CFR > Title 23 - Highways > CHAPTER II—NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION AND FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION > SUBCHAPTER A—PROCEDURES FOR STATE HIGHWAY SAFETY PROGRAMS (parts 1200 to 1200) > PART 1200—UNIFORM PROCEDURES FOR STATE HIGHWAY SAFETY PROGRAMS > SUBPART C—Implementation and Management of the Highway Safety Program (§1200.20 to §1200.27) > 1200.21—Equipment.

1200.21—Equipment.

(a) Title. Except as provided in paragraphs (e) and (f) of this section, title to equipment acquired under the Section 402 program will vest upon acquisition in the State or its subgrantee, as appropriate.
(b) Use. All equipment shall be used for the originally authorized grant purposes for as long as needed for those purposes, as determined by the Approving Official, and neither the State nor any of its subgrantees or contractors shall encumber the title or interest while such need exists.
(c) Management and disposition. Subject to the requirement of paragraphs (b), (d), (e) and (f) of this section, States and their subgrantees and contractors shall manage and dispose of equipment acquired under the Section 402 program in accordance with State laws and procedures.
(d) Major Purchases and dispositions. All purchases and dispositions of equipment with a useful life of more than one year and an acquisition cost of $5,000 or more must receive prior written approval from the Approving Official.
(e) Right to transfer title. The Approving Official may reserve the right to transfer title to equipment acquired under the Section 402 program to the Federal Government or to a third party when such third party is otherwise eligible under existing statutes. Any such transfer shall be subject to the following requirements:
(1) The equipment shall be identified in the grant or otherwise made known to the State in writing;
(2) The Approving Official shall issue disposition instructions within 120 calendar days after the equipment is determined to be no longer needed in the Section 402 program, in the absence of which the State shall follow the applicable procedures in 49 CFR part 18.
(f) Federally-owned equipment. In the event a State or its subgrantee is provided Federally-owned equipment:
(1) Title shall remain vested in the Federal Government;
(2) Management shall be in accordance with Federal rules and procedures, and an annual inventory listing shall be submitted;
(3) The State or its subgrantee shall request disposition instructions from the Approving Official when the item is no longer needed in the Section 402 program.