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S.B. 130

This document includes Senate Committee Amendments incorporated into the bill on Mon, Feb 7, 2011 at 8:40 AM by rday. -->              1     

SURPLUS PROPERTY AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stuart C. Reid

             5     
House Sponsor: Ryan D. Wilcox

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah Administrative Services Code by moving the state surplus
             10      property program to the Division of Purchasing and General Services.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    moves the state surplus property program from the Division of Fleet Operations of
             15      the Department of Administrative Services to the Division of Purchasing and
             16      General Services in the same department; and
             17          .    makes technical changes.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          26-1-21, as last amended by Laws of Utah 2008, Chapter 382
             25          63A-2-103, as last amended by Laws of Utah 2009, Chapter 183
             26      ENACTS:
             27          63A-2-101.5, Utah Code Annotated 1953



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             28
     RENUMBERS AND AMENDS:
             29          63A-2-401, (Renumbered from 63A-9-801, as last amended by Laws of Utah 2008,
             30      Chapters 3 and 382)
             31          63A-2-402, (Renumbered from 63A-9-802, as renumbered and amended by Laws of
             32      Utah 1997, Chapter 252)
             33          63A-2-403, (Renumbered from 63A-9-803, as renumbered and amended by Laws of
             34      Utah 1997, Chapter 252)
             35          63A-2-404, (Renumbered from 63A-9-805, as last amended by Laws of Utah 2001,
             36      Chapter 9)
             37          63A-2-405, (Renumbered from 63A-9-807, as renumbered and amended by Laws of
             38      Utah 1997, Chapter 252)
             39          63A-2-406, (Renumbered from 63A-9-808, as last amended by Laws of Utah 2008,
             40      Chapter 382)
             41          63A-2-407, (Renumbered from 63A-9-808.1, as last amended by Laws of Utah 2005,
             42      Chapters 60 and 61)
             43          63A-2-408, (Renumbered from 63A-9-809, as renumbered and amended by Laws of
             44      Utah 1997, Chapter 252)
             45          63A-2-409, (Renumbered from 63A-9-806, as renumbered and amended by Laws of
             46      Utah 1997, Chapter 252)
             47     

             48      Be it enacted by the Legislature of the state of Utah:
             49          Section 1. Section 26-1-21 is amended to read:
             50           26-1-21. Disposal of property by department.
             51          (1) The department may dispose of any personal property owned by it or any of the
             52      entities created under Section 26-1-13 , in the manner provided in Title 63A, Chapter [9] 2, Part
             53      [8] 4, Surplus Property Service.
             54          (2) The department may dispose of any real property owned by it or any of the entities
             55      created under Section 26-1-13 , in the manner provided in Title 65A, Chapter 4 Acquisition and
             56      Disposition of Land by State Agencies.
             57          Section 2. Section 63A-2-101.5 is enacted to read:
             58          63A-2-101.5. Definitions.



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Senate Committee Amendments 2-7-2011 rd/erb
             59
         As used in this chapter:
             60          (1) "Division" means the Division of Purchasing and General Services created under
             61      Section 63A-2-101 .
             62          (2) "Information technology equipment" means equipment that is designed to
             63      electronically manipulate, store, or transfer a form of data.
             64          (3) "Inventory property" means property in the possession of the division that is
             65      available for purchase by an agency or the public.
             66          (4) "Judicial district" means a geographic district established by Section 78A-1-102 .
             67          (5) "Person with a disability" means a person with a severe, chronic disability that:
             68          (a) is attributable to a mental or physical impairment or a combination of mental and
             69      physical impairments; and
             70          (b) is likely to continue indefinitely.
             71          (6) "Personal handheld electronic device":
             72          (a) means an electronic device that is designed for handheld use and permits the user to
             73      store or access information, the primary value of which is specific to the user of the device; and
             74          (b) includes a mobile phone, pocket personal computer, personal digital assistant, or
             75      similar device.
             76          (7) "Property act" means the Federal Property and Administrative Services Act of
             77      1949, 40 U.S.C. Sec. 549.
             78          (8) (a) "Surplus property" means property that an agency:
             79          (i) intends for disposal; and
             80          (ii) has acquired by purchase, seizure, or donation.
             81          (b) "Surplus property" does not include S. :
             81a              (i) .S real property S. ; or
             81b              (ii)    an aluminum can or an item made primarily of paper, plastic, or card
             81c                   board that is:
             81d                  (A)    discarded; and
             81e                  (B)     recyclable .S .
             82          (9) "Transfer" means transfer of surplus property without cash consideration except for
             83      a fee described in Subsection 63A-2-401 (3)(c).
             84          Section 3. Section 63A-2-103 is amended to read:
             85           63A-2-103. General services provided -- Subscription by state departments, state
             86      agencies, and certain local governmental entities -- Fee schedule.
             87          (1) (a) The director of the Division of Purchasing and General Services shall operate,
             88      manage, and maintain:
             89          (i) a central mailing service; [and]



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             90
         (ii) an electronic central store system for procuring goods and services[.]; and
             91          (iii) the state surplus property program in accordance with Title 63A, Chapter 2, Part 4,
             92      Surplus Property Services.
             93          (b) The director may establish microfilming, duplicating, printing, addressograph, and
             94      other central services.
             95          (2) (a) Each state department and agency shall subscribe to all of the services described
             96      in [Subsection] Subsections (1)(a)(i) and (ii), unless the director delegates the director's
             97      authority to a department or agency under Section 63A-2-104 .
             98          (b) An institution of higher education, school district, or political subdivision of the
             99      state may subscribe to one or more of the services described in [Subsection] Subsections
             100      (1)(a)(i) and (ii).
             101          (3) The director shall:
             102          (a) prescribe a schedule of fees to be charged for all services provided by the division
             103      to any department or agency after the director:
             104          (i) submits the proposed rate, fees, or other amounts for services provided by the
             105      division's internal service fund to the Rate Committee established in Section 63A-1-114 ; and
             106          (ii) obtains the approval of the Legislature, as required by Sections 63J-1-410 and
             107      63J-1-504 ;
             108          (b) when practicable, ensure that the fees are approximately equal to the cost of
             109      providing the services; and
             110          (c) periodically conduct a market analysis [by July 1, 2005, and periodically thereafter]
             111      of fees, which analysis shall include comparison of the division's rates with the fees of other
             112      public or private sector providers where comparable services and rates are reasonably available.
             113          Section 4. Section 63A-2-401 , which is renumbered from Section 63A-9-801 is
             114      renumbered and amended to read:
             115     
Part 4. Surplus Property Service

             116           [63A-9-801].     63A-2-401. State surplus property program -- Definitions --
             117      Administration.
             118          (1) As used in this [section: (a)] part, "agency" means:
             119          [(i)] (a) the Utah Departments of Administrative Services, Agriculture[,] and Food,
             120      Alcoholic Beverage Control, Commerce, Community and Culture, Corrections, Workforce



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             121
     Services, Health, Human Resource Management, Human Services, Insurance, Natural
             122      Resources, Public Safety, Technology Services, and Transportation and the Labor
             123      Commission;
             124          [(ii)] (b) the Utah Offices of the Auditor, Attorney General, Court Administrator,
             125      Crime Victim Reparations, Rehabilitation, and Treasurer;
             126          [(iii)] (c) the Public Service Commission and State Tax Commission;
             127          [(iv)] (d) the State Boards of Education, Pardons and Parole, and Regents;
             128          [(v)] (e) the Career Service Review [Board] Office;
             129          [(vi)] (f) other state agencies designated by the governor;
             130          [(vii)] (g) the legislative branch, the judicial branch, and the State Board of Regents;
             131      and
             132          [(viii)] (h) an institution of higher education, its president, and its board of trustees for
             133      purposes of Section [ 63A-9-802 ] 63A-2-402 .
             134          [(b) "Division" means the Division of Fleet Operations.]
             135          [(c) "Information technology equipment" means any equipment that is designed to
             136      electronically manipulate, store, or transfer any form of data.]
             137          [(d) "Inventory property" means property in the possession of the division that is
             138      available for purchase by an agency or the public.]
             139          [(e) "Judicial district" means the geographic districts established by Section
             140      78A-1-102 .]
             141          [(f) (i) "Surplus property" means property purchased by, seized by, or donated to, an
             142      agency that the agency wishes to dispose of.]
             143          [(ii) "Surplus property" does not mean real property.]
             144          [(g) "Transfer" means transfer of surplus property without cash consideration.]
             145          (2) (a) The division shall make rules establishing a state surplus property program that
             146      meets the requirements of this chapter by following the procedures and requirements of Title
             147      63G, Chapter 3, Utah Administrative Rulemaking Act.
             148          (b) [Those] The rules shall include:
             149          (i) a requirement prohibiting the transfer of surplus property from one agency to
             150      another agency without written approval from the division;
             151          (ii) procedures and requirements governing division administration requirements that



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             152
     an agency must follow;
             153          (iii) requirements governing purchase priorities;
             154          (iv) requirements governing accounting, reimbursement, and payment procedures;
             155          (v) procedures for collecting bad debts;
             156          (vi) requirements and procedures for disposing of firearms;
             157          (vii) the elements of the rates or other charges assessed by the division for services and
             158      handling;
             159          (viii) procedures governing the timing and location of public sales of inventory
             160      property; and
             161          (ix) procedures governing the transfer of information technology equipment by state
             162      agencies directly to public schools.
             163          (c) The division shall report all transfers of information technology equipment by state
             164      agencies to public schools to the Utah Technology Commission and to the Legislative Interim
             165      Education Committee at the end of each fiscal year.
             166          (3) In creating and administering the program, the division shall:
             167          (a) when conditions, inventory, and demand permit:
             168          (i) establish facilities to store inventory property at geographically dispersed locations
             169      throughout the state; and
             170          (ii) hold public sales of property at geographically dispersed locations throughout the
             171      state;
             172          (b) establish, after consultation with the agency requesting the sale of surplus property,
             173      the price at which the surplus property shall be sold; and
             174          (c) transfer proceeds arising from the sale of state surplus property to the agency
             175      requesting the sale in accordance with Title 63J, Chapter 1, Budgetary Procedures Act, less [an
             176      amount established by the division by rule] a fee approved in accordance with Sections
             177      63A-1-114 and 63J-1-410 , to pay the costs of administering the surplus property program.
             178          (4) Unless specifically exempted from this [chapter] part by explicit reference to this
             179      [chapter] part, each state agency shall dispose of and acquire surplus property only by
             180      participating in the division's program.
             181          Section 5. Section 63A-2-402 , which is renumbered from Section 63A-9-802 is
             182      renumbered and amended to read:



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             183
          [63A-9-802].     63A-2-402. State surplus property program -- Participation
             184      by institutions of higher education.
             185          The Board of Regents shall:
             186          (1) implement a policy requiring each institution of higher education to submit to the
             187      division a listing of surplus property available for sale outside the institution, at least 15 days
             188      prior to the intended sale date;
             189          (2) supervise and assist compliance by the institutions of higher education with the
             190      requirement of this part; and
             191          (3) encourage institutions of higher education to acquire federal surplus property from
             192      the division to reduce expenditures.
             193          Section 6. Section 63A-2-403 , which is renumbered from Section 63A-9-803 is
             194      renumbered and amended to read:
             195           [63A-9-803].     63A-2-403. Methods of disposition of surplus authorized.
             196          The division may dispose of state surplus property by public auction, sealed bids, or by
             197      other means established by rule in accordance with Title 63G, Chapter 3, Utah Administrative
             198      Rulemaking Act.
             199          Section 7. Section 63A-2-404 , which is renumbered from Section 63A-9-805 is
             200      renumbered and amended to read:
             201           [63A-9-805].     63A-2-404. Acquisition of federal surplus property -- Powers
             202      and duties -- Advisory boards and committees -- Expenditures and contracts --
             203      Clearinghouse of information -- Reports.
             204          [(1) As used in this section:]
             205          [(a) "Property" includes equipment, materials, books, and other supplies.]
             206          [(b) "Property act" means Section 203(j) of the Federal Property and Administrative
             207      Services Act of 1949.]
             208          [(2)] (1) The division may:
             209          (a) acquire from the United States [of America] under and in conformance with the
             210      property act any property under the control of any department or agency of the United States
             211      that is usable and necessary for any purposes authorized by federal law;
             212          (b) warehouse that property if it is not real property; and
             213          (c) distribute that property within [Utah] this state to:



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             214
         (i) tax-supported medical institutions, hospitals, clinics, and health centers;
             215          (ii) school systems, schools, colleges, and universities;
             216          (iii) other nonprofit medical institutions, hospitals, clinics, health centers, schools,
             217      colleges, and universities that are exempt from taxation under Section 501(c)(3) of the United
             218      States Internal Revenue Code of 1954;
             219          (iv) civil defense organizations;
             220          (v) political subdivisions; and
             221          (vi) any other types of institutions or activities that are eligible to acquire the property
             222      under federal law.
             223          [(3)] (2) The division may:
             224          (a) receive applications from eligible health and educational institutions for the
             225      acquisition of federal surplus real property;
             226          (b) investigate the applications;
             227          (c) obtain opinions about those applications from the appropriate health or educational
             228      authorities of [Utah] this state;
             229          (d) make recommendations about the need of the applicant for the property, the merits
             230      of the applicant's proposed use of the property, and the suitability of the property for those
             231      purposes; and
             232          (e) otherwise assist in the processing of those applications for acquisition of real and
             233      related personal property of the United States under the property act.
             234          [(4)] (3) The division may appoint advisory boards or committees.
             235          [(5)] (4) If required by law or regulation of the United States in connection with the
             236      disposal of surplus real property and the receipt, warehousing, and distribution of surplus
             237      personal property received by the division from the United States, the division may:
             238          (a) make certifications, take action, and make expenditures;
             239          (b) enter into contracts, agreements, and undertakings for and in the name of the state
             240      including cooperative agreements with the federal agencies providing for use by and exchange
             241      between them of the property, facilities, personnel, and services of each by the other;
             242          (c) require reports; and
             243          (d) make investigations.
             244          [(6)] (5) The division shall act as the clearinghouse of information for public and



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             245
     private nonprofit institutions, organizations, and agencies eligible to acquire federal surplus
             246      real property to:
             247          (a) locate both real and personal property available for acquisition from the United
             248      States;
             249          (b) ascertain the terms and conditions under which that property may be obtained;
             250          (c) receive requests from those institutions, organizations, and agencies and transmit to
             251      them all available information in reference to that property; and
             252          (d) aid and assist those institutions, organizations, and agencies in every way possible
             253      in those acquisitions or transactions.
             254          [(7)] (6) The division shall:
             255          (a) cooperate with the departments or agencies of the United States;
             256          (b) file a state plan of operation;
             257          (c) operate according to that plan;
             258          (d) take the actions necessary to meet the minimum standards prescribed by the
             259      property act;
             260          (e) make any reports required by the United States or any of its departments or
             261      agencies; and
             262          (f) comply with the laws of the United States and the regulations of any of the
             263      departments or agencies of the United States governing the allocation of, transfer of, use of, or
             264      accounting for any property donated to the state.
             265          Section 8. Section 63A-2-405 , which is renumbered from Section 63A-9-807 is
             266      renumbered and amended to read:
             267           [63A-9-807].     63A-2-405. Charges and fees assessed for surplus property.
             268          If approved in accordance with Sections 63A-1-114 and 63J-1-410 , the division:
             269          (1) [The division] may assess charges and fees for the acquisition, warehousing,
             270      distribution, or transfer of any property of the United States for educational, public health, or
             271      civil defense purposes, including research, only if those charges and fees are reasonably related
             272      to the division's care and handling costs of acquiring, receipting, warehousing, distributing, or
             273      transferring the property[.];
             274          (2) [The division] may reduce or eliminate charges on property that is found not to be
             275      usable for the purpose for which it was procured[.]; and



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             276
         (3) [The division] shall limit the charges and fees assessed against real property to the
             277      reasonable administrative costs that the division incurred in effecting transfer.
             278          Section 9. Section 63A-2-406 , which is renumbered from Section 63A-9-808 is
             279      renumbered and amended to read:
             280           [63A-9-808].     63A-2-406. Rulemaking on giving priority to state and local
             281      agencies in purchasing surplus property -- Rulemaking on the sale or use of a personal
             282      handheld electronic device.
             283          [(1) As used in this section, "personal handheld electronic device":]
             284          [(a) means an electronic device that is designed for handheld use and permits the user
             285      to store or access information, the primary value of which is specific to the user of the device;
             286      and]
             287          [(b) includes a mobile phone, pocket personal computer, personal digital assistant,
             288      wireless, or similar device.]
             289          [(2)] In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             290      the division shall make rules:
             291          [(a)] (1) giving state and local agencies priority to purchase surplus property for a
             292      30-day period except for personal handheld electronic devices under Subsection (2)[(b)]; and
             293          [(b)] (2) allowing the sale of a personal handheld electronic device to a user who:
             294          [(i)] (a) is provided the device as part of the user's employment; and
             295          [(ii)] (b) subsequently makes a change in employment status including, departure,
             296      retirement, or transfer to another agency within state government.
             297          Section 10. Section 63A-2-407 , which is renumbered from Section 63A-9-808.1 is
             298      renumbered and amended to read:
             299           [63A-9-808.1].     63A-2-407. Transfer of information technology equipment
             300      for persons with a disability.
             301          [(1) As used in this section, "a person with a disability" means a person with a severe,
             302      chronic disability that:]
             303          [(a) is attributable to a mental or physical impairment or a combination of mental and
             304      physical impairments; and]
             305          [(b) is likely to continue indefinitely.]
             306          [(2)] (1) The division may transfer information technology equipment, or authorize the



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             307
     transfer of technology equipment by an agency, to a nonprofit entity for distribution to and use
             308      by a person with a disability.
             309          [(3)] (2) Interagency transfers and sales of surplus property to state and local agencies
             310      within the 30-day period under Section [ 63A-9-808 ] 63A-2-406 shall have priority over
             311      transfers under Subsection [(2)] (1).
             312          [(4)] (3) The division shall annually report to the Division of Services for People With
             313      Disabilities the:
             314          (a) names of the nonprofit entities receiving transfers under Subsection [(2)] (1); and
             315          (b) types and amounts of equipment received.
             316          Section 11. Section 63A-2-408 , which is renumbered from Section 63A-9-809 is
             317      renumbered and amended to read:
             318           [63A-9-809].     63A-2-408. Authority of state or local subdivision to receive
             319      property -- Revocation of authority of officer.
             320          (1) Notwithstanding any other provision of law, the governing board or the executive
             321      director of any state department, instrumentality, or agency or the legislative body of any city,
             322      county, school district, or other political subdivision may by order or resolution give any officer
             323      or employee the authority to:
             324          (a) secure the transfer to it of surplus property through the division under the
             325      [provisions of Section 203(j) of the Federal Property and Administrative Services Act of 1949,
             326      as amended] the property act; and
             327          (b) obligate the state or political subdivision and its funds to the extent necessary to
             328      comply with the terms and conditions of those transfers.
             329          (2) The authority conferred upon any officer or employee by an order or resolution
             330      remains in effect until:
             331          (a) the order or resolution is revoked; and
             332          (b) the division has received written notice of the revocation.
             333          Section 12. Section 63A-2-409 , which is renumbered from Section 63A-9-806 is
             334      renumbered and amended to read:
             335           [63A-9-806].     63A-2-409. Bonds.
             336          The executive director of the Department of Administrative Services may bond any
             337      person employed by the division who handles money, signs checks, or receives or distributes



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             338
     surplus property.





Legislative Review Note
    as of 1-26-11 9:03 AM


Office of Legislative Research and General Counsel


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