Chapter 123:5-2 Excess and Surplus Supplies

123:5-2-01 Disposal of excess and surplus supplies.

(A) Upon receiving notice of a state agency's excess supplies, property with remaining useful life, or surplus supplies, property with no remaining useful life, the director of administrative services will at no cost to the state agency take control of each excess or surplus supply item that is valued at one hundred dollars or more and make arrangements for their disposition.

(1) A state agency may dispose of its own excess or surplus supply that is valued at one hundred dollars or more, if the agency will be trading-in the supply for new supplies or equipment and the trade-in value is estimated to exceed the value of the supply if sold at public auction or if the disposal is through an interagency transfer.

(2) The director of administrative services may take control of excess or surplus supplies that are estimated to have value of less than one hundred dollars, if the agency that owns the supplies is not able to dispose of them in a cost effective or efficient manner and the agency requests the department of administrative services to dispose of the supplies.

(B) When a state agency, other than the department of administrative services, disposes of its excess or surplus supplies, it must dispose of the supplies in the most cost effective and efficient manner. State agencies must consider the following methods of disposal:

(1) Selling, leasing, donating, or transfering of excess or surplus supplies to another state agency;

(2) Selling, leasing, donating, or transfering of excess or surplus supplies to state-supported or state-assisted institutions of higher education, tax-supported agencies, municipal corporations, public schools or other political subdivisions of this state, private fire companies, private, nonprofit emergency medical service organizations, or nonpublic elementary and secondary schools chartered by the state board of education;

(3) Trading-in excess or surplus supplies towards new supplies or equipment;

(4) Selling excess or surplus supplies to the general public by a fair and impartial process, such as advertisement by newspaper or internet;

(5) Recycling excess or surplus supplies;

(6) Selling or donating to a nonprofit organization that is both exempt from federal income taxation under 26 U.S.C. 501(a) and (c) (3) and that receives funds from the state or has a contract with the state;

(7) Disposing surplus supplies as refuse.

(C) After complying with paragraph (A) of this rule, the department of administrative services and the state agency that disposes of its own excess or surplus supplies shall maintain a record of the disposition of the excess or surplus supplies in accordance with a proper record retention schedule.

(D) The director of administrative services shall hold for at least three months excess and surplus supplies that might be of use to state agencies and regularly notify and make available to state agencies in a convenient manner excess and surplus supplies that are being held.

(E) For the purpose of this chapter of the Administrative Code, "funds" means a state loan, grant, or other type of state financial assistance.

(F) For the purpose of this chapter of the Administrative Code, "control" means responsibility of determining the most cost effective and efficient manner in which to dispose of the excess or surplus supplies. "Control" does not mean physical location or possession of excess or surplus supplies.

Effective: 2/29/2016
Five Year Review (FYR) Dates: 11/20/2015 and 03/01/2021
Promulgated Under: 119.03
Statutory Authority: ORC 125.13
Rule Amplifies: ORC 125.12, ORC 125.13, ORC 125.14
Prior Effective Dates: 10/5/1998