By Davila                                             H.B. No. 1572

         75R12495 RJA-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to disposal of certain property by a charitable

 1-3     organization.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Title 132, Revised Statutes, is amended by adding

 1-6     Article 9023d to read as follows:

 1-7           Art. 9023d.  DISPOSAL OF COMPUTER EQUIPMENT BY CHARITABLE

 1-8     ORGANIZATION.  (a)  In this article:

 1-9                 (1)  "Computer equipment" includes computers,

1-10     telecommunications devices and systems, automated information

1-11     systems, and peripheral devices and hardware that are necessary to

1-12     the efficient installation and operation of that equipment, but

1-13     does not include computer software.

1-14                 (2)  "Charitable organization" has the meaning assigned

1-15     by Section 84.003, Civil Practice and Remedies Code.

1-16           (b)  Except as provided by Subsections (c) and (d) of this

1-17     article, a charitable organization that expends funds received from

1-18     the state, whether by appropriation, grant, or otherwise, to

1-19     purchase computer equipment may not dispose of or discard the

1-20     equipment before the fourth anniversary of the date the

1-21     organization purchased the equipment.

1-22           (c)  This article does not prohibit:

1-23                 (1)  the sale or trade of computer equipment; or

1-24                 (2)  the disposal of equipment that is not operational.

 2-1           (d)  A charitable organization may dispose of computer

 2-2     equipment purchased with state funds within the four-year period

 2-3     after the date of purchase by donating the equipment to another

 2-4     charitable organization.

 2-5           (e)  This article applies only to computer equipment  that a

 2-6     charitable organization purchases for at least $500.

 2-7           (f)  The comptroller shall adopt rules to implement this

 2-8     article.

 2-9           SECTION 2.  This Act takes effect September 1, 1997, and

2-10     applies only to computer equipment purchased by a charitable

2-11     organization on or after that date.

2-12           SECTION 3.  The importance of this legislation and the

2-13     crowded condition of the calendars in both houses create an

2-14     emergency and an imperative public necessity that the

2-15     constitutional rule requiring bills to be read on three several

2-16     days in each house be suspended, and this rule is hereby suspended.