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League of Minnesota Cities Model Policy 7/11/2016 Donation of Surplus Equipment to a Nonprofit Organization Page 1 League of Minnesota Cities Model Policy for Donation of Surplus City Equipment to a Nonprofit Organization Pursuant to Minnesota Statutes, Section 471.3459 Cities may find additional guidelines on donations to organizations in the League’s Information Memo, Public Purpose Expenditures. Background Information In 2016, the Minnesota Legislature passed a new law authorizing a “local government,” including statutory and home rule charter cities, to donate “surplus equipment” to a “nonprofit organization.” See Ch. 87, H.F. No. 1003 (2016), to be codified in part as Minnesota Statutes, Section 471.3459 (2016). Section 471.3459 defines “surplus equipment” as “equipment used by a local government public works department, and cellular phones and emergency medical and firefighting equipment that is no longer needed by the local government because it does not meet industry standards for emergency medical services, police, or fire departments, or has minimal or no resale value.” A “nonprofit organization” is defined as “an organization formed under section 501(c)(3) of the Internal Revenue Code.” Before surplus equipment can be donated, a city “must adopt a policy on how it will determine what equipment is surplus eligible for donation and how it will determine which nonprofit organizations may receive donations.” In addition, the policy “must address the obligations of the local government to disclose to the nonprofit that the surplus equipment may be defective and cannot be relied upon for safety purposes.” The new law also adds a new municipal tort immunity to Minnesota Statues, Section 466.03. Municipalities, including all cities, are immune from liability for any tort claim “resulting from the use of surplus equipment donated by the municipality to a nonprofit organization under section 471.3459.” Immunity does not apply if “the claim is a direct result of fraud or intentional misrepresentation.” Minnesota Statutes, Section 466.03, subd. 25 (2016). This model policy is intended to help cities comply with the policy adoption requirement in Minnesota Statutes, Section 471.3459. The provisions of this model policy are recommendations. Each city should carefully consider its own circumstances before adopting a policy. In particular, cities may want to impose additional requirements or restrictions on the types of nonprofit organizations that are eligible for donations, how or whether surplus equipment will be advertised, and how the city will determine which nonprofit organizations will receive donations. The new law becomes effective on Aug. 1, 2016.