(a) For each piece of capitalized maintenance equipment in the department's inventory, the department shall prepare an annual report containing the following:
  (1) the fair market value;
  (2) the maintenance cost for the equipment for the preceding twelve months;
  (3) whether the equipment is operational or can reasonably be made operational; and
  (4) whether the equipment continues to serve a department purpose.
(b) Within 60 days after the completion of the report described in subsection (a) of this section, the department shall initiate the process to sell or otherwise dispose of outdated equipment that meets any of the following three criteria:
  (1) the equipment is not operational and cannot reasonably be made operational;
  (2) the equipment longer serves a department purpose;
  (3) the equipment has a fair market value that is less than the maintenance cost of the equipment and both of the following apply:
    (A) The cost to replace the equipment is less than the annual maintenance cost of the equipment; and
    (B) Sufficient funds and capital budget authority are appropriated and available to replace the equipment without unduly impairing other department operations.

Source Note: The provisions of this §60.3 adopted to be effective December 23, 2007, 32 TexReg 9349