Texas Administrative Code › Title 43 - TRANSPORTATION › Part 1 - TEXAS DEPARTMENT OF TRANSPORTATION › Chapter 31 - PUBLIC TRANSPORTATION › Subchapter E - PROPERTY MANAGEMENT STANDARDS › Section 31.57 - Disposition

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. This section describes the
				  standards that apply to the disposition of equipment purchased in whole or in
				  part with state or federal public transportation funds.
(b) Like-kind exchanges. In the case of
				  like-kind exchanges, the percentage of the department's original contractual
				  interest shall be applied to the fair market value of the equipment being sold
				  at the time of the exchange. That dollar value shall then be transferred as the
				  department's interest in the equipment being acquired and, as appropriate,
				  added to any additional funding provided by the department towards the purchase
				  of the new equipment.
(c) Federal
				  standards. The federal standards contained in 2 C.F.R Part 200 and Part 1201,
				  Uniform Administrative Requirements, Cost Principles, and Audit Requirements
				  for Federal Awards shall govern the disposition of real property and equipment
				  purchased under contracts in which the department provides all or part of the
				  local share requirement of federally assisted capital improvements. In cases in
				  which 2 C.F.R. Part 200 and Part 1201, Uniform Administrative Requirements,
				  Cost Principles, and Audit Requirements for Federal Awards does not require
				  reimbursement of the federal grantor agency, the department will similarly
				  release the state interest in the capital improvement provided that the state's
				  percentage share of any proceeds derived by the subrecipient in the disposition
				  process shall be used by the subrecipient for public transportation purposes
				  similar to those for which the contract award was originally made. If the
				  subrecipient does not intend to use the state's percentage share of the
				  proceeds for public transportation purposes, those monies shall be refunded as
				  described in subsection (d)(2)(B) of this section. In cases in which 2 C.F.R.
				  Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles,
				  and Audit Requirements for Federal Awards requires reimbursement of the federal
				  grantor agency, the subrecipient shall provide the department a percentage of
				  the proceeds of the disposition equal to the percentage of the state's original
				  investment in the property or equipment. Once disposition is authorized, the
				  subrecipient shall relinquish title to the property through either sale,
				  auction, or transfer to another recipient of FTA funding. The department shall
				  be notified of the disposition and shall be provided information necessary to
				  delete the property from inventory records described in §
										31.50
				  of this subchapter (relating to Recordkeeping and Inventory
				  Requirements).
(d) State standards.
				  All real property and equipment obtained through contracts in which the
				  department's contractual interest includes federal funds or state monies shall
				  be governed by the disposition standards contained in paragraphs (1) and (2) of
				  this subsection. The department shall be notified of the subrecipient's intent
				  to proceed with the dispositions and provided information necessary to delete
				  the property from inventory records described in §
										31.50
				  of this subchapter. Prior to disposition of property under the terms of this
				  subsection, the subrecipient shall obtain written concurrence from the
				  department and receive disposition instructions. Once disposition is
				  authorized, the subrecipient shall relinquish title to the property through
				  either sale, auction, or transfer to another recipient of FTA or state funding.
(1) Disposition criteria.
(A) Vehicles. Disposition may occur when the
				  current per-unit market value is less than $5,000.
(B) Other equipment. Disposition may occur
				  when the current per-unit market value is less than $5,000.
(C) Real property. When real property is no
				  longer needed for the originally authorized purpose, the subrecipient shall
				  request disposition instructions from the department pursuant to this
				  subsection.