1-1 By: Flores (Senate Sponsor - Carona) H.B. No. 834
1-2 (In the Senate - Received from the House April 9, 2001;
1-3 April 9, 2001, read first time and referred to Committee on State
1-4 Affairs; May 11, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; May 11, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 834 By: Madla
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to sale of surplus or salvage property.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subchapters C and D, Chapter 2175, Government
1-13 Code, are amended to read as follows:
1-14 SUBCHAPTER C. DIRECT TRANSFER OR OTHER DISPOSITION OF
1-15 SURPLUS OR SALVAGE PROPERTY BY STATE AGENCY
1-16 Sec. 2175.121. STATE AGENCY NOTICE TO COMMISSION AND
1-17 COMPTROLLER. A state agency that determines it has surplus or
1-18 salvage property shall inform the commission and the comptroller of
1-19 the property's kind, number, location, condition, original cost or
1-20 value, and date of acquisition.
1-21 Sec. 2175.122. DETERMINING METHOD OF DISPOSAL. (a) Based
1-22 on the condition of the property, a state agency shall determine
1-23 whether the property is:
1-24 (1) surplus property that should be offered for
1-25 transfer under Section 2175.125 or sold to the public; or
1-26 (2) salvage property.
1-27 (b) The state agency shall inform the commission and the
1-28 comptroller of its determination.
1-29 Sec. 2175.123. COMMISSION NOTICE TO OTHER ENTITIES. After a
1-30 determination that [On receiving notice from] a state agency [that
1-31 the agency] has surplus [or salvage] property, the commission shall
1-32 inform other state agencies, political subdivisions, and assistance
1-33 organizations of the comptroller's website that lists surplus
1-34 property that is available for sale [the property's kind, number,
1-35 location, and condition].
1-36 Sec. 2175.124. ADVERTISING ON COMPTROLLER WEBSITE. Not
1-37 later than the second day after the date the comptroller receives
1-38 notice from a state agency that the agency has surplus property,
1-39 the comptroller shall advertise the property's kind, number,
1-40 location, and condition on the comptroller's website.
1-41 Sec. 2175.125 [2175.123]. DIRECT TRANSFER. During the 10
1-42 business [30] days after the date the property is posted on the
1-43 comptroller's website [following dissemination of information under
1-44 Section 2175.122], a state agency, political subdivision, or
1-45 assistance organization may coordinate directly with the reporting
1-46 state agency for a transfer of the property at a price established
1-47 by the reporting agency.
1-48 Sec. 2175.126 [2175.124]. NOTICE OF TRANSFER TO COMPTROLLER;
1-49 ADJUSTMENT OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS;
1-50 REMOVAL FROM WEBSITE. (a) If property is transferred to a state
1-51 agency, the participating agencies shall report the transaction to
1-52 the comptroller.
1-53 (b) On receiving notice under this section, the comptroller
1-54 shall, if necessary:
1-55 (1) debit and credit the proper appropriations; and
1-56 (2) adjust state property accounting records.
1-57 (c) Not later than the second day after the date the
1-58 comptroller receives notice under Subsection (a), the comptroller
1-59 shall remove the property from the list of surplus property for
1-60 sale on the comptroller's website.
1-61 Sec. 2175.127 [2175.125]. PRIORITY FOR TRANSFER TO STATE
1-62 AGENCY. During the 10 business [30] days after the date the
1-63 property is posted on the comptroller's website [of notice under
1-64 Section 2175.122], a transfer to a state agency has priority over
2-1 any other transfer under rules adopted by the commission.
2-2 Sec. 2175.128 [2175.126]. DISPOSITION OF DATA PROCESSING
2-3 EQUIPMENT. (a) If a disposition of a state agency's surplus or
2-4 salvage data processing equipment is not made under Section
2-5 2175.125 [this subchapter], the state agency shall transfer the
2-6 equipment to the Texas Department of Criminal Justice. The state
2-7 agency may not collect a fee or other reimbursement from the Texas
2-8 Department of Criminal Justice for the surplus or salvage data
2-9 processing equipment.
2-10 (b) If a disposition of the surplus or salvage data
2-11 processing equipment of a state eleemosynary institution or an
2-12 institution or agency of higher education is not made under other
2-13 law, the institution or agency shall transfer the equipment to the
2-14 Texas Department of Criminal Justice. The institution or agency
2-15 may not collect a fee or other reimbursement from the Texas
2-16 Department of Criminal Justice for the surplus or salvage data
2-17 processing equipment.
2-18 [SUBCHAPTER D. DISPOSITION OF SURPLUS OR SALVAGE
2-19 PROPERTY BY COMPETITIVE BIDDING]
2-20 Sec. 2175.129 [2175.181]. DISPOSITION BY COMPETITIVE
2-21 BIDDING, [OR] AUCTION, OR DIRECT SALE. (a) If a disposition of a
2-22 state agency's surplus [or salvage] property is not made under
2-23 Section 2175.125 [Subchapter C], the commission shall:
2-24 (1) sell the property by competitive bid, [or]
2-25 auction, or direct sale to the public, including a sale using an
2-26 Internet auction site; or
2-27 (2) delegate to the state agency authority to sell the
2-28 property by competitive bid, auction, or direct sale to the public,
2-29 including a sale using an Internet auction site [bidding].
2-30 (b) The commission or a state agency to which authority is
2-31 delegated under Subsection (a)(2) or under Section 2175.065 shall
2-32 determine which method of sale shall be used based on the method
2-33 that is most advantageous to the state under the circumstances.
2-34 The commission shall adopt rules establishing guidelines for making
2-35 that determination.
2-36 (c) In using an Internet auction site to sell surplus
2-37 property under this section, the commission or state agency shall
2-38 post the property on the site for at least 10 days.
2-39 Sec. 2175.130. DISPOSITION BY DIRECT SALE TO PUBLIC. (a)
2-40 If the commission or a state agency to which authority is delegated
2-41 under Section 2175.129(a)(2) or 2175.065 determines that selling
2-42 the property by competitive bid or auction, including a sale using
2-43 an Internet auction site, would not maximize the resale value of
2-44 the property to the state, the commission or agency may sell
2-45 surplus or salvage property directly to the public.
2-46 (b) The commission, in cooperation with the state agency
2-47 that declared the property as surplus, or a state agency to which
2-48 authority is delegated under Section 2175.129(a)(2) or 2175.065
2-49 shall set a fixed price for the property.
2-50 Sec. 2175.131 [2175.182]. PURCHASER'S FEE. (a) The
2-51 commission or a state agency disposing of property by a method
2-52 other than direct transfer under this subchapter shall collect a
2-53 fee from the purchaser.
2-54 (b) The commission or state agency shall set the fee at an
2-55 amount that is:
2-56 (1) sufficient to recover costs associated with the
2-57 sale; and
2-58 (2) at least two percent but not more than 12 percent
2-59 of sale proceeds.
2-60 Sec. 2175.132 [2175.183]. ADVERTISEMENT OF SALE. If the
2-61 value of an item or a lot of property to be sold is estimated to be
2-62 more than $5,000, the commission or the state agency authorized to
2-63 sell the property shall advertise the sale at least once in at
2-64 least one newspaper of general circulation in the vicinity in which
2-65 the property is located.
2-66 Sec. 2175.133 [2175.184]. REPORTING SALE; PROPERTY
2-67 ACCOUNTING ADJUSTMENT. (a) On the sale by the commission of
2-68 surplus or salvage property, the commission shall report the
2-69 property sold and the sale price to the state agency that declared
3-1 the property as surplus or salvage.
3-2 (b) A state agency for which surplus or salvage property is
3-3 sold or that sells surplus or salvage property under authority of
3-4 the commission shall report the sale and amount of sale proceeds to
3-5 the comptroller.
3-6 (c) If property reported under this section is on the state
3-7 property accounting system, the comptroller shall remove the
3-8 property from the property accounting records.
3-9 Sec. 2175.134 [2175.185]. PROCEEDS OF SALE. (a) Proceeds
3-10 from the sale of surplus or salvage property, less the cost of
3-11 advertising the sale, the cost of selling the surplus or salvage
3-12 property, including the cost of auctioneer services, and the amount
3-13 of the fee collected under Section 2175.131 [2175.182], shall be
3-14 deposited to the credit of the appropriate appropriation item of
3-15 the state agency for which the sale was made.
3-16 (b) The portion of sale proceeds equal to the cost of
3-17 advertising the sale and the cost of selling the surplus or salvage
3-18 property, including the cost of auctioneer services, shall be
3-19 deposited in the state treasury to the credit of the appropriation
3-20 item of the commission or other state agency from which the costs
3-21 were paid.
3-22 Sec. 2175.135 [2175.186]. PURCHASER'S TITLE. A purchaser of
3-23 surplus [or salvage] property at a sale conducted under Section
3-24 2175.129 or 2175.130 [this subchapter] obtains good title to the
3-25 property if the purchaser has in good faith complied with:
3-26 (1) the conditions of the sale; and
3-27 (2) applicable commission rules.
3-28 SECTION 2. Section 403.271(a), Government Code, is amended to
3-29 read as follows:
3-30 (a) This subchapter applies to:
3-31 (1) all personal property belonging to the state; and
3-32 (2) real and personal property acquired by or
3-33 otherwise under the jurisdiction of the state under 40 U.S.C.
3-34 Section 483c, 484(j), or 484(k), and Subchapter F [G], Chapter
3-35 2175.
3-36 SECTION 3. Section 2155.084(c), Government Code, is amended
3-37 to read as follows:
3-38 (c) In negotiating purchases of goods from the federal
3-39 government under this section or under Subchapter F [G], Chapter
3-40 2175, the commission or the governing body of the institution of
3-41 higher education may waive the requirement of a bidder's bond and
3-42 performance bond that otherwise would be required.
3-43 SECTION 4. The heading of Subchapter E, Chapter 2175,
3-44 Government Code, is amended to read as follows:
3-45 SUBCHAPTER D [E]. DESTRUCTION OF SURPLUS OR SALVAGE PROPERTY
3-46 SECTION 5. The heading of Subchapter F, Chapter 2175,
3-47 Government Code, is amended to read as follows:
3-48 SUBCHAPTER E [F]. EXCEPTIONS
3-49 SECTION 6. The heading of Subchapter G, Chapter 2175,
3-50 Government Code, is amended to read as follows:
3-51 SUBCHAPTER F [G]. FEDERAL SURPLUS PROPERTY
3-52 SECTION 7. This Act takes effect September 1, 2001.
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