C.L. "Butch"
"Butch" Otter
Governor
Ben
Ysursa
Secretary of
State
Lawrence
Wasden
Attorney
General
Brandon D
D Woolf
State
Controller,
Secretary
SCO > Board of Examiners > State Surplus Property
State Personal Surplus Property Policy and Procedures

SBEX Policy No. 442-40
Adopted: December 10, 1996
Last Amended: July 8, 2003

Table of Contents
History of Amendments
I. Regulatory Authority
II. Philosophy
III. Statement of Policy IV. Procedures
Step One Declare State Surplus Property
Step Two Disposal Authorization Request
Appendix 26 CFR1 501(c)(3) & (c)(19)


History of Amendments
Effective December 10, 1996
Amended March 27, 1998
Amended May 11, 1999
Amended October 10, 2000
Amended September 11, 2001
Amended April 23, 2002
Amended July 8, 2003


I. Regulatory Authority
The State Board of Examiners shall establish and govern the internal management policies and procedures for disposal of state surplus personal property in accordance with Idaho Code, Sections 60-106, 60-109, 67-2024A, 63-2304, 67-455A, 67-5722, 67-5726, 67-5732A, 67-5732B, 67-5734, and 67-5746. The policies and procedures herein are adopted by the State Board of Examiners effective December 10, 1996 and are amended as noted above. These surplus personal property policies and procedures replace and supersede any and all prior state surplus property regulations, policies and procedures that may have been promulgated or adopted by the Board of Examiners and shall govern State of Idaho agencies regarding disposal of surplus personal property.


II. Philosophy
The Board of Examiners recognizes that the storage, maintenance, transportation and other costs associated with maintaining state surplus personal property may exceed the inventory value or fair market value of such property. Personal property has a limited economic or useful life. Accordingly, sound fiscal responsibility and good management require the expeditious disposal of surplus personal property. Therefore, it is the policy of the Board of Examiners for the disposal of state surplus personal property to expect any state agency head to:
  • Efficiently dispose of surplus personal property;
  • Allow conveyance of surplus personal property to other state and local agencies;
  • Offer state surplus personal property for sale to the public at large; and
  • Provide for maximum value received by the State of Idaho with attendant benefits to its citizens.

III. Statement of Policy
This policy governs disposal of all surplus personal property by all State of Idaho constitutional officials, executive departments and administrative boards, commissions, councils, task forces and committees of these departments except as specifically exempt in statute from the jurisdiction of the Board of Examiners. For simplicity, these entities will be referred to as “agencies” herein. Exemptions include, but may not be limited to, the Governor’s Housing Committee pursuant to Idaho Code 67-455A and 67-5732B, and the Bureau of Risk Management in the Department of Administration. The Bureau of Risk Management may dispose of damaged or destroyed state personal property through utilization of established commercial salvagers or in accordance with other provisions of these guidelines.

The Board of Examiners recognizes the head of each agency with the authority to declare as surplus any item of personal property pursuant to Idaho Code, Sections 67-5722, 67-5732A and 67-5746. Further, for purposes of surplus property disposal, the Board of Examiners adopts the policy of Idaho Code 67-5726 that all employees of an agency, including their spouses, dependents or any other person acting on the employee’s behalf, are prohibited from acquiring surplus property from the agency in which the employee is employed. Employees may acquire surplus property from other state agencies only if the property is acquired through a competitive bid process. Violation of this policy is a misdemeanor pursuant to Idaho Code 67-5734.

Any lost, stolen, duplicate listed inventory or trade-in items are not considered to be surplus personal property under this policy and shall be managed pursuant to Idaho Code 67-5722 and 67-5746. Any item disposed under the terms of a buy-back contract is not considered to be surplus personal property under this policy and shall be managed in accordance with the rules, guidelines or procedures established by the Department of Administration. However, if the agency opts to set aside contracted buy-back terms, such property becomes surplus personal property at the time of disposal and shall follow the surplus property guidelines herein. Surplus property with historical significance shall be noted and the Idaho State Historical Society notified prior to disposal of such property.

When an agency determines that any personal property under their jurisdiction or control is of no further use to that agency, the agency shall manage such property according to the following principles. All proceeds from the disposal of surplus property shall be deposited in the account of the disposing agency.

A. Declaration as Surplus
1. Requirements of Declaration
The agency shall declare as surplus all personal property of no further use to the agency and shall notify other public agencies of the availability of such property for procurement through electronic or other advertisement.

2. Nominal Value Surplus Property Exempt
The agency may exempt surplus personal property of nominal value from declaration. Nominal value is a current value of zero or a current value of less than what it would cost to dispose of the surplus item at an auction or refuse site.

B. Authorization to Dispose
1. Board of Examiners’ Approval
The agency shall manage all state-owned personal property with an original purchase price, or purchase unit cost plus ancillary costs, at or above $2,000 (the minimum inventory-tracking threshold as established by the Department of Administration) following the declaration and disposal methods described herein and requesting authorization from the Board of Examiners to dispose of such surplus property.

2. Agency Director’s Discretion
The agency shall manage all state-owned personal property below $2,000 original purchase price, or purchase unit cost plus ancillary costs (the minimum inventory-tracking threshold as established by the Department of Administration) following the declaration and disposal methods described herein and authorization granted at the discretion of the director of that agency to dispose of such surplus property.

C. Methods of Disposal
The agency is encouraged to optimize the benefit to state government and other local public agencies while utilizing the most efficient mode of disposal cited below.

1. Sell
a. Sell surplus property to another state or local public agency (city, county, school district, fire district, irrigation district, etc.) residing in Idaho without public advertisement or receipt of competitive bid; or

b. Sell surplus property with an original purchase price of less than $10,000 to the highest bidder after advertisement of public sale for at least two (2) weeks in a newspaper of general circulation pursuant to Idaho Code 60-106 and 60-109, giving the time, place and any sale conditions thereof, and after offering the surplus property for sale:

i. At a regularly held public auction conducted by an auctioneer pursuant to Idaho Code 63-2304; or
ii. At a state conducted public auction; or
iii. By receipt of written competitive bid in response to the aforementioned public advertisement or to electronic auctioning on the Internet.

c. Sell surplus property with an original purchase price of $10,000 or more to the highest bidder after advertisement of public sale for thirty (30) days in a local newspaper pursuant to Idaho Code 60-106 and 60-109, giving the time, place and any sale conditions thereof, and after offering the surplus property for sale:

i. At a regularly held public auction conducted by an auctioneer pursuant to Idaho Code 63-2304; or
ii. At a state conducted public auction; or
iii. By receipt of written competitive bid in response to aforementioned public advertisement or to electronic auctioning on the Internet.

2. Transfer
a. Transfer surplus property to another state or local public agency (city, county, school district, fire district, irrigation district, etc.) residing in Idaho without public advertisement or auction; or

b. Transfer surplus property of nominal value without public advertisement or auction to a charitable organization that qualifies under Section 501(c)(3) or 501 (c)(19), Internal Revenue Service (See Appendix herein), or to any other person or entity that is participating in a program with a State of Idaho agency and when such transfer renders a benefit to the government of the state and its citizens.

3. Recycle
If surplus property may not be transferred or sold, the agency shall recycle such surplus property whenever possible.

4. Discard
When the above disposal options are not feasible, the agency shall discard such surplus property at a local refuse site.


IV. Procedures
To assist in achieving this policy, agency personnel are asked to perform the following procedures.


Step One Declare State Surplus Property
A. Identify Property
Except nominal value property, identify personal property and cite its category, description, quantity, condition, estimated value and dates of availability by using the online State of Idaho Surplus Property Declaration Form. (See State Surplus Property - Declare State Surplus Property) under Board of Examiners at www.sco.idaho.gov to electronically post surplus property declarations to the Board, agencies and public at large. For your records, print a copy of the declaration before submitting it.)

B. Deliver Declaration
Submit this declaration to the Board of Examiners at least once a year when reviewing an agency’s inventory or when preparing to dispose of surplus personal property. The declaration shall precede the request for authorization to dispose of the surplus property by at least fourteen (14) calendar days.

C. Retain Records
Each declaration will be filed in the State Controller’s Office for audit purposes as well as any related State Property Disposal Authorization Request form.


Step Two Disposal Authorization Request
A. Complete Request Form
Complete the State Property Disposal Authorization Request only for state-owned personal property with an original purchase price, or purchase unit cost plus ancillary costs, at or above $2,000 (the minimum inventory-tracking threshold as established by the Department of Administration). See State Surplus Property - Disposal Authorization Request under Board of Examiners at www.sco.idaho.gov.

B. Submit to Board of Examiners
Submit the completed request to the Board of Examiners in care of the State Controller’s Office or e-mail a message to "brdexam@sco.idaho.gov". with signatures.

C. Return of Authorization
After approval is authorized, a signed copy of the request form will be returned to the agency. After receipt of this signed authorization form, the agency may dispose of the property according to the methods cited on the form. If the agency deviates from these designated disposal methods, written notification must be submitted to the Board of Examiners for reconsideration prior to disposal.

D. Expedite Request
If delaying disposal of surplus property causes undue inconvenience to both the offering agency and the recipient of the surplus property, the agency may request to expedite the State Property Disposal Authorization Request. The agency shall telephone the secretary of the Board of Examiners (State Controller’s Office, 334-3100) and request permission to expedite the approval of the disposal method for the item(s) in question.

With approval, the offering agency shall fax (334-2671) or e-mail (brdexam@sco.idaho.gov) a completed copy of the State Property Disposal Authorization Request to the secretary of the Board of Examiners (State Controller’s Office) citing the item(s) to be expedited. The requesting form shall be marked “EXPEDITE” across the front of the form in legible printing. This expedited request will be promptly signed and returned by fax or e-mail to the offering agency. After receiving the signed, authorized disposal request form, the offering agency may release the surplus property.
The Board of Examiners must approve any exceptions to these guidelines prior to actual disposal.


Appendix 26 CFR1 501(c)(3) & (c)(19)

Code of the Federal Register
Internal Revenue Service
Title 26, Chapter 1

26 CFR 1.501(c)(3)
Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.

26 CFR 1.501(c)(19)
A post or organization of past or present members of the Armed Forces of the United States, or an auxiliary unit or society of, or a trust or foundation for, any such post or organization - (A) organized in the United States or any of its possessions, (B) at least 75 percent of the members of which are past or present members of the Armed Forces of the United States and substantially all of the other members of which are individuals who are cadets or are spouses, widows, or widowers of past or present members of the Armed Forces of the United States or of cadets, and (C) no part of the net earnings of which inures to the benefit of any private shareholder or individual.
Page last updated on 07/27/2010 10:41:36 AM