By: Armbrister S.B. No. 1313 A BILL TO BE ENTITLED AN ACT 1-1 relating to the disposition and sale of certain surplus and salvage 1-2 property by the state. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 2175.061, Government Code, is amended to 1-5 read as follows: 1-6 Sec. 2175.061. RULES, FORMS, AND PROCEDURES. (a) The 1-7 commission shall establish and maintain procedures for the 1-8 transfer, lease, lease with an option to purchase, sale, or 1-9 disposal of surplus and salvage property as prescribed by law. 1-10 (b) Subject to the review and comment of the state auditor, 1-11 the commission may prescribe forms and reports necessary to 1-12 administer this chapter and may adopt necessary rules, including 1-13 rules governing the sale, lease, lease with an option to purchase, 1-14 or transfer of surplus or salvage property to state agencies, 1-15 political subdivisions, or assistance organizations. 1-16 SECTION 2. Subsection (a), Section 2175.063, Government 1-17 Code, is amended to read as follows: 1-18 (a) The commission shall attempt to realize the maximum 1-19 benefit to the state in selling, leasing, leasing with an option to 1-20 purchase, or disposing of surplus and salvage property. 1-21 SECTION 3. Subchapter B, Chapter 2175, Government Code, is 1-22 amended by adding Section 2175.066 to read as follows: 1-23 Sec. 2175.066. CENTRAL SURPLUS WAREHOUSE. (a) The 1-24 commission shall establish a central surplus warehouse for the 2-1 transfer, lease, lease with an option to purchase, sale, and 2-2 disposal of state surplus or salvage property. 2-3 (b) The commission shall identify property to be transferred 2-4 to a central surplus warehouse from property determined to be 2-5 surplus or salvage by a state agency under Section 2175.121. 2-6 (c) A state agency maintains ownership of property 2-7 throughout the disposal process. The commission shall inventory 2-8 and protect from deterioration items transferred to the central 2-9 surplus warehouse. The commission shall collect a service charge 2-10 from the purchaser or lessee of surplus property for recovery of 2-11 the cost of processing and operations. 2-12 (d) The commission may lease critically needed surplus 2-13 property to state agencies, political subdivisions, and assistance 2-14 organizations from property identified under Section 2175.121. The 2-15 commission may negotiate with the reporting state agency for a 2-16 transfer to the commission of surplus property needed for statewide 2-17 leasing at any price agreed to by the commission and the reporting 2-18 agency or as a donation. The commission shall lease property under 2-19 this section for an amount necessary to recover its operational and 2-20 maintenance costs. Notwithstanding Section 2175.370(c), the 2-21 commission may use money in the service charge fund under Section 2-22 2175.370 to purchase, transport, recondition, maintain, or 2-23 warehouse state surplus property identified by the commission for 2-24 statewide leasing. Money received by the commission in leasing 2-25 property under this subsection shall be deposited into the service 2-26 charge fund under Section 2175.370. The commission shall dispose 3-1 of property no longer needed for leasing under this subsection in 3-2 accordance with Subchapters C and D. 3-3 (e) The commission may sell from a central surplus 3-4 warehouse, direct to the public, surplus and salvage property that 3-5 has not been directly transferred to a state agency, political 3-6 subdivision, or assistance organization during the time prescribed 3-7 by Section 2175.123. The commission may not offer the property to 3-8 the public at a lower price than the price originally established 3-9 by the state agency reporting the property. The commission shall 3-10 recover the cost of processing and operations from a purchaser 3-11 under this subsection. If property has not been sold from the 3-12 central surplus warehouse to the public within 30 days, the 3-13 commission shall dispose of the property in accordance with 3-14 Subchapter D. 3-15 (f) As surplus property becomes available, the commission 3-16 shall maintain an inventory of surplus items needed for disaster 3-17 emergencies. The commission shall transfer items to the central 3-18 surplus warehouse for disaster emergency purposes at no charge to 3-19 the state agency that owns the property. The commission shall 3-20 dispose of property no longer needed for disaster emergency 3-21 purposes in accordance with Subchapters C and D. 3-22 (g) As surplus property becomes available, the commission 3-23 shall maintain an inventory of surplus items commonly used by state 3-24 agencies. The commission shall transfer the items to the central 3-25 surplus warehouse for reserve inventory purposes at no charge to 3-26 the state agency that owns the property. The commission shall 4-1 dispose of property no longer needed for reserve inventory purposes 4-2 in accordance with Subchapters C and D. 4-3 SECTION 4. Subchapter C, Chapter 2175, Government Code, is 4-4 amended by adding Section 2175.126 to read as follows: 4-5 Sec. 2175.126. DISPOSAL BY THE FEDERAL SURPLUS PROPERTY 4-6 PROGRAM. (a) If a transfer of property is not negotiated with a 4-7 state agency, political subdivision, or assistance organization 4-8 during the time prescribed by Section 2175.123 and the commission 4-9 determines that the property will not satisfy a state need, the 4-10 commission may notify the federal surplus property program of 4-11 property availability. 4-12 (b) If the state agency that owns the property and the 4-13 commission agree, the federal surplus property program shall 4-14 attempt to arrange a transfer of the property to a state agency, 4-15 political subdivision, or assistance organization without 4-16 establishing a priority on transfers to a state agency. 4-17 (c) The federal surplus property program may: 4-18 (1) provide assistance in negotiating the transfer, 4-19 including negotiation of the fair value of the property; 4-20 (2) screen, transport, or recondition the property; 4-21 (3) warehouse the property temporarily; 4-22 (4) provide other assistance in the transfer; and 4-23 (5) charge fees for its service to entities involved. 4-24 (d) If the federal surplus property program does not arrange 4-25 a transfer of the property within 25 days after the date it is 4-26 notified by the commission, the federal surplus property program 5-1 shall inform the commission and the commission shall sell or 5-2 dispose of the property as provided by Subchapters D and E. 5-3 (e) The commission may adopt necessary rules to govern the 5-4 sale or transfer of surplus or salvage equipment and material to 5-5 state agencies, assistance organizations, or political subdivisions 5-6 under this section. 5-7 (f) The federal surplus property program may contract with a 5-8 state agency to provide assistance related to the handling of 5-9 surplus and salvage property, its disposal, or both. 5-10 SECTION 5. This Act takes effect September 1, 1999. 5-11 SECTION 6. The importance of this legislation and the 5-12 crowded condition of the calendars in both houses create an 5-13 emergency and an imperative public necessity that the 5-14 constitutional rule requiring bills to be read on three several 5-15 days in each house be suspended, and this rule is hereby suspended.