General terms and conditions of this subchapter are as follows:

1. (1) Method of disposal. A state agency that determines that it has surplus property or salvage property shall inform the commission and the comptroller of the property's kind, number, location, condition, original cost or value, and date of acquisition. Additionally, based on the condition of the property, a state agency shall determine whether the property is:

   1. (A) surplus property that should be offered for transfer under §2175.125 of the Texas Government Code and §126.3 of this title (relating to Direct Transfer, Priority, Reporting, and other Disposition); or
   2. (B) should be disposed of by competitive bidding, auction or direct sale under §126.4 of this title (relating to Disposition of Surplus and Salvage Property to the Public by Competitive Bidding, Auction, or Direct Sale); or is
   3. (C) salvage property.
   4. (D) A state agency making this determination shall inform the commission and the comptroller of its determination.
2. (2) Notice of availability. The commission shall maintain a list of current surplus or salvage property and inform other state agencies, political subdivisions, and assistance organizations of the comptroller's website that lists such property that is available for sale.
3. (3) Priority for transfer to state agency. During the ten (10) business days after property is posted on the comptroller's website, a transfer to another state agency has priority over any other type of transfer under this subchapter.
4. (4) Disposition of surplus or salvage data processing equipment. Data processing equipment from state agencies, institutions of higher education, or eleemosynary institutions if not disposed of under in accordance with the Texas Government Code, §2175.125 or other law, shall be transferred by the state agency or institution to a school district or open-enrollment charter school in this state under Subchapter C, Chapter 32, of the Education Code, or to the Texas Department of Criminal Justice. The state agency or institution may not collect a fee or other reimbursement from the district, the school, or the Texas Department of Criminal Justice for the surplus or salvage data processing equipment. Pursuant to Texas Government Code, §2175.305, the Secretary of State shall give preference to transferring surplus computer equipment to counties for the purpose of improving voter registration technology in compliance with the Election Code, §18.063.
5. (5) Purchaser's fee. The commission or agency disposing of surplus or salvage property under this subchapter shall assess and collect from the purchaser a fee over and above the proceeds from the sale of property, to recover the costs associated with the sale of property. The fee shall be set and reviewed annually by the commission and shall be at least two percent (2%) but not more than twelve percent (12%) of the sale proceeds. Property disposed of by direct transfer under §126.3 of this title (relating to Direct Transfer, Priority, Reporting, and other Disposition) is not subject to the purchaser's fee.

6. (6) Delegation of authority to state agency. If a state agency demonstrates to the commission its ability to dispose of its own surplus or salvage property to the public in a manner that results in cost savings to the state, the commission may authorize the agency to do so. The agency shall follow procedures provided by the commission at the time the delegation is granted and shall provide a report of the proceeds by assigned sale number no later than September 10th of each year for the prior fiscal year.

   1. (A) Delegation of authority will be based on receipt of and concurrence by the commission of the agency's projection of cost savings to the state.
   2. (B) Criteria used to delegate authority to a state agency demonstrating cost savings to the state may include information about the property such as age, condition, limited use, size, volume, expected return and/or location; information about the agency such as its ability to account for and report staffing, disposals, location, and/or specific knowledge about the property.
7. (7) Delegation of deletion authority to state agencies. The commission hereby delegates to state agencies the authority to delete surplus or salvage property from the State Property Accounting System after any method of disposition listed under this subchapter.
8. (8) Firearms. The purchaser of a surplus firearm must be a licensed firearm dealer.
9. (9) Rejection of bids. The state reserves the right to reject any bid or part of a bid, and or waive minor technicalities.

10. (10) List of buyers. The commission shall maintain an annually updated list of qualified buyers of surplus and salvage property. The commission shall renew annually a list it maintains of

    1. (A) assistance organizations and individuals responsible for purchasing for political subdivisions who have requested information regarding available state surplus or salvage property; and
    2. (B) other prospective buyers of surplus and salvage property.
    3. (C) Names may be deleted from lists maintained by the commission for failure to bid, failure to make a payment or failure to remove awarded items.
    4. (D) A buyer who has been removed from the buyers list for failure to make a payment or to remove surplus or salvage property may not reinstated to the list until a written request has been presented to and approved by the commission.

Source Note:The provisions of this §126.2 adopted to be effective May 8, 2002, 27 TexReg 3756.