| (a) Method of Sale. The Commission will consider the
following criteria when determining the method of sale for surplus
and salvage property:
(1) geographic location;
(2) cost of transportation if applicable;
(3) sales history for similar property;
(4) type of property; and
(5) condition of property.
(b) Disposition by direct sale to the public.
(1) Location and method of direct sales. Direct sales
operations may be conducted at designated state facilities or warehouses
approved by the Commission or by live or Internet auction.
(A) Access. The general public, political subdivision,
and assistance organizations will have equal access.
(B) Payment. A purchaser under this section must pay
for the surplus or salvage property by an approved method of payment
at the time of sale and prior to obtaining possession or actual title
to the property.
(C) Live auctions. Surplus or salvage property sold
through the live auction method shall be accompanied by an auctioneer's
paid receipt. The auctioneer's paid receipt will serve as the authorization
of the Commission that the purchaser has in good faith complied with
the conditions of the sale.
(D) Internet auctions. The Commission may contract
with one or more commercial Internet auction sites for sale of state
surplus or salvage property. Property on the Internet auction site
shall be posted for at least ten (10) calendar days.
(2) Transfer of property. When a purchaser or successful
bidder has paid the full amount due for the purchase of surplus or
salvage property, the Commission or its designee shall notify both
the successful bidder and the state agency holding the title of the
surplus or salvage property and authorize the transfer of possession.
In the case of vehicles or other items which require title transfer,
it shall be the responsibility of the state agency holding title to
complete the transfer of title to the purchaser or successful bidder.
(3) Forfeiture. In the event a purchaser or successful
bidder pays for the property, but fails to remove the property within
the time specified, the purchaser or successful bidder forfeits his
rights to the property and any monies tendered, and ownership of the
property reverts to the state.
(c) Direct Donations to Assistance Organizations and
Local Governmental Entities.
(1) If the Commission determines that disposition by
public sale is not in the State's best interest then the Commission
may destroy the property as worthless salvage or donate it to an assistance
organization or local government entity.
(2) A State agency may also make similar donations
if the agency first notifies the Commission and provides sufficient
information for the Commission to determine the donation is in the
State's best interest. The State agency is responsible for documenting
the donation and any proceeds in the Comptroller's State Property
Accounting System.
(3) The Commission may charge the recipient a fee (not
to exceed 10% of the item's market value) to cover the costs of the
donation.
(d) Returns on Small Value Items--For the purpose of
this section, Small Value Items are non-capitalized items in the Comptroller's
State Property Accounting System. The Commission may not provide participating
State agencies with monetary returns on the transfer or sale of that
agency's small value items. However, the Commission will allow the
State agency to receive a return in the form of transfers of similar
items at zero or reduced cost.
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