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S.B. 130 Enrolled

             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
             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
             56      and Disposition of Land by State Agencies.
             57          Section 2. Section 63A-2-101.5 is enacted to read:


             58          63A-2-101.5. Definitions.
             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:
             82          (i) real property; or
             83          (ii) an aluminum can or an item made primarily of paper, plastic, or card board that is:
             84          (A) discarded; and
             85          (B) recyclable.


             86          (9) "Transfer" means transfer of surplus property without cash consideration except for
             87      a fee described in Subsection 63A-2-401 (3)(c).
             88          Section 3. Section 63A-2-103 is amended to read:
             89           63A-2-103. General services provided -- Subscription by state departments, state
             90      agencies, and certain local governmental entities -- Fee schedule.
             91          (1) (a) The director of the division [of Purchasing and General Services] shall operate,
             92      manage, and maintain:
             93          (i) a central mailing service; [and]
             94          (ii) an electronic central store system for procuring goods and services[.]; and
             95          (iii) the state surplus property program in accordance with Part 4, Surplus Property
             96      Services.
             97          (b) The director may establish microfilming, duplicating, printing, addressograph, and
             98      other central services.
             99          (2) (a) Each state department and agency shall subscribe to all of the services described
             100      in [Subsection] Subsections (1)(a)(i) and (ii), unless the director delegates the director's
             101      authority to a department or agency under Section 63A-2-104 .
             102          (b) An institution of higher education, school district, or political subdivision of the
             103      state may subscribe to one or more of the services described in [Subsection] Subsections
             104      (1)(a)(i) and (ii).
             105          (3) The director shall:
             106          (a) prescribe a schedule of fees to be charged for all services provided by the division
             107      to any department or agency after the director:
             108          (i) submits the proposed rate, fees, or other amounts for services provided by the
             109      division's internal service fund to the Rate Committee established in Section 63A-1-114 ; and
             110          (ii) obtains the approval of the Legislature, as required by Sections 63J-1-410 and
             111      63J-1-504 ;
             112          (b) when practicable, ensure that the fees are approximately equal to the cost of
             113      providing the services; and


             114          (c) periodically conduct a market analysis [by July 1, 2005, and periodically thereafter]
             115      of fees, which analysis shall include comparison of the division's rates with the fees of other
             116      public or private sector providers where comparable services and rates are reasonably available.
             117          Section 4. Section 63A-2-401 , which is renumbered from Section 63A-9-801 is
             118      renumbered and amended to read:
             119     
Part 4. Surplus Property Service

             120           [63A-9-801].     63A-2-401. State surplus property program -- Definitions --
             121      Administration.
             122          (1) As used in this [section: (a)] part, "agency" means:
             123          [(i)] (a) the Utah Departments of Administrative Services, Agriculture[,] and Food,
             124      Alcoholic Beverage Control, Commerce, Community and Culture, Corrections, Workforce
             125      Services, Health, Human Resource Management, Human Services, Insurance, Natural
             126      Resources, Public Safety, Technology Services, and Transportation and the Labor
             127      Commission;
             128          [(ii)] (b) the Utah Offices of the Auditor, Attorney General, Court Administrator,
             129      Crime Victim Reparations, Rehabilitation, and Treasurer;
             130          [(iii)] (c) the Public Service Commission and State Tax Commission;
             131          [(iv)] (d) the State Boards of Education, Pardons and Parole, and Regents;
             132          [(v)] (e) the Career Service Review [Board] Office;
             133          [(vi)] (f) other state agencies designated by the governor;
             134          [(vii)] (g) the legislative branch, the judicial branch, and the State Board of Regents;
             135      and
             136          [(viii)] (h) an institution of higher education, its president, and its board of trustees for
             137      purposes of Section [ 63A-9-802 ] 63A-2-402 .
             138          [(b) "Division" means the Division of Fleet Operations.]
             139          [(c) "Information technology equipment" means any equipment that is designed to
             140      electronically manipulate, store, or transfer any form of data.]
             141          [(d) "Inventory property" means property in the possession of the division that is


             142      available for purchase by an agency or the public.]
             143          [(e) "Judicial district" means the geographic districts established by Section
             144      78A-1-102 .]
             145          [(f) (i) "Surplus property" means property purchased by, seized by, or donated to, an
             146      agency that the agency wishes to dispose of.]
             147          [(ii) "Surplus property" does not mean real property.]
             148          [(g) "Transfer" means transfer of surplus property without cash consideration.]
             149          (2) (a) The division shall make rules establishing a state surplus property program that
             150      meets the requirements of this chapter by following the procedures and requirements of Title
             151      63G, Chapter 3, Utah Administrative Rulemaking Act.
             152          (b) [Those] The rules shall include:
             153          (i) a requirement prohibiting the transfer of surplus property from one agency to
             154      another agency without written approval from the division;
             155          (ii) procedures and requirements governing division administration requirements that
             156      an agency must follow;
             157          (iii) requirements governing purchase priorities;
             158          (iv) requirements governing accounting, reimbursement, and payment procedures;
             159          (v) procedures for collecting bad debts;
             160          (vi) requirements and procedures for disposing of firearms;
             161          (vii) the elements of the rates or other charges assessed by the division for services and
             162      handling;
             163          (viii) procedures governing the timing and location of public sales of inventory
             164      property; and
             165          (ix) procedures governing the transfer of information technology equipment by state
             166      agencies directly to public schools.
             167          (c) The division shall report all transfers of information technology equipment by state
             168      agencies to public schools to the Utah Technology Commission and to the Legislative Interim
             169      Education Committee at the end of each fiscal year.


             170          (3) In creating and administering the program, the division shall:
             171          (a) when conditions, inventory, and demand permit:
             172          (i) establish facilities to store inventory property at geographically dispersed locations
             173      throughout the state; and
             174          (ii) hold public sales of property at geographically dispersed locations throughout the
             175      state;
             176          (b) establish, after consultation with the agency requesting the sale of surplus property,
             177      the price at which the surplus property shall be sold; and
             178          (c) transfer proceeds arising from the sale of state surplus property to the agency
             179      requesting the sale in accordance with Title 63J, Chapter 1, Budgetary Procedures Act, less [an
             180      amount established by the division by rule] a fee approved in accordance with Sections
             181      63A-1-114 and 63J-1-410 , to pay the costs of administering the surplus property program.
             182          (4) Unless specifically exempted from this [chapter] part by explicit reference to this
             183      [chapter] part, each state agency shall dispose of and acquire surplus property only by
             184      participating in the division's program.
             185          Section 5. Section 63A-2-402 , which is renumbered from Section 63A-9-802 is
             186      renumbered and amended to read:
             187           [63A-9-802].     63A-2-402. State surplus property program -- Participation
             188      by institutions of higher education.
             189          The Board of Regents shall:
             190          (1) implement a policy requiring each institution of higher education to submit to the
             191      division a listing of surplus property available for sale outside the institution, at least 15 days
             192      prior to the intended sale date;
             193          (2) supervise and assist compliance by the institutions of higher education with the
             194      requirement of this part; and
             195          (3) encourage institutions of higher education to acquire federal surplus property from
             196      the division to reduce expenditures.
             197          Section 6. Section 63A-2-403 , which is renumbered from Section 63A-9-803 is


             198      renumbered and amended to read:
             199           [63A-9-803].     63A-2-403. Methods of disposition of surplus authorized.
             200          The division may dispose of state surplus property by public auction, sealed bids, or by
             201      other means established by rule in accordance with Title 63G, Chapter 3, Utah Administrative
             202      Rulemaking Act.
             203          Section 7. Section 63A-2-404 , which is renumbered from Section 63A-9-805 is
             204      renumbered and amended to read:
             205           [63A-9-805].     63A-2-404. Acquisition of federal surplus property -- Powers
             206      and duties -- Advisory boards and committees -- Expenditures and contracts --
             207      Clearinghouse of information -- Reports.
             208          [(1) As used in this section:]
             209          [(a) "Property" includes equipment, materials, books, and other supplies.]
             210          [(b) "Property act" means Section 203(j) of the Federal Property and Administrative
             211      Services Act of 1949.]
             212          [(2)] (1) The division may:
             213          (a) acquire from the United States [of America] under and in conformance with the
             214      property act any property under the control of any department or agency of the United States
             215      that is usable and necessary for any purposes authorized by federal law;
             216          (b) warehouse that property if it is not real property; and
             217          (c) distribute that property within [Utah] this state to:
             218          (i) tax-supported medical institutions, hospitals, clinics, and health centers;
             219          (ii) school systems, schools, colleges, and universities;
             220          (iii) other nonprofit medical institutions, hospitals, clinics, health centers, schools,
             221      colleges, and universities that are exempt from taxation under Section 501(c)(3) of the United
             222      States Internal Revenue Code of 1954;
             223          (iv) civil defense organizations;
             224          (v) political subdivisions; and
             225          (vi) any other types of institutions or activities that are eligible to acquire the property


             226      under federal law.
             227          [(3)] (2) The division may:
             228          (a) receive applications from eligible health and educational institutions for the
             229      acquisition of federal surplus real property;
             230          (b) investigate the applications;
             231          (c) obtain opinions about those applications from the appropriate health or educational
             232      authorities of [Utah] this state;
             233          (d) make recommendations about the need of the applicant for the property, the merits
             234      of the applicant's proposed use of the property, and the suitability of the property for those
             235      purposes; and
             236          (e) otherwise assist in the processing of those applications for acquisition of real and
             237      related personal property of the United States under the property act.
             238          [(4)] (3) The division may appoint advisory boards or committees.
             239          [(5)] (4) If required by law or regulation of the United States in connection with the
             240      disposal of surplus real property and the receipt, warehousing, and distribution of surplus
             241      personal property received by the division from the United States, the division may:
             242          (a) make certifications, take action, and make expenditures;
             243          (b) enter into contracts, agreements, and undertakings for and in the name of the state
             244      including cooperative agreements with the federal agencies providing for use by and exchange
             245      between them of the property, facilities, personnel, and services of each by the other;
             246          (c) require reports; and
             247          (d) make investigations.
             248          [(6)] (5) The division shall act as the clearinghouse of information for public and
             249      private nonprofit institutions, organizations, and agencies eligible to acquire federal surplus
             250      real property to:
             251          (a) locate both real and personal property available for acquisition from the United
             252      States;
             253          (b) ascertain the terms and conditions under which that property may be obtained;


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


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


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


             338      renumbered and amended to read:
             339           [63A-9-806].     63A-2-409. Bonds.
             340          The executive director of the Department of Administrative Services may bond any
             341      person employed by the division who handles money, signs checks, or receives or distributes
             342      surplus property.


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