SECTION 260:105-7-1. Sales to related parties

(a)   A conflict of interest may exist or appear to exist when a related party attempts to purchase surplus property.

(b)   A related party is defined as someone who may fit into any of the following categories pertaining to the surplus property in question:

(1)   Has purchasing authority.

(2)   Has maintenance authority.

(3)   Has disposition or signature authority.

(4)   Has authority regarding the disposal price.

(5)   Has access to restricted information.

(6)   Is perceived to be a related party using other criteria which may prohibit independence.

(c)   Owning state agencies must list any recommended purchasers on the transfer of surplus property form [See 260:105-3-1(d)] and specify whether they are considered to be a related party.

(d)   When a prospective purchaser is identified or determined to be a related party, the Administrator will employ one of the following procedures:

(1)   The Administrator may require written justification and authorization from the Department or Division director. Justification may include reference to maintenance history, purchase price and the absence of conflicts of interest. If the related party is an authorized agent, a higher approval may be sought.

(2)   The Administrator may choose to hold the property for sale by public auction or sealed bid. The prospective buyer may then compete against other bidders.

(3)   The Administrator may hold the property for a 30 day period before allowing the related party the opportunity to purchase the property, thus allowing for purchase of the property in accordance with the rules of this chapter.

[Source: Added at 31 Ok Reg 1516, eff 9-12-14]