HOUSE BILL REPORT

SB 5403

As Amended by the House

BYSenators McCaslin, DeJarnatt and Thorsness

Providing for greater cost efficiency in disposing of state surplus property.

House Committe on State Government

Majority Report:  Do pass with amendment.  (9)

      Signed by Representatives R. Fisher, Chair; Anderson, Vice Chair; McLean, Ranking Republican Member; Hankins, R. King, Morris, O'Brien, Rector and Sayan.

House Staff:Barbara McLain (786-7135)

AS PASSED HOUSE APRIL 4, 1989

BACKGROUND:

The Division of Purchasing in the Department of General Administration has authority to sell, transfer or dispose of surplus state property.  This function is carried out by the Office of Commodity Redistribution.

When an agency determines an item is surplus, the office offers it for transfer or sale to the following entities, by priority: 1) other state agencies, 2) public schools, 3) tax supported agencies, municipalities or other political subdivisions, and 4) the general public, either by private or public sale.  If the item has no sale value, it may be destroyed.  The office must try to notify other state agencies before selling or disposing of a surplus item.

SUMMARY:

The Division of Purchasing may dispose of an item of surplus property without prior notification of other state agencies if the Director of General Administration determines it is in the state's best interest.  The division is to maintain records of all disposed property, including dates and methods of disposal, recipients, and approximate value.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Michael Levenson, Department of General Administration.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    It can be inefficient to notify all state agencies of an available surplus item, transport it to the central warehouse, and then perhaps discard it due to its low value.

House Committee - Testimony Against:      None Presented.