HBA-MPM C.S.S.B. 1451 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 1451 By: West Higher Education 5/13/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, certain state agencies are required to report surplus property on the State Property Accounting System for publishing by the General Services Commission (commission). State agencies, political subdivisions, and school districts are allowed to purchase needed materials and products from state agencies listed in the commission's publication. Institutions of higher education are exempt from the required reporting. Some eligible local entities, not knowing of the availability of surplus materials in institutions of higher education, have been unable to acquire the materials and products they need. C.S.S.B. 1451 sets forth guidelines for the disposition of surplus and salvage property of certain institutions of higher education and provides a means for a school district to acquire information about surplus and salvage property via the Internet or a similar facility. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2175.302, Government Code, as follows: Sec. 2175.302. New title: EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS. Deletes text regarding the inapplicability of this section (regarding the disposition of surplus or salvage property) to an institution or agency of higher education. SECTION 2. Amends Subchapter F, Chapter 2175, Government Code, by adding Section 2175.304, as follows: Sec. 2175.304. EXCEPTION FOR INSTITUTIONS OF HIGHER EDUCATION. (a) Makes this chapter inapplicable to the disposition of surplus or salvage property of a university system or of an institution or agency of higher education except as provided by this section. (b) Requires the governing board (board) of each university system or institution or agency of higher education included within the definition of "state agency" under Section 2151.002 (Definitions), Government Code, to establish written procedures for the disposition of surplus or salvage property of the system, institution, or agency. Requires the procedures to allow for the direct transfer of materials or equipment that can be used for instructional purposes to a public school or school district at a price or for other consideration to which the system, institution, or agency and the public school or school district agree or for no consideration as the system, institution, or agency determines appropriate. (c) Provides that the procedures established under Subsection (b) must give preference to transferring the property directly to a public school or school district before disposing of the property in another manner. Requires the system, institution, or agency to give preference to a public school that is considered low-performing by the commissioner of education or to a school district with a tax wealth per student that entitles the district to an allotment of state funds under Subchapter F (Guaranteed Yield Program), Chapter 42 (Foundation School Program), Education Code if more than one school or district seeks to acquire the property on substantially the same terms. SECTION 3. Amends Subchapter C, Chapter 61, Education Code, by adding Section 61.085, as follows: Sec. 61.085. ON-LINE SURPLUS PROPERTY RESOURCE. (a) Requires the Texas Higher Education Coordinating Board (board) to establish and maintain an Internet site or similar facility accessible to school districts by telecommunication to allow an institution of higher education to provide notice to school districts in this state of any available surplus or salvage property of the institution that consists of instructional materials or that may be used for instructional purposes. Requires the board to operate the facility to allow a school district to make a direct inquiry to an institution regarding the possible acquisition of property. (b) Authorizes the board to charge a fee for an institution or school district to use the facility. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause. COMPARISON TO ORIGINAL: C.S.S.B. 1451 differs from the original by deleting SECTION 1 of the original, and redesignating SECTION 2 of the original to SECTION 1 of the substitute. C.S.S.B. 1451 also differs from the original by deleting SECTION 3 of the original. SECTIONS 1 and 3 of the original bill were as follows: SECTION 1 of the original bill amended Section 2175.125 (New title: Priorities for Transfer), Government Code, which provided that during the 30 days after the date of a notice under Section 2175.122 (Commission Notice to Other Entities), Government Code, a transfer to a state agency has priority over any other transfer under rules adopted by the General Services Commission (commission), with certain exceptions. Required a state agency that is an institution of higher education with surplus or salvage property available for transfer, during the 30 days after the date of notice under Section 2175.122, to give preference to transferring the property to certain requesting entities in a specified priority. SECTION 3 of the original bill amended Subchapter D, Chapter 2175, Government Code, by adding Section 2175.1815, (Exception for Institutions of Higher Education) to make this subchapter inapplicable to an institution of higher education. It also required an institution of higher education to dispose of its surplus and salvage property not transferred to another entity under Subchapter C (Direct Transfer of Surplus or Salvage Property) under procedures established by the institution. SECTIONS 2 and 3 of the substitute consist of new text. Please see the Section-by-Section Analysis in this document.