ENGROSSED
Senate Bill No. 728
(By Senator Bowman)
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[Introduced March 21, 2005; referred to the Committee
on Government Organization; and then to the Committee on
Finance.]
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A BILL to amend and reenact §5A-3-45 of the Code of West Virginia,
1931, as amended, relating to the disposition of state surplus
property; allowing cannibalization of commodities under
certain circumstances; and allowing the disposing of
commodities as waste under certain circumstances.
Be it enacted by the Legislature of West Virginia:
That §5A-3-45 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 3. PURCHASING DIVISION.
§5A-3-45. Disposition of surplus state property; semiannual
report; application of proceeds from sale.
(a) The agency
shall have 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
any such 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
shall make
such disposition
in the manner which will be most advantageous to the state.
either
by The disposition may include:
(1) Transferring the particular commodities or expendable
commodities between departments;
by
(2) Selling
such 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,
and or volunteer fire departments in this
state when
such the volunteer fire departments have been held
exempt from taxation under Section 501(c) of the
United States
Internal Revenue Code;
by
(3) Trading in
such the commodities as a part payment on the
purchase of new commodities;
or by sale thereof
(4) Cannibalizing the commodities pursuant to procedures
established under subsection (g) of this section;
(5) Properly disposing of the commodities as waste; or
(6) Selling the commodities to the highest bidder by means of public auctions or sealed bids, after having first advertised the
time, terms and place of
such the sale as a Class II legal
advertisement in compliance with the provisions of article three,
chapter fifty-nine of this code.
and The publication area for
such
the publication
shall be is the county
wherein in which the sale is
to be conducted. The sale may also be advertised in
such other
advertising media
as that the agency
may deem 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.
(c) Upon the transfer of commodities or expendable commodities
between departments, or upon the sale
thereof of commodities or
expendable commodities to an eligible organization
described above,
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
shall
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
such
a 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.
Such The fair market value
must 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
such 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
such the eligible organization, for whom
such the
motor vehicle or other similar surplus equipment is purchased or
otherwise obtained, shall cause ownership and proper title
thereto
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.
Such 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
such the purchase
or transfer. Resale or transfer of ownership of
such 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
the report shall show to whom each commodity was
sold.
(f) The proceeds of
such 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 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 with an initial value of over ten thousand
dollars.
(3)(A) The procedure shall require state agencies to submit a
form, in writing or electronically, if the state agency wants to
cannibalize a commodity that had an initial value of over ten
thousand dollars. The form shall, at a minimum, elicit 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.
(h)(1) The Director of the Purchasing Division shall 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.