FMR 102-42 - Utilization, Donation, and Disposal of Foreign Gifts and Decorations

§102-42.5—What does this part cover?

This part covers the acceptance and disposition of gifts of more than minimal value 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 §102-36.405 of this subchapter B.

1. Definitions

   §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 $335 or less, except that 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.

2. Care, Handling and Disposition
   
   §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:

   1. 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.
   2. 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.

   §102-42.20—What is the typical disposition process for gifts and decorations that employees are not authorized to retain?

   1. 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:
   2. 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 §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 §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 102-37 of this subchapter B.
      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 102-38 of this subchapter B.
   2. Monetary gifts. When an employee receives a monetary gift above the minimal value:
   3. 1. The employee must report the gift to his/her employing agency within 60 days after accepting it.
      2. The employing agency must:
      3. 1. Report a monetary gift with possible historic or numismatic (i.e., collectible) value to GSA; or
         2. Deposit a monetary gift that has no historic or numismatic value with the Department of the Treasury.

   §102-42.25—Who retains custody of gifts and decorations pending disposal?

   1. The employing agency retains custody of gifts and decorations that employees have expressed an interest in purchasing.
   2. GSA will accept physical custody of gifts above the minimal value, which employees decline to purchase, or decorations that are not retained for official use or returned to donors.

   Note to §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.

   §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.

   §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.

3. Appraisals

   §102-42.40—When is a commercial appraisal necessary?

   1. 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.
   2. 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.

   §102-42.45—Who obtains a commercial appraisal?

   The employing agency obtains a commercial appraisal.

   §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:

   1. On official company letterhead;
   2. Prepared in the United States;
   3. Dated; and
   4. Expressed in U.S. dollars.

   §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

   §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.

   §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:

   1. Request that GSA return the gift or decoration and dispose of it itself; or
   2. Continue to allow GSA to dispose of the gift or decoration in accordance with this part.

   §102-42.70—Who handles gifts and decorations received by the President or Vice President or a member of their family?

   The National Archives and Records Administration normally handles gifts and decorations received by the President and Vice President or a member of the President's or Vice President's family.

   §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.

§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.

§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 §102-42.20), or decorations the employee is not authorized to retain that are:

1. Not being retained for official use or have not been returned to the donor; or
2. Received by a Senator or a Senate employee and not disposed of by the Commission on Art and Antiquities of the United States Senate.

§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.

§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:

1. Entry Description

2. 1. Identity of Employee.

      Give the name and position of the employee.

   2. Description of Item.

      Give a full description of the gift or decoration, including the title of the decoration.

   3. 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.

   4. Date of Acceptance.

      Give the date the gift or decoration was accepted by the employee.

   5. 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.)

   6. Current Location of Item.

      Give the current location of the gift or decoration.

   7. Employing Agency Contact Person.

      Give the name, address, and telephone number of the accountable official in the employing agency.

   8. Purchase Interest or Donation Recommendation.

      Indicate whether the employee wants 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 done.

   9. Administration

      Give the Administration in which the gift or decoration was received (for example, Clinton Administration).

   10. 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.

   §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.

   §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 §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."

   §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.

   §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.