1. (a) General. If no state agency, political subdivision, or assistance organization desires to receive any property reported as surplus or salvage, the commission may dispose of the property with the exception of data processing equipment by sealed bids or auction, or delegate to the state agency having possession of the property the authority to sell the property by sealed bids or auction.
2. (b) Mailing list of bidders. The commission will maintain a mailing list of companies or individuals who have applied to bid on surplus or salvage property. Names may be deleted from the mailing list for: failure to bid, failure to make payment, or failure to remove awarded items. A bidder who has been removed from the bidders list for failure to pay for or remove surplus property many not be reinstated until a written request has been presented to and approved by the Program Administrator of the Surplus Property Programs.
3. (c) Purchaser Fee. The commission or the agency shall assess and collect from the purchaser a fee over and above the proceeds from the sale of the property to recover the costs associated with the sale of the property. The fee shall be reviewed annually and shall be at least 2.0% but not more than 12% of sale proceeds.

4. (d) Sealed bids. Sealed bids will be handled in accordance with §113.5 of this title (relating to Bid Submission, Bid Opening, and Tabulation).

   1. (1) If the value of any property or lot of property, either surplus or salvage, is estimated to be worth more than $5,000 of resale value, the sale shall be advertised at least one time in at least one newspaper of general circulation in the vicinity in which the property is located.
   2. (2) When a bid deposit is required, the deposit must be in the amount specified in the bid invitation. Only the following will be considered as meeting the bid deposit requirements: a cashier's check, a certified check, a money order, or cash in the amount specified in the bid invitation. Failure to include a bid deposit in the proper amount will automatically disqualify a bid.
   3. (3) The commission will notify the successful bidder or bidders, on a sealed bid sale of surplus or salvage property, that an award has been made to them and specify a period of time for payment. In the event that a successful bidder fails to make payment within the specified time, the commission may retain the bid deposit and consider it forfeited. Furthermore the bidder forfeits his rights to the property and ownership of the property remains with the state.
   4. (4) When a successful bidder has paid the full amount due for the purchase of surplus or salvage property obtained through a sealed bid sale, the commission shall notify both the successful bidder and the agency holding the title of the surplus or salvage and authorize the transfer of possession. In the case of vehicles or other items which require title transfer, it shall be the responsibility of the agency holding title to complete the transfer of title to the successful bidder. In the event a bidder pays for the property but fails to remove the property within the time specified, the bidder forfeits his rights to the property and ownership of the property reverts to the state.
5. (e) Auctions. Surplus or salvage sold through the auction method shall be accompanied by an auctioneer's paid receipt. The auctioneer's paid receipt will serve as the authorization of the commission that the purchaser has in good faith complied with the conditions of the sale. In the case of vehicles or other items carrying titles, the agency holding the original title shall be responsible for the transfer to the successful bidder. In the event that a successful bidder fails to make payment within the specified time, the bidder forfeits his rights to the property and ownership of the property remains with the state. In the event a bidder pays for the property but fails to remove the property within the time specified, the bidder forfeits his rights to the property and ownership of the property reverts to the state.
6. (f) Delegation of authority to state agency. If the commission determines that it is in the best interest of the state for an agency to dispose of its own surplus or salvage property to the public, it may authorize the agency to do so; however, an agency authorized to sell its own property to the public shall always seek competitive bids. 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 10 of each year for the prior fiscal year.
7. (g) Firearms. The purchaser of a surplus firearm must be a licensed firearms dealer.
8. (h) Rejection of bids. The state reserves the right to reject any bid or part of a bid, or waive minor technicalities.
9. (i) No resale value. If the commission or agency advertises surplus or salvage property for sale and receives no bids, or if items declared surplus or salvage by an agency have, in the judgment of the agency, no resale value, the agency may delete and dispose of the property in a manner to best serve the interest of the state.
10. (j) Delegation of deletion authority to the state agencies. The commission hereby delegates to the agency the authority to delete surplus or salvage property on the State Property Accounting System after disposition in accordance with these rules.

Source Note:The provisions of this §126.3 adopted to be effective December 6, 1994, 19 TexReg 9289; amended to be effective December 8, 1997, 22 TexReg 12038; amended to be effective August 6, 1998, 23 TexReg 7767; amended to be effective November 21, 1999, 24 TexReg 10041.