                                 CODE OF VIRGINIA

DISPOSITION OF SURPLUS MATERIALS (§ 2.2-1124)

A. For purposes of this section, &#8220;surplus materials&#8221; means personal
property, including materials, supplies, equipment, and recyclable items, but
does not include property as defined in &#xA7; 2.2-1147 that is determined to be
surplus. &#8220;Surplus materials&#8221; does not include finished products that
a state hospital or training center operated by the Department of Behavioral
Health and Developmental Services sells for the benefit of individuals receiving
services in the state hospital or training center, provided that (i) most of the
supplies, equipment, or products have been donated to the state hospital or
training center; (ii) the individuals in the state hospital or training center
have substantially altered the supplies, equipment, or products in the course of
occupational or other therapy; and (iii) the substantial alterations have
resulted in a finished product.

B. The Department shall establish procedures for the disposition of surplus
materials from departments, divisions, institutions, and agencies of the
Commonwealth. Such procedures shall:

   1. Permit surplus materials to be transferred between or sold to departments,
   divisions, institutions, or agencies of the Commonwealth;

   2. Permit surplus materials to be sold to Virginia charitable corporations
   granted tax-exempt status under &#xA7; 501(c)(3) of the Internal Revenue Code
   and operating as clinics for the indigent and uninsured that are organized for
   the delivery of primary health care services (i) as federally qualified health
   centers designated by the Health Care Financing Administration or (ii) at a
   reduced or sliding fee scale or without charge;

   3. Permit public sales or auctions, including online public auctions;

   4. Permit surplus motor vehicles to be sold prior to public sale or auction to
   local social service departments for the purpose of resale at cost to TANF
   recipients;

   5. Permit surplus materials to be sold to Virginia charitable corporations
   granted tax-exempt status under &#xA7; 501(c)(3) of the Internal Revenue Code
   and operating as children&#8217;s homes;

   6. Permit donations to political subdivisions of the Commonwealth under the
   circumstances specified in this section;

   7. Permit other methods of disposal when (a) the cost of the sale will exceed
   the potential revenue to be derived therefrom or (b) the surplus material is
   not suitable for sale;

   8. Permit any animal especially trained for police work to be sold at a price
   of $1 to the handler who last was in control of the animal. The agency or
   institution may allow the immediate survivor of any full-time sworn
   law-enforcement officer who (i) is killed in the line of duty or (ii) dies in
   service and has at least 10 years of service to purchase the service animal at
   a price of $1. Any such sale shall not be deemed a violation of the State and
   Local Government Conflict of Interests Act (&#xA7; 2.2-3100 et seq.);

   9. Permit the transfer of surplus clothing to an appropriate department,
   division, institution, or agency of the Commonwealth for distribution to needy
   individuals by and through local social services boards;

   10. Encourage the recycling of paper products, beverage containers,
   electronics, and used motor oil;

   11. Require the proceeds from any sale or recycling of surplus materials be
   promptly deposited into the state treasury in accordance with &#xA7; 2.2-1802
   and report the deposit to the State Comptroller;

   12. Permit donations of surplus computers and related equipment to:
   				a. Public schools in the Commonwealth;
   				b. Virginia charitable corporations granted tax-exempt status under &#xA7;
   501(c)(3) of the Internal Revenue Code and providing services to persons with
   disabilities, at-risk youths, or low-income families. For the purposes of this
   subdivision, &#8220;at-risk youths&#8221; means school-age children approved
   eligible to receive free or reduced price meals in the federally funded lunch
   program; and
   				c. Organizations in the Commonwealth granted tax-exempt status under
   &#xA7; 501(c)(3) of the Internal Revenue Code that refurbish computers and
   related equipment for donation to veterans and active military, naval, or air
   service members, as defined in &#xA7; 2.2-2000.1. Any donation to an
   organization under this subdivision shall be conditioned upon, and in
   consideration of, the organization&#8217;s promise to refurbish the donated
   equipment and distribute it free of charge to such veterans or active
   military, naval, or air service members.

   13. Permit surplus materials to be transferred or sold, prior to public sale
   or auction, to public television stations located in the state and other
   nonprofit organizations approved for the distribution of federal surplus
   materials;

   14. Permit a public institution of higher education to dispose of its surplus
   materials at the location where the surplus materials are held and to retain
   any proceeds from such disposal, provided that the institution meets the
   conditions prescribed in subsection A of &#xA7; 23.1-1002 and &#xA7; 23.1-1019
   (regardless of whether or not the institution has been granted any authority
   under Article 4 (&#xA7; 23.1-1004 et seq.) of Chapter 10 of Title 23.1);

   15. Permit surplus materials from (i) the Department of Defense Excess
   Property Program or (ii) other surplus property programs administered by the
   Commonwealth to be transferred or sold to Virginia charitable corporations
   granted tax-exempt status under &#xA7; 501(c)(3) of the Internal Revenue Code
   and operating as an educational institution devoted to emergency management
   training, preparedness, and response;

   16. Require, to the extent practicable, the recycling and disposal of
   computers and other information technology assets, including the option to
   enter into an agreement with a purchasing vendor to buy back or trade in any
   technological equipment. Additionally, for computers or information technology
   assets that may contain confidential state data or personal identifying
   information of citizens of the Commonwealth, the Department shall ensure all
   policies for the transfer or other disposition of computers or information
   technology assets are consistent with data and information security policies
   developed by the Virginia Information Technologies Agency; and

   17. Permit surplus materials to be sold, prior to public sale or auction, to
   (i) service disabled veteran-owned businesses, (ii) veterans service
   organizations, (iii) active military-owned businesses, and (iv) military
   spouse-owned businesses.
   				For purposes of this subdivision:
   				&#8220;Active military&#8221; means military service members who perform
   full-time duty in the Armed Forces of the United States, or a reserve
   component thereof, including the National Guard.
   				&#8220;Military spouse&#8221; means a person whose spouse is an active
   military, naval, or air service member or veteran as those terms are defined
   in &#xA7; 2.2-2000.1.
   				&#8220;Military spouse-owned business&#8221; means a business concern that
   is at least 51 percent owned by one or more military spouses or, in the case
   of a corporation, partnership, or limited liability company or other entity,
   at least 51 percent of the equity ownership interest in the corporation,
   partnership, or limited liability company or other entity is owned by one or
   more individuals who are military spouses and both the management and daily
   business operations are controlled by one or more individuals who are military
   spouses.
   				&#8220;Service disabled veteran&#8221; means the same as that term is
   defined in &#xA7; 2.2-2000.1.
   				&#8220;Service disabled veteran-owned business&#8221; means the same as
   that term is defined in &#xA7; 2.2-2000.1.
   				&#8220;Veterans service organization&#8221; means an association or other
   entity organized for the benefit of veterans that has been recognized by the
   U.S. Department of Veterans Affairs or chartered by Congress.

C. The Department shall dispose of surplus materials pursuant to the procedures
established in subsection B or permit any department, division, institution, or
agency of the Commonwealth to dispose of its surplus materials consistent with
the procedures so established. No surplus materials shall be disposed of without
prior consent of the head of the department, division, institution, or agency of
the Commonwealth in possession of such surplus materials or the Governor.

D. Departments, divisions, institutions, or agencies of the Commonwealth or the
Governor may donate surplus materials only under the following circumstances:

   1. Emergencies declared in accordance with &#xA7; 44-146.18:2 or 44-146.28;

   2. As set forth in the budget bill as defined by &#xA7; 2.2-1509, provided
   that (a) the budget bill contains a description of the surplus materials, the
   method by which the surplus materials shall be distributed, and the
   anticipated recipients, and (b) such information shall be provided by the
   Department to the Department of Planning and Budget in sufficient time for
   inclusion in the budget bill;

   3. When the market value of the surplus materials, which shall be donated for
   a public purpose, is less than $500; however, the total market value of all
   surplus materials so donated by any department, division, institution, or
   agency shall not exceed 25 percent of the revenue generated by such
   department&#8217;s, division&#8217;s, institution&#8217;s, or agency&#8217;s
   sale of surplus materials in the fiscal year, except these limits shall not
   apply in the case of surplus computer equipment and related items donated to
   Virginia public schools; or

   4. During a local emergency, upon written request of the head of a local
   government or a political subdivision in the Commonwealth to the head of a
   department, division, institution, or agency.

E. On or before October 1 of each year, the Department shall prepare, and file
with the Secretary of the Commonwealth, a plan that describes the expected
disposition of surplus materials in the upcoming fiscal year pursuant to
subdivision B 6.

F. The Department may make available to any local public body of the
Commonwealth the services or facilities authorized by this section; however, the
furnishing of any such services shall not limit or impair any services normally
rendered any department, division, institution, or agency of the Commonwealth.
All public bodies shall be authorized to use the services of the
Department&#8217;s Surplus Property Program under the guidelines established
pursuant to this section and the surplus property policies and procedures of the
Department. Proceeds from the sale of the surplus property shall be returned to
the local body minus a service fee. The service fee charged by the Department
shall be consistent with the fee charged by the Department to state public
bodies.

HISTORY: 1996, cc. 935, 978, § 2.1-457.2; 1999, cc. 159, 578, 629, 911; 2000,
cc. 615, 636, 661; 2001, c. 844; 2004, c. 670; 2005, cc. 933, 945; 2006, cc.
468, 493; 2007, c. 701; 2009, c. 75; 2012, cc. 476, 507, 805, 836; 2014, c. 226;
2016, cc. 298, 400; 2019, c. 425; 2020, cc. 43, 358; 2024, c. 47.