7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to state surplus property.
10 Highlighted Provisions:
11 This bill:
12 ▸ modifies the authority of the Division of Purchasing and General Services with
13 respect to the surplus property program;
14 ▸ repeals provisions relating to:
15 • specific methods of disposing of state surplus property;
16 • institutions of higher education participation in the surplus property program;
17 • charges and fees for surplus property; and
18 • a surplus property contractor;
19 ▸ modifies provisions relating to the surplus property program;
20 ▸ authorizes a state agency to declare property to be surplus property;
21 ▸ modifies provisions relating to the disposal of items of minimal value; and
22 ▸ makes technical changes.
23 Money Appropriated in this Bill:
25 Other Special Clauses:
27 Utah Code Sections Affected:
29 63A-2-101.5, as last amended by Laws of Utah 2015, Chapter 98
30 63A-2-103, as last amended by Laws of Utah 2017, Chapter 463
31 63A-2-404, as last amended by Laws of Utah 2013, Chapter 151
32 63A-2-411, as repealed and reenacted by Laws of Utah 2015, Chapter 98
33 REPEALS AND REENACTS:
34 63A-2-401, as last amended by Laws of Utah 2015, Chapter 98
36 63A-2-402, as last amended by Laws of Utah 2017, Chapter 382
37 63A-2-405, as last amended by Laws of Utah 2015, Chapter 98
38 63A-2-410, as last amended by Laws of Utah 2015, Chapter 98
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 63A-2-101.5 is amended to read:
42 63A-2-101.5. Definitions.
43 As used in this chapter:
44 (1) "Division" means the Division of Purchasing and General Services created under
45 Section 63A-2-101.
46 (2) "Federal surplus property" means surplus property of the federal government of the
47 United States.
48 (3) "Information technology equipment" means equipment capable of downloading,
49 accessing, manipulating, storing, or transferring electronic data, including:
50 (a) a computer;
51 (b) a smart phone, electronic tablet, personal digital assistant, or other portable
52 electronic device;
53 (c) a digital copier or multifunction printer;
54 (d) a flash drive or other portable electronic data storage device;
55 (e) a server; and
56 (f) any other similar device.
57 (4) "Person with a disability" means a person with a severe, chronic disability that:
58 (a) is attributable to a mental or physical impairment or a combination of mental and
59 physical impairments; and
60 (b) is likely to continue indefinitely.
61 (5) "Property act" means the Federal Property and Administrative Services Act of
62 1949, 40 U.S.C. Sec. 549.
63 (6) "Purchasing director" means the director of the division appointed under Section
65 (7) "Smart phone" means an electronic device that combines a cell phone with a
66 hand-held computer, typically offering Internet access, data storage, and text and email
68 (8) "State agency" means any executive branch department, division, or other agency of
69 the state.
70 (9) "State surplus property":
71 (a) means state-owned property, whether acquired by purchase, seizure, donation, or
73 (i) that is no longer being used by the state or no longer usable by the state;
74 (ii) that is out of date;
75 (iii) that is damaged and cannot be repaired or cannot be repaired at a cost that is less
76 than the property's value;
77 (iv) whose useful life span has expired; or
78 (v) that the state agency possessing the property determines is not required to meet the
79 needs or responsibilities of the state agency;
80 (b) includes:
81 (i) a motor vehicle;
82 (ii) equipment;
83 (iii) furniture;
84 (iv) information technology equipment; and
85 (v) a supply; and
86 (c) does not include:
87 (i) real property;
88 (ii) an asset of the School and Institutional Trust Lands Administration, established in
89 Section 53C-1-201;
90 (iii) a firearm or ammunition; or
91 (iv) an office or household item made of aluminum, paper, plastic, cardboard, or other
92 recyclable material, without any meaningful value except for recycling purposes.
93 (10) "State surplus property contractor" means a person in the private sector under
94 contract with the state to provide one or more services related to the division's program for the
95 management and disposition of state surplus property.
96 (11) "Surplus property program" means the program relating to state surplus property
97 under Part 4, Surplus Property Service.
98 (12) "Surplus property program administrator" means:
99 (a) the purchasing director, if the purchasing director administers the surplus property
100 program; or
101 (b) the state surplus property contractor, if the state surplus property contractor
102 administers the surplus property program.
103 Section 2. Section 63A-2-103 is amended to read:
104 63A-2-103. Duties and authority of purchasing director -- Subscribing to mailing
105 system and electronic central store -- Fee schedule.
106 (1) The purchasing director:
107 (a) shall operate, manage, and maintain:
108 (i) a central mailing service; and
109 (ii) an electronic central store system for procuring goods and services;
110 (b) shall, except when a state surplus property contractor administers the [
112 and maintain the [
113 (c) shall, when a state surplus property contractor administers the [
115 property contractor's administration of the [
116 Part 4, Surplus Property Services; and
117 (d) may establish microfilming, duplicating, printing, addressograph, and other central
119 (2) (a) Each state agency shall subscribe to all of the services described in Subsection
120 (1)(a), unless the director delegates the director's authority to a state agency under Section
122 (b) An institution of higher education, the State Board of Education, a school district,
123 or a political subdivision of the state may subscribe to one or more of the services described in
124 Subsection (1)(a).
125 (3) (a) The purchasing director shall:
126 (i) prescribe a schedule of fees to be charged for all services provided by the division
127 after the purchasing director:
128 (A) submits the proposed rate, fees, or other amounts for services provided by the
129 division's internal service fund to the Rate Committee established in Section 63A-1-114; and
130 (B) obtains the approval of the Legislature, as required by Section 63J-1-504;
131 (ii) ensure that the fees are approximately equal to the cost of providing the services;
133 (iii) annually conduct a market analysis of fees.
134 (b) A market analysis under Subsection (3)(a)(iii) shall include a comparison of the
135 division's rates with the fees of other public or private sector providers if comparable services
136 and rates are reasonably available.
137 Section 3. Section 63A-2-401 is repealed and reenacted to read:
138 63A-2-401. State agencies required to participate in surplus property program --
139 Declaring property to be state surplus property -- Division authority.
140 (1) Except as otherwise provided in this part, a state agency shall dispose of and
141 acquire state surplus property by participating in the surplus property program.
142 (2) A state agency may declare property that the state agency owns to be state surplus
143 property by making a written determination that the property is state surplus property.
144 (3) The division shall determine the appropriate method for disposing of state surplus
146 (4) The division may:
147 (a) establish facilities to store state surplus property at locations throughout the state;
149 (b) after consultation with the state agency requesting the sale of state surplus property,
150 establish the selling price for the state surplus property.
151 (5) As provided in Title 63J, Chapter 1, Budgetary Procedures Act, the division may
152 transfer proceeds generated by the sale of state surplus property to the state agency requesting
153 the sale, reduced by a fee approved in accordance with Subsection 63A-2-103(3) to pay the
154 division's costs of administering the surplus property program.
155 (6) By following the procedures and requirements of Title 63G, Chapter 3, Utah
156 Administrative Rulemaking Act, the division may make rules establishing a surplus property
157 program that meets the requirements of this chapter.
158 Section 4. Section 63A-2-404 is amended to read:
159 63A-2-404. Acquisition of federal surplus property -- Powers and duties --
160 Advisory boards and committees -- Expenditures and contracts -- Clearinghouse of
161 information -- Reports.
162 (1) The division may:
163 (a) acquire from the United States under and in conformance with the property act any
164 federal surplus property under the control of any department or agency of the United States that
165 is usable and necessary for any purposes authorized by federal law;
166 (b) warehouse federal surplus property if it is not real property; and
167 (c) distribute federal surplus property within this state to:
168 (i) tax-supported medical institutions, hospitals, clinics, and health centers;
169 (ii) school systems, schools, colleges, and universities;
170 (iii) other nonprofit medical institutions, hospitals, clinics, health centers, schools,
171 colleges, and universities that are exempt from taxation under Section 501(c)(3) of the United
172 States Internal Revenue Code of 1954;
173 (iv) civil defense organizations;
174 (v) political subdivisions; and
175 (vi) any other types of institutions or activities that are eligible to acquire the federal
176 surplus property under federal law.
177 (2) The division may:
178 (a) receive applications from eligible health and educational institutions for the
179 acquisition of federal surplus real property;
180 (b) investigate the applications;
181 (c) obtain opinions about those applications from the appropriate health or educational
182 authorities of this state;
183 (d) make recommendations about the need of the applicant for the property, the merits
184 of the applicant's proposed use of the property, and the suitability of the property for those
185 purposes; and
186 (e) otherwise assist in the processing of those applications for acquisition of real and
187 related personal property of the United States under the property act.
188 (3) The division may appoint advisory boards or committees.
189 (4) If required by law or regulation of the United States in connection with the
190 disposition of surplus real property and the receipt, warehousing, and distribution of surplus
191 personal property received by the [
192 the [
193 (a) make certifications, take action, and make expenditures;
194 (b) enter into contracts, agreements, and undertakings for and in the name of the state
195 including cooperative agreements with the federal agencies providing for use by and exchange
196 between them of the property, facilities, personnel, and services of each by the other;
197 (c) require reports; and
198 (d) make investigations.
199 (5) The division shall act as the clearinghouse of information for public and private
200 nonprofit institutions, organizations, and agencies eligible to acquire federal surplus real
201 property to:
202 (a) locate both real and personal property available for acquisition from the United
204 (b) ascertain the terms and conditions under which that property may be obtained;
205 (c) receive requests from those institutions, organizations, and agencies and transmit to
206 them all available information in reference to that property; and
207 (d) aid and assist those institutions, organizations, and agencies in every way possible
208 in those acquisitions or transactions.
209 (6) The division shall:
210 (a) cooperate with the departments or agencies of the United States;
211 (b) file a state plan of operation;
212 (c) operate according to that plan;
213 (d) take the actions necessary to meet the minimum standards prescribed by the
214 property act;
215 (e) make any reports required by the United States or any of its departments or
216 agencies; and
217 (f) comply with the laws of the United States and the regulations of any of the
218 departments or agencies of the United States governing the allocation of, transfer of, use of, or
219 accounting for any property donated to the state.
220 Section 5. Section 63A-2-411 is amended to read:
221 63A-2-411. Disposal of state surplus property with minimal value.
222 (1) As used in this section, "item of minimal value" means [
223 an item of property that:
224 (a) (i) had an initial purchase price of less than $100; and
225 (ii) does not appreciate in value; or
226 (b) the surplus property program administrator determines to be worth less than $100.
227 (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
228 division shall make rules that permit a state agency to dispose of [
229 minimal value that the state agency has declared to be state surplus property as provided in
239 if the property is not purchased after the [
240 offers the property for sale to the public at a price above $100 [
245 Section 6. Repealer.
246 This bill repeals:
247 Section 63A-2-402, State surplus property program -- Participation by institutions
248 of higher education.
249 Section 63A-2-405, Charges and fees assessed for surplus property.
250 Section 63A-2-410, State surplus property contractor -- Deposit of proceeds.