SALE OF PROPERTY

 

1. Regulations for Sale, Lease, Transfer and Disposal

Chapter 35 of Title 11 of the Code of Laws of South Carolina 1976 contains the following legal requirements related to the sale, lease, transfer and disposal of surplus equipment, supplies and materials:

"Section 11-35-3810. Regulations for Sale, Lease, Transfer and Disposal. Subject to existing provisions of law, the board shall promulgate regulations governing:

  1. the sale, lease, or disposal of surplus supplies by public auction, competitive sealed bidding or other appropriate methods designated by such regulations;

  2. the transfer of excess supplies between agencies and departments."

2. Sale of Surplus Supplies and Personal Property

Chapter 35 of Title 11 of the Code of Laws of South Carolina 1976 includes the following:

"Section 11-35-3820. Allocation of Proceeds for Sale or Disposal of Surplus Supplies. Except as provided in Section 11-35-1580 and Section 11-35-3830 and the regulations pursuant thereto, the sale of all state owned supplies, property or personal property not in actual public use shall be conducted and directed by the Division of General Services. Such sales shall be held at such places and in such manner as in the Judgment of the Division of General Services will be most advantageous to the State. Unless otherwise determined sales shall be by either public auction or competitive sealed bid to the highest bidder. Each governmental body shall inventory and report to the Division all surplus personal property not in actual public use held by that agency for sale.

The Division of General Services shall deposit the proceeds from such sales, less expense of the sales, in the state general fund or as otherwise directed by regulation. This policy and procedure shall apply to all governmental bodies unless exempt by law."

The procurement regulations approved by Budget and Control Board amended Chapter 19 of the Rules and Regulations of 1976 Code by adding Article 9 reads as follows in Section 19-445.2150:

"Subsection A. Authority

The sale of all State-owned surplus supplies and property not in actual public use shall be conducted by the Division of General Services' Surplus Property Section at such places and in such manner most advantageous to the State. All agencies must identify surplus items, declare them as such, and report them to the Materials Management Officer or his designee within 90 days from the date they become surplus. The Division of General Services shall deposit the proceeds from such sale, less expense of the sale, in the state general fund..."

"Subsection B. Disposition of Surplus Supplies

Surplus supplies shall be offered through competitive sealed bids or public auction. It is recognized, however, that some types and classes of items can be sold or disposed of more readily and advantageously by other means, including barter. In such cases, and also where the nature of the supply or unusual circumstances call for its sale to be restricted or controlled, the Materials Management Officer or his designee may employ such other means, including, but not limited to, appraisal, provided such officer makes a written determination that such procedure is advantageous to the State. Only cashiers' checks, United States' currency or personal checks shall be accepted for sales of surplus property.

Obsolete supplies and equipment and scrap material will also be disposed of in the above manner."

Act 148 of 1981 amends the 1976 Code as follows:

  1. The University of South Carolina:

    "Section 12. Item (4) of Section 59-117-40 of the 1976 Code is amended to read:

    (4) To make contracts and to have, to hold, to purchase and to lease real estate and personal property for corporate purposes; and to sell and dispose of personal property and any buildings that are deemed by it as surplus property or not further needed and any buildings that it may need to do away with for the purpose of making room for other construction. All such powers shall be exercised in a manner consistent with the provisions of Chapter 35 of Title 11 of the 1976 Code;"

  2. Clemson University:

    "Board of Trustees authorized to expend monies

    Section 13. Section 59-119-80 of the 1976 Code is amended to read:

    Section 59-119-80. It shall require a two-thirds vote of the board of trustees to authorize the expenditure of any monies appropriated to the university by the State or to authorize the sale, transfer or reinvestment of any property or monies arising from the sale of any property under the provisions of this chapter. All such actions shall be exercised in a manner consistent with the provisions of Chapter 35 of Title 11 of the 1976 Code."

3. Trade-In Sales

Section 11-35-3830 of the Code of Laws of South Carolina 1976 reads as follows:

"Section 11-35-3830. Trade-in Sales.

(1) Trade-in Value. Unless otherwise provided by law, governmental bodies may trade-in personal property the trade-in value of which may be applied to the purchase of new like items. The trade-in value of such personal property shall not exceed an amount as specified in regulations promulgated by the board.
(2) Approval of Trade-in Sales. When the trade-in value of personal property of a governmental body exceeds the specified amount, the board shall have the authority to determine whether (a) the subject personal property shall be traded in and the value applied to the purchase of new like items, or (b) the property shall be classified as surplus and sold in accordance with the provisions of Section 11-35-3820. The board's determination shall be in writing and be subject to the provisions of this chapter.
(3) Record of Trade-in Sales. Governmental bodies shall submit quarterly to the materials management officer a record listing all trade-in sales made under subsections (1) and (2) of this section."

The procurement regulations pertaining to "Trade-In Sales" read as follows in Section 19-445.2150:

"Subsection E. Trade-in Sales

Governmental bodies may trade-in personal property, the trade-in value of which may be applied to the purchase of new like items. The trade-in value of such personal property shall not exceed five hundred dollars ($500.00). When the trade-in value exceeds five hundred dollars ($500.00), the governmental body shall refer the matter to the Materials Management Officer for disposition by the office or for submission to the Board for consideration."

4. Sale of Unserviceable Materials and Equipment

Chapter 35 of Title 11 of the Code of Laws of South Carolina 1976 authorizes the sale of "junk" as follows:

"Section 11-35-4020. Sale of Unserviceable Materials and Equipment. Governmental bodies approved by the board may sell any supplies owned by it after such supplies have become entirely unserviceable and can properly be classified as 'junk', in accordance with procedures established by the Division of General Services. All sales of unserviceable supplies by the governmental body shall be made in public to the highest bidder, after advertising for fifteen days, and the funds from such sales shall be credited to the account of the governmental body owning and disposing of such unserviceable supplies."

Section 11-35-4020 of the Code of Laws of South Carolina 1976 contains the following provisions regarding sale of obsolete, surplus or junk property:

  1. Medical University of South Carolina

    "Provided, That the Medical University of South Carolina may sell, in cooperation with General Services Division of the Budget and Control Board, any materials, supplies or equipment classified as obsolete, surplus or junk for which the University has no further need, or offer same for trade-in in the purchase of new materials or equipment. All sales shall be made on the basis of public auction or sealed bids submitted in response to advertisements. Provided, That items having an individual value of less than $25.00 may be disposed of by sale in the most advantageous way to the University. All proceeds from the sale of such obsolete, surplus or junk material, supplies, and equipment shall be deposited to the State General Fund."

  2. State Department of Education

    "Provided, Further, That the State Department of Education is hereby authorized to collect fees for damages to textbooks and sell textbooks that may be determined no longer usable either through wear on the textbook or expiration of the contract on the textbook. The proceeds of the revenue generated from the sale of textbooks or collection for damaged textbooks shall be remitted to the General Fund."

  3. State Museum Commission

    "Provided, Further, That upon prior approval of the Budget and Control Board, the Commission may remove objects from its museum collections by gift to another public or nonprofit institution, by trade with another public or nonprofit institution, by sale at public auction; or as a last resort, by intentional destruction on the condition that the objects so removed meet with one or more of the following criteria: (1) they fall outside the scope of the S. C. Museum Commission's collections as defined in the Master Plan dated January, 1980, (2) they are unsuitable for exhibition or research, (3) they are inferior duplicates of other objects in the collection, or (4) they are forgeries or were acquired on the basis of false information; provided, further, that funds from the sale of such objects will be placed in a special revolving account for the Commission to use solely for the purpose of purchasing objects for the collections of the State Museum."

  4. Department of Highways and Public Transportation

    "Provided, Further, That the Department of Highways and Public Transportation may sell any materials, supplies, or equipment classified as obsolete, surplus, or junk for which the Department has no further need, or offer same for trade-in in the purchase of new materials or equipment. All such sales of obsolete, surplus or junk materials or equipment by the Department shall be at public auction, unless the Department deems another sales method is more advantageous, with the approval of General Services, not less than ten days after having been advertised in a newspaper of statewide circulation at least once. The Department may reserve the right to reject any or all bids. Items having a value of less than one hundred dollars may be disposed of by sale in the most advantageous way to the Department, and the Department may make negotiated sales of surplus materials, equipment and supplies to county, State, and municipal agencies on a mutually agreed upon basis. All proceeds from the sale of such obsolete, surplus or junk material, supplies and equipment shall be credited to the Highway and Public Transportation Fund."

  5. Wildlife and Marine Resources Department

    "Provided, Further, That any equipment purchased by the department from county game funds on approval of a majority of a county delegation shall remain in that county upon the request of a majority of the respective county delegation and if sold by the department, the proceeds of such sale shall be credited to such county game fund."

5. Sale of Real Property

Section 11-9-630 of 1976 Code as amended by Act 148 of 1981 reads as follows:

"Section 11-9-630. The State Budget and Control Board shall sell and convey, for and on behalf of the State, all such real property, assets and effects belonging to the State as are not in actual public use, such sales to be made from time to time in such manner and upon such terms as it may deem most advantageous to the State. This shall not be construed to authorize the sale by the Board of any property held in trust for a specific purpose by the State or the property of the State in the phosphate rocks or phosphatic deposits in the beds of the navigable streams and waters and marshes of the State."

6. Sale of Timber

Act 148 of 1981 contains the following legal authorizations pertaining to the sale of timber and trees:

  1. Board of Corrections

    "Section 8. Section 24-1-250 of the 1976 Code is amended to read:

    'Section 24-1-250. The State Board of Corrections is authorized to sell mature trees and other timber suitable for commercial purposes from lands owned by the Department of Corrections. However, the proceeds derived from these sales shall not exceed fifty thousand dollars in any one year. Prior to such sales, the Board shall consult with the State Forester to determine the economic feasibility of and obtain approval for such sales. Funds derived from timber sales shall be utilized by the Department of Corrections to maintain and expand the agricultural program subject to the approval of the Budget and Control Board."

  2. State Department of Mental Retardation

    "Section 9. Section 44-19-60 of the 1976 Code is amended to read:

    'Section 44-19-60. The State Department of Mental Retardation may sell timber from any of its forest lands from time to time with the proceeds from such sales to be deposited in the General Fund of the State. Prior to any such sale, the State Budget and Control Board shall consult with the State Forester to determine the economic feasibility of such sale and no such sale shall be made without the approval of the Budget and Control Board'."

    Act 148 of 1981 amends Section 44-21-280 of 1976 Code to read:

    "§44-21-280. Sale of timber from land of Department. The Department may sell marketable timber from lands under its jurisdiction to the highest bidder when, in the judgment of the Commission and the State Commission of Forestry, such action is deemed advantageous to the State. The State Commission of Forestry shall select the trees to be cut and shall stipulate the conditions for cutting and removing the timber from departmental lands.

    Proceeds from the sale of any such timber shall be deposited in the General Fund of the State."

  3. Wildlife and Marine Resources Department

    Act 148 of 1981 amends Section 50-3-550 of the 1976 Code to read:

    "§50-3-510. Authorization to contract; required findings; approval by State Forester. The South Carolina Wildlife and Marine Resources Commission may, subject to the provisions of this article, contract for the selective cutting and sale of timber on any lands held by the South Carolina Wildlife and Marine Resources Department on behalf of its Division of Game. No contract for such cutting and sale shall be entered into and no timber shall be cut or sold unless the Commission decides that the cutting and sale of such timber is for the best interests of the Department and the improvement of its lands, by reason of thinning the timber, harvesting the over-age trees and improving general forestry conditions. Prior to selling or cutting any such timber the matter shall be submitted to the State Forester, who shall investigate the propriety of making such cutting and shall have the timber cruised and an estimate of the value made, reporting his findings to the Commission. If the State Forester finds that the sale is not in keeping with good forestry practices or will adversely affect the remainder of the timber, the sale shall not be made.

    §50-3-520. Advertising for bids; rejection of bids; terms of sale. If the sale is approved by the State Forester, the Department shall publicly advertise for bids for such timber in at least two newspapers of general circulation in the area in which the timber is located, such advertisements to be published at least once a week for three weeks prior to the closing of the bidding. The Commission shall have the right to reject any and all bids, either on account of the amounts of the bids or the lack of experience and responsibility of the bidder. Any sale agreed upon shall be for cash.

    §50-3-530. Execution of deeds and contracts. Any deeds or contracts required in carrying out the provisions of this article may, by resolution of the Commission, be executed and delivered on its behalf by its chairman and by the Director of the Division of Game.

    §50-3-540. State Forester shall mark trees to be cut. The State Forester shall have all trees to be cut properly marked prior to the commencement of the cutting.

    §50-3-550. Disposition of proceeds of sale. The proceeds of the sale shall be deposited in the General Fund of the State."