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.