Section 3-130-10 - Disposal and restrictions relating to state property(a) No state property shall be sold, traded, destroyed, or otherwise disposed of, except in accordance with the following rules: (1) Land and interest in land owned by the State. (A) Approval for disposal shall be obtained from the department of land and natural resources; and(B) A copy of the approval, together with the disposal application, shall be submitted to the head of the department, or the head of any board, commission, agency, bureau, or office of the State.(2) Surplus property shall be disposed of using one of the following methods: (A) Disposal by trade-in to a vendor for credit on an acquisition which must receive the head of the department, or the head of any board, commission, agency, bureau, or office of the State's prior approval and determination shall be based on: (i) The urgency of need by other state governmental units; or (ii) Whether the trade-in value is expected to exceed the value realized through the sale of the property;(B) Disposal to the state surplus property office of the state procurement office, which may, at its discretion, refuse to accept the property; (C) Disposal by sale of property through competitive sealed bids, public auctions, established markets, or posted prices. (i) Notice of sale by competitive sealed bid sale and public auction shall be publicized; (ii) The following conditions of sale by competitive sealed bid and public auction shall be included in the publicized notice, in the solicitations, and in the notices posted at the site of sale: It is the buyer's responsibility to remove the items within a stipulated time after purchase; no guarantees or warranties are given by the State for the items; major defects, if known, are listed, but the State makes no claim that all defects are known; no sale will be invalid if defects are discovered in the item after the sale; and the State assumes no responsibility or liability once the items are sold; (iii) Competitive sealed bidding method shall be in accordance with the following: Notice of sealed bid sale shall be advertised and made publicly available from the selling department or agency at least ten days before the date set for bid opening; the notice shall list the materials offered for sale, their location, availability for inspection, the terms and conditions of sale and instructions to bidders including the place, date, and time set for bid opening; bids shall be opened publicly at the time and place announced; the award shall be made in accordance with the provisions of the notice of sealed bid sale to the highest responsive and responsible bidder, provided that the price offered by such bidder is acceptable to the designated property custodian; if the designated property custodian determines that the bid is not advantageous to the State, such officer may reject the bids in whole or in part and may re-solicit bids or such officer may negotiate the sale, provided that the negotiated sale price is higher than the highest responsive and responsible bidder; (iv) Public auctions shall be advertised no less than six days before the auction date and all terms and conditions will be available to the public at least twenty-four hours prior to the auction date. The solicitation to bidders shall stipulate all the terms and conditions of any sale. When appropriate, an experienced auctioneer may be used to cry the sale and assist in preparation of the sale; (v) Posted price (pre-established price) may be used for items for which there is no regular market, demand is erratic, or for items that received unacceptable prices through competitive bids or public auction and the items shall be available on a first-come basis;(vi) Only United States postal money orders, certified checks, cashiers' checks, or cash shall be accepted for sales of surplus property unless approved by the designated property custodian or for sales of less than one hundred dollars;(D) Sale in accordance to one of the methods and requirements described in subparagraph (C)(i) thru (iv), or disposal to dealers for recycling, salvaging, or scrap;(E) Donation to the following organizations, provided the designated property custodian makes a written justification, approved by the head of the department, or the head of any board, commission, agency, bureau, or office of the State, that the donation would be advantageous to the State: (i) City or county agency within the State; or (ii) "A nonprofit tax-exempt charitable activity" is defined as an institution or organization whose earnings are used to help the poor or needy, and no part of the net earnings of which are used or is applied to the benefit of any private shareholder or individual and has been held to be tax-exempt under the provisions of the Federal Internal Revenue Code and the State of Hawaii tax laws;(F) Cannibalize the usable parts and destroy, dispose in trash bin, incinerator, or landfill.(3) Any weapon, if not transferred to another statutorily authorized state agency in accordance with section 3-130-9, shall be disposed of as follows, and the supporting documents shall be attached to the disposal application or certificate of disposal: (A) Traded or sold to a federally licensed firearm dealer; or(B) Donated to the local police department.(b) No state property shall be given or loaned to any individual or non-government organization; however, a state agency may furnish state property to a private contractor to facilitate the performance of services for the State by the contractor, so long as the agency includes a provision for the furnished state property in the procurement document.(c) Approval for disposal of controlled items and supplies shall be obtained from the designated property custodian of the items and state agencies shall be responsible for maintaining adequate records to account for the disposal of such items.(d) Whenever any designated property custodian desires to dispose or remove any equipment, weapon, or real property from their inventory, other than by transfer to another state agency, the designated property custodian must, before the action, submit a written disposal application to the head of the department, or the head of any board, commission, agency, bureau, or office of the State requesting approval of the requested disposition. [Eff 12/15/95; am and comp 6/9/01; am and comp 11/15/01; am and comp 11/8/02] (Auth: HRS §§ 103D-202, 103D-1202) (Imp: HRS § 103D-1202)