SRC-MAX H.B. 1572 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1572
By: Davila (Luna)
State Affairs
5-18-97
Engrossed


DIGEST 

Currently, the large amount of state dollars invested in technical
equipment for non-profit organizations is allowed to be disposed of
without restriction once the organization has obtained newer equipment.
There are concerns that similar organizations could utilize the discarded
equipment if it is still operable, and therefore may not have to request
additional funds from the state. This bill sets forth provisions regarding
the disposal of certain property by a charitable organization. 

PURPOSE

As proposed, H.B. 1572 sets forth provisions regarding the disposal of
certain property by a charitable organization. 

RULEMAKING AUTHORITY

Rulemaking authority is granted in SECTION 1 (Art.  9023d(f), V.T.C.S.) of
this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 132, V.T.C.S. by adding Article 9023d, as follows:

Art.  9023d.  DISPOSAL OF COMPUTER EQUIPMENT BY CHARITABLE ORGANIZATION.
Defines "computer equipment" and "charitable organization."  Prohibits a
charitable organization that expends funds received from the state,
whether by appropriation, grant, or otherwise, to purchase computer
equipment from disposing of or discarding the equipment before the fourth
anniversary of the date the organization purchased the equipment.
Provides that this article does not prohibit certain sales and disposal of
equipment.  Authorizes a charitable organization to dispose of computer
equipment purchased with state funds within the four-year period after the
date of purchase by donating the equipment to another charitable
organization.  Provides that this article applies only to computer
equipment that a charitable organization purchases for at least $500.
Requires the comptroller to adopt rules to implement this article. 

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.