§ 66.32
(c) Disposition. When real property is
no longer needed for the originally au-
thorized purpose, the grantee or sub-
grantee will request disposition in-
structions from the awarding agency.
The instructions will provide for one of
the following alternatives:
(1) Retention of title. Retain title after
compensating the awarding agency.
The amount paid to the awarding agen-
cy will be computed by applying the
awarding agency’s percentage of par-
ticipation in the cost of the original
purchase to the fair market value of
the property. However, in those situa-
tions where a grantee or subgrantee is
disposing of real property acquired
with grant funds and acquiring replace-
ment real property under the same pro-
gram, the net proceeds from the dis-
position may be used as an offset to the
cost of the replacement property.
(2) Sale of property. Sell the property
and compensate the awarding agency.
The amount due to the awarding agen-
cy will be calculated by applying the
awarding agency’s percentage of par-
ticipation in the cost of the original
purchase to the proceeds of the sale
after deduction of any actual and rea-
sonable selling and fixing-up expenses.
If the grant is still active, the net pro-
ceeds from sale may be offset against
the original cost of the property. When
a grantee or subgrantee is directed to
sell property, sales procedures shal] be
followed that provide for competition
to the extent practicable and result in
the highest possible return.
(3) Transfer of title. Transfer title to
the awarding agency or to a third-
party designatedapproved by the
awarding agency. The grantee or sub-
grantee shall be paid an amount cal-
culated by applying the grantee or sub-
grantee’s percentage of participation
in the purchase of the real property to
the current fair market value of the
property.
$66.32 Equipment.
(a) The Omnibus Crime Control and
Safe Streets Act of 1968, as amended,
Public Law 90-351, section 808, requires
that the title to all equipment and sup-
plies purchased with section 403 or 1302
(block or formula funds) shall vest in
the criminal justice agency or non-
profit organization that purchased the
28 CFR Ch. | (7-1-10 Edition)
property if it certifies to the State of-
fice described in section 408 or 1308 that
it will use the property for criminal
justice purposes. If such certification is
not made, title to the property shall
vest in the State office, which shall
seek to have the property used for
criminal justice purposes elsewhere in
the State prior to using it or disposing
of it in any other manner.
(bo) States. A State will use, manage,
and dispose of equipment acquired
under a grant by the State in accord-
ance with State laws and procedures.
Other grantees and subgrantees will
follow paragraphs (c) through (e) of
this section.
(c) Use. (1) Equipment shall be used
by the grantee or subgrantee in the
program or project for which it was ac-
quired as long as needed, whether or
not the project or program continues
to be supported by Federal funds. When
no longer needed for the original pro-
gram or project, the equipment may be
used in other activities currently or
previously supported by a Federal
agency.
(2) The grantee or subgrantee shall
also make equipment available for use
on other projects or programs cur-
rently or previously supported by the
Federal Government, providing such
use will not interfere with the work on
the projects or program for which it
was originally acquired. First pref-
erence for other use shall be given to
other programs or projects supported
by the awarding agency. User fees
should be considered if appropriate.
(3) Notwithstanding the encourage-
ment in §66.25(a) to earn program in-
come, the grantee or subgrantee must
not use equipment acquired with grant
funds to provide services for a fee to
compete unfairly with private compa-
nies that provide equivalent services,
unless specifically permitted or con-
templated by Federal statute.
(4) When acquiring replacement
equipment, the grantee or subgrantee
may use the equipment to be replaced
as a trade-in or sell the property and
use the proceeds to offset the cost of
the replacement property, subject to
the approval of the awarding agency.
(d) Management requirements. Proce-
dures for managing equipment (includ-
ing replacement equipment), whether
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