North Carolina § 143-64 - 03. Powers and duties of the State agency for surplus property.

§ 143-64. 03. Powers and duties of the State agency for surplus property.

The State Surplus Property Agency is authorized and directed to: Sell all State owned supplies, materials, and equipment that are surplus, obsolete, or unused and sell all seized vehicles and other conveyances that the State Surplus Property Agency is authorized to sell; Warehouse such property; and Distribute such property to tax-supported or nonprofit tax-exempt organizations. The State Surplus Property Agency is authorized and empowered to act as a clearinghouse of information for agencies and private nonprofit tax-exempt organizations, to locate property available for acquisition from State agencies, to ascertain the terms and conditions under which the property may be obtained, to receive requests from agencies and private nonprofit tax-exempt organizations, and transmit all available information about the property, and to aid and assist the agencies and private nonprofit tax-exempt organizations in transactions for the acquisition of State surplus property. When distributing computer equipment to nonprofit entities that refurbish computers and donate them to low-income students or households in this State, the State Surplus Property Agency must give consideration to the counties where the computer equipment will be donated to ensure that all geographic regions of the State benefit from the distributions. The State agency for surplus property, in the administration of Part 1 of this Article, shall cooperate to the fullest extent consistent with the provisions of Part 1 of this Article, with the departments or agencies of the State. The State agency for surplus property may sell or otherwise dispose of surplus property, including motor vehicles, through an electronic auction service. History (1991, c. 358, s. 2; 2003-284, s. 18.6(a); 2015-241, s. 27.3(f); 2017-67, s. 1(b).) Editor's Note. - Session Laws 2017-67, s. 2, provides, in part: "Notwithstanding G.S. 150B-21.1 A(a), an agency may adopt an emergency rule in accordance with G.S. 150B-21.1 A to effectuate the provisions of this act." This Act amended subsection (b), concerning the distribution of computer equipment to nonprofit organizations. Session Laws 2019-199, s. 6(a)-(d), provides: "(a) Pilot Program to Streamline North Carolina Department of Transportation (NCDOT) Surplus Property Auctions. - No later than October 1, 2019, the State agency for State surplus property shall establish a pilot program for disposing of NCDOT surplus property, including motor vehicles and equipment, by live public auction and via live simulcast or electronic means in accordance with subsection (b) of this section without requiring the movement of NCDOT surplus property. The NCDOT shall cooperate with the State agency for State surplus property and the auctioneer selected pursuant to this pilot program. In implementing this pilot program, the State agency for State surplus property shall prepare a request for proposal pursuant to subsection (b) of this section for three public auctions conducted by a private licensed auctioneer during this pilot program. No auctions pursuant to this program shall be held after December 31, 2021, and the pilot program shall terminate upon submission of its report as required by subsection (d) of this section. "(b) By December 1, 2019, the State agency for State surplus property shall issue a request for proposal (RFP) for the sale of North Carolina Department of Transportation (NCDOT) surplus property, including titled and nontitled equipment and motor vehicles owned by the NCDOT, at live public auction and via live simulcast or other electronic means without requiring surplus property movement to a centralized auction location. The State agency for State surplus property shall consult with the NCDOT and group the various Department Highway Divisions into three regions for the purposes of determining the live public auction locations based on surplus property distribution and storage locations. The NCDOT shall provide copies of the maintenance file, maintenance-related invoices or documents, and the preventive maintenance schedule for each item of equipment or motor vehicle being auctioned for inspection prior to auction. The State agency for State surplus property shall consult with the NCDOT to further determine (i) adequate staffing requirements to work with the auctioneer in conducting an auction, including staff who are knowledgeable about the surplus property, (ii) adequate arrangements to allow for the auctioneer to document by photograph or video, as appropriate, surplus property for auction, and (iii) adequate arrangements to allow members of the public access to NCDOT storage locations to inspect and view the surplus property to be auctioned. Net proceeds shall be credited to the State Highway Fund in accordance with G.S. 136-16 . The RFP shall contain the following auctioneer requirements: "(1) Must accept payment by any commercially reasonable manner. The auction company may charge credit card and platform fees of up to three percent (3%) of the highest and final bid. "(2) Must have capability to conduct auctions via live simulcast or other electronic means in conjunction with conducting live auctions. "(3) Must have capability to electronically document, via photographs and video, as appropriate, surplus property, equipment, and motor vehicles and make information electronically available for inspection prior to an auction. "(4) Must remit the net proceeds from the auction to the NCDOT within 14 business days after the auction is completed. The auction company may offset up to one-fourth of one percent (0.25%) of the gross sale for advertisement cost reimbursement. "(5) Must post a cash bond or equivalent guarantee in the amount of two hundred fifty thousand dollars ($250,000), made payable to the State of North Carolina. "(6) Must have a minimum coverage of two million dollars ($2,000,000) in commercial general liability insurance. "(7) Must agree to charge no commission to the State. The auction company may charge a buyer premium, not to exceed ten percent (10%) to the final and highest bid. "(8) Must be a licensed auction company with a current and valid North Carolina Auctioneer license issued pursuant to Chapter 85B of the General Statutes. Preference shall be given to an auction company based in this State. "(9) Must require that successful bidders provide and complete proper transfer documents for titled equipment or motor vehicles. "(10) Must be capable of conducting live simulcast public auctions in regions as agreed upon by the NCDOT. "(c) By June 1, 2020, the State agency for State surplus property shall review the proposals submitted and shall enter into a contract with the lowest responsible bidder who provides evidence satisfactory to the State agency for State surplus property that it meets the requirements of the RFP. "(d) No later than March 1, 2022, the State agency for State surplus property shall report to the Joint Legislative Transportation Oversight Committee the results, findings, and legislative recommendations based on the results from the auctions during the pilot program. At a minimum, its report shall include information on the following: "(1) The quantity and type of surplus property offered as part of each auction. "(2) The details of each request for proposal and award of contract. "(3) The results of the State surplus property public auctions, including details of each public auction, and the average ratio of sale price to estimated State surplus property value. "(4) Other information the State agency for State surplus property deems necessary.” Effect of Amendments. - Session Laws 2015-241, s. 27.3(f), effective July 1, 2015, rewrote subdivision (a)(1). Session Laws 2017-67, s. 1(b), effective June 28, 2017, added the last sentence in subsection (b).