Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 122 First Substitute (2015GS)

Sponsor

Sen. Weiler, T.

Final action

Governor Signed 3/23/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• modifies definitions applicable to the Division of Purchasing and General Services and state surplus property;
• modifies provisions relating to the administration of the state surplus property program;
• modifies property that is included within the definition of state surplus property; and
• modifies provisions relating to the disposition of state surplus property with a minimal value.

Every vote on this bill

Bill text

STATE SURPLUS PROPERTY AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Todd Weiler
House Sponsor: 
Brad M. Daw
LONG TITLE
General Description:
This bill modifies provisions relating to state surplus property.
Highlighted Provisions:
This bill:
▸ modifies definitions applicable to the Division of Purchasing and General Services
and state surplus property;
▸ modifies provisions relating to the administration of the state surplus property
program;
▸ modifies property that is included within the definition of state surplus property; and
▸ modifies provisions relating to the disposition of state surplus property with a
minimal value.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63A-2-101.5
, as last amended by Laws of Utah 2013, Chapter 151
63A-2-102
, as last amended by Laws of Utah 1997, Chapter 252
63A-2-103
, as last amended by Laws of Utah 2013, Chapter 151
63A-2-104
, as last amended by Laws of Utah 1997, Chapter 252
63A-2-105
, as last amended by Laws of Utah 1997, Chapter 252
63A-2-401
, as last amended by Laws of Utah 2013, Chapters 49 and 151
63A-2-405
, as last amended by Laws of Utah 2013, Chapter 151
63A-2-408
, as last amended by Laws of Utah 2013, Chapter 151
63A-2-409
, as last amended by Laws of Utah 2013, Chapters 15 and 151
63A-2-410
, as enacted by Laws of Utah 2013, Chapter 151
REPEALS AND REENACTS:
63A-2-411
, as enacted by Laws of Utah 2013, Chapter 151
REPEALS:
63A-2-406
, as renumbered and amended by Laws of Utah 2011, Chapter 207
63A-2-407
, as renumbered and amended by Laws of Utah 2011, Chapter 207
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63A-2-101.5
 is amended to read:
63A-2-101.5.
Definitions.
As used in this chapter:
(1) "Division" means the Division of Purchasing and General Services created under
Section 
63A-2-101
.
(2) "Federal surplus property" means surplus property of the federal government of the
United States.
(3) "Information technology equipment" means equipment [
that is designed to
electronically manipulate, store, or transfer a form of data.
] 
capable of downloading, accessing,
manipulating, storing, or transferring electronic data, including:
[
(4) "Inventory property" means property in the possession of the division that is
available for purchase by an agency or the public.
]
[
(5) "Judicial district" means a geographic district established by Section 
78A-1-102
.
]
(a) a computer;
(b) a smart phone, electronic tablet, personal digital assistant, or other portable
electronic device;
(c) a digital copier or multifunction printer;
(d) a flash drive or other portable electronic data storage device;
(e) a server; and
(f) any other similar device.
[
(6)
] 
(4)
 "Person with a disability" means a person with a severe, chronic disability
that:
(a) is attributable to a mental or physical impairment or a combination of mental and
physical impairments; and
(b) is likely to continue indefinitely.
[
(7) "Personal handheld electronic device":
]
[
(a) means an electronic device that is designed for handheld use and permits the user
to store or access information, the primary value of which is specific to the user of the device;
and
]
[
(b) includes a mobile phone, pocket personal computer, personal digital assistant, or
similar device.
]
[
(8)
] 
(5)
 "Property act" means the Federal Property and Administrative Services Act of
1949, 40 U.S.C. Sec. 549.
(6) "Purchasing director" means the director of the division appointed under Section
63A-2-102
.
(7) "Smart phone" means an electronic device that combines a cell phone with a
hand-held computer, typically offering Internet access, data storage, and text and email
capabilities.
(8) "State agency" means any executive branch department, division, or other agency of
the state.
(9) "State surplus property" [
means surplus property that is not
]:
(a) means state-owned property, whether acquired by purchase, seizure, donation, or
otherwise:
[
(a) a vehicle; or
]
[
(b) federal surplus property.
]
(i) that is no longer being used by the state or no longer usable by the state;
(ii) that is out of date;
(iii) that is damaged and cannot be repaired or cannot be repaired at a cost that is less
than the property's value;
(iv) whose useful life span has expired; or
(v) that the state agency possessing the property determines is not required to meet the
needs or responsibilities of the state agency;
(b) includes:
(i) a motor vehicle;
(ii) equipment;
(iii) furniture;
(iv) information technology equipment; and
(v) a supply; and
(c) does not include:
(i) real property;
(ii) an asset of the School and Institutional Trust Lands Administration, established in
Section 
53C-1-201
;
(iii) a firearm or ammunition; or
(iv) an office or household item made of aluminum, paper, plastic, cardboard, or other
recyclable material, without any meaningful value except for recycling purposes.
(10) "State surplus property contractor" means [
the
] 
a
 person [
described in Section
63A-2-410
 that the state contracts with to administer the state's program for the disposition of
]
in the private sector under contract with the state to provide one or more services related to the
division's program for the management and disposition of
 state surplus property.
[
(11) (a) "Surplus property" means property that an agency:
]
[
(i) intends to divest itself of; and
]
[
(ii) has acquired by purchase, seizure, or donation.
]
[
(b) "Surplus property" does not include:
]
[
(i) real property;
]
[
(ii) assets of the School and Institutional Trust Lands Administration; or
]
[
(iii) an aluminum can or an item made primarily of paper, plastic, or cardboard that
is:
]
[
(A) discarded; and
]
[
(B) recyclable.
]
Section 2. Section 
63A-2-102
 is amended to read:
63A-2-102.
Director of division -- Appointment.
(1) The executive director [
of the department
] shall appoint the director of the Division
of Purchasing and General Services with the approval of the governor.
(2) The 
purchasing
 director [
of the Division of Purchasing and General Services
] is
also the state's chief procurement officer.
Section 3. Section 
63A-2-103
 is amended to read:
63A-2-103.
General services provided -- Subscription by state departments, state
agencies, and certain local governmental entities -- Fee schedule.
(1) The 
purchasing
 director [
of the division
]:
(a) shall operate, manage, and maintain:
(i) a central mailing service; and
(ii) an electronic central store system for procuring goods and services;
(b) shall, except when a state surplus property contractor administers the state's
program for disposition of state surplus property, operate, manage, and maintain the state
surplus property program;
(c) shall, when a state surplus property contractor administers the state's program for
disposition of state surplus property, oversee the state surplus property contractor's
administration of the state surplus property program in accordance with Part 4, Surplus
Property Services; and
(d) may establish microfilming, duplicating, printing, addressograph, and other central
services.
(2) (a) Each state [
department and
] agency shall subscribe to all of the services
described in [
Subsections
] 
Subsection
 (1)(a)[
(i) and (ii)
], unless the director delegates the
director's authority to a [
department or
] 
state
 agency under Section 
63A-2-104
.
(b) An institution of higher education, school district, or political subdivision of the
state may subscribe to one or more of the services described in [
Subsections
] 
Subsection
(1)(a)[
(i) and (ii)
].
(3) 
(a)
 The 
purchasing
 director shall:
[
(a) except as provided in Part 4, Surplus Property Services,
]
(i)
 prescribe a schedule of fees to be charged for all services provided by the division
[
to any department or agency
] after the 
purchasing
 director:
[
(i)
] 
(A)
 submits the proposed rate, fees, or other amounts for services provided by the
division's internal service fund to the Rate Committee established in Section 
63A-1-114
; and
[
(ii)
] 
(B)
 obtains the approval of the Legislature, as required by [
Sections 
63J-1-410
and 
] 
Section
63J-1-504
;
[
(b) when practicable,
] 
(ii)
 ensure that the fees are approximately equal to the cost of
providing the services; and
[
(c) periodically
] 
(iii) annually
 conduct a market analysis of fees[
, which analysis
]
.
(b) A market analysis under Subsection (3)(a)(iii)
 shall include 
a
 comparison of the
division's rates with the fees of other public or private sector providers [
where
] 
if
 comparable
services and rates are reasonably available.
Section 4. Section 
63A-2-104
 is amended to read:
63A-2-104.
Delegation of general services to departments or agencies -- Writing
required -- Contents -- Termination.
(1) The 
purchasing
 director [
of the Division of Purchasing and General Services
], with
the approval of the executive director, may delegate, in writing, [
his
] 
the purchasing director's
authority to perform or control any general services function to [
other
] 
another
 state [
agencies
and institutions
] 
agency
 by contract or other means authorized by law, if:
(a) in the judgment of the executive director, the state [
department or
] agency has
requested the authority; and
(b) the state [
department or
] agency has the necessary resources and skills to perform
or control the functions.
(2) The 
purchasing
 director may delegate [
his
] 
the purchasing director's
 authority only
when the delegation would result in net cost savings or improved service delivery to the state
as a whole.
(3) The written delegation shall contain [
the following
]:
(a) a precise definition of each function to be delegated;
(b) a clear description of the standards to be met in performing each function
delegated;
(c) a provision for periodic administrative audits by the department; and
(d) a date on which the agreement shall terminate if not previously terminated or
renewed.
(4) An agreement to delegate functions to a state agency [
or institution
] may be
terminated by the department if the results of 
an
 administrative [
audits
] 
audit
 conducted by the
department reveal lack of compliance with the terms of the agreement.
Section 5. Section 
63A-2-105
 is amended to read:
63A-2-105.
Director to approve certain purchases.
(1) [
Each
] 
A state
 agency that intends to purchase any mail-related equipment or copy
machine shall submit a purchase request to the 
purchasing
 director [
of the Division of General
Services
].
(2) The 
purchasing
 director shall review [
those requests
] 
a request under Subsection
(1)
 to ensure that:
(a) the authority to perform those functions has been appropriately delegated to the
state
 agency under this part;
(b) the equipment meets proper specifications; and
(c) the benefits from the 
state
 agency's purchase of the equipment outweigh the benefits
of having the same functions performed by the [
Division of Purchasing and General Services
]
division
.
Section 6. Section 
63A-2-401
 is amended to read:
63A-2-401.
Utah surplus property program -- Definitions -- Administration.
[
(1) As used in this part, "agency" means:
]
[
(a) the Utah Departments of Administrative Services, Agriculture and Food, Alcoholic
Beverage Control, Commerce, Heritage and Arts, Corrections, Workforce Services, Health,
Human Resource Management, Human Services, Insurance, Natural Resources, Public Safety,
Technology Services, and Transportation and the Labor Commission;
]
[
(b) the Utah Offices of the Auditor, Attorney General, Court Administrator, Utah
Office for Victims of Crime, Rehabilitation, and Treasurer;
]
[
(c) the Public Service Commission and State Tax Commission;
]
[
(d) the State Boards of Education, Pardons and Parole, and Regents;
]
[
(e) the Career Service Review Office;
]
[
(f) other state agencies designated by the governor;
]
[
(g) the legislative branch, the judicial branch, and the State Board of Regents; and
]
[
(h) an institution of higher education, its president, and its board of trustees for
purposes of Section 
63A-2-402
.
]
(1) The division shall determine the appropriate method for disposing of state surplus
property.
(2) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the division
may contract with one or more state surplus property contractors to assist with the disposition
of state surplus property by:
(a) online auction;
(b) live auction;
(c) pick up, sale, and disposal;
(d) disposal;
(e) destruction; or
(f) another method approved by the purchasing director.
(3) (a) A state agency shall use the services of the state surplus property contractors
under contract with the division for the disposition of state surplus property unless the
purchasing director authorizes an exception in writing.
(b) Justification for an exception under Subsection (3)(a) includes:
(i) a security issue;
(ii) the need for restricted public access to the state surplus property;
(iii) a lack of adequate storage space; and
(iv) an issue specific to the state agency, as approved by the purchasing director.
[
(2) (a) The
] 
(4) (a) By following the procedures and requirements of Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, the
 division shall make rules establishing a
surplus property program that meets the requirements of this chapter by following the
procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) The rules 
under Subsection (4)(a)
 shall include:
(i) procedures and requirements for transferring 
state
 surplus property directly from
one 
state
 agency to another [
agency
];
(ii) procedures and requirements governing division administration requirements that
[
an agency must
] 
a state agency is required to
 follow;
(iii) requirements governing purchase priorities;
(iv) requirements governing accounting, reimbursement, and payment procedures;
(v) [
except as provided in Subsection (2)(d),
] procedures for collecting bad debts;
(vi) requirements and procedures for the disposition of firearms;
(vii) [
except as provided in Subsection (2)(d),
] the elements of the rates or other
charges assessed by the division for services and handling;
(viii) [
except as provided in Subsection (2)(d),
] procedures governing the timing and
location of public sales of 
state
 surplus property; [
and
]
(ix) procedures governing the [
transfer
] 
disposition
 of information technology
equipment
; and
(x) procedures governing the transfer of information technology equipment
 by state
agencies directly to public schools.
(c) Except as it relates to a vehicle or federal surplus property, the rules described in
Subsection [
(2)
] 
(4)
(b)(i) may not require approval by the division, the 
purchasing
 director [
of
the division
], or any other person, for [
an
] 
a state
 agency to transfer 
state
 surplus property
directly to another 
state
 agency.
[
(d) When a state surplus property contractor administers the state's program for
disposition of state surplus property:
]
[
(i) rules made under the rulemaking authority described in Subsections (2)(b)(v) and
(vii) apply only to surplus vehicles; and
]
[
(ii) rules made under the rulemaking authority described in Subsection (2)(b)(viii)
apply only to surplus vehicles and federal surplus property.
]
[
(3) In creating and administering the program, as it relates to surplus vehicles and
federal surplus property only, the division shall, when conditions, inventory, and demand
permit:
]
(5) The division may:
(a) establish facilities to store [
inventory
] 
state surplus
 property at [
geographically
dispersed
] 
appropriate
 locations throughout the state; [
and
]
(b) hold public sales of 
state surplus
 property at geographically dispersed locations
throughout the state;
[
(c) except as provided in Subsection (3)(d):
]
[
(i) establish,
] 
(c)
 after consultation with the 
state
 agency requesting the sale of 
state
surplus property, 
establish
 the price at which the surplus property shall be sold; and
[
(ii)
] 
(d) as provided in Title 63J, Chapter 1, Budgetary Procedures Act,
 transfer
proceeds [
arising from
] 
generated by
 the sale of state surplus property to the 
state
 agency
requesting the sale [
in accordance with Title 63J, Chapter 1, Budgetary Procedures Act, less
]
,
reduced by
 a fee approved in accordance with [
Sections 
63A-1-114
 and 
63J-1-410
,
] 
Subsection
63A-2-103
(3)
 to pay the 
division's
 costs of administering the 
state
 surplus property program.
[
(d) When a state surplus property contractor administers the state's program for
disposition of state surplus property, the provisions on Subsection (3)(c) only apply to surplus
vehicles.
]
[
(4)
] 
(6)
 Except as otherwise expressly provided in this part, or by explicit reference to
this part, each state agency shall divest and acquire 
state
 surplus property only by participating
in the division's program.
(7) A state agency may declare property owned by the state agency to be state surplus
property by making a written determination that the property:
(a) is excess property that is no longer being used;
(b) has exceeded its useful life;
(c) is no longer usable;
(d) (i) is damaged; and
(ii) (A) cannot be repaired; or
(B) cannot be repaired at a cost that is less than the property's value; or
(e) is no longer required to meet the state agency's needs or responsibilities.
Section 7. Section 
63A-2-405
 is amended to read:
63A-2-405.
Charges and fees assessed for surplus property.
[
(1)
] If approved in accordance with Sections [
63A-1-114
 and
] 
63J-1-410
[
,
] 
and
63J-1-504
,
 the division 
may
:
[
(a) may
] 
(1)
 assess charges and fees for the acquisition, warehousing, distribution, or
transfer 
of state surplus property or
 of federal surplus property [
for educational, public health,
or civil defense purposes, including research, only if those charges and fees are reasonably
]
[
related
] to 
cover
 the division's [
care and
] 
costs of
 handling [
costs of
]
,
 acquiring, receipting,
warehousing, distributing, or transferring [
the
] 
state surplus property or
 federal surplus
property; and
[
(b) may
] 
(2)
 reduce or eliminate charges on 
state surplus property or
 federal surplus
property that is found not to be usable for the purpose for which it was procured.
[
(2) When there is a state surplus property contractor:
]
[
(a) the division may not assess charges or fees to an agency for the acquisition,
warehousing, distribution, sale, transfer, or handling of state surplus property; and
]
[
(b) unless expressly provided otherwise in the contract between the division and the
state surplus contractor, the state surplus contractor may not assess charges or fees to an agency
for the acquisition, warehousing, distribution, sale, transfer, or handling of state surplus
property.
]
Section 8. Section 
63A-2-408
 is amended to read:
63A-2-408.
Authority of state or local subdivision to receive property --
Revocation of authority of officer.
(1) Notwithstanding any other provision of law, the governing board or the executive
director of any state department, instrumentality, or agency 
that is not a state agency,
 or the
legislative body of any city, county, school district, or other political subdivision may by order
or resolution give any officer or employee the authority to:
[
(a) as it relates to federal surplus property:
]
[
(i)
] 
(a)
 secure the transfer [
to it
] of 
state surplus property or
 federal surplus property
through the division under the property act; and
[
(ii)
] 
(b)
 obligate the state or political subdivision and its funds to the extent necessary
to comply with the terms and conditions of those transfers[
; and
]
.
[
(b) as it relates to surplus property other than federal surplus property:
]
[
(i) secure the direct transfer of surplus property to it; and
]
[
(ii) obligate the state or political subdivision and its funds to the extent necessary to
comply with the terms and conditions of those transfers.
]
(2) The authority conferred upon any officer or employee by an order or resolution
remains in effect until:
(a) the order or resolution is revoked; and
(b) the division has received written notice of the revocation.
Section 9. Section 
63A-2-409
 is amended to read:
63A-2-409.
Disposal of certain surplus property.
This part does not apply to disposition by:
(1) the legislative branch of surplus property that is information technology equipment
[
or a personal handheld electronic device
], if the Legislative Management Committee, by rule,
establishes its own policy for disposition, by the legislative branch, of surplus property that is
information technology equipment [
or a personal handheld electronic device
]; or
(2) the Department of Transportation of surplus personal property that was acquired as
part of a transaction or legal action by the Department of Transportation acquiring real property
for a state transportation purpose.
Section 10. Section 
63A-2-410
 is amended to read:
63A-2-410.
State surplus property contractor -- Deposit of proceeds.
(1) [
(a)
] The division [
shall, after issuing a request for proposals,
] 
may, as the
purchasing director determines, issue a solicitation under Title 63G, Chapter 6a, Utah
Procurement Code, and
 award a contract to a person in the private sector to 
provide services
necessary to
 administer the state's program for disposition of state surplus property.
[
(b) The request for proposals shall seek:
]
[
(i) proposals that provide that the sole source of payment to the contractor will be a
percentage of the amount for which the contractor sells state surplus property; and
]
[
(ii) proposals that provide for alternative methods of payment.
]
[
(2) The contract shall:
]
[
(a) provide that the contractor may sell state surplus property by auction, bid, or other
manner designed to get the best price available for the state surplus property;
]
[
(b) prohibit the contractor from engaging in the sale of state surplus property in a
manner that would constitute a conflict of interest;
]
[
(c) require regular and detailed accounting to the division of:
]
[
(i) the receipt and sale of state surplus property; and
]
[
(ii) the receipt and payment of funds by the contractor; and
]
[
(d) ensure public transparency regarding the sale of state surplus property by requiring
that the contractor:
]
[
(i) post online information related to a sale or attempted sale of state surplus property,
including:
]
[
(A) a description of the state surplus property;
]
[
(B) the agency that requested sale of the surplus property;
]
[
(C) the price at which the surplus property was sold; and
]
[
(D) the date that the surplus property was sold; and
]
[
(ii) post the information described in Subsection (2)(c)(i):
]
[
(A) within a time frame described in the contract; and
]
[
(B) for a period of time described in the contract.
]
[
(3) The contractor may not:
]
[
(a) unless expressly provided otherwise in the contract between the division and the
contractor:
]
[
(i) be required to store state surplus property; or
]
[
(ii) charge for the storage of state surplus property;
]
[
(b) administer the direct transfer of state surplus property from one agency to another
agency;
]
[
(c) administer the disposal or destruction, by an agency, of state surplus property as
waste;
]
[
(d) administer the donation by an agency of state surplus property to a charity; or
]
[
(e) administer the disposition of state surplus property under Section 
63A-2-406
,
63A-2-407
, 
63A-2-408
, or 
63A-2-409
.
]
[
(4) The division shall, after paying the amount owed to the state surplus property
contractor, transfer the remaining money received for the sale of a particular item of state
surplus property to the agency that requested the sale of the particular item of state surplus
property, in accordance with Title 63J, Chapter 1, Budgetary Procedures Act.
]
[
(5) The division shall:
]
[
(a) on or before August 31, 2013, give an oral report to the Government Operations
Interim Committee regarding:
]
[
(i) the division's progress and plans in relation to issuing the request for proposals
described in this section; and
]
[
(ii) rules passed or proposed, on or after May 14, 2013, in relation to the state surplus
property program; and
]
[
(b) (i) issue the request for proposals described in this section on or before September
30, 2013; or
]
[
(ii) in November 2013, give an oral report to the Government Operations Interim
Committee, explaining why the request for proposals was not issued on or before September
30, 2013.
]
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
division shall make rules pertaining to the process and procedures relating to services provided
by a person awarded a contract under Subsection (1).
Section 11. Section 
63A-2-411
 is repealed and reenacted to read:
 63A-2-411.
Disposal of state surplus property with minimal value.
(1) As used in this section, "minimal value" means a value of less than $100.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
division shall make rules that permit a state agency to dispose of property with a minimal value
that the state agency has declared to be state surplus property as provided in Subsection
63A-2-401
(7).
(3) The division's rules under Subsection (2) shall permit a state agency to dispose of
state surplus property with a minimal value by:
(a) destroying the property;
(b) disposing of the property as waste; or
(c) donating the property to:
(i) a charitable organization; or
(ii) an employee of the state agency.
(4) Property of a state agency is presumed to have a minimal value if the property is
not purchased after the state agency offers the property for sale to the public at a price above
$100 for at least seven days:
(a) through an online auction;
(b) through a live auction;
(c) at a retail location managed by the division; or
(d) through another sale method approved by the director.
Section 12. 
Repealer.
This bill repeals:
Section 
63A-2-406
,
Rulemaking on giving priority to state and local agencies in
purchasing surplus property -- Rulemaking on the sale or use of a personal handheld
electronic device.
Section 
63A-2-407
,
Transfer of information technology equipment for persons
with a disability.