§5A-3-45. Disposition of surplus state property; semiannual report; application of proceeds from sale


Published: 2015

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WEST VIRGINIA CODE











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WVC 5 A- 3 - 45

§5A-3-45. Disposition of surplus state property; semiannual

report; application of proceeds from sale.

(a) The state agency for surplus property has the exclusive

power and authority to make disposition of commodities or

expendable commodities now owned or in the future acquired by the

state when the commodities are or become obsolete or unusable or

are not being used or should be replaced.

(b) The agency shall determine what commodities or expendable

commodities should be disposed of and make disposition in the

manner which will be most advantageous to the state. The

disposition may include:

(1) Transferring the particular commodities or expendable

commodities between departments;

(2) Selling the commodities to county commissions, county

boards of education, municipalities, public service districts,

county building commissions, airport authorities, parks and

recreation commissions, nonprofit domestic corporations qualified

as tax exempt under Section 501(c)(3) of the Internal Revenue Code

of 1986, as amended, or volunteer fire departments in this state

when the volunteer fire departments have been held exempt from

taxation under Section 501(c) of the Internal Revenue Code;

(3) Trading in the commodities as a part payment on the

purchase of new commodities;

(4) Cannibalizing the commodities pursuant to procedures

established under subsection (g) of this section;

(5) Properly disposing of the commodities as waste;

(6) Selling the commodities to the general public at the

posted price or to the highest bidder by means of public auctions

or sealed bids, after having first advertised the time, terms and

place of the sale as a Class II legal advertisement in compliance

with the provisions of article three, chapter fifty-nine of this

code. The publication area for the publication is the county in

which the sale is to be conducted. The sale may also be advertised

in other advertising media that the agency considers advisable.

The agency may sell to the highest bidder or to any one or more of

the highest bidders, if there is more than one, or, if the best

interest of the state will be served, reject all bids; or

(7) Selling the commodities to the highest bidder by means of

an Internet auction site approved by the director, as set forth in

an emergency rule pursuant to the provisions of chapter

twenty-nine-a of this code.

(c) Upon the sale to the general public or transfer of

commodities or expendable commodities between departments, or upon

the sale of commodities or expendable commodities to an eligible

organization, the agency shall set the price to be paid by the

receiving eligible organization, with due consideration given to

current market prices.

(d) The agency may sell expendable, obsolete or unused motor

vehicles owned by the state to an eligible organization, other than

volunteer fire departments. In addition, the agency may sell expendable, obsolete or unused motor vehicles owned by the state

with a gross weight in excess of four thousand pounds to an

eligible volunteer fire department. The agency, with due

consideration given to current market prices, shall set the price

to be paid by the receiving eligible organization for motor

vehicles sold pursuant to this provision: Provided, That the sale

price of any motor vehicle sold to an eligible organization may not

be less than the "average loan" value, as published in the most

recent available eastern edition of the National Automobile

Dealer's Association (N.A.D.A.) Official Used Car Guide, if the

value is available, unless the fair market value of the vehicle is

less than the N.A.D.A. "average loan" value, in which case the

vehicle may be sold for less than the "average loan" value. The

fair market value shall be based on a thorough inspection of the

vehicle by an employee of the agency who shall consider the mileage

of the vehicle and the condition of the body, engine and tires as

indicators of its fair market value. If no fair market value is

available, the agency shall set the price to be paid by the

receiving eligible organization with due consideration given to

current market prices. The duly authorized representative of the

eligible organization, for whom the motor vehicle or other similar

surplus equipment is purchased or otherwise obtained, shall cause

ownership and proper title to the motor vehicle to be vested only

in the official name of the authorized governing body for whom the

purchase or transfer was made. The ownership or title, or both, shall remain in the possession of that governing body and be

nontransferable for a period of not less than one year from the

date of the purchase or transfer. Resale or transfer of ownership

of the motor vehicle or equipment prior to an elapsed period of one

year may be made only by reason of certified unserviceability.

(e) The agency shall report to the Legislative Auditor,

semiannually, all sales of commodities or expendable commodities

made during the preceding six months to eligible organizations.

The report shall include a description of the commodities sold, the

price paid by the eligible organization which received the

commodities and to whom each commodity was sold.

(f) The proceeds of the sales or transfers shall be deposited

in the State Treasury to the credit on a pro rata basis of the fund

or funds out of which the purchase of the particular commodities or

expendable commodities was made: Provided, That the agency may

charge and assess fees reasonably related to the costs of care and

handling with respect to the transfer, warehousing, sale and

distribution of state property disposed of or sold pursuant to the

provisions of this section.

(g)(1) For purposes of this section, "cannibalization" means

the removal of parts from one commodity to use in the creation or

repair of another commodity.

(2) The director of the Purchasing Division shall propose for

promulgation legislative rules to establish procedures that permit

the cannibalization of a commodity when it is in the best interests of the state. The procedures shall require the approval of the

director prior to the cannibalization of the commodity under such

circumstances as the procedures may prescribe.

(3) (A) Under circumstances prescribed by the procedures,

state agencies shall be required to submit a form, in writing or

electronically, that, at a minimum, elicits the following

information for the commodity the agency is requesting to

cannibalize:

(i) The commodity identification number; (ii) the commodity's

acquisition date; (iii) the commodity's acquisition cost; (iv) a

description of the commodity; (v) whether the commodity is operable

and, if so, how well it operates; (vi) how the agency will dispose

of the remaining parts of the commodity; and (vii) who will

cannibalize the commodity and how the person is qualified to remove

and reinstall the parts.

(B) If the agency has immediate plans to use the cannibalized

parts, the form shall elicit the following information for the

commodity or commodities that will receive the cannibalized part or

parts: (i) The commodity identification number; (ii) the

commodity's acquisition date; (iii) the commodity's acquisition

cost; (iv) a description of the commodity; (v) whether the

commodity is operable; (vi) whether the part restores the commodity

to an operable condition; and (vii) the cost of the parts and labor

to restore the commodity to an operable condition without

cannibalization.

(C) If the agency intends to retain the cannibalized parts for

future use, it shall provide information justifying its request.

(D) The procedures shall provide for the disposal of the

residual components of cannibalized property.

(h) (1) The director of the Purchasing Division shall propose

for promulgation legislative rules to establish procedures that

allow state agencies to dispose of commodities in a landfill, or by

other lawful means of waste disposal, if the value of the commodity

is less than the benefit that may be realized by the state by

disposing of the commodity using another method authorized in this

section. The procedures shall specify circumstances where the

state agency for surplus property shall inspect the condition of

the commodity prior to authorizing the disposal and those

circumstances when the inspection is not necessary prior to the

authorization.

(2) Whenever a state agency requests permission to dispose of

a commodity in a landfill, or by other lawful means of waste

disposal, the state agency for surplus property has the right to

take possession of the commodity and to dispose of the commodity

using any other method authorized in this section.

(3) If the state agency for surplus property determines,

within fifteen days of receiving a commodity, that disposing of the

commodity in a landfill or by other lawful means of waste disposal

would be more beneficial to the state than disposing of the

commodity using any other method authorized in this section, the cost of the disposal is the responsibility of the agency from which

it received the commodity.





Note: WV Code updated with legislation passed through the 2015 Regular Session

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