SENATE BILL REPORT

SB 5118

BYSenators McCaslin and Pullen

Providing for public auction of used state motor vehicles.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 8, 1989

Senate Staff:Barbara Howard (786-7410); Desley Brooks (786-7443)

AS OF FEBRUARY 8, 1989

BACKGROUND:

As early as 1953, the Legislature authorized state and local governments to cooperate in the disposition of publicly owned surplus property.  Several amendments have been adopted since then, allowing considerable flexibility to governmental units as an alternative method for exchanging real or personal property.

Under the property management authority of the Department of General Administration (Chap. 43.19 RCW), specific provision is made for methods of disposing of surplus state property.  In those statutes, it is required that the proceeds of any sale of surplus state property should revert to the fund from which it was originally purchased.  In the sale of surplus motor vehicles, a portion of the proceeds is retained by the surplus program to cover administrative costs.  Among the agencies which purchase motor vehicles from dedicated funds are the Department of Transportation, the Department of Natural Resources and the Washington State Patrol.

It has been suggested that all state motor vehicle sales should be made at public auction and the proceeds should be paid into the state general fund for several reasons: (1) a price at auction is more likely to be closer to the actual value of the vehicle because of competition, (2) the public should have an opportunity to participate in such sales, and (3) such auctions would generate more revenue for the general fund. 

SUMMARY:

All state motor vehicles must be sold at public auction or public sealed bid.  Funds from such sales are paid into the state general fund.  Exemptions from these provisions include the Department of Corrections, any motor vehicles acquired by a state organization under federal grants and contracts, if a conflict arises with any special title provisions in the grants or contracts.

Appropriation:    none

Revenue:    none

Fiscal Note:      available