We have interlocal agreements with each of our law enforcement agencies. If we decide to sell property, rather than place it in service, is there a legal requirement that the property be sold at auction? Is the answer different for vehicles or other tangible property, such as gold coins? I would also be interested in seeing a few interlocal agreements, if anyone is willing to share. We are about to redo ours.

Article 59.06(c) just refers to "proceeds from the sale" and does not specify how property should be sold, so I'd go with your standard procedure for disposal of property.

Here's a copy of our most recent interlocal:

59.06(a) requires administering the forfeited property "in accordance with accepted accounting practices" and the terms of the local agreement. See AG OP JC-0075: "[W]e believe that so long as you administer the property in accordance with accepted accounting practices and with the provisions of your local agreement, you have the discretion to decide how to dispose of it most advantageously."