Section 3-130-11 - Disposal application(a) Disposal applications shall be submitted to the head of the department, or the head of any board, commission, agency, bureau, or office of the State for approval, and if the application has been approved: (1) The original shall be retained by the head of the department, or the head of any board, commission, agency, bureau, or office of the State; and(2) Two copies shall be returned to the applying department's fiscal office, which in turn shall keep one copy and forward the other copy to the applying agency.(b) Disposal application shall contain the following information: (1) Statement and certification: "Application is hereby made for the disposal of government property under my custody and control. Pursuant to chapter 3-130, HAR, I do solemnly swear and affirm the accuracy of this application."; (A) Designated property custodian's signature;(B) Designated property custodian's name, official position, and phone number;(2) Property information: complete information as shown on the current inventory printout;(3) Present condition and estimated value of the property;(4) Reason for requesting to delete or dispose of the property;(5) Proposed method of disposal: (A) If an item is to be used as a trade-in for new equipment, the application shall identify the name of the vendor, the price of the new item, and the amount of the trade-in allowance;(B) If an item is to be sold by competitive sealed bidding, public auction, or posted prices, the application shall list the names and offers from interested parties, the party purchasing the property, and if applicable, a copy of the public notice shall be attached to the disposal application. If the information is not available when submitting the disposal application, it shall be provided with the submission of the certificate of disposal; (C) If an item is to be donated, the application shall provide the name of the city or county agency or the nonprofit tax-exempt charitable activity to receive the donation, and justification for the donation;(D) If an item is to be sold or disposed for recycling, salvaging, or scrap, the application shall list the name of the party purchasing or disposing the property and the amount offered for the property, if applicable;(E) If an item is to be discarded, the application shall state the means of disposal; i.e., to be cannibalized for usable parts or destroyed and disposed in trash bin, or sent to local incinerator or landfill.(c) Lost, stolen, or damaged items shall not be reported on the same disposal application with other equipment to be disposed of by choice, but shall be reported separately. A number of items may be listed on the same application provided the incident and circumstance surrounding the loss, theft, or damage are the same. The following information shall be provided in the application: (1) Information as required in subsection (b)(1), (b)(2), (b)(3), and (b)(4);(2) Date and explanation of the circumstances surrounding the loss, theft, or damage;(3) Description of internal control procedures and security measures in effect at the time of the loss, theft, or damage;(4) Applicant's conclusion or opinion as to the cause of the loss, theft, or damage; (5) Description of internal control procedures or security improvements to be implemented to prevent or minimize future losses; and(6) Statement whether the police or attorney general's office was notified, and if so, attach any supporting documents to the application.(d) Upon receipt of the application, the head of the department, or the head of any board, commission, agency, bureau, or office of the State shall: (1) Evaluate the application, and, if necessary, request additional information;(2) Grant or deny the requested action; or(3) Direct disposition of the property in such other manner as determined to be in the best interest of the State.(e) State property approved for destruction or discarding may be disposed at the agency's location, or may be taken to an incinerator or landfill for disposal. The following procedure shall apply: (1) Any mark or decal indicating State of Hawaii ownership shall be removed or obliterated before disposing of the property;(2) The property shall be destroyed in such a manner to prevent reuse by other parties.(f) The certificate of disposal is a certification by the applying agency that the property listed on the applicable disposal application was disposed in the manner approved by the head of the department, or the head of any board, commission, agency, bureau, or office of the State. The following is the distribution sequence of the certificate of disposal: (1) Following the head of the department, or the head of any board, commission, agency, bureau, or office of the State's approval of the disposal application, except for applications for lost or stolen items, the head of the department, or the head of any board, commission, agency, bureau, or office of the State shall forward a copy of the approved disposal application to the applying custodian's fiscal office. The applying custodian's fiscal office shall then forward to the applying agency one copy of the disposal application; (2) Upon completion of the disposal transaction, the applying agency shall confirm the final disposition of the property by returning copies of the completed certificate of disposal as follows: (A) One copy to the head of the department, or the head of any board, commission, agency, bureau, or office of the State; and(B) One copy to the applying agency's fiscal office.(g) All disposal records such as disposal applications, certificates of disposal, and actions taken pursuant thereto by an applying agency shall be kept for audit purposes by the applying agency's office, the applying department's fiscal office, and the head of the department, or the head of any board, commission, agency, bureau, or office of the State. [Eff 12/15/95; am and comp 6/9/01; am and comp 11/15/01; am and comp 11/8/02] (Auth: HRS §§ 103D-202, 103D- 1202) (Imp: HRS § 103D-1202)