April 6, 1982

Mr. S. J. Axtman 
Director 
Central Services 
Bureau of Administration 
State Capitol 
Pierre, South Dakota 57501

Rural water associations obtaining federal surplus property

Official Opinion No. 82-20

Dear Mr. Axtman:

You have requested an official opinion from this office based on the  following factual situation:

FACTS: 

Some rural water associations, organized as private nonprofit tax exempt organizations, wish to obtain federal surplus property.

In view of the foregoing facts, you have asked the following question:

QUESTION: 

Under state law, can private nonprofit rural water associations be considered public or quasi-public agencies eligible to obtain federal surplus property?

In Section 101-44.207 of the Federal Property Management Regulations of the General Services Administration, the following entities are eligible to receive surplus federal property: 

(i)  State or department, agency, or instrumentality thereof; 

(ii) Political subdivision of the State, including any writ of local government or economic development district, or any department, agency, or instrumentality thereof; 

(iii)  Instrumentality created by compact or other agreement between States  or political subdivisions; 

(iv)  Multijudicial substate districts established by or pursuant to State law; and 

(v)  Indian tribe, band, group, pueblo, or community located on a State reservation.

Section 101-44.207(b)(1).  See also Section 101-44.207(b)(2)(V); Section 101- 44.207(d).

Insofar as rural water associations, organized as private nonprofit tax exempt organizations, are not state instrumentalities nor established by or pursuant to State law, it is my opinion that they may not obtain federal surplus property.

Respectfully submitted,

Mark V. Meierhenry
Attorney General