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This entry was published on 2014-09-22
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Disposal of agency property
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 16
§ 2350-ee. Disposal of agency property. 1. Definitions. For the
purposes of this section, unless a different meaning is required by the

(a) "Contracting officer" shall mean the officer or employee of the
agency who shall be appointed by resolution of the board of the agency
to be responsible for the disposition of property.

(b) "Dispose" or "disposal" shall mean transfer of title or any other
interest in personal or real property in accordance with this section.

(c) "Property" shall mean personal property, real property, and any
inchoate or other interest in such property, to the extent that such
interest may be conveyed to another person for any purpose.

2. Duties of the agency with respect to the disposal of property. (a)
The agency shall adopt by resolution comprehensive rules or guidelines
which shall: (i) detail the agency's operative policy and instructions
regarding the use, awarding, monitoring and reporting of contracts for
the disposal of property, and (ii) designate a contracting officer who
shall be responsible for the agency's compliance with, and enforcement
of, such rules or guidelines. Such rules or guidelines shall be
consistent with, and shall require the agency's contracting activities
to comply with this section or the provisions of the state finance law,
the public lands law or any other law applicable to contracts of the
state for the disposal of property, except that such rules or guidelines
may be stricter than the provisions of this section, the state finance
law, the public lands law or any other law applicable to state contracts
if the agency determines that additional safeguards are necessary to
assure the integrity of its activities. Rules or guidelines approved by
the agency shall be annually reviewed and approved by the governing body
of the agency.

(b) The agency shall: (i) maintain adequate inventory controls and
accountability systems for all property under its control; (ii)
periodically survey such property to determine which property shall be
disposed of; (iii) produce a written report of such property in
accordance with subdivision three of this section; (iv) perform the care
and handling of such property; and (v) transfer or dispose of such
property as promptly as possible in accordance with this section.

3. Disposal of agency property. (a) Supervision and direction. Except
as otherwise provided in this section, the contracting officer shall
have supervision and direction over the disposition of property of the
agency. Notwithstanding any other provision of this title, the agency
shall not dispose of any interest in real property without approval by a
duly enacted resolution of the county legislature.

(b) Custody and control. The custody and control of the property of
the agency, pending its disposition, and the disposal of such property,
shall be performed by the agency.

(c) Method of disposition. Subject to the provisions of this section,
the agency may dispose of property for not less than the fair market
value of such property by sale, exchange, lease, permit, or transfer,
for cash, credit, or other property, with or without warranty, and upon
such other terms and conditions as the contracting officer deems proper,
and it may execute such documents for the transfer of title or other
interest in property and take such other action as it deems necessary or
proper to dispose of such property under the provisions of this section.
Provided, however, that no disposition of real property, any interest in
real property, or any other property which because of its unique nature
is not subject to fair market pricing shall be made unless an appraisal
of the value of such property has been made by an independent appraiser
and included in the record of the transaction.

(d) Validity of deed, bill of sale, lease, or other instrument.
Subject to the provisions of this section, a deed, bill of sale, lease,
or other instrument executed by or on behalf of any agency, purporting
to transfer title or any other interest in property of the agency under
this section shall be conclusive evidence of compliance with the
provisions of this section insofar as concerns title or other interest
of any bona fide grantee or transferee who has given valuable
consideration for such title or other interest and has not received
actual or constructive notice of lack of such compliance.

(e) Bids for disposal; advertising; procedure; disposal by
negotiation; explanatory statement.

(i) All disposals or contracts for disposal of property of an agency
made or authorized by the administrator shall be made after publicly
advertising for bids except as provided in subparagraph (iii) of this

(ii) Whenever public advertising for bids is required under
subparagraph (i) of this paragraph:

A. the advertisement for bids shall be made at such time prior to the
disposal or contract, through such methods, and on such terms and
conditions as shall permit full and free competition consistent with the
value and nature of the property;

B. all bids shall be publicly disclosed at the time and place stated
in the advertisement; and

C. the award shall be made with reasonable promptness by notice to the
responsible bidder whose bid, conforming to the invitation for bids,
will be most advantageous to the state, price and other factors
considered; provided, that all bids may be rejected when it is in the
public interest to do so.

(iii) Disposals and contracts for disposal of property may be
negotiated without regard to subparagraphs (i) and (ii) of this
paragraph but subject to obtaining such competition as is feasible under
the circumstances, if:

A. the personal property involved is of a nature and quantity which,
if disposed of under subparagraphs (i) and (ii) of this paragraph, would
adversely affect the state or local markets for such property, and the
estimated fair market value of such property and other satisfactory
terms of disposal can be obtained by negotiation;

B. the fair market value of the property does not exceed fifteen
thousand dollars;

C. bid prices after advertising therefor are not reasonable, either as
to all or some part of the property, or have not been independently
arrived at in open competition;

D. the disposal will be to the state or any political subdivision, and
the estimated fair market value of the property and other satisfactory
terms of disposal are obtained by negotiation;

E. such action is otherwise authorized by law.

(iv) An explanatory statement shall be prepared of the circumstances
of each disposal by negotiation of any personal property which has an
estimated fair market value in excess of fifteen thousand dollars or any
real property that has an estimated fair market value in excess of one
hundred thousand dollars, except that any real property disposed of by
lease shall be subject to this subparagraph, if the total estimated rent
is in excess of one hundred thousand dollars. Each such statement shall
be transmitted to the persons entitled to receive copies of the annual
statement of the agency under this title not less than thirty days in
advance of such disposal, and a copy thereof shall be preserved in the
files of the agency.