In this subtitle the following words have the meanings indicated. “Excess personal property” means an item of personal property that is declared to be in excess of the needs of the custodial unit of the State government because the item: is not necessary to the efficient operation of the unit; or has been replaced by a similar item. “Nonexpendable item” means an item of equipment or furnishing that has: an anticipated useful life of more than 1 year; and an original cost exceeding a minimum dollar amount established by the Department by regulation. “Surplus personal property” means an item of excess personal property that the Department declares is not needed by any unit of the State government.

The head of a unit of the State government may declare an item of personal property in the possession of the unit to be excess personal property by submitting a declaration of excess personal property to the Department. The declaration is effective on approval by the Department. The Department may declare excess personal property to be surplus personal property if the Department determines that the excess personal property cannot be used by any unit of the State government.

The Department shall administer all arrangements for moving excess personal property or surplus personal property. The Department shall decide whether excess personal property or surplus personal property shall be: moved to a central location; or disposed of at its present location.

The Secretary may dispose of excess personal property and surplus personal property as provided in this section. Whenever feasible, the Secretary shall dispose of excess personal property by transferring it to another unit of the State government. The unit of the State government that receives the excess personal property shall pay any cost of the transfer. The Secretary: may dispose of any surplus personal property; and shall seek to gain the maximum value for the State in the disposition. The Secretary shall dispose of surplus personal property: by dismantling it for recovery of valuable parts; by trading it in; by transferring it to a local jurisdiction, public school system, or nonprofit organization; by auctioning or selling it, including selling it for scrap value; or if no value can be realized from it, by destroying it. If surplus personal property is destroyed under this subsection, the unit of the State government that declared the item to be excess personal property shall pay any cost of destruction. The Secretary may delegate the authority to dispose of surplus personal property to a designee of the Secretary or, by regulation, to another unit of the State government.

Except as provided in subsection (b) of this section, money received from the auction or sale of any surplus personal property in excess of charges which might be imposed by the Department of General Services for conducting the auction or sale shall be deposited in the General Fund of the State. If the Department of Budget and Management approves, the money in excess of the service charge may be credited to the account of the unit of the State government that declared the property to be excess personal property. Money received from the auction or sale of surplus personal property shall be deposited as follows: if the item was purchased from a special fund appropriation, the proceeds shall be deposited in the appropriate special fund; if the item was purchased with bond money, the proceeds shall be deposited in the Annuity Bond Fund; and if the item was purchased with federal money, the proceeds shall be disbursed in accordance with federal law.

The Department shall distribute periodically a list of excess personal property to each unit of the State or a local government. The Department shall adopt regulations to implement this subtitle. Any regulation adopted under this subtitle is subject to approval by the Board of Public Works. The Department may use excess personal property to satisfy a purchase requisition if the excess personal property: is functional; is serviceable; and satisfies the need of the requisitioning unit.

If the Department trades in surplus personal property for a replacement for the unit of the State government that declared the item excess, the Department shall give credit to that unit in the form of a reduced cost for the replacement property.

If a unit of the State government requisitions a nonexpendable item to replace any item, the unit shall declare the existing item to be excess personal property unless the Department of Budget and Management waives this requirement. The unit of the State government seeking to replace the item shall submit a declaration of excess personal property to the Department of General Services with the purchase requisition for the replacement item.