1-1 AN ACT
1-2 relating to sale of surplus or salvage property.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapters C and D, Chapter 2175, Government
1-5 Code, are amended to read as follows:
1-6 SUBCHAPTER C. DIRECT TRANSFER OR OTHER DISPOSITION OF
1-7 SURPLUS OR SALVAGE PROPERTY BY STATE AGENCY
1-8 Sec. 2175.121. STATE AGENCY NOTICE TO COMMISSION AND
1-9 COMPTROLLER. A state agency that determines it has surplus or
1-10 salvage property shall inform the commission and the comptroller of
1-11 the property's kind, number, location, condition, original cost or
1-12 value, and date of acquisition.
1-13 Sec. 2175.122. DETERMINING METHOD OF DISPOSAL. (a) Based
1-14 on the condition of the property, a state agency shall determine
1-15 whether the property is:
1-16 (1) surplus property that should be offered for
1-17 transfer under Section 2175.125 or sold to the public; or
1-18 (2) salvage property.
1-19 (b) The state agency shall inform the commission and the
1-20 comptroller of its determination.
1-21 Sec. 2175.123. COMMISSION NOTICE TO OTHER ENTITIES. After a
1-22 determination that [On receiving notice from] a state agency [that
1-23 the agency] has surplus [or salvage] property, the commission shall
1-24 inform other state agencies, political subdivisions, and assistance
2-1 organizations of the comptroller's website that lists surplus
2-2 property that is available for sale [the property's kind, number,
2-3 location, and condition].
2-4 Sec. 2175.124. ADVERTISING ON COMPTROLLER WEBSITE. Not
2-5 later than the second day after the date the comptroller receives
2-6 notice from a state agency that the agency has surplus property,
2-7 the comptroller shall advertise the property's kind, number,
2-8 location, and condition on the comptroller's website.
2-9 Sec. 2175.125 [2175.123]. DIRECT TRANSFER. During the 10
2-10 business [30] days after the date the property is posted on the
2-11 comptroller's website [following dissemination of information under
2-12 Section 2175.122], a state agency, political subdivision, or
2-13 assistance organization may coordinate directly with the reporting
2-14 state agency for a transfer of the property at a price established
2-15 by the reporting agency.
2-16 Sec. 2175.126 [2175.124]. NOTICE OF TRANSFER TO COMPTROLLER;
2-17 ADJUSTMENT OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS;
2-18 REMOVAL FROM WEBSITE. (a) If property is transferred to a state
2-19 agency, the participating agencies shall report the transaction to
2-20 the comptroller.
2-21 (b) On receiving notice under this section, the comptroller
2-22 shall, if necessary:
2-23 (1) debit and credit the proper appropriations; and
2-24 (2) adjust state property accounting records.
2-25 (c) Not later than the second day after the date the
2-26 comptroller receives notice under Subsection (a), the comptroller
2-27 shall remove the property from the list of surplus property for
3-1 sale on the comptroller's website.
3-2 Sec. 2175.127 [2175.125]. PRIORITY FOR TRANSFER TO STATE
3-3 AGENCY. During the 10 business [30] days after the date the
3-4 property is posted on the comptroller's website [of notice under
3-5 Section 2175.122], a transfer to a state agency has priority over
3-6 any other transfer under rules adopted by the commission.
3-7 Sec. 2175.128 [2175.126]. DISPOSITION OF DATA PROCESSING
3-8 EQUIPMENT. (a) If a disposition of a state agency's surplus or
3-9 salvage data processing equipment is not made under Section
3-10 2175.125 [this subchapter], the state agency shall transfer the
3-11 equipment to the Texas Department of Criminal Justice. The state
3-12 agency may not collect a fee or other reimbursement from the Texas
3-13 Department of Criminal Justice for the surplus or salvage data
3-14 processing equipment.
3-15 (b) If a disposition of the surplus or salvage data
3-16 processing equipment of a state eleemosynary institution or an
3-17 institution or agency of higher education is not made under other
3-18 law, the institution or agency shall transfer the equipment to the
3-19 Texas Department of Criminal Justice. The institution or agency
3-20 may not collect a fee or other reimbursement from the Texas
3-21 Department of Criminal Justice for the surplus or salvage data
3-22 processing equipment.
3-23 [SUBCHAPTER D. DISPOSITION OF SURPLUS OR SALVAGE
3-24 PROPERTY BY COMPETITIVE BIDDING]
3-25 Sec. 2175.129 [2175.181]. DISPOSITION BY COMPETITIVE
3-26 BIDDING, [OR] AUCTION, OR DIRECT SALE. (a) If a disposition of a
3-27 state agency's surplus [or salvage] property is not made under
4-1 Section 2175.125 [Subchapter C], the commission shall:
4-2 (1) sell the property by competitive bid, [or]
4-3 auction, or direct sale to the public, including a sale using an
4-4 Internet auction site; or
4-5 (2) delegate to the state agency authority to sell the
4-6 property by competitive bid, auction, or direct sale to the public,
4-7 including a sale using an Internet auction site [bidding].
4-8 (b) The commission or a state agency to which authority is
4-9 delegated under Subsection (a)(2) or under Section 2175.065 shall
4-10 determine which method of sale shall be used based on the method
4-11 that is most advantageous to the state under the circumstances.
4-12 The commission shall adopt rules establishing guidelines for making
4-13 that determination.
4-14 (c) In using an Internet auction site to sell surplus
4-15 property under this section, the commission or state agency shall
4-16 post the property on the site for at least 10 days.
4-17 Sec. 2175.130. DISPOSITION BY DIRECT SALE TO PUBLIC. (a)
4-18 If the commission or a state agency to which authority is delegated
4-19 under Section 2175.129(a)(2) or 2175.065 determines that selling
4-20 the property by competitive bid or auction, including a sale using
4-21 an Internet auction site, would not maximize the resale value of
4-22 the property to the state, the commission or agency may sell
4-23 surplus or salvage property directly to the public.
4-24 (b) The commission, in cooperation with the state agency
4-25 that declared the property as surplus, or a state agency to which
4-26 authority is delegated under Section 2175.129(a)(2) or 2175.065
4-27 shall set a fixed price for the property.
5-1 Sec. 2175.131 [2175.182]. PURCHASER'S FEE. (a) The
5-2 commission or a state agency disposing of property by a method
5-3 other than direct transfer under this subchapter shall collect a
5-4 fee from the purchaser.
5-5 (b) The commission or state agency shall set the fee at an
5-6 amount that is:
5-7 (1) sufficient to recover costs associated with the
5-8 sale; and
5-9 (2) at least two percent but not more than 12 percent
5-10 of sale proceeds.
5-11 Sec. 2175.132 [2175.183]. ADVERTISEMENT OF SALE. If the
5-12 value of an item or a lot of property to be sold is estimated to be
5-13 more than $5,000, the commission or the state agency authorized to
5-14 sell the property shall advertise the sale at least once in at
5-15 least one newspaper of general circulation in the vicinity in which
5-16 the property is located.
5-17 Sec. 2175.133 [2175.184]. REPORTING SALE; PROPERTY
5-18 ACCOUNTING ADJUSTMENT. (a) On the sale by the commission of
5-19 surplus or salvage property, the commission shall report the
5-20 property sold and the sale price to the state agency that declared
5-21 the property as surplus or salvage.
5-22 (b) A state agency for which surplus or salvage property is
5-23 sold or that sells surplus or salvage property under authority of
5-24 the commission shall report the sale and amount of sale proceeds to
5-25 the comptroller.
5-26 (c) If property reported under this section is on the state
5-27 property accounting system, the comptroller shall remove the
6-1 property from the property accounting records.
6-2 Sec. 2175.134 [2175.185]. PROCEEDS OF SALE. (a) Proceeds
6-3 from the sale of surplus or salvage property, less the cost of
6-4 advertising the sale, the cost of selling the surplus or salvage
6-5 property, including the cost of auctioneer services, and the amount
6-6 of the fee collected under Section 2175.131 [2175.182], shall be
6-7 deposited to the credit of the appropriate appropriation item of
6-8 the state agency for which the sale was made.
6-9 (b) The portion of sale proceeds equal to the cost of
6-10 advertising the sale and the cost of selling the surplus or salvage
6-11 property, including the cost of auctioneer services, shall be
6-12 deposited in the state treasury to the credit of the appropriation
6-13 item of the commission or other state agency from which the costs
6-14 were paid.
6-15 Sec. 2175.135 [2175.186]. PURCHASER'S TITLE. A purchaser of
6-16 surplus [or salvage] property at a sale conducted under Section
6-17 2175.129 or 2175.130 [this subchapter] obtains good title to the
6-18 property if the purchaser has in good faith complied with:
6-19 (1) the conditions of the sale; and
6-20 (2) applicable commission rules.
6-21 SECTION 2. Section 403.271(a), Government Code, is amended to
6-22 read as follows:
6-23 (a) This subchapter applies to:
6-24 (1) all personal property belonging to the state; and
6-25 (2) real and personal property acquired by or
6-26 otherwise under the jurisdiction of the state under 40 U.S.C.
6-27 Section 483c, 484(j), or 484(k), and Subchapter F [G], Chapter
7-1 2175.
7-2 SECTION 3. Section 2155.084(c), Government Code, is amended
7-3 to read as follows:
7-4 (c) In negotiating purchases of goods from the federal
7-5 government under this section or under Subchapter F [G], Chapter
7-6 2175, the commission or the governing body of the institution of
7-7 higher education may waive the requirement of a bidder's bond and
7-8 performance bond that otherwise would be required.
7-9 SECTION 4. The heading of Subchapter E, Chapter 2175,
7-10 Government Code, is amended to read as follows:
7-11 SUBCHAPTER D [E]. DESTRUCTION OF SURPLUS OR SALVAGE PROPERTY
7-12 SECTION 5. The heading of Subchapter F, Chapter 2175,
7-13 Government Code, is amended to read as follows:
7-14 SUBCHAPTER E [F]. EXCEPTIONS
7-15 SECTION 6. The heading of Subchapter G, Chapter 2175,
7-16 Government Code, is amended to read as follows:
7-17 SUBCHAPTER F [G]. FEDERAL SURPLUS PROPERTY
7-18 SECTION 7. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 834 was passed by the House on April
5, 2001, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 834 on May 24, 2001, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 834 was passed by the Senate, with
amendments, on May 22, 2001, by the following vote: Yeas 30, Nays
0, 1 present, not voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor