By Armbrister                                         S.B. No. 1313
         76R5597 JRD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the disposition and sale of certain surplus and salvage
 1-3     property by the state.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 2175.061, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 2175.061.  RULES, FORMS, AND PROCEDURES.  (a)  The
 1-8     commission shall establish and maintain procedures for the
 1-9     transfer, lease, lease with an option to purchase, sale, or
1-10     disposal of surplus and salvage property as prescribed by law.
1-11           (b)  Subject to the review and comment of the state auditor,
1-12     the commission may prescribe forms and reports necessary to
1-13     administer this chapter and adopt necessary rules, including rules
1-14     governing the sale, lease, lease with an option to purchase, or
1-15     transfer of surplus or salvage property to state agencies,
1-16     political subdivisions, or assistance organizations.
1-17           SECTION 2.  Section 2175.063(a), Government Code, is amended
1-18     to read as follows:
1-19           (a)  The commission shall attempt to realize the maximum
1-20     benefit to the state in selling, leasing, leasing with an option to
1-21     purchase, or disposing of surplus and salvage property.
1-22           SECTION 3.  Subchapter B, Chapter 2175, Government Code, is
1-23     amended by adding Section 2175.066 to read as follows:
1-24           Sec. 2175.066.  CENTRAL SURPLUS WAREHOUSE.  (a)  The
 2-1     commission shall establish a central surplus warehouse for the
 2-2     transfer, lease, lease with an option to purchase, sale, and
 2-3     disposal of state surplus or salvage property.
 2-4           (b)  The commission shall identify property to be transferred
 2-5     to a central surplus warehouse from property determined to be
 2-6     surplus or salvage by a state agency under Section 2175.121.
 2-7           (c)  A state agency maintains ownership of property
 2-8     throughout the disposal process.  The commission shall inventory
 2-9     and protect from deterioration items transferred to the central
2-10     surplus warehouse.  The commission shall collect a service charge
2-11     from the purchaser or lessee of surplus property for recovery of
2-12     the cost of processing and operations.
2-13           (d)  The commission may lease critically needed surplus
2-14     property to state agencies, political subdivisions, and assistance
2-15     organizations from property identified under Section 2175.121.  The
2-16     commission may negotiate with the reporting state agency for a
2-17     transfer to the commission of surplus property needed for statewide
2-18     leasing at any price agreed to by the commission and the reporting
2-19     agency or as a donation.  The commission shall lease property under
2-20     this section for an amount necessary to recover its operational and
2-21     maintenance costs.  Notwithstanding Section 2175.370(c), the
2-22     commission may use money in the service charge fund under Section
2-23     2175.370 to purchase, transport, recondition, maintain, or
2-24     warehouse state surplus property identified by the commission for
2-25     statewide leasing.  Money received by the commission in leasing
2-26     property under this subsection shall be deposited into the service
2-27     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 emergency
3-17     disasters.  The commission shall transfer items to the central
3-18     surplus warehouse for emergency disaster 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 emergency disaster
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
3-27     dispose of property no longer needed for reserve inventory purposes
 4-1     in accordance with Subchapters C and D.
 4-2           SECTION 4.  Subchapter C, Chapter 2175, Government Code, is
 4-3     amended by adding Section 2175.126 to read as follows:
 4-4           Sec. 2175.126.  DISPOSAL BY THE FEDERAL SURPLUS PROPERTY
 4-5     PROGRAM.   (a)  If a transfer of property is not negotiated with a
 4-6     state agency, political subdivision, or assistance organization
 4-7     during the time prescribed by Section 2175.123 and the commission
 4-8     determines that the property will not satisfy a state need, the
 4-9     commission may notify the federal surplus property program of
4-10     property availability.
4-11           (b)  If the state agency that owns the property and the
4-12     commission agree, the federal surplus property program shall
4-13     attempt to arrange a transfer of the property to a state agency,
4-14     political subdivision, or assistance organization without
4-15     establishing a priority on transfers to a state agency.
4-16           (c)  The federal surplus property program may:
4-17                 (1)  provide assistance in negotiating the transfer,
4-18     including negotiation of the fair value of the property;
4-19                 (2)  screen, transport, or recondition the property;
4-20                 (3)  warehouse the property temporarily;
4-21                 (4)  provide other assistance in the transfer; and
4-22                 (5)  charge fees for its service to entities involved.
4-23           (d)  If the federal surplus property program does not arrange
4-24     a transfer of the property within 25 days after the date it is
4-25     notified by the commission, the federal surplus property program
4-26     shall inform the commission and the commission shall sell or
4-27     dispose of the property as provided by Subchapters D and E.
 5-1           (e)  The commission may adopt necessary rules to govern the
 5-2     sale or transfer of surplus or salvage equipment and material to
 5-3     state agencies, assistance organizations, or political subdivisions
 5-4     under this section.
 5-5           (f)  The federal surplus property program may contract with a
 5-6     state agency to provide assistance related to the handling of
 5-7     surplus and salvage property, its disposal, or both.
 5-8           SECTION 5.  This Act takes effect September 1, 1999.
 5-9           SECTION 6.  The importance of this legislation and the
5-10     crowded condition of the calendars in both houses create an
5-11     emergency and an imperative public necessity that the
5-12     constitutional rule requiring bills to be read on three several
5-13     days in each house be suspended, and this rule is hereby suspended.