Administrative Services, Fleet Operations

Section R27-4-11

Capital Credit or Reservation of Vehicle Allocation for Surrendered Vehicles

Notice of Proposed Rule

(Amendment)

DAR File No.: 34257
Filed: 11/29/2010 02:33:19 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule change will increase the amount of time that the Division of Fleet Operations (DFO) will maintain the capital credit for a vehicle voluntarily surrendered by an agency from one year to five years.

Summary of the rule or change:

Subsection R27-4-11(4) is changed to increase the amount of time capital credit is held by DFO for an agency from one year to five years.

State statutory or constitutional authorization for this rule:

• Subsection 63A-9-401(1)(a)
• Subsection 63A-9-401(1)(d)
• Subsection 63A-9-401(4)(ii)

Anticipated cost or savings to:

the state budget:

Vehicles voluntarily surrendered by state agencies may save money, but there is no anticipated savings.

local governments:

This rule change only affects the state fleet and will have no cost or savings changes to local government.

small businesses:

This rule change only affects the state fleet and will have no cost or savings changes to small businesses.

persons other than small businesses, businesses, or local governmental entities:

This rule change only affects the state fleet and will have no cost or savings changes to persons other than small businesses, businesses, or local government entities.

Compliance costs for affected persons:

This rule change only lengthens the amount of time which capital credit will be held. There will be no compliance costs.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule change will only affect state agencies and will have no fiscal impact on businesses.

Kimberly Hood, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Administrative Services
Fleet Operations
450 N STATE ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Brian Fay at the above address, by phone at 801-538-3502, by FAX at 801-359-0759, or by Internet E-mail at bfay@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/14/2011

This rule may become effective on:

01/21/2011

Authorized by:

Sam Lee, Director

R27. Administrative Services, Fleet Operations.

R27-4. Vehicle Replacement and Expansion of State Fleet.

R27-4-11. Capital Credit or Reservation of Vehicle Allocation for Surrendered Vehicles.

(1) This section implements that part of Item 59 of S.B. 1 of the 2002 General Session which requires the Division of Fleet Operations to "create a capitalization credit program that will allow agencies to divest themselves of vehicles without seeing a future capitalization cost if programs require replacement of the vehicle."

(2) In the event that an agency voluntarily surrenders a vehicle to DFO under the capitalization credit program, the agency shall receive a capital credit equal to: the total depreciation collected by DFO on the vehicle (D), plus the estimated salvage value for the vehicle (S), for use towards the purchase of the replacement vehicle.

(3) Prior to the purchase of the replacement vehicle, the surrendering agency shall pay DFO, an amount equal to the difference between the purchase price of the replacement vehicle and amount of the capital credit.

(4) DFO shall, in the event that an agency voluntarily surrenders a vehicle to DFO, hold the vehicle allocation open, or maintain the capital credit for the surrendering agency, for a period not to exceed the remainder of the fiscal year within which the surrender took place, plus an additional five fiscal [year]years.

(5) The surrendering agency's failure to request the return of the vehicle surrendered prior to the end of the period established in R27-4-11(4), above, shall result in the removal of the surrendered vehicle or allotment from the state fleet, the loss of the agency's capital credit, and effect a reduction in state fleet size.

(6) DFO shall not hold vehicle allocations or provide capital credit to an agency when the vehicle that is being surrendered:

(a) has been identified for removal from the state fleet in order to comply with legislatively mandated reductions in state fleet size; or

(b) is identified as a "do not replace" vehicle in the fleet information system; or

(c) is a state vehicle not purchased by DFO; or

(d) is a seasonal vehicle that has already been replaced.

(7) Any agency that fails to request the return of a voluntarily surrendered vehicle prior to the end of the period set forth in R27-4-11(4), above, must comply with the requirements of R27-4-5, Fleet Expansion, to obtain a vehicle to replace the one surrendered.

 

KEY: fleet expansion, vehicle replacement

Date of Enactment or Last Substantive Amendment: [October 8, 2009]2011

Notice of Continuation: July 25, 2007

Authorizing, and Implemented or Interpreted Law: 63A-9-401(1)(a); 63A-9-401(1)(d)(v); 63A-9-401(1)(d)(ix); 63A-9-401(1)(d)(x); 63A-9-401(1)(d)(xi); 63A-9-401(1)(d)(xii); 63A-9-401(4)(ii)