1-1     By:  Armbrister                                       S.B. No. 1313
 1-2           (In the Senate - Filed March 11, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 28, 1999, reported favorably by the following vote:  Yeas 8,
 1-5     Nays 0; April 28, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the disposition and sale of certain surplus and salvage
 1-9     property by the state.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 2175.061, Government Code, is amended to
1-12     read as follows:
1-13           Sec. 2175.061.  RULES, FORMS, AND PROCEDURES.  (a)  The
1-14     commission shall establish and maintain procedures for the
1-15     transfer, lease, lease with an option to purchase, sale, or
1-16     disposal of surplus and salvage property as prescribed by law.
1-17           (b)  Subject to the review and comment of the state auditor,
1-18     the commission may prescribe forms and reports necessary to
1-19     administer this chapter and may adopt necessary rules, including
1-20     rules governing the sale, lease, lease with an option to purchase,
1-21     or transfer of surplus or salvage property to state agencies,
1-22     political subdivisions, or assistance organizations.
1-23           SECTION 2.  Subsection (a), Section 2175.063, Government
1-24     Code, is amended to read as follows:
1-25           (a)  The commission shall attempt to realize the maximum
1-26     benefit to the state in selling, leasing, leasing with an option to
1-27     purchase, or disposing of surplus and salvage property.
1-28           SECTION 3.  Subchapter B, Chapter 2175, Government Code, is
1-29     amended by adding Section 2175.066 to read as follows:
1-30           Sec. 2175.066.  CENTRAL SURPLUS WAREHOUSE.  (a)  The
1-31     commission shall establish a central surplus warehouse for the
1-32     transfer, lease, lease with an option to purchase, sale, and
1-33     disposal of state surplus or salvage property.
1-34           (b)  The commission shall identify property to be transferred
1-35     to a central surplus warehouse from property determined to be
1-36     surplus or salvage by a state agency under Section 2175.121.
1-37           (c)  A state agency maintains ownership of property
1-38     throughout the disposal process.  The commission shall inventory
1-39     and protect from deterioration items transferred to the central
1-40     surplus warehouse.  The commission shall collect a service charge
1-41     from the purchaser or lessee of surplus property for recovery of
1-42     the cost of processing and operations.
1-43           (d)  The commission may lease critically needed surplus
1-44     property to state agencies, political subdivisions, and assistance
1-45     organizations from property identified under Section 2175.121.  The
1-46     commission may negotiate with the reporting state agency for a
1-47     transfer to the commission of surplus property needed for statewide
1-48     leasing at any price agreed to by the commission and the reporting
1-49     agency or as a donation.  The commission shall lease property under
1-50     this section for an amount necessary to recover its operational and
1-51     maintenance costs.  Notwithstanding Section 2175.370(c), the
1-52     commission may use money in the service charge fund under Section
1-53     2175.370 to purchase, transport, recondition, maintain, or
1-54     warehouse state surplus property identified by the commission for
1-55     statewide leasing.  Money received by the commission in leasing
1-56     property under this subsection shall be deposited into the service
1-57     charge fund under Section 2175.370.  The commission shall dispose
1-58     of property no longer needed for leasing under this subsection in
1-59     accordance with Subchapters C and D.
1-60           (e)  The commission may sell from a central surplus
1-61     warehouse, direct to the public, surplus and salvage property that
1-62     has not been directly transferred to a state agency, political
1-63     subdivision, or assistance organization during the time prescribed
1-64     by Section 2175.123.  The commission may not offer the property to
 2-1     the public at a lower price than the price originally established
 2-2     by the state agency reporting the property.  The commission shall
 2-3     recover the cost of processing and operations from a purchaser
 2-4     under this subsection.  If property has not been sold from the
 2-5     central surplus warehouse to the public within 30 days, the
 2-6     commission shall dispose of the property in accordance with
 2-7     Subchapter D.
 2-8           (f)  As surplus property becomes available, the commission
 2-9     shall maintain an inventory of surplus items needed for disaster
2-10     emergencies.  The commission shall transfer items to the central
2-11     surplus warehouse for disaster emergency purposes at no charge to
2-12     the state agency that owns the property.  The commission shall
2-13     dispose of property no longer needed for disaster emergency
2-14     purposes in accordance with Subchapters C and D.
2-15           (g)  As surplus property becomes available, the commission
2-16     shall maintain an inventory of surplus items commonly used by state
2-17     agencies.  The commission shall transfer the items to the central
2-18     surplus warehouse for reserve inventory purposes at no charge to
2-19     the state agency that owns the property.  The commission shall
2-20     dispose of property no longer needed for reserve inventory purposes
2-21     in accordance with Subchapters C and D.
2-22           SECTION 4.  Subchapter C, Chapter 2175, Government Code, is
2-23     amended by adding Section 2175.126 to read as follows:
2-24           Sec. 2175.126.  DISPOSAL BY THE FEDERAL SURPLUS PROPERTY
2-25     PROGRAM.  (a)  If a transfer of property is not negotiated with a
2-26     state agency, political subdivision, or assistance organization
2-27     during the time prescribed by Section 2175.123 and the commission
2-28     determines that the property will not satisfy a state need, the
2-29     commission may notify the federal surplus property program of
2-30     property availability.
2-31           (b)  If the state agency that owns the property and the
2-32     commission agree, the federal surplus property program shall
2-33     attempt to arrange a transfer of the property to a state agency,
2-34     political subdivision, or assistance organization without
2-35     establishing a priority on transfers to a state agency.
2-36           (c)  The federal surplus property program may:
2-37                 (1)  provide assistance in negotiating the transfer,
2-38     including negotiation of the fair value of the property;
2-39                 (2)  screen, transport, or recondition the property;
2-40                 (3)  warehouse the property temporarily;
2-41                 (4)  provide other assistance in the transfer; and
2-42                 (5)  charge fees for its service to entities involved.
2-43           (d)  If the federal surplus property program does not arrange
2-44     a transfer of the property within 25 days after the date it is
2-45     notified by the commission, the federal surplus property program
2-46     shall inform the commission and the commission shall sell or
2-47     dispose of the property as provided by Subchapters D and E.
2-48           (e)  The commission may adopt necessary rules to govern the
2-49     sale or transfer of surplus or salvage equipment and material to
2-50     state agencies, assistance organizations, or political subdivisions
2-51     under this section.
2-52           (f)  The federal surplus property program may contract with a
2-53     state agency to provide assistance related to the handling of
2-54     surplus and salvage property, its disposal, or both.
2-55           SECTION 5.  This Act takes effect September 1, 1999.
2-56           SECTION 6.  The importance of this legislation and the
2-57     crowded condition of the calendars in both houses create an
2-58     emergency and an imperative public necessity that the
2-59     constitutional rule requiring bills to be read on three several
2-60     days in each house be suspended, and this rule is hereby suspended.
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