SRC-SLL, DPW S.B. 1451 76(R)BILL ANALYSIS Senate Research CenterS.B. 1451 By: West Higher Education 8/23/1999 Enrolled DIGEST Currently, certain state agencies are required to report surplus property on the State Property Accounting System for publishing by the General Services Commission (GSC). State agencies, political subdivisions, and school districts are allowed to purchase needed materials and products from state agencies listed in GSC's publication. Institutions of higher education are exempt from the required reporting. It has been cited that some eligible local entities, not knowing of the availability of surplus materials in institutions of higher education, have been unable to acquire the materials and products they need. This bill sets forth guidelines for the disposition of surplus and salvage property of certain institutions of higher education. PURPOSE As enrolled, S.B. 1451 sets forth guidelines for the disposition of surplus and salvage property of certain institutions of higher education. 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 Section 2175.302, Government Code, as follows: Sec. 2175.302. New heading: EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS. Deletes text regarding an institution or agency of higher education. SECTION 2. Amends Chapter 2175F, Government Code, by adding Section 2175.304, as follows: Sec. 2175.304. EXCEPTION FOR INSTITUTIONS OF HIGHER EDUCATION. Provides that this chapter does not apply to the disposition of surplus or salvage property of a university system or of an institution or agency of higher education except as provided by this section. Requires the governing board of certain governmental entities to establish written procedures for the disposition of surplus or salvage property of the entity. Requires the procedures to allow for the direct transfer of materials or equipment that can be used for instructional purposes to a public school or school district at a price or for other considerations to which the entity and the public school or school district agree or for no consideration as the entity determines appropriate. Requires the procedures established to give preference to transferring the property directly to a public school or school district before disposing of the property in another manner. Requires the entity, if more than one public school or school district seeks to acquire the same property on substantially the same terms, to give preference to a public school that is considered low-performing by the commissioner of education or to a school district that has a taxable wealth per student that entitles the district to an allotment of state funds under Chapter 42F, Education Code. SECTION 3. Amends Chapter 61C, Education Code, by adding Section 61.085, as follows: Sec. 61.085. ON-LINE SURPLUS PROPERTY RESOURCE. Requires the Texas Higher Education Coordinating Board (board) to establish and maintain an Internet site or similar facility accessible to school districts by telecommunication to allow an institution of higher education to provide notice to school districts in this state of any available surplus or salvage property of the institution that consists of instructional materials or that may be used for instructional purposes. Requires the board to operate the facility to allow a school district to make a direct inquiry to an institution regarding the possible acquisition of property by the school district. Authorizes the board to charge a fee for an institution or school district to use the facility. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.