2023 Tennessee Code › Title 12 - PUBLIC PROPERTY, PRINTING AND CONTRACTS (§§ 12-1-101 — 12-12-113) › Chapter 2 - ADMINISTRATION AND DISPOSITION OF STATE PROPERTY (§§ 12-2-101 — 12-2-501) › Part 4 - STATE SURPLUS PERSONAL PROPERTY ACT OF 1976 (§§ 12-2-401 — 12-2-421) › Section 12-2-403 - Methods of disposal

(a)
No article or personal property may be disposed of as surplus except by one (1) of the following methods:
(1)
Public auction, publicly advertised and held;
(2)
Sale under sealed bids, publicly advertised, opened and recorded;
(3)
Sale by internet auction;
(4)
Negotiated contract for sale, at arms length; but only in those instances in which the availability of the property is recurring or repetitive in character, such as marketable waste products, for disposal of the property as it is generated in the most economically feasible, fiscally sound, and administratively practicable method for the state to utilize;
(5)
Trade-in, where such is permitted due to the nature of the property or equipment and under the terms and conditions of the contract by which the state replaces the property, and subject, further, to this part and the regulations of the procurement commission promulgated to govern the disposal of property by trade-in; and
(6)
Sale under rules and regulations as provided in subsection (d).
(b)
The procurement commission may promulgate special regulations for the disposal of surplus personal property, such as firearms, ammunition, and other explosives, which, by their character and utility, must be disposed of in a method consistent with prevailing federal law.
(c)
(1)
Political subdivisions of the state, governmental entities and corporations organized and conducted not-for-profit which have been approved as authorized donees under the federal surplus property program and not-for-profit federally financed rural electric cooperatives, as defined in title 65, chapter 25, may purchase personal property declared surplus and classified by the commissioner for disposal pursuant to §
12-2-407
.
(2)
A member of the general public may purchase a bloodhound declared surplus and classified by the commissioner for disposal pursuant to the procedures established in §
12-2-407
for sales to governmental entities.
(3)
A member of the general assembly may purchase office furniture, equipment, or other personal property for use in the home district legislative office of such member if such furniture, equipment or property has been declared surplus and classified by the commissioner for disposal pursuant to procedures established in §
12-2-407
for sales to governmental entities.
(d)
The commissioner, with the approval of the procurement commission, may promulgate special rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to permit sales to nonprofit volunteer fire, police, and rescue organizations operated for a public purpose. Such regulations shall provide for sale of surplus property to such organizations on the basis of fair market value of such property as determined by the commissioner. Such regulations shall establish eligibility requirements for organizations to purchase surplus property under this subsection (d). Determinations of eligibility shall be made in accordance with rules and regulations promulgated under this section by the commissioner and all decisions of the commissioner shall be final. Such sales shall be subject to the restrictions contained in §
12-2-407
.
(e)
The commissioner of finance and administration, with the approval of the governor and the attorney general and reporter, may approve the transfer of surplus personal property to a selected local government, with or without financial consideration, when associated real property is being transferred to that local government under provisions of this chapter; provided, that the authorizing officials named in this subsection (e) first must determine that such transfer of personal property ownership is in the interest of the state.
(f)
The commissioner of general services, with the approval of the governor and the procurement commission, may approve the transfer of surplus personal property to local government, with or without financial consideration; provided, that such property was initially acquired from the federal government for civil defense purposes; provided further, that the authorizing officials named in this subsection (f) first determine that such transfer of personal property ownership is in the interest of the state.
(g)
(1)
For purposes of this subsection (g), "computer equipment" includes personal computers, printers, CD-ROM readers, monitors, keyboards, CPU's, scanners, and all accessories and other peripheral equipment used in a data processing operation.
(2)
The commissioner of general services, in consultation with the information systems council, with the approval of the governor and the commissioner of education, is authorized to transfer surplus computer equipment to local education agencies, without financial consideration; provided, that such property is suitable for educational purposes for the public schools as determined by the commissioner of education; and provided further, that the authorizing officials named in this subsection (g) first determine that the transfer of such personal property ownership is in the best interest of the state.
(3)
Prior to the disposition of surplus computer equipment, a determination shall be made as to whether requests have been made by a local education agency for computer equipment. If suitable computer equipment is available which meets the needs of requests on file by local education agencies, such property shall be transferred, without financial consideration, to such local education agencies. If, however, available surplus computer equipment is not suitable for educational purposes or if no requests are on file by local education agencies for equipment which meets the needs of such requests, then the surplus computer equipment shall be disposed of as otherwise provided in this section.
(4)
The procurement commission shall adopt rules and regulations on the procedure for the disposal of such computer equipment as provided in this subsection (g) and, in consultation with the commissioner of education, on the procedures for a local education agency to apply for and be considered for receiving such property.
(5)
The department or agency which declares the computer equipment surplus may be charged a fee to cover the cost of disposing of such equipment. The amount of the fee shall be determined by the procurement commission.
(6)
Notwithstanding any other law to the contrary, any surplus computer equipment held by the department of human services and not deemed to meet the needs of requests on file by local education agencies shall be transferred by the department of human services without financial consideration to community agencies that serve low income individuals.
(h)
(1)
Notwithstanding any other law to the contrary, the department of safety may, without payment of financial consideration and following notice to the commissioner of general services, transfer a surplus first responder two-way radio held by the department to the county government of a county that is designated as a distressed county in the most recently published edition of the Appalachian Regional Commission economic classification system index.
(2)
After the transfer of a surplus two-way radio to a distressed county under subdivision (h)(1), other surplus two-way radios may then be transferred to other county governments in need of such equipment that submit proof to the department's satisfaction that such counties cannot purchase the radios within the budget for that fiscal year.
(3)
Surplus first responder two-way radios held by the department that were obtained from the federal government or purchased with federal grant funds must be transferred in accordance with federal law or regulation regarding such property.
(i)
Notwithstanding any law to the contrary, a surplus commercial motor vehicle in possession of a state agency may, with payment of reasonable financial consideration and following notice to the commissioner of general services, be transferred to the department of safety for use in the department's commercial driver license testing program. A surplus vehicle transferred under this section must be sold as provided in this section when the vehicle is no longer in use by the department of safety.
Amended by 2022 Tenn. Acts, ch. 992, s 7, eff. 7/1/2022.
Amended by 2021 Tenn. Acts, ch. 527, s 1, eff. 5/25/2021.
Acts 1976, ch. 821, § 3; 1978, ch. 625, § 1; 1978, ch. 797, § 1; T.C.A., § 12-237; Acts 1981, ch. 181, § 1; 1981, ch. 319, § 1; 1982, ch. 845, § 1; 1993, ch. 299, § 1; 1997 , ch. 52, § 1; 1997 , ch. 359, § 1; 1997 , ch. 474, § 1; 1998, ch. 853, § 1; 2001, ch. 90, § 1; 2007 , ch. 411, § 1; 2011 , ch. 295, §§ 9 (a), 19; 2012 , ch. 626, § 3.