SENATE BILL 313

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Phil A. Griego

AN ACT

RELATING TO PUBLIC PROPERTY; CREATING THE SURPLUS PROPERTY BUREAU; PROVIDING POWERS AND DUTIES; CREATING A FUND; AUTHORIZING STOREFRONT SALES OF SURPLUS PROPERTY; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of Chapter 13, Article 6 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] SURPLUS PROPERTY BUREAU CREATED--DUTIES--POWERS.--

          A. The "surplus property bureau" is created in the transportation services division of the general services department. The surplus property bureau is designated as the New Mexico agency responsible for distribution of federal surplus personal property, excepting food commodities, in accordance with subdivision (j) of Section 203 of the Federal Property and Administrative Services Act of 1949. The surplus property bureau is also designated as the agency for distribution or disposal of state surplus property.  

          B. The surplus property bureau shall:

                (1) develop a detailed state plan of operation for the management and administration of surplus property acquired from the federal government that complies with the Federal Property and Administrative Services Act of 1949 and regulations promulgated in accordance with that act;

                (2) cooperate with the federal government

and its agencies in securing the expeditious and equitable

distribution of federal surplus personal property, excepting food commodities, to eligible institutions in New Mexico, and assist those institutions in securing that property;

                (3) dispose of unusable federal surplus property in accordance with subdivision (j) of Section 203 of the Federal Property and Administrative Services Act of 1949; and

                (4) manage a program to recycle, donate, sell or dispose of state surplus tangible personal property.

          C. The surplus property bureau may:

                (1) enter into agreements with the federal government or its agencies for the purchase, lease, receipt as a loan or gift or any other means of acquisition of any real or personal property without regard to provisions of state law that require:

                     (a) the posting of notices or public advertising for bids;

                     (b) the inviting or receiving of competitive bids; or

                     (c) the delivery of purchases before payment;  

                (2) enter into cooperative agreements for the sale, transfer or disposal of federal surplus property that has not been distributed;

                (3) enter into contracts with other state agencies for the purpose of acquiring or disposing of any tangible personal property originally purchased with state money as specified by rule of the transportation services division of the general services department; and

                (4) designate the representative of a user to enter a bid at a sale of real or personal property owned by the United States government or any agency or department thereof and authorize that person to make payment required in connection with the bidding."

     Section 2. A new section of Chapter 13, Article 6 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] SURPLUS PROPERTY FUND--CREATED--EXPENDITURES.--

          A. The "surplus property fund" is created as a nonreverting fund in the state treasury. The fund consists of money received from the sale of surplus property by the surplus property bureau of the transportation services division of the general services department. The surplus property bureau shall administer the fund, and money in the fund is appropriated to the bureau to carry out activities relating to the acquisition, transfer and sale of surplus government property. Money in the fund shall be disbursed on vouchers approved and warrants signed by the director of the transportation services division of the general services department or the director's authorized representative.

          B. Money in the surplus property fund attributable to the sale of federal property shall be held and accounted for separately from money attributable to the purchase or sale of state property."

     Section 3. A new section of Chapter 13, Article 6 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] DISPOSITION OF STATE PROPERTY.--The surplus property bureau of the transportation services division of the general services department may dispose of tangible personal property, except property acquired from the United States government, by advertising the availability of the property as follows:

          A. for the first forty-five-day period, to any agency that has entered into an agreement with the bureau;

          B. for the second forty-five-day period, to any agency or tax-exempt entity that has filed its written certificate of tax exemption with the bureau;

          C. for the third forty-five-day period, to any agency or tax-exempt entity or to the public through a storefront operation on days and at times specified by rule of the bureau; and

          D. after the third forty-five-day period, by auction or any other means of disposal in compliance with environmental standards for disposal of tangible personal property."

     Section 4. Section 13-6-1 NMSA 1978 (being Laws 1961, Chapter 100, Section 1, as amended) is amended to read:

     "13-6-1. DISPOSITION OF OBSOLETE, WORN-OUT OR UNUSABLE TANGIBLE PERSONAL PROPERTY.--

          A. The governing authority of each state agency, local public body, school district and state educational institution may dispose of any item of tangible personal property belonging to that authority and delete the item from its public inventory upon a specific finding by the authority that the item of property is:

                (1) of a current resale value of five thousand dollars ($5,000) or less; and

                (2) worn-out, unusable or obsolete to the extent that the item is no longer economical or safe for continued use by the body.

          B. The governing authority shall, as a prerequisite to the disposition of any items of tangible personal property:                 (1) designate a committee of at least three officials of the governing authority to approve and oversee the disposition; and

                (2) give notification at least thirty days prior to its action making the deletion by sending a copy of its official finding and the proposed disposition of the property to the state auditor and the appropriate approval authority designated in Section 13-6-2 NMSA 1978, duly sworn and subscribed under oath by each member of the authority approving the action.

          C. A copy of the official finding and proposed disposition of the property sought to be disposed of shall be made a permanent part of the official minutes of the governing authority and maintained as a public record subject to the Inspection of Public Records Act.

          D. The governing authority shall dispose of the tangible personal property by negotiated sale to any governmental unit of an Indian nation, tribe or pueblo in New Mexico or by negotiated sale or donation to other state agencies, local public bodies, school districts, state educational institutions or municipalities or through the central purchasing office of the governing authority by means of competitive sealed bid or public auction or, if a state agency, through the [federal property assistance] surplus property bureau of the transportation services division of the general services department.

          E. A state agency shall give the [federal property assistance] surplus property bureau of the transportation services division of the general services department the right of first refusal when disposing of obsolete, worn-out or unusable tangible personal property of the state agency.

          F. If the governing authority is unable to dispose of the tangible personal property pursuant to Subsection D or E of this section, the governing authority may sell or, if the property has no value, donate the property to any organization described in Section 501(c)(3) of the Internal Revenue Code of 1986.

          G. If the governing authority is unable to dispose of the tangible personal property pursuant to Subsection D, E or F of this section, it may order that the property be destroyed or otherwise permanently disposed of in accordance with applicable laws.

          H. If the governing authority determines that the tangible personal property is hazardous or contains hazardous materials and may not be used safely under any circumstances, the property shall be destroyed and disposed of pursuant to Subsection G of this section.

          I. No tangible personal property shall be donated to an employee or relative of an employee of a state agency, local public body, school district or state educational institution; provided that nothing in this subsection precludes an employee from participating and bidding for public property at a public auction.

           J. This section shall not apply to any property acquired by a museum through abandonment procedures pursuant to the Abandoned Cultural Properties Act."

     Section 5. Section 13-6-2 NMSA 1978 (being Laws 1979, Chapter 195, Section 3, as amended) is amended to read:

     "13-6-2. SALE OF PROPERTY BY STATE AGENCIES OR LOCAL PUBLIC BODIES--AUTHORITY TO SELL OR DISPOSE OF PROPERTY--APPROVAL OF APPROPRIATE APPROVAL AUTHORITY.--

          A. Providing a written determination has been made, a state agency, local public body, school district or state educational institution may sell or otherwise dispose of real or tangible personal property belonging to the state agency, local public body, school district or state educational institution.

          B. A state agency, local public body, school district or state educational institution may sell or otherwise dispose of real property:

                (1) by negotiated sale or donation to an Indian nation, tribe or pueblo located wholly or partially in New Mexico, or to a governmental unit of an Indian nation, tribe or pueblo in New Mexico, that is authorized to purchase land and control activities on its land by an act of congress or to purchase land on behalf of the Indian nation, tribe or pueblo;

                (2) by negotiated sale or donation to other state agencies, local public bodies, school districts or state educational institutions;

                (3) through the central purchasing office of the state agency, local public body, school district or state educational institution by means of competitive sealed bid, public auction or negotiated sale to a private person or to an Indian nation, tribe or pueblo in New Mexico; or

                (4) if a state agency, through the [federal property assistance] surplus property bureau of the transportation services division of the general services department.

          C. A state agency shall give the [federal property assistance] surplus property bureau of the transportation services division of the general services department the right of first refusal to dispose of tangible personal property of the state agency. A school district may give the [department] surplus property bureau the right of first refusal to dispose of tangible personal property of the school district.

          D. Except as provided in Section 13-6-2.1 NMSA 1978 requiring state board of finance approval for certain transactions, sale or disposition of real or tangible personal property having a current resale value of more than five thousand dollars ($5,000) may be made by a state agency, local public body, school district or state educational institution if the sale or disposition has been approved by the state budget division of the department of finance and administration for state agencies, the local government division of the department of finance and administration for local public bodies, the public education department for school districts and the [commission on] higher education department for state educational institutions.

          E. Prior approval of the appropriate approval authority is not required if the tangible personal property is to be used as a trade-in or exchange pursuant to the provisions of the Procurement Code.

          F. The appropriate approval authority may condition the approval of the sale or other disposition of real or tangible personal property upon the property being offered for sale or donation to a state agency, local public body, school district or state educational institution.

          G. The appropriate approval authority may credit a payment received from the sale of such real or tangible personal property to the governmental body making the sale. The state agency, local public body, school district or state educational institution may convey all or any interest in the real or tangible personal property without warranty.

          H. This section [shall] does not apply to:

                (1) computer software of a state agency;

                (2) those institutions specifically enumerated in Article 12, Section 11 of the constitution of New Mexico;

                (3) the New Mexico state police division of the department of public safety;

                (4) the state land office or the department of transportation;

                (5) property acquired by a museum through abandonment procedures pursuant to the Abandoned Cultural Properties Act;

                (6) leases of county hospitals with any person pursuant to the Hospital Funding Act;

                (7) property acquired by the economic development department pursuant to the Statewide Economic Development Finance Act; and

                (8) the state parks division of the energy, minerals and natural resources department."

     Section 6. TEMPORARY PROVISION--TRANSFER OF MONEY.--On the effective date of this act, all money in the surplus property revolving fund shall be transferred to the surplus property fund.

     Section 7. REPEAL.--Sections 15-4-2 and 15-4-3 NMSA 1978 (being Laws 1971, Chapter 189, Sections 2 and 3, as amended) are repealed.

     Section 8. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

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