The do's and dont's of disposal have nothing to do with safety and more to do with local environmental regulations. If you are a bussiness (as is the case of Bob) you are most likely SOL. You have to arrange for proper disposal. If you are a hobbiest, then you most likely fall under the household excemption. As others noted above selenium is a wonderful fertilizer in small quantities, but most importantly you have to remember that selenium toner has other ingredients like Ammonia and sulfur, also good for your plants.
Selenium toner will last for years, so it can be used even after 2 years of storage. Ann's suggestion is a good one, with one modification, the print has to be exposed and developed and then placed in the toner to exhaust the selenium.
In Holly's case, since this is an university, it is most likely that it is governed by environmental laws just as any bussiness. If so the two choices are to arrange for disposal (which most likely there is already a program in place, contact your chemistry department) or trying to exhaust the selenium and then dump the remaning solution. If it was me, I would try to avoid hassles and cover my ass and would contact the chemistry deparment and would ask them what are they doing with their chemical waste, I am sure they already have a program in place for disposal and most likely will take the jug of selenium toner off your hands.