Tenn. Comp. R. & Regs. 0690-02-01-.19 - DISPOSAL OF AGRICULTURAL PRODUCTS

(1) The department having jurisdiction over the producing facility is designated as the agency for disposal of agricultural products and livestock. Each product must be sold according to its individual marketing characteristics in accordance with the following procedures:

(a) Cotton, soybeans, and small grains shall be sold by competitive bidding as follows:

1. Invitations to bid shall be mailed to known responsible dealers.

2. Sealed bids shall be publicly opened and recorded not less than twenty (20) days after the invitations to bid are mailed, excluding Saturdays, Sundays, and holidays.

3. The bid shall be awarded to the highest responsible bidder.

4. The successful bidder shall be required to sign a contract specifying the price, time of delivery, and the method of payment which will be acceptable.

5. A separate file shall be maintained for each contract which shall include copies of invitations to bid, copies of bids received, a copy of the contract, delivery dates, units delivered, signed delivery receipts where applicable, and market quotations for the dates of delivery.

6. Copies of the documents listed in (a)5 above will be forwarded to the accounting division of the department having jurisdiction over the producing facility to substantiate the accounting entries necessary to record the sale, and to State Personal Property Utilization Division for review.

(b) Contract for the sale of eggs shall be obtained and documented following the procedures outlined in (a)1 through (a)6 above.

(c) Milk shall be sold under contract negotiated on a competitive basis as follows:

1. Invitations to submit bids shall be mailed to known milk processors and marketing agencies.

2. Contracts shall be awarded to the processors or marketing agencies submitting the highest bids net of hauling charges.

3. A file shall be maintained for documenting milk sales and should include but not be limited to the following:

(i) Copies of invitations to bid which were mailed.

(ii) Copies of bids received.

(iii) Copies of contracts.

(iv) Copies of monthly price and grade publications issued by U.S.D.A.

(v) Copies of remittance advices issued by the purchaser with payments to producer.

(vi) Copies of the documents listed in 3 (i) through 3 (v) above shall be forwarded to the accounting division of the department having jurisdiction over the producing facility to substantiate the necessary accounting to record milk sales and to State Personal Property Utilization Division for review.

(d) Spent-out hens will be sold to processors based on competitive bids. The following documentation shall be maintained:

1. Copies of bids.

2. Number of units sold and date sold.

3. Copy of payment voucher.

4. Copies of above documents shall be forwarded to the accounting division of the department having jurisdiction over the producing facility to substantiate the accounting necessary to record the sale, and to State Personal Property Utilization Division for review.

(e) Cattle and swine generally shall be sold at livestock auction markets by competitive bidding. However, where livestock auction markets are not available, cattle and swine shall be sold by soliciting bids from known responsible buyers. The following documentation shall be maintained for cattle and swine sales:

1. Confirmation of bids obtained where applicable.

2. Number of units sold and date of sale.

3. Copy of payment voucher.

4. Copy of livestock market quotations for date of sale.

5. Copies of the above documents shall be forwarded to the accounting division of the department having jurisdiction over the producing facility to substantiate the accounting necessary to record the sale, and to State Surplus Personal Property Utilization Division for review.

Notes

Tenn. Comp. R. & Regs. 0690-02-01-.19

Original rule filed April 20, 1978; effective July 14, 1978.

Authority: §§12-235 through 12-248 and Public Acts of 1976, Chapter 821.