1-1     By:  Davila (Senate Sponsor - Luna)                   H.B. No. 1572

 1-2           (In the Senate - Received from the House May 12, 1997;

 1-3     May 13, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 18, 1997, reported favorably by the following vote:

 1-5     Yeas 12, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to disposal of certain property by a charitable

 1-9     organization.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Title 132, Revised Statutes, is amended by adding

1-12     Article 9023d to read as follows:

1-13           Art. 9023d.  DISPOSAL OF COMPUTER EQUIPMENT BY CHARITABLE

1-14     ORGANIZATION.  (a)  In this article:

1-15                 (1)  "Computer equipment" includes computers,

1-16     telecommunications devices and systems, automated information

1-17     systems, and peripheral devices and hardware that are necessary to

1-18     the efficient installation and operation of that equipment, but

1-19     does not include computer software.

1-20                 (2)  "Charitable organization" has the meaning assigned

1-21     by Section 84.003, Civil Practice and Remedies Code.

1-22           (b)  Except as provided by Subsections (c) and (d) of this

1-23     article, a charitable organization that expends funds received from

1-24     the state, whether by appropriation, grant, or otherwise, to

1-25     purchase computer equipment may not dispose of or discard the

1-26     equipment before the fourth anniversary of the date the

1-27     organization purchased the equipment.

1-28           (c)  This article does not prohibit:

1-29                 (1)  the sale or trade of computer equipment; or

1-30                 (2)  the disposal of equipment that is not operational.

1-31           (d)  A charitable organization may dispose of computer

1-32     equipment purchased with state funds within the four-year period

1-33     after the date of purchase by donating the equipment to another

1-34     charitable organization.

1-35           (e)  This article applies only to computer equipment  that a

1-36     charitable organization purchases for at least $500.

1-37           (f)  The comptroller shall adopt rules to implement this

1-38     article.

1-39           SECTION 2.  This Act takes effect September 1, 1997, and

1-40     applies only to computer equipment purchased by a charitable

1-41     organization on or after that date.

1-42           SECTION 3.  The importance of this legislation and the

1-43     crowded condition of the calendars in both houses create an

1-44     emergency and an imperative public necessity that the

1-45     constitutional rule requiring bills to be read on three several

1-46     days in each house be suspended, and this rule is hereby suspended.

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