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BUS-38, Disposal of Excess Material and Transfer of Federally-Funded University-Owned
Material
June 14, 1991
I. REFERENCES
A. Business and Finance Bulletin A-51, "Application of Proceeds from the
Sale, Trade-In or Transfer of University Property."
B. Business and Finance Bulletin BUS-49, "Cashiering Responsibilities
and Guidelines."
C. Business and Finance Bulletin BUS-29, "Management and Control of
University Equipment."
D. Development Policy and Administration Manual.
E. Code of Federal Regulations, Part 178 of 27 CFR (for disposal of
firearms).
F. State of California, Public Contract Code, Section 10334.
II. INTRODUCTION
This Bulletin sets forth general requirements for the disposal of excess
University-owned material. Special provisions may be applied in the case
of transfers of federally-funded University-owned material to other
educational institutions, governmental bodies, or non-profit
organizations.
III. SCOPE
This Bulletin does not apply to agricultural products produced by the
University or to federally-owned material in the custody of the
University. All pertinent regulations of Federal agencies such as the
Department of Energy governing the disposal of federally-owned material
shall be observed by establishment of appropriate procedures at each
campus or Laboratory affected.
IV. DETERMINATION OF EXCESS MATERIAL
Each Chancellor or Laboratory Director shall determine whether an item
has no further value to the organization and can be disposed of as
excess material, including such material that is the property of the
various field stations or Office of the President.
Chancellors and Laboratory Directors are responsible for regularly
circulating lists of excess material to prospective users under their
jurisdictions. If the excess material available at the campus or
Laboratory has an individual or per lot value currently estimated at
$10,000 or more, the other University locations must be notified of the
availability of such material and be given an opportunity to purchase it
before it is placed on public sale. This requirement, however, does not
apply to the disposal of automotive equipment. If the excess material
has a current value of less than $10,000, it may still be offered to
other campuses and Laboratories, provided that costs of handling and
transportation are not excessive in relation to the value of the
material.
V. METHODS OF DISPOSAL
When it has been determined that the excess material is of no immediate
use within the University system, it may be disposed of in one of the
following ways, whichever is considered to bring the highest net return
or benefit to the University:
A. Trade-in on new equipment;
B. Public sale to the highest bidder;
C. Sale on a "first come, first served" basis if a fair market value has
been established by the Materiel Manager and the availability and the
price of the items(s) are made known to the general public through
newspaper advertising and/or other announcements;
D. Private sale to an individual when the cost and effort involved in
arranging for a sale by method A, B, or C would be disproportionate
to the return expected, and the Materiel Manager has determined that
the sale price is reasonable; or
E. Donation of excess material to an organization outside the University
if the market value of the excess material is below the costs required
for handling, record keeping, storage, and other costs associated with
trade or sale; and either the specific prior review and approval of
the General Counsel has been secured or the General Counsel has
given blanket approval for donation of specific categories of excess
material to educational institutions, other governmental bodies, or
non-profit organizations.
VI. PROCESSING OF PROCEEDS FROM SALES
Proceeds from the sale of excess material shall be processed in
accordance with the applicable provisions of Business and Finance
Bulletins BUS-49, "Cashiering Responsibilities and Guidelines," and
A-51, "Application of Proceeds from the Sale, Trade-In or Transfer of
University Property."
University-titled material originally purchased with federal funds must
not be "sold" to other campus units using federal funds.
NOTE: Disposal of firearms requires special handling based on the Code
of Federal Regulations, Part 178 of 27 CFR.
VII. LIMITATION OF SALES TO CERTAIN EMPLOYEES AND THEIR NEAR RELATIVES
A. No one employed in a Materiel Management department, or a near
relative of such employee, may buy excess material directly from
the University.
B. No one employed in a department originating excess material, or a
near relative of such employee, may buy any excess material
originating in that department directly from the University.
C. The principal driver of a University-owned motor vehicle, or a near
relative of such employee, may not buy such motor vehicle directly
from the University.
D. Near relative is defined as husband, wife, mother, father, daughter,
son, sister, brother, and step-relatives and in-laws in the same
relationships.
Exceptions to these provisions must be approved by the Senior Vice
President-Administration, the Vice President-Agriculture and Natural
Resources, or the appropriate Chancellor or Laboratory Director in their
respective areas of responsibility. This authority to approve
exceptions may be re-delegated by the Chancellor or Director only to
the Vice Chancellor-Administration or a comparable Laboratory
administrative officer.
VIII. SPECIAL PROVISIONS FOR TRANSFERS OF UNIVERSITY-OWNED MATERIAL
ACQUIRED WITH FEDERAL CONTRACT AND GRANT FUNDS
Recognizing that transferring federally-funded University-owned
material is an accepted practice among the academic community, the
following special provisions for transferring such material to other
educational institutions, governmental bodies, or nonprofit
organizations may be applied. However, under no circumstances
whatsoever shall these special provisions apply to material acquired
with State general funds.
A. In order to transfer material acquired with federal contract and
grant funds to another institution, in conjunction with a move by
a faculty member to that institution, the following conditions must
be met:
1. The material must be available for transfer: its title must
be vested in the University, and the terms of the grant or
contract from which it was funded do not prohibit such
transfer to another institution.
2. A written request to transfer the material must be made by the
departing faculty member and must include the following:
a. A specific list of the material including (at a minimum)
property numbers, descriptions, original unit costs, and
original funding sources/agencies.
b. The reason for the transfer.
c. Name of the institution to which title will be
transferred.
d. Justification for transferring rather than leaving or
selling the material.
3. The request must be approved by each of the following:
a. Department Head.
b. Dean.
c. Sponsored Projects Property Administrator (or equivalent)
and/or Equipment Manager (or equivalent) - verifies that
title vests in the University and that there are no
restrictions to transfer.
d. Director of Sponsored Projects (or equivalent).
4. Transfers of material with a total historical cost in excess
of $100,000 must be approved by the Vice Chancellor of
Administration, the Senior Vice President-Administration, the
Vice President-Agriculture and Natural Resources or a
comparable Laboratory Administrator in their respective areas
of responsibility. Requests for material transfer shall not
be divided to avoid this requirement.
5. The recipient institution must agree, in writing, to accept
title, with the understanding that the material is for the
initial use of the new faculty member. This agreement may be
obtained via a standard acceptance form signed by an
appropriate officer of the recipient institution.
B. The Equipment Manager (or equivalent) shall verify that all
required approvals (as indicated in Section A., above) have been
obtained and shall approve the release of the material from
custody.
C. Unless specific provisions are made in the terms of a contract or
grant, transfers of material to individuals or for-profit
organizations are prohibited.
Exceptions to the provisions of Section VIII herein must be approved by
the Senior Vice President-Administration, the Vice
President-Agriculture and Natural Resources, or the appropriate
Chancellor or Laboratory Director in their respective areas of
responsibility. This authority to approve exceptions may be re-delegated
by the Chancellor or Director only to the Vice
Chancellor-Administration or a comparable Laboratory administrative
officer.
IX. RESTRICTIONS - DONATED MATERIAL
There are specific requirements regarding the disposition of donated
material. Before disposal, the department disposing of such material
shall verify that these requirements have been met. Refer to the
Development Policy and Administration Manual for specific instructions
regarding the disposition of non-cash gifts of tangible property.
X. RESPONSIBILITIES
Each Chancellor or Laboratory Director is responsible for implementing
these procedures and maintaining records which will substantiate
compliance with this Bulletin.
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