1. (1) How to declare state surplus personal property. A 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:

   1. (a) The property may be declared surplus by 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. 1. The 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 at the agency's site, or the agency may request authorization to destroy any item(s) of no value. The agency shall be responsible for any preparation costs and/or any advertising expenses.
      2. 2. The disposition form is found in the State Auditor’s Manual, which is hereby referenced and made a part of these rules by reference.

   2. (b) The property may be listed on a "Non-consumable Personal Property Receiving/Transfer/Invoice" form.

      1. 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. 2. The "Non-consumable Personal Property Receiving/Transfer/Invoice" form must include the following information.

         1. (i) The complete name and address of the entity owning the property shall be stated in the "Transferred From" column.
         2. (ii) The complete name and address of the Surplus Property Division shall be stated in the "Transferred To" column.
         3. (iii) The Surplus Property Division will supply the information in the "Transaction Number" column.
         4. (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.
         5. (v) The make, model, serial number, inventory number, nomenclature, and other similar identifying information of the property shall be stated in the "Description" column.
         6. (vi) The cost of the item when it was originally purchased by the entity shall be stated in the "Cost" column.
         7. (vii) The present condition of the property (e.g., new, good, fair, poor, or scrap) shall be entered in the "Condition" column.
         8. (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.
         9. (ix) The Surplus Property Division will supply the information in the "Final Disposition" column.
         10. (x) The Division Director of the Surplus Property Division or his designated representative shall supply the signature for the "Approved" signature space.
         11. (xi) The entity's coordinator shall supply the signature for the "Released By" signature space, as well as the coordinator's title and date.
         12. (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 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.

2. (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.

   1. (a) The agency which owns the property may transfer its 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.
   2. (b) The agency which owns the property may transfer its excess property to the Surplus Property Division.
   3. (c) 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.
   4. (d) 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.

3. (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.

   1. (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.
   2. (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.
   3. (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.
   4. (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. 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.
   5. (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" form. This shall serve as the entity's authority to make the necessary deletion from its inventory records.
   6. (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.
4. (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.
5. (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.

6. (7) 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.

   1. (a) Advertisement of sale.

      1. 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. 2. Advertisements shall generally 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. 3. No sealed bid shall be received or considered after the time stated in the advertisements.

   2. (b) Inspection, bids, and failure to accept the bid award.

      1. 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. 2. All sealed bids for the sale of surplus property will be taken, or opened, at the Surplus Property Division office by the Division Director on the date and at the time specified in the advertisement of sale. All bidders or their designated representative (s) 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. 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. 4. The Division Director may sell all items by lot or by individual item, whichever method the Division Director determines will bring the highest return for the items.
      5. 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 Director will reject all of those bids, and then re-advertise and re-bid the property.

   3. (c) Payment by the general public successful bidders.

      1. 1. 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. 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.
   4. (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 a quarterly basis.

Author: Shane T. Bailey

Statutory Authority: Code of Ala. 1975, §41-23-6.

History: New Rule: Filed November 25, 2002; effective December 30, 2002.