means:
(1) The department, agency, office, or other entity in which an
employee is employed, for other legislative branch employees and for
all executive branch employees;
(2) The Committee on Standards of Official Conduct of the House of
Representatives, for Members and employees of the House of
Representatives, except that those responsibilities specified in 5
U.S.C. 7342(c)(2)(A), (e)(1), and (g)(2)(B) must be carried out by the
Clerk of the House;
(3) The Select Committee on Ethics of the Senate, for Senators and
employees of the Senate, except that those responsibilities (other than
responsibilities involving approval of the employing agency) specified
in 5 U.S.C. 7342(c)(2), (d), and (g)(2)(B) must be carried out by the
Secretary of the Senate; and
(4) The Administrative Offices of the United States Courts, for
judges and judicial branch employees.
Foreign government means:
(1) Any unit of foreign government, including any national, State,
local, and municipal government and their foreign equivalents;
(2) Any international or multinational organization whose
membership is composed of any unit of a foreign government; and
(3) Any agent or representative of any such foreign government unit
or organization while acting as such.
Gift means a monetary or non-monetary present (other than a
decoration) offered by or received from a foreign government. A
monetary gift includes anything that may commonly be used in a
financial transaction, such as cash or currency, checks, money orders,
bonds, shares of stock, and other securities and negotiable financial
instruments.
Minimal value means a retail value in the United States at the time
of acceptance of $260 or less, except that:
(1) GSA will adjust the definition of minimal value in regulations
prescribed by the Administrator of General Services every three years,
in consultation with the Secretary of State, to reflect changes in the
consumer price index for the immediately preceding 3-year period; and
(2) Regulations of an employing agency may define minimal value for
its employees to be less, but not more than, the value provided under
this definition.
Care, Handling and Disposition
Sec. 102-42.15 Under what circumstances may an employee retain a
foreign gift or decoration?
Employees, with the approval of their employing agencies, may
accept and retain:
(a) Gifts of minimal value received as souvenirs or marks of
courtesy. When a gift of more than minimal value is accepted, the gift
becomes the property of the U.S. Government, not the employee, and must
be reported.
(b) Decorations that have been offered or awarded for outstanding
or unusually meritorious performance. If the employing agency
disapproves retention of the decoration by the employee, the decoration
becomes the property of the U.S. Government.
Sec. 102-42.20 What is the typical disposition process for gifts and
decorations that employees are not authorized to retain?
(a) Non-monetary gifts or decorations. When an employee receives a
non-monetary gift above the minimal value or a decoration that he/she
is not authorized to retain:
(1) The employee must report the gift or decoration to his/her
employing agency within 60 days after accepting it.
(2) The employing agency determines if it will keep the gift or
decoration for official use.
(3) If it does not return the gift or decoration to the donor or
keep it for official use, the employing agency reports it as excess
personal property to GSA for Federal utilization screening under
Sec. 102-42.95.
(4) If GSA does not transfer the gift or decoration during
Federal utilization screening, the employee may purchase the gift
or decoration (see Sec. 102-42.140).
(5) If the employee declines to purchase the gift or decoration,
and there is no Federal requirement for either, GSA may offer it for
donation through State Agencies for Surplus Property (SASP) under part
101-44 of this title.
(6) If no SASP requests the gift or decoration for donation, GSA
may offer it for public sale, with the approval of the Secretary of
State, or will authorize the destruction of the gift or decoration
under part 101-45 of this title.
(b) Monetary gifts. When an employee receives a monetary gift above
the minimal value:
(1) The employee must report the gift to his/her employing agency
within 60 days after accepting it.
(2) The employing agency must:
(i) Report a monetary gift with possible historic or numismatic
(i.e., collectible) value to GSA; or
(ii) Deposit a monetary gift that has no historic or numismatic
value with the Department of the Treasury.
Sec. 102-42.25 Who retains custody of gifts and decorations pending
disposal?
(a) The employing agency retains custody of gifts and decorations
that employees have expressed an interest in purchasing.
(b) GSA will accept physical custody of gifts above the minimal
value, which
[[Page 45541]]
employees decline to purchase, or decorations that are not retained for
official use or returned to donors.
Note to Sec. 102-42.25(b): GSA will not accept physical custody
of foreign gifts of firearms. Firearms reported by the agency as
excess must be disposed of in accordance with part 101-42 of this
title.
Sec. 102-42.30 Who is responsible for the security, care and handling,
and delivery of gifts and decorations to GSA, and all costs associated
with such functions?
The employing agency is responsible for the security, care and
handling, and delivery of gifts and decorations to GSA, and all costs
associated with such functions.
Sec. 102-42.35 Can the employing agency be reimbursed for transfers of
gifts and decorations?
No, all transfers of gifts and decorations to Federal agencies or
donation through SASPs will be without reimbursement. However, the
employing agency may require the receiving agency to pay all or part of
the direct costs incurred by the employing agency in packing,
preparation for shipment, loading, and transportation.
Appraisals
Sec. 102-42.40 When is a commercial appraisal necessary?
(a) A commercial appraisal is necessary when an employee indicates
an interest in purchasing a gift or decoration and must be obtained
before the gift or decoration is reported to GSA for screening.
(b) GSA may also require the employing agency to obtain a
commercial appraisal of a gift or decoration that the agency no longer
needs before accepting the agency's report of the item as excess
personal property.
Sec. 102-42.45 Who obtains a commercial appraisal?
The employing agency obtains a commercial appraisal.
Sec. 102-42.50 Is there a special format for a commercial appraisal?
There is no special format for a commercial appraisal, but it must
be:
(a) On official company letterhead;
(b) Prepared in the United States;
(c) Dated; and
(d) Expressed in U.S. dollars.
Sec. 102-42.55 What does the employing agency do with the appraisal?
The employing agency must attach the commercial appraisal to a
Standard Form (SF) 120, Report of Excess Personal Property.
Special Disposals
Sec. 102-42.60 Who is responsible for gifts and decorations received
by Senators and Senate employees?
Gifts and decorations received by Senators and Senate employees are
deposited with the Secretary of the Senate for disposal by the
Commission on Art and Antiquities of the United States Senate under 5
U.S.C. 7342(e)(2). GSA is responsible for disposing of gifts or
decorations received by Members and employees of the House of
Representatives.
Sec. 102-42.65 What happens if the Commission on Art and Antiquities
does not dispose of a gift or decoration?
If the Commission on Art and Antiquities does not dispose of a gift
or decoration, then it must be reported to GSA for disposal. If GSA
does not dispose of a gift or decoration within one year of the
Commission's reporting, the Commission may:
(a) Request that GSA return the gift or decoration and dispose of
it itself; or
(b) Continue to allow GSA to dispose of the gift or decoration in
accordance with this part.
Sec. 102-42.70 Who handles gifts and decorations received by the
President or a member of the President's family?
The National Archives and Records Administration normally handles
gifts and decorations received by the President or a member of the
President's family.
Sec. 102-42.75 How are gifts containing hazardous materials handled?
Gifts containing hazardous materials are handled in accordance with
the requirements and provisions of this part and part 101-42 of this
title.
Subpart B--Utilization of Foreign Gifts and Decorations
Sec. 102-42.80 To whom do ``we'', ``you'', and their variants refer?
Use of pronouns ``we'', ``you'', and their variants throughout this
subpart refers to the employing agency.
Sec. 102-42.85 What gifts or decorations must we report to GSA?
You must report to GSA gifts of more than minimal value, except for
monetary gifts that have no historic or numismatic value (see Sec. 102-
42.20), or decorations the employee is not authorized to retain that
are:
(a) Not being retained for official use or have not been returned
to the donor; or
(b) Received by a Senator or a Senate employee and not disposed of
by the Commission on Art and Antiquities of the United States Senate.
Sec. 102-42.90 What is the requirement for reporting gifts or
decorations that were retained for official use but are no longer
needed?
Non-monetary gifts or decorations that were retained for official
use must be reported to GSA as excess property within 30 days after
termination of the official use.
Sec. 102-42.95 How do we report gifts and decorations as excess
personal property?
You must complete a Standard Form (SF) 120, Report of Excess
Personal Property, and send it to the General Services Administration,
Property Management Division (FBP), Washington, DC 20406. Conspicuously
mark the SF 120, ``FOREIGN GIFTS AND/OR DECORATIONS'', and include the
following information:
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Entry Description
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(a) Identity of Employee.......... Give the name and position of the
employee.
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(b) Description of Item........... Give a full description of the gift
or decoration, including the title
of the decoration.
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(c) Identity of Foreign Government Give the identity of the foreign
government (if known) and the name
and position of the individual who
presented the gift or decoration.
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(d) Date of Acceptance............ Give the date the gift or decoration
was accepted by the employee.
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[[Page 45542]]
(e) Appraised Value............... Give the appraised value in United
States dollars of the gift or
decoration, including the cost of
the appraisal. (The employing
agency must obtain a commercial
appraisal before the gift is
offered for sale to the employee.)
------------------------------------------------------------------------
(f) Current Location of Item...... Give the current location of the
gift or decoration.
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(g) Employing Agency Contact Give the name, address, and
Person. telephone number of the accountable
official in the employing agency.
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(h) Purchase Interest or Donation Indicate whether the employee wants
Recommendation. to buy the gift, or whether the
employee wants the gift or
decoration donated to an eligible
donee through GSA's surplus
donation program. Document this
interest in a letter outlining any
special significance of the gift or
decoration to the proposed donee.
Also provide the mailing address
and telephone number of both the
employee and the proposed donee.
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(i) Administration................ Give the Administration in which the
gift or decoration was received
(for example, Clinton
Administration).
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(j) Multiple Items................ Identify each gift or decoration as
a separate line item. Report
multiple gift items that make up a
set (for example, a tea set, a
necklace and matching earrings) as
a single line item.
------------------------------------------------------------------------
Sec. 102-42.100 How can we obtain an excess gift or decoration from
another agency?
To obtain an excess gift or decoration from another agency, you
would complete a Standard Form (SF) 122, Transfer Order Excess Personal
Property, or any other transfer order form approved by GSA, for the
desired item(s) and submit the form to the General Services
Administration, Property Management Division (FBP), Washington, DC
20406.
Sec. 102-42.105 What special information must be included on the SF
122?
Conspicuously mark the SF 122, ``FOREIGN GIFTS AND/OR
DECORATIONS'', and include all information furnished by the employing
agency as specified in Sec. 102-42.95. Also, include on the form the
following statement: ``At such time as these items are no longer
required, they will be reported to the General Services Administration,
Property Management Division (FBP), Washington, DC 20406, and will be
identified as foreign gift items and cross-referenced to this transfer
order number.''
Sec. 102-42.110 How must we justify a transfer request?
You may only request excess gifts and decorations for public
display or other bona fide agency use and not for the personal benefit
of any individual. GSA may require that transfer orders be supported by
justifications for the intended display or official use of requested
gifts and decorations. Jewelry and watches that are transferred for
official display must be displayed with adequate provisions for
security.
Sec. 102-42.115 What must we do when the transferred gifts and
decorations are no longer required for official use?
When transferred gifts and decorations are no longer required for
official use, report these gifts and decorations to the GSA as excess
property on a SF 120, including the original transfer order number or a
copy of the original transfer order.
Subpart C--Donation of Foreign Gifts and Decorations
Sec. 102-42.120 When may gifts or decorations be donated to State
agencies?
If there is no Federal requirement for the gifts or decorations,
and if gifts were not sold to the employee, GSA may make the gifts or
decorations available for donation to State agencies under this subpart
and part 101-44 of this title.
Sec. 102-42.125 How is donation of gifts or decorations accomplished?
The State Agencies for Surplus Property (SASP) must initiate the
process on behalf of a prospective donee (e.g., units of State or local
governments and eligible non-profit organizations) by:
(a) Completing a Standard Form (SF) 123, Transfer Order Surplus
Personal Property, and submitting it to General Services
Administration, Property Management Division (FBP), Washington, DC
20406. Conspicuously mark the SF 123 with the words, ``FOREIGN GIFTS
AND/OR DECORATIONS.''
(b) Attaching an original and two copies of a letter of intent to
each SF 123 submitted to GSA. An authorized representative of the
proposed donee must sign and date the letter, setting forth a detailed
plan for use of the property. The letter of intent must provide the
following information:
(1) Identifying the donee applicant, including its legal name and
complete address, its status as a public agency or as an eligible
nonprofit tax-exempt activity, and the name, title, and telephone
number of its authorized representative;
(2) A description of the gift or decoration requested, including
the gift's commercially appraised value or estimated fair market value
if no commercial appraisal was performed; and
(3) Details on the planned use of the gift or decoration, including
where and how it will be used and how it will be safeguarded.
Sec. 102-42.130 Are there special requirements for the donation of
gifts and decorations?
Yes, GSA imposes special handling and use limitations on the
donation of gifts and decorations. The SASP distribution document must
contain or incorporate by reference the following:
(a) The donee must display or use the gift or decoration in
accordance with its GSA-approved letter of intent.
(b) There must be a period of restriction which will expire after
the gift or decoration has been used for the purpose stated in the
letter of intent for a period of 10 years, except that GSA may restrict
the use of the gift or decoration for such other period when the
inherent character of the property justifies such action.
(c) The donee must allow the right of access to the donee's
premises at
[[Page 45543]]
reasonable times for inspection of the gift or decoration by duly
authorized representatives of the SASP or the U.S. Government.
(d) During the period of restriction, the donee must not:
(1) Sell, trade, lease, lend, bail, encumber, cannibalize or
dismantle for parts, or otherwise dispose of the property;
(2) Remove it permanently for use outside the State;
(3) Transfer title to the gift or decoration directly or
indirectly; or
(4) Do or allow anything to be done that would contribute to the
gift or decoration being seized, attached, lost, stolen, damaged, or
destroyed.
(e) If the gift or decoration is no longer suitable, usable, or
needed by the donee for the stated purpose of donation during the
period of restriction, the donee must promptly notify the General
Services Administration, Property Management Division (FBP),
Washington, DC 20406, through the SASP, and upon demand by GSA, title
and right to possession of the gift or decoration reverts to the U.S.
Government. In this event, the donee must comply with transfer or
disposition instructions furnished by GSA through the SASP, and pay the
costs of transportation, handling, and reasonable insurance during
transportation.
(f) The donee must comply with all additional conditions covering
the handling and use of any gift or decoration imposed by GSA.
(g) If the donee fails to comply with the conditions or limitations
during the period of restriction, the SASP may demand return of the
gift or decoration and, upon such demand, title and right to possession
of the gift or decoration reverts to the U.S. Government. In this
event, the donee must return the gift or decoration in accordance with
instructions furnished by the SASP, with costs of transportation,
handling, and reasonable insurance during transportation to be paid by
the donee or as directed by the SASP.
(h) If the gift or decoration is lost, stolen, or cannot legally be
recovered or returned for any other reason, the donee must pay to the
U.S. Government the fair market value of the gift or decoration at the
time of its loss, theft, or at the time that it became unrecoverable as
determined by GSA. If the gift or decoration is damaged or destroyed,
the SASP may require the donee to:
(1) Return the item and pay the difference between its former fair
market value and its current fair market value; or
(2) Pay the fair market value, as determined by GSA, of the item
had it not been damaged or destroyed.
Subpart D--Sale or Destruction of Foreign Gifts and Decorations
Sec. 102-42.135 Whose approval must be obtained before a foreign gift
or decoration is offered for public sale?
The Secretary of State or the Secretary's designee must approve any
sale of foreign gifts or decorations (except sale of foreign gifts to
the employee, that is approved in this part).
Sec. 102-42.140 How is a sale of a foreign gift or decoration to an
employee conducted?
Foreign gifts and decorations must be offered first through
negotiated sales to the employee who has indicated an interest in
purchasing the item. The sale price must be the commercially appraised
value of the gift plus the cost of the appraisal. Sales must be
conducted and documented in accordance with part 101-45 of this title.
Sec. 102-42.145 When is public sale of a foreign gift or decoration
authorized?
A public sale is authorized if a foreign gift or decoration:
(a) Survives Federal utilization screening;
(b) Is not purchased by the employee;
(c) Survives donation screening; and
(d) Is approved by the Secretary of State or designee.
Sec. 102-42.150 What happens to proceeds from sales?
The proceeds from the sale of foreign gifts or decorations must be
deposited in the Treasury as miscellaneous receipts, unless otherwise
authorized.
Sec. 102-42.155 Can foreign gifts or decorations be destroyed?
Yes, foreign gifts or decorations that are not sold under this part
may be destroyed and disposed of as scrap or for their material content
under part 101-45 of this title.
Dated: July 13, 2000.
David J. Barram,
Administrator of General Services.
[FR Doc. 00-18328 Filed 7-21-00; 8:45 am]
BILLING CODE 6820-24-D