(a) Purpose. This section describes the standards that
apply to the disposition of equipment purchased in whole or in part
with state or federal public transportation funds.
(b) Like-kind exchanges. In the case of like-kind exchanges,
the percentage of the department's original contractual interest shall
be applied to the fair market value of the equipment being sold at
the time of the exchange. That dollar value shall then be transferred
as the department's interest in the equipment being acquired and,
as appropriate, added to any additional funding provided by the department
towards the purchase of the new equipment.
(c) Federal standards. The federal standards contained
in 2 C.F.R Part 200 and Part 1201, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards shall govern
the disposition of real property and equipment purchased under contracts
in which the department provides all or part of the local share requirement
of federally assisted capital improvements. In cases in which 2 C.F.R.
Part 200 and Part 1201, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards does not require
reimbursement of the federal grantor agency, the department will similarly
release the state interest in the capital improvement provided that
the state's percentage share of any proceeds derived by the subrecipient
in the disposition process shall be used by the subrecipient for public
transportation purposes similar to those for which the contract award
was originally made. If the subrecipient does not intend to use the
state's percentage share of the proceeds for public transportation
purposes, those monies shall be refunded as described in subsection
(d)(2)(B) of this section. In cases in which 2 C.F.R. Part 200 and
Part 1201, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards requires reimbursement of the
federal grantor agency, the subrecipient shall provide the department
a percentage of the proceeds of the disposition equal to the percentage
of the state's original investment in the property or equipment. Once
disposition is authorized, the subrecipient shall relinquish title
to the property through either sale, auction, or transfer to another
recipient of FTA funding. The department shall be notified of the
disposition and shall be provided information necessary to delete
the property from inventory records described in §31.50 of this
subchapter (relating to Recordkeeping and Inventory Requirements).
(d) State standards. All real property and equipment
obtained through contracts in which the department's contractual interest
includes federal funds or state monies shall be governed by the disposition
standards contained in paragraphs (1) and (2) of this subsection.
The department shall be notified of the subrecipient's intent to proceed
with the dispositions and provided information necessary to delete
the property from inventory records described in §31.50 of this
subchapter. Prior to disposition of property under the terms of this
subsection, the subrecipient shall obtain written concurrence from
the department and receive disposition instructions. Once disposition
is authorized, the subrecipient shall relinquish title to the property
through either sale, auction, or transfer to another recipient of
FTA or state funding.
(1) Disposition criteria.
(A) Vehicles. Disposition may occur when the current
per-unit market value is less than $5,000.
(B) Other equipment. Disposition may occur when the
current per-unit market value is less than $5,000.
(C) Real property. When real property is no longer
needed for the originally authorized purpose, the subrecipient shall
request disposition instructions from the department pursuant to this
subsection.
(2) Distribution of disposition proceeds.
(A) Refund not required. In cases in which the disposition
criteria contained in paragraph (1)(A) and (B) of this subsection
have been met, the department will release its contractual interest
in the capital improvement. The department will similarly release
its contractual interest in cases in which exceptions are granted
for early disposition in accordance with the provisions contained
in subsection (e) of this section. However, the department's release
of its interest in a capital improvement is contingent upon the subrecipient's
assurance that the department's contractually specified percentage
share of any proceeds derived by the subrecipient in the disposition
process will be used by the subrecipient for public transportation
purposes similar to those for which the contract award was originally
made. In the case of transfers to non-transit uses, as allowed under
49 U.S.C. §5334(h), the department will release only the federal
portion of its contractual interest. The department will consult with
FTA as necessary to ensure compliance with federal standards. The
state's percentage share shall be refunded as described in subparagraph
(B) of this paragraph.
(B) Refund required. In cases in which the disposition
criteria contained in paragraph (1)(A) and (B) of this subsection
have not been met, but the subrecipient has received authorization
from the department to proceed with the disposition of equipment or
property, the subrecipient shall provide the department a percentage
of the proceeds of the disposition equal to the percentage of the
department's original contractual interest in the property or equipment.
In cases of real property, as described in paragraph (1)(C) of this
subsection, and when exceptions are not granted for early disposition,
as described in subsection (e) of this section, the subrecipient shall
similarly provide the department a percentage of the proceeds of the
disposition equal to the percentage of the department's original contractual
interest in the property or equipment. In the case of transfers to
non-transit uses, as allowed under 49 U.S.C. §5334(h), the subrecipient
shall provide the department a percentage of the proceeds of the disposition
equal to the percentage of the original state percentage interest
in the property or equipment, excluding any federal percentage interest
that might have been included in the contract of assistance. The department
will consult with FTA as necessary to ensure compliance with federal
standards.
(C) Net proceeds from sale of capital assets. In cases
in which 2 C.F.R. Part 200 and Part 1201, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards requires
a reimbursement, when the subrecipient receives proceeds from the
disposition of the capital property or equipment and those funds will
be used for subsequent federal public transportation purposes, the
subrecipient shall establish a record of liability demonstrating that
these funds are owed. The liability will be removed when the subrecipient
uses the proceeds for a subsequent transit project.
(e) Exceptions. The department will consider exceptions
to this section on a case-by-case basis. The subrecipient must furnish
information requested by the department to determine if an exception
is warranted due to special circumstances. The department will consult
with FTA as necessary to ensure compliance with federal standards.
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Source Note: The provisions of this §31.57 adopted to be effective July 6, 1990, 15 TexReg 3643; amended to be effective October 27, 1993, 18 TexReg 7160; amended to be effective February 15, 2001, 26 TexReg 1365; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective February 21, 2008, 33 TexReg 1380; amended to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815 |