SRC-ARR S.B. 1313 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1313
76R5597 JRD-FBy: Armbrister
State Affairs
4/26/1999
As Filed


DIGEST 

Currently, Texas law does not authorize the disposition and sale of certain
surplus and salvage property. S.B.1313 would allow additional methods of
surplus property reutilization and disposal. 

PURPOSE

As proposed, S.B. 1313 authorizes the disposition and sale of certain
surplus and salvage property by the state. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the General Services Commission in
SECTION 4 (Section 2175.126(e), Government Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2175.061, Government Code, to require the General
Services Commission (commission) to establish and maintain procedures for
the transfer, lease with an option to purchase, sale, or disposal of
surplus and salvage property as prescribed by law. Makes conforming
changes. 

SECTION 2. Amends Section 2175.063(a), Government Code, to require the
commission to attempt to realize the maximum benefit to the state in
selling, leasing, leasing with an option to purchase, or disposing of
surplus and salvage property. 

SECTION 3. Amends Chapter 2175B, Government Code, by adding Section
2175.066, as follows: 

Sec. 2175.066. CENTRAL SURPLUS WAREHOUSE. Requires the commission to
establish a central surplus warehouse for the transfer, lease with an
option to purchase, sale, and disposal of state surplus or salvage
property. Require the commission to identify property to be transferred to
a central surplus warehouse from property determined to be surplus or
salvage by a state agency under Section 2175.121. Provides that a state
agency maintains ownership of property throughout  the disposal process.
Requires the commission to inventory and protect from deterioration items
transferred to the central surplus warehouse. Requires the commission to
collect a service charge from the purchaser or lessee of surplus property
for recovery of the cost of processing and operations. Set forth
requirements for the commission to lease critically needed surplus property
to state agencies and other organizations. Sets forth requirements for the
commission to sell direct to the public, surplus and salvage property.
Requires the commission to maintain an inventory of surplus items needed
for emergency disaster, as surplus property becomes available. Requires the
commission to transfer items to the central surplus warehouse for emergency
disaster purposes at no charge to the state agency that owns the property.
Requires the commission to dispose of property no longer needed for
emergency disaster purposes in accordance with Subchapters C and D.
Requires the commission to maintain an inventory of surplus items commonly
used by state agencies. Requires the commission to transfer the items to
the central surplus warehouse for reserve inventory purposes at no charge
to the state agency that owns the property. Requires the commission to
dispose of property no longer needed for reserve inventory purposes in
accordance with Subchapter C and D. 
 
SECTION 4. Amends Chapter 2175C, Government Code, by adding Section
2175.126, as follows: 

Sec. 2175.126. DISPOSAL BY THE FEDERAL SURPLUS PROPERTY PROGRAM. Authorizes
the commission to notify the federal surplus property program (program) of
property availability, if a transfer of property is not negotiated with a
state agency, political subdivision, or assistance organization during the
time prescribed by Section 2175.123 and the commission determines that the
property will not satisfy a state need. Requires the program to attempt to
arrange a transfer of the property to a state agency political subdivision,
or assistance organization without establishing a priority on transfers to
a state agency, if the state agency that owns the property and the
commission agree. Authorizes the program to take certain action. Requires
the program to inform the commission and the commission to sell or dispose
of the property as provided by Subchapters D and E. Authorizes the
commission to adopt necessary rules to govern the sale of surplus or
salvage equipment and material to state agencies, assistance organizations,
or political subdivisions under this section. Authorizes the program to
contract with a state agency to provide assistance related to the handling
of surplus and salvage property, its disposal, or both.  

SECTION 5. Effective date: September 1, 1999.

SECTION 6. Emergency clause.