AGO 80-109.

• Case Date: June 06, 1980
• Court: North Dakota

North Dakota Attorney General Opinions 1980. AGO 80-109. June 6, 1980 (OPINION) OPINION 80-109Mr. Edward Klecker Director of Institutions State Capitol Bismarck, North Dakota 58505 Dear Mr. Klecker: This is in response to your letter of May 19, 1980, wherein you request an opinion of this office relative to section 15-61-05 of the North Dakota Century Code, relative to disposition or sale of state surplus property. You submit the following facts and question in your letter:

There is considerable property in state institutions and agencies not used because of its unserviceable condition. There is no one in state government who wants this property nor is there any need or use for it in the political subdivision. This excess used property is such that it does not merit discarding as junk, and some of it, if restored or refurbished could be sold at public auction.

The North Dakota State Penitentiary does not have enough work for its growing inmate population. They do have the equipment and ability to restore this surplus property. Permission and assistance to do so has been requested from the Department of Accounts and Purchases (A & P) . The prison on a "backhaul" could collect, at little expense, this surplus property and recondition it in their facilities and make it ready for a public auction.

Attached you will find A & P's letter of approval, but under conditions which make it impossible for the prison industries to take on this venture because they depend on their earnings for operating costs. It is our position that the restrictions imposed by A & P are contrary to the provisions of section 15-61-05 as amended in the 1979 interim supplement to replace volume 3 of N.D.C.C.

Also attached is our legal counsel's memorandum to Mr. Olson by A & P. We do not believe that the surplus property law cited above requires that all auction proceeds must go to the state's general fund. The last paragraph of the statute specifically states, "less sales costs". The language does not, we believe, limit the costs to sales commission or advertising costs, but would include the cost of getting the items ready for sale.

We respectfully seek your opinion on this matter because of the opportunity, if legally permissible, it would provide for additional labor for our growing number of unemployed inmates. It would also serve to clear out

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