1. (a) Purpose. To protect the public investment in real property and equipment purchased in whole or in part with state and/or federal public transportation funds administered by the department, contractors will comply with the standards described in this section.

2. (b) Property records. The contractor must maintain records that include:

   1. (1) a description of the property;
   2. (2) a serial number or other identification number;
   3. (3) the source of the property;
   4. (4) who holds title;
   5. (5) the acquisition date and cost of the property;
   6. (6) percentage of state and/or federal participation in the cost of the property;
   7. (7) the location, use, and condition of the property; and
   8. (8) any ultimate disposition data including the date of disposal and sale price of the property.
3. (c) Inventory. The contractor will cooperate with department representatives in performing at least once every two years a physical inventory of all real property and equipment, as defined in §31.3 of this title (relating to Definitions), purchased in whole or in part with state and/or federal capital funds administered by the department. However, during the time period between these physical inventories, the contractor shall promptly notify the department in writing of all changes in the status of such real property and equipment in order that department records may be kept current. Property shall remain on the department's and contractor's inventories until such time as the property is formally disposed of in accordance with the requirements outlined in §31.57 of this title (relating to Disposition). Notwithstanding the foregoing, the contractor shall, where applicable, be bound by, and shall comply with, the inventory requirements specified in the common rule.
4. (d) Control system. The contractor must develop a control system to ensure adequate safeguards to prevent loss, damage, or theft of the property. The contractor shall investigate any loss, damage, or theft.

Source Note:The provisions of this §31.50 adopted to be effective July 6, 1990, 15 TexReg 3643.