54-44-04.6. State surplus property - Department heads to inform director - Disposition of property - Proceeds - Exchange of property

54-44-04.6. State surplus property - Department heads to inform director - Disposition

of property - Proceeds - Exchange of property.

1. The person in charge of any department, agency, or institution of the state shall inform

the director of the office of management and budget or the director's designee

whenever that department, agency, or institution possesses property surplus to its

needs, whether originally obtained with state or other funds.

2. Political subdivisions may provide their surplus property to the office of management

and budget for disposition according to subsections 3, 4, and 5.

3. Surplus property must be transferred at fair market value to state agencies, political

subdivisions, and nonprofit organizations eligible to receive federal surplus property

under the Federal Property Administrative Services Act of 1949, as amended. Eligible

organizations must be notified of the availability of property on a regular basis.

4. If not disposed of under subsection 3, then by sale on sealed bids or at public auction

to the highest and best bidder for property valued at more than three thousand dollars,

with no money deposit required prior to sale, or by sealed bids, public auction, or

negotiation at fair value for property valued at less than three thousand dollars. The

office of management and budget may establish a program for the recycling and

disposal of surplus property determined to be unsalable and may assess and collect

service charges from the department, agency, institution, or political subdivision from

which the property was received to cover direct and reasonable costs of this service.

5. All proceeds received from the transfer, sale, recycling, or disposal of surplus property

must be deposited with the state treasurer for deposit in the surplus property operating

fund. For each piece of property sold for less than three thousand dollars, all proceeds

must be retained in the surplus property operating fund unless the office of

management and budget determines the sale proceeds are subject to special

requirements for distribution. For each piece of property sold for three thousand dollars

or more, the office of management and budget shall transfer to the agency from which

the property was received an amount equal to the proceeds of the sale less the

administrative expenses of the sale. The agency shall deposit the proceeds into the

fund from which the property was originally purchased. At the end of each biennium,

the office of management and budget shall transfer all funds in the surplus property

operating fund that exceed the amount needed for operating the surplus property

function for one year to the general fund.