SRC-CDH S.B. 379 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 379
By: Ratliff
State Affairs
4-16-97
As Filed


DIGEST 

One of the recommendations from the Legislative Budget Board's Staff
Performance Report to the 75th Legislature focused on the efficiency of
the current computer hardware disposal system which is administered by the
General Services Commission (commission).  The review examined the
collection mechanisms and strategies by which surplus and salvage
equipment is recycled and reused.  There is a lack of consistency in state
agencies when transferring, donating, or selling computer equipment, and
the commission has not established standards for determining fair market
value of computer hardware.  This legislation directs the commission in
cooperation with the Comptroller of Public Accounts to establish
guidelines to determine the fair market value for computer hardware.  S.B.
379 also requires the commission to establish a process for the sale of
the computer equipment or the disassembly and sale of the computer's
component parts.   

PURPOSE

As proposed, S.B. 379 provides for the disposition and sale of certain
surplus and salvage property by the state.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 2175B, Government Code, by adding Section
2175.066, as follows: 

Sec. 2175.066.  DATA PROCESSING EQUIPMENT.  Requires the General Services
Commission (commission) and the comptroller to develop general guidelines
for establishing the fair market value of surplus and salvage data
processing equipment.  Requires a state agency to use the guidelines to
determine the fair market value of specific data processing equipment.
Prohibits an item of surplus or salvage data processing equipment that is
not transferred under Subchapter C from being sold under Subchapter D for
an amount that is less than 50 percent of the fair market value of the
item as determined under Subsection (a). Requires the commission to
prescribe procedures for the disposition of an item of data processing
equipment that is not transferred or sold, including procedures for the
repair and refurbishment of an item or the disassembly and sale of the
item's component parts.  Defines "data processing equipment."   

SECTION 2. Amends Section 2175.302, Government Code, to make a conforming
change. 

SECTION 3. Effective date:  September 1, 1997.

SECTION 4. Emergency clause.