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 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 the division under the capitalization credit program, the agency shall receive a capital credit equal to: the total depreciation collected by the division 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 the division an amount equal to the difference between the purchase price of the replacement vehicle and the amount of the capital credit.

  (4) The division shall, in the event that an agency voluntarily surrenders a vehicle to the division, 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 years.

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

  (6) The division 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;

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

  (c) is a state vehicle not purchased by the division; 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 (4) must comply with the requirements of R27-4-5, Fleet Expansion, to obtain a vehicle to replace the one surrendered.