PUBLIC LAW 107-217—AUG. 21, 2002 116 STAT. 1093 eligible institution in the State and, if requested by the recipient, to arrange shipment of the property directly to the recipient. (F) SERVICE CHARGES. — If the state agency is authorized to assess and collect service charges from participating recipients to cover direct and reasonable indirect costs of its activities, the method of establishing the charges shall be set out in the state plan of operation. The charges shall be fair and equitable and shall be based on services the state agency performs, including screening, packing, crating, removal, and transportation. (G) TERMS, CONDITIONS, RESERVATIONS, AND RESTRIC- TIONS. — (i) IN GENERAL.—The state plan of operation shall provide that the state agency— (I) may impose reasonable terms, conditions, reservations, and restrictions on the use of property to be donated under subsection (c); and (II) shall impose reasonable terms, conditions, reservations, and restrictions on the use of a passenger motor vehicle and any item of property having a unit acquisition cost of $5,000 or more. (ii) SPECIAL LIMITATIONS. — If the Administrator finds that an item has characteristics that require special handling or use limitations, the Administrator may impose appropriate conditions on the donation of the property. (H) UNUSABLE PROPERTY. — (i) DISPOSAL. —The state plan of operation shall provide that surplus personal property which the state agency determines cannot be used by eligible recipients shall be disposed of— (I) subject to the disapproval of the Administrator within 30 days after notice to the Administrator, through transfer by the state agency to another state agency or through abandonment or destruction if the property has no commercial value or if the estimated cost of continued care and handling exceeds estimated proceeds from sale; or (II) under this subtitle, on terms and conditions and in a manner the Administrator prescribes. (ii) PROCEEDS FROM SALE. —Notwithstanding subchapter IV of this chapter and section 702 of this title, the Administrator, from the proceeds of sale of property described in subsection (b), may reimburse the state agency for expenses that the Administrator considers appropriate for care and handling of the property, (f) COOPERATIVE AGREEMENTS WITH STATE AGENCIES.— (1) PARTIES TO THE AGREEMENT.—For purposes of carrying out this section, a cooperative agreement may be made between a state surplus property distribution agency designated under this section and— (A) the Administrator; (B) the Secretary of Education, for property transferred under section 550(c) of this title;
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