Ala. Admin. Code r. 305-9-1-.06
Current through Register Vol. 43, No. 1, October 31, 2024
Section 305-9-1-.06 - Rules And Procedures For The Declaration, Disposal, Delivery, Transfer, Receipt, Listing, And Sale Of Surplus Personal Property(1) Entities eligible for surplus personal property.(a) For State Surplus Property, those entities eligible include any city, county, board of education, volunteer fire department, civil defense agency, or state department, board, bureau, commission, or public agency that is found not to be in violation of any of these Surplus Property Division rules and regulations during a period of 12 months immediately preceding the intended purchase of state surplus personal property may be considered as an entity eligible to participate in such purchase. However, if such entity has an unresolved audit exception, audit finding, or owes a refund or any other amount to any division within the Department of Economic and Community Affairs, or to the federal government, then that entity shall be declared ineligible to participate in the state surplus property program until such unresolved audit exception or audit finding has been cleared or such amounts owed have been paid.(b) For federal surplus property, those entities eligible include public agencies, approved or accredited nonprofit educational or public health institutions or organizations, nonprofit tax-exempt institutions or organizations that receive appropriated funds for programs for older individuals, and homeless agencies.(c) The Surplus Property Division is responsible for determining if an applicant is eligible to participate in the surplus property program. A four part application packet has been designed for this applicant eligibility determination purpose. Potentially eligible donees will be provided with an application packet upon request to the Surplus Property Division. The Surplus Property Division will update an eligible entity's eligibility file once every three years to ensure its continuing eligibility status. Each entity desiring to participate in the program must provide the following information in the application. 1. The legal name and address of the applicant.2. The status of the applicant as a public agency, a nonprofit educational or public health institution or organization, or a nonprofit tax-exempt institution or organization that receives funds for programs for older individuals. The nonprofit and tax-exempt status must be determined according to section 501 of the Internal Revenue Code of 1954.3. Details concerning the applicant's public program activities. In the case of nonprofit institutions and organizations, such details include their educational or public health programs and the specific educational or medical facilities operated by the applicant. In the case of nonprofit tax-exempt institutions and organizations which receive funds for programs for older individuals, the same information must be detailed.4. Evidence which indicates that the applicant is approved, accredited, or licensed in cases where such approval, accreditation, or licensing is a requirement of one or more of the applicant's programs.5. A written authorization signed by the chief administrative officer or executive head of the applicant, designating a representative to act for the applicant in: (i) acquiring donable property from the Surplus Property Division;(ii) obligating any necessary funds for the purpose of acquiring such donable property;(iii) executing Surplus Property Division distribution documents which obligate the applicant to the terms, conditions, reservations, and restrictions which the Division, or the General Services Administration in the case of federal surplus property, has imposed on the use and disposal of the property; and(iv) re-delegating this authority to other persons for the purpose of a single purchase transaction or on a continuing purchase basis.6. Necessary assurances that if federal surplus property is going to be purchased by the applicant, then the applicant will comply with General Services Administration regulations on nondiscrimination.7. A statement of the types and kinds of major equipment needed by the applicant for use in its public programs, educational programs, public health programs, and older individual programs, as well as a statement of financial information to be used by the Surplus Property Division to evaluate the applicant's relative needs and resources.(d) When an eligible entity ceases to operate, or if it loses its approval, accreditation, or license, or if it otherwise fails to maintain its eligibility status with the Surplus Property Division, then donations of surplus property to that entity shall be terminated.(21) How to declare state surplus personal property. An state entity which owns property must first declare it to be surplus before the Surplus Property Division can dispose of it. This declaration of surplus property must be made by the entity's designated coordinator or other authorized representative, and can be accomplished by one of the following two ways: (a) The property may be declared surplus bywritinga letter issuing or completing an SD-1 disposition form which proclaims the listed items as surplus. Instructions for completion are on the reverse of the SD-1.1. The written letter or disposition form should be utilized when the method of disposal is to occur on site at the agency. The agency may request the Surplus Property Division to conduct a sealed bid or a public auction at the agency's site, or the agency may request authorization to destroy any item(s) of no value, or the agency may request the authority to trade-in any item(s) on the purchase of like item(s).. The agency shall be responsible for any preparation costs and/or any advertising expenses.2. The written letter ordisposition formmust include the following information. is found in the State Auditor's Manual, which is hereby referenced and made a part of these rules by reference.(i) A statement declaring the item to be surplus.(ii) Complete information of all surplus items listed, including make, model, decal number(s), serial number(s), year of manufacture, condition, and type of funding.(iii) If an item is allowed as a "trade-in," the amount allowed on trade-in must be shown.(iv) The entity's recommendation as to the best method for disposing of the surplus property.(v) The exact location of the surplus property, and the contact person's name and telephone number.(vi) A statement indicating if the surplus property needs to be dismantled.(vii) The signature of the designated coordinator or other authorized representative of the entity.(b) The property may be listed on a "Non-consumable Personal Property Receiving/Transfer/Invoice" form. 1. The "Non-consumable Personal Property/Receiving/Transfer/Invoice" form should be utilized when items are being transferred to the Surplus Property Center, when items are being transferred to an eligible state agency, or when the entity requests the Surplus Property Division to let bids or contracts on the sale of used tires, batteries, scrap material, etc.2. The "Non-consumable Personal Property Receiving/Transfer/Invoice" form must include the following information.(i) The complete name and address of the entity owning the property shall be stated in the "Transferred From" column.(ii) The complete name and address of the Surplus Property Division shall be stated in the "Transferred To" column.(iii) The Surplus Property Division will supply the information in the "Transaction Number" column.(iv) The total number of like items being turned in on that line to the Surplus Property Division shall be stated in the "Quantity" column.(v) The make, model, serial number, inventory number, nomenclature, and other similar identifying information of the property shall be stated in the "Description" column.(vi) The cost of the item when it was originally purchased by the entity shall be stated in the "Cost" column.(vii) The present condition of the property (e.g., new, good, fair, poor, or scrap) shall be entered in the "Condition" column.(viii) The percentage of state funds and federal funds used by the entity to initially purchase the item shall be entered in the "Funding Information" column. If no federal funds or earmarked state funds are involved, then "none" is the term assigned to identify such property. If an item has a unit acquisition cost of over $1,000.00 and is purchased at least in part with federal funds, then the percentage of such funds must be indicated in this column.(ix) The Surplus Property Division will supply the information in the "Final Disposition" column.(x) The Division Chief Director of the Surplus Property Division or his designated representative shall supply the signature for the "Approved" signature space.(xi) The entity's coordinator shall supply the signature for the "Released By" signature space, as well as the coordinator's title and date.(xii) The agency receiving the property or, if in the case of an individual, the individual listed on the Surplus Property Division's eligibility file, shall supply the signature for the "Received By" signature space. If the person designated to receive this property wishes to delegate this signatory duty, then he or she shall submit a letter addressed to the Division Chief Director of the Surplus Property Division, which names the person who has the delegated authority to sign for receipt of the surplus property. Such letter must be signed by the Coordinator, and must contain the delegation of authority and a sample of the person's signature that has been delegated this authority. (3) Methods for disposal of state surplus personal property. The following are authorized methods for the Surplus Property Division to dispose of state surplus personal property. (a) The agency which owns the property may transfer itsunwanted excess property to another state department, agency, board, bureau, commission, institution, etc., upon obtaining the permission of the Surplus Property Division. The Surplus Property Division will charge a transfer fee comparable to fair market value to defray the expenses of completing the paperwork. This may be a set dollar amount per transaction.(b) The agency which owns the property may transfer itsunwanted excess property to the Surplus Property Division.(c) The agency which owns the property may trade it in on the purchase of new equipment.(dc) Once any property is in the possession of the Surplus Property Division, the Division may then sell it to an eligible donee, sell it by competitive bid, or cannibalize or destroy it.(ed) The method of disposal of state surplus personal property shall be determined by the Surplus Property Division, and such determination will be based on what is in the state's best interest. (4) Delivering and transferring surplus property to the Surplus Property Center. Once an entity declares property to be surplus, the following process shall be followed for the delivery and transfer of the property to the Surplus Property Center. (a) The entity releasing the property shall make arrangements with the Surplus Property Center personnel prior to the transportation of the property from the entity's location to the Surplus Property Center. All deliveries will be accepted at the Center at anytime during normal working hours. It is the donee's responsibility to arrange for transportation of its surplus items to the Center.(b) All surplus property being delivered to the Surplus Property Center must be listed on the "Non-consumable Personal Property Receiving/Transfer/Invoice" form. All information provided on the form shall be typed.(c) A completed "Non-consumable Personal Property Receiving/Transfer/Invoice" form shall accompany each surplus property item when it is delivered to the Surplus Property Center. Upon its receipt by the Center's personnel, the item shall be checked against this form, signed in the "Received By" column, and assigned a transaction number. A copy of this form will be given as a temporary receipt to the person who delivered the property to the Center.(d) If the surplus property consists of motor vehicles, then the entity releasing such vehicles shall remove the license plates and any decals or lettering which would identify the vehicles as state property. A certificate of title for each vehicle must accompany the vehicle before it can be received at the Surplus Property Center. A parts only title must accompany any vehicle which has been wrecked before it can be received the Surplus Property Center. The title will indicate that the vehicle is transferred to the Department of Economic and Community Affairs Surplus Property Division. All keys to each vehicle's doors, trunk, and ignition shall accompany the vehicle, regardless of the vehicle's age and condition. (NOTE: Vehicles which were manufactured in 1975 or later are required by law to have certificates of title.) Vehicles should be listed on SD-1 form separate from other types of property.(e) When property is received at the Surplus Property Center, the entity releasing the property will be issued a copy of the "Non-consumable Personal Property Receiving/Transfer/Invoice" formwith a transaction number assigned. This shall serve as the entity's authority to make the necessary deletion from its inventory records.(f) An entity's failure to comply with any of the instructions stated in subparagraphs (4)(a) through (d) may warrant the rejection of the property by the Surplus Property Center personnel.(5) Obtaining and receiving surplus property from the Surplus Property Center. All surplus items located at the Surplus Property Center are available for inspection and transfer to state agencies and other authorized recipients. Any eligible entity seeking to obtain and receive surplus personal property from the Surplus Property Center shall follow the following process.(a) Representatives of eligible entities should visit and inspect property at the Surplus Property Center on a regular basis. Although a tremendous quantity and variety of items are received at the Surplus Property Center, many items are acquired as single units or in quantities so small as to be only a fraction of the total demand for that item. For this reason, it is not practicable to prepare and mail out regularly a list of property available from the Surplus Property Division to all eligible entities, other than the bi-monthly listing of available surplus property.(b) State surplus property which is newly received at the Center shall be offered only to state agencies for a period of fourteen (14) days from the date it is received at the Center. A state agency's Coordinator or designated representative listed on file at the Center may sign for surplus items selected. The Coordinator or designated representative may delegate their authority to select property to other staff members of their agency, and this shall be accompanied by issuing a temporary permit for a one-time visit to the Center. The permit should contain a sample signature of the person who has been delegated the authority to select and receive surplus property. (See the Forms section for this form entitled "Temporary Permit.")(c) If the state surplus property consists of motor vehicles, then state agencies shall have purchasing priority for three days after they are notified that such vehicles have been received by the Surplus Property Division. After state agencies have been allowed the opportunity to purchase the vehicle(s), any remaining vehicles will be offered to municipalities in the state which have a population of less than 5,000. These municipalities shall be given priority on purchasing the vehicle(s) for a period of 7 days and must reply to the notice and accept or refuse the available vehicle(s) within that time period.(d) Upon selection of surplus property items from the Surplus Property Center, the "Non-consumable Personal Property Receiving/Transfer/Invoice" form shall be prepared. The item(s) selected shall be listed, the entity's authorized person shall sign the form in the "Received By" column, and the Center storekeeper shall sign the form in the "Released By" column. A copy of this form will be given as a temporary receipt to the person who is obtaining the property and delivering it to the entity's location.(e) The Surplus Property Division may charge a fee for the service, handling, sale, or restoration of the property.1. If such a fee is charged, the fee shall be determined by considering the acquisition cost of the property, its present value, its screening cost, the quantity/condition/desirability of the property, repair and reconditioning costs, any transportation costs and any loading/unloading costs assessed thereto, packing and crating costs, any costs of delivery of the property to the entity purchasing the property, and utilization and compliance fees. Such amounts charged will be reflected on the "Non-consumable Personal Property Receiving/Transfer/Invoice" form in the "Cost or Service and Handling Charge" column. Those entities receiving the property will be responsible for payment of these charges.2. If such a fee is charged, it will be based on the following service charge formulas.(i) For state surplus property, the charge is considered an administrative fee which shall not exceed 25 percent of the property's gross sale price.(ii) For federal surplus property, the charge shall be computed as follows: See Table at http://www.alabamaadministrativecode.state.al.us/docs/adec/9adec1.htm#T1
Direct costs for repairs and reconditioning, and other exceptional charges, will be added to the cost as outlined above prior to the assessment of service charges.
(f) The total amount due to the Surplus Property Division per line item on the "Non-consumable Personal Property Receiving/Transfer/Invoice" form shall be inserted in the "Final Disposition or Total of Service Charge" column on the respective line, and a grand total of all line item amounts shall be inserted on the bottom line marked for this purpose. The amount inserted on this bottom line shall be the total amount due to the Surplus Property Division by the entity receiving the property.(g) The entity receiving the property will receive a copy of the "Non-consumable Personal Property Receiving/Transfer/Invoice" form with a transaction number assigned. This copy shall serve as the statement of service and handling charges. Payment is due in full to the Surplus Property Division within 30 days after receipt of that statement. Payment shall be made by presenting a check or warrant drawn on the activity the entity represents and shall be due before the entity takes delivery of the property. If full payment is not received within this time frame, then all of the property listed on the form will be returned to stock. The entity is authorized to use this copy to add all applicable item(s) received to its inventory record.(h) No state surplus property may be removed from the Surplus Property Center by the receiving entity until full payment for that property is received by the Surplus Property Division. It is the responsibility of the receiving entity to transport all of the selected items away from the Surplus Property Center.(i) The Surplus Property Division may deliver the selected items to the receiving entity in certain cases. Such deliveries will be made at the Division's convenience. The Division shall charge a delivery fee, and arrangements for such deliveries must be made with the Division's transportation dispatcher.(j) Eligible entities, other than state agencies, which obtain or receive surplus property through the Surplus Property Division must agree to comply with the utilization terms and conditions as are outlined in Rule No. 305-9-1-.07. If compliance is not achieved and the property is returned to the Division, then the Division shall make the determination as to whether the property is still usable. When such federal property is returned, the Division shall use a decreasing scale of service charge refund as follows:
80% refund of service charge if returned in 30 days;
60% refund of service charge if returned from 1 - 3 months;
40% refund of service charge if returned from 3 - 6 months;
20% refund of service charge if returned from 6 - 9 months;
NO REFUND of service charge if returned after 9 months.
In case of return of federal surplus property, NO REFUND of service charge will be made when it is determined that misuse or gross abuse of the regulations pertaining to the use of federal surplus property has occurred.
(6) Listing of available surplus property. The Surplus Property Division will periodically prepare and make available a listing of any surplus property that is available for transfer.. Such distribution of listings shall occur on a bi-monthly basis.(7) Want list. (a) The Surplus Property Division shall maintain a list of property needed by state agencies. This list shall include specialized items such as vehicles, construction equipment, shop equipment, and boats, as well as items needed in large quantities such as office furniture and office equipment. Items considered to be "common use" items such as those which can generally be found in stock, will not be included on the Want List.(b) State agencies will be offered items on the Want List only if their requests for this property are on file at the Surplus Property Division. Offerings of state surplus property shall be made by the Division in accordance with the date the request was received at the Division, on a first request-first offered basis. Exceptions may be made in case of emergency, at the discretion of the Division. State agencies shall use a 3"x5" card to notify the Division of items wanted by the agencies. The Division will maintain these cards, filed in group categories and by date received. These cards are available at the Division. [See the Forms section for this form entitled "Wanted (State Surplus)."](78) Sale of State surplus property to the general public. The Surplus Property Division shall periodically conduct sales of State surplus property to the general public. Such sales shall be conducted by public auction, spot bid, or sealed bid. The sale should be conducted in accordance with the following process.(a) Advertisement of sale. 1. Proposals to make a sale of state surplus property will be advertised by the Surplus Property Division for a period of at least two weeks in advance of the date fixed for receiving bids. The Surplus Property Division shall advertise in a newspaper of general circulation in the county where the sale is to be made at least once a week for two consecutive weeks such proposal(s) of sale. A copy of such proposal of sale will simultaneously be posted on a readily accessible public bulletin board at the main office of the Surplus Property Division.2. Advertisements shall stategenerally describe the item(s) to be sold, by its class and description. They shall state the location of the property, and the date(s), time, and place where the property may be inspected prior to sale. They shall also state the date, time, and place of auction or opening of sealed bids.3. No sealed bid shall be receivedat any time or considered after the time stated in the advertisements.(b) Inspection, bids, and failure to accept the bid award. 1. All bidders shall be afforded an opportunity to inspect property for a period of 48 hours (during normal state office hours) prior to sale.2. All sealed bidson for the sale of surplus property will be taken, or opened in the case of sealed bids, at the Surplus Property Division office by the Division Chief Director on the date and at the time specified in the advertisement of sale. All bidders or their designated representative (Ss) shall be entitled to be present. Awards to successful bidders will be made within 72 hours after the taking/opening of bids. The successful bid will be so marked, and the unsuccessful bids will be so marked (in the case of sealed bids), and placed on file. These bids will be open to public inspection and shall become matters of public record.
3. If a successful bidder fails to accept an award of contract on the property, then such bidder will be permanently prohibited from bidding at future sales.4. The Division Chief Director may sell all items by lot or by individual item, whichever method the Division Chief Director determines will bring the highest return for the items.5. If all of the bids received for the individual item or the lot are less than the estimated market value of the property, then the Division Chief Director will reject all of those bids, and then re-advertise and re-bid the property.(c) Payment by the general public successful bidders.1. All surplus property sold shall be paid for by the purchaser or the purchaser's designated representative within 30 days after the award of bid. Payment by the general public shall be made by cashier's check, bank draft, certified check, U.S. currency, or by a notarized bank letter stating that the holder may purchase surplus property and also stating a maximum dollar amount. If payment is not made within 30 days after a purchase, then the purchase will be declared void, and the property shall be returned immediately by the purchasing entity to the Division. Property sold by auction must be paid for within 48 hours after auction day. Sealed bid payment must be made within period proscribed in advertisement.2. All purchases shall be removed not later than seven days after the award of bid, unless the property consists of standing timber. If the purchaser or the designated representative fails to remove the property within the time limit prescribed, other than standing timber, through no fault of the purchaser, then this will be cause for the Surplus Property Division to assess a storage charge which shall be paid before the property is allowed to be removed.(d) List of prospective buyers. The Surplus Property Division shall maintain a mailing list of prospective buyers of state surplus property. If a prospective buyer on this list does not participate in three consecutive state surplus property sales, then such prospective buyers shall be deleted from the list. Also, buyers of surplus property who failed to pay the amount due on that property, who fail to remove that property within the time limit prescribed, or who incur other irregularities on their part, shall be permanently removed from the list. This list shall be updated by the Division on aannual quarterly basis. Author: Shane T. Bailey
Ala. Admin. Code r. 305-9-1-.06
New Rule: Filed November 25, 2002; effective December 30, 2002.Statutory Authority:Code of Ala. 1975, § 41-23-6.