February 25, 1977
In accordance with Part VI of the plan of operation the State agency may amend or grant releases during the period of restriction from the terms, conditions, reservations, or restrictions it has imposed on donated property; in accordance with the following standards provided that the conditions pertinent to each situation have been affirmatively demonstrated to the prior satisfaction of the State agency, and have been made a matter of record:
(1)Secondary utilization or cannibalization. Secondary utilization or cannibalization may be accomplished provided that: (a) Disassembly of the item for use of its component parts for secondary use or repair and maintenance of a similar item has greater potential benefit than utilization of the item in its existing form;(b) Items approved for disassembly or cannibalization will remain under the period of restriction imposed by the transfer document pending completion of the proposed secondary use or cannibalization; and(c) A written report of such action is made by the donee to the State agency, including a list of all components resulting from the secondary utilization or cannibalization which have a single item acquisition cost of $3,000 or more. These components will remain under the restrictions imposed by the transfer document. Components with a single item acquisition cost of less than $3,000 will be released from the restrictions imposed by the transfer document. However, these components will continue to be used or be otherwise disposed of in accordance with applicable law and regulations.(2)Trade-in of an item on a similar replacement. An item of donated personal property may be traded in or used as whole or part payment for another like item of property provided:(a) The item being traded in is not, when the request is made, in compliance status for violation of the terms, conditions, reservations or restrictions placed on it.(b) The item being traded in has been used by the donee for eligible purposes for at least 12 months from the date of being placed in use, and it has been demonstrated that the trade-in will result in increased utilization value to the donee;(c) The trade-in is on a one-for-one basis only, i.e., one donated item being traded for one like item having similar use potential.(d) The item being acquired has an estimated market value at least equal to the estimated market value of the item being traded in, and(e) The item is made subject to the period of restriction remaining on the item traded in.(3)Abrogation. Except in cases involving the failure to use or the misuse of donated property, abrogation of restriction imposed by the State agency in the transfer instrument may be authorized upon payment to the State agency of an amount representing the fair market value at the time of donation less a credit for the time the property was used for the purpose for which donated, during the period of restriction, and provided that the State agency determines that such action will not result in a windfall revenue to the donee, and provided further that the property has been used for at least 12 months from the date of being placed in use.(4)Revision of the acquisition cost. The acquisition cost of an item may be revised provided that the request therefor is made in writing by the donee, and it is determined by the State agency that the listed acquisition cost is unrealistic in view of its research and development costs, its incompleteness due to missing parts, or its generally deteriorated condition.(5)Destruction and abandonment. A donated item of personal property may be destroyed or abandoned by a donee when it is determined that the item has no commercial value or the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale. The determination shall be based on a finding made in writing by the State agency and the State agency shall prescribe the means and methods whereby the property shall be destroyed or abandoned.(6)Enforcement of compliance. The enforcement of the terms and conditions, reservations and restrictions imposed by the State Agency of donated property, or the remedy of breaches of such terms and conditions, may be satisfied: (a) When payment is made to the State agency of any and all fair rental values due and payable for any unauthorized use of donated property.(b) When payment is made to the State agency of either the fair market value or gross proceeds of sale, whichever is in the best interest of the State, for the unauthorized disposal or destruction of donated property; or(c) When donated property is recovered by the State agency. Custody accountability and distribution of such reverted property are the responsibilities of the State agency.(7)Reduction in the period of restriction. Provided an item of donated property is not in compliance status, a reduction the period of restriction may be authorized when a revised standard covering the period of restriction is promulgated by the State agency.(8)Limitations. These provisions are not applicable to: (a) Donated military-type aircraft, or other item of property on which GSA has imposed special handing condition or use limitations.(b) Property which was not placed in use for the purposes for which acquired within one year from the date the property was placed in use, and continued in use for one year from the date the property was placed in use, except with respect to secondary use or cannibalization as provided in FPMR 101-44.208(h).Tenn. Comp. R. & Regs. 0690, 0690-01, ch. 0690-01-01, 0690-01-01-.13, exh. A