BILL ANALYSIS
By: Brown, Fred
BACKGROUND AND PURPOSE
Under the guidelines currently set out in Subchapter E, Chapter 2175, Government Code, state agencies must destroy surplus or salvage property. In addition, under the current law state agencies must contract to have surplus or salvage property removed.
There have been occasions when state agencies have had surplus or salvage property that not only was costly to destroy, but which could have been useful if donated to a nonprofit organization. HB 22 will allow, when appropriate, state agencies to donate excess or salvage property to nonprofit organizations such as Habitat for Humanity. Donation of this property will assist in saving state agencies the cost associated with the destruction of the property while assisting beneficial causes.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
Amends Subchapter E, Chapter 2175 of the Government Code, to allow donation of property to non-profit organizations as an alternative to destruction in instances where an agency cannot otherwise sell, dispose of, or has determined that the property does not have a resale value. Amends the definition of "assistance organization" to include a nonprofit organization that provides affordable housing. Allows the comptroller to remove property from the accounting records upon donation of that property. Adds Subsection 2175.304(d), allowing a university system or an institution of higher education to donate any surplus or salvage property to an assistance organization.
EFFECTIVE DATE
Immediately upon passage or September 1, 2005.