Section 0690-02-01-.14 - SALE OF SURPLUS PROPERTY TO GOVERNMENTAL ENTITIES, NONPROFIT VOLUNTEER ORGANIZATIONS, AND ELIGIBLE CORPORATIONS ORGANIZED AND CONDUCTED NOT FOR PROFIT WHOSE CHARTERED ACTIVITIES ARE RELATED TO HEALTH AND/OR EDUCATION(1) Political subdivisions of the State, other governmental entities {including but not limited to those described in (4) below}, eligible nonprofit volunteer fire, police and rescue organizations, and eligible corporations as defined in rule 0690-2-1-.02 may purchase State surplus personal property by purchasing from the Division of State Personal Property during normal hours at locations designated by the Commissioner at the fair market value.(a) The fair market value shall be determined by the Commissioner of General Services by considering the following criteria:1. The character, utility, and functionality of the property,2. The condition and climate of the potential market,3. Known prevailing market prices,4. The use of published industry value guides,5. Use of estimates by persons knowledgeable of the type of property to be sold.(2) Such organizations or entities shall retain possession of surplus property purchased from the State for at least one (1) year unless disposal is approved by the Board of Standards. Any profit realized from the resale of such property shall revert to the State. The provisions regarding the reversion of profits realized shall not apply to the resale of surplus property transferred to vocational programs operated under Title 49, Chapter 11, or state technical institutes operated by the State Board of Regents when such entity or corporation has repaired the item through its vocational program for the purpose of resale. The resale of such surplus property shall be made only after public advertisement of the sale in a newspaper of general circulation in the county or municipality at least twice in a two (2) week period preceding the sale.(3) Any sale of motor vehicles by the State of Tennessee to such an organization or entity shall become null and void, and such property shall revert to the State in the event that such political subdivision or governmental entity does not transfer the registration of title to such motor vehicle to its name within seven (7) days after the sale.(4)(a) Examples of eligible agencies are as follows:4. Special Districts 5 Human Resources Agencies(b) The following authorities, boards, commissions, or agencies are eligible agencies if subject to the legislative authority of a city, town, or county government. City and/or County:
2. Park Commissions/Recreation Commissions5. Park and Harbor Commissions11. Auditoriums/Coliseums17. Industrial Park Boards18. Electric/Gas & Water/Sewer Utilities* *These utilities are those which are municipal corporations and are not private enterprises, cooperatives, or nonprofit corporations. An example of the non-eligible enterprise is the R.E.A. Cooperatives.
(5) In order to qualify to purchase surplus property, eligible corporations must first be listed as an authorized donee under the Federal Surplus Property Program administered by the Department of General Services.(6) In order to qualify to purchase surplus property, all eligible governmental entities, non-profit volunteer organizations, and eligible corporations must submit a form GS-0426-REQUEST TO QUALIFY. Based on the information submitted, the commissioner shall determine eligibility. A copy of this form is included as Appendix 6 under rule 0690-2-1-.27.Tenn. Comp. R. & Regs. 0690-02-01-.14
Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed March 29, 1979; effective June 29, 1979. Amendment filed December 16, 1981; effective April 1, 1982. Amendment filed April 30, 1982; effective July 29, 1982. Amendment filed December 9, 1991; effective March 30, 1992.Authority: T.C.A. § 12-2-407 and Public Acts of 1991, Chapter 364.