HBA-EVB S.B. 1105 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1105
By: Ratliff
Corrections
4/23/1999
Engrossed



BACKGROUND AND PURPOSE 

S.B. 1105 sets forth procedures for the disposition of surplus or salvage
data processing equipment from state agencies or certain other institutions
to the Texas Department of Criminal Justice (TDCJ) for repair or
refurbishment.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Department of Criminal
Justice in SECTION 1 (Section 497.011, Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter A, Chapter 497, Government Code, by adding
Section 497.011, as follows: 

Sec. 497.011. REPAIR AND RESALE OF SURPLUS DATA PROCESSING EQUIPMENT. (a)
Authorizes the Texas Department of Criminal Justice (TDCJ) to receive
surplus or salvage data processing equipment under Chapter 2175 (Surplus
and Salvage Property), Government Code.  

(b)  Requires TDCJ, if it determines that it is economically feasible, to
repair or refurbish the surplus or salvage data processing equipment.
Requires TDCJ to sell the repaired or refurbished data processing equipment
to a school district, a state agency, or a political subdivision of the
state in that relative order of preference. 

(c)  Requires TDCJ to disassemble the equipment and sell the components or
retain the components in the department's inventory for future use, if it
is not economically feasible to repair or refurbish the surplus or salvage
data processing equipment. 

(d)  Requires TDCJ to attempt to realize the maximum benefit to the state
in selling repaired or refurbished data processing equipment or the
components. 

(e)  Provides that the sales price of the components or the repaired or
refurbished data processing equipment must be sufficient to defray the cost
of repairing, refurbishing, or disassembling the data processing equipment. 

(f)  Requires proceeds from the sale of the components or the repaired or
refurbished data processing equipment to be deposited in the industrial
revolving account.  Authorizes the proceeds to be used only to reduce the
cost of repairing and refurbishing data processing equipment. 

(g)  Authorizes TDCJ to adopt rules to implement this section.

SECTION 2.  Amends Section 2175.001, Government Code, by adding Subdivision
(5), to define 
"data processing equipment."

SECTION 3.  Amends Subchapter C, Chapter 2175, Government Code, by adding
Section 2175.126,  as follows: 

Sec. 2175.126.  DISPOSITION OF DATA PROCESSING EQUIPMENT.  (a)  Requires a
state agency to transfer the equipment to TDCJ, if a disposition of the
agency's surplus or salvage data processing equipment is not made under
this subchapter.  Prohibits the state agency from collecting a fee or other
reimbursement from TDCJ for the surplus or salvage data processing
equipment. 

(b)  Requires the institution or agency to transfer the equipment to TDCJ,
if a disposition of the surplus or salvage data processing equipment of a
state eleemosynary institution or an institution or agency of higher
education is not made under other law.  Prohibits the institution or agency
from collecting a fee or other reimbursement from TDCJ for the surplus or
salvage data processing equipment. 

SECTION 4.  Amends Section 2175.302, Government Code, as follows:

Sec. 2175.302. EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS AND INSTITUTIONS AND
AGENCIES OF HIGHER EDUCATION.  Provides that this chapter does not apply to
the disposition of surplus or salvage property by a state eleemosynary
institution or an institution or agency of higher education, except as
provided by Section 2175.126(b). 

SECTION 5.  Effective date: September 1, 1999.

SECTION 6.  Emergency clause.