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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:

"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

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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

payment;

(2) enter into cooperative agreements for

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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:

"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 subject to appropriation by the legislature 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

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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:

"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

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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

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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 surplus property bureau of the

transportation services division of the general services

department.

E. A state agency shall give the surplus property

bureau of the transportation services division of the general

services department the right of first refusal when disposing

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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

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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

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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 surplus

property bureau of the transportation services division of

the general services department.

C. A state agency shall give the 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 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

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division of the department of finance and administration for

local public bodies, the public education department for

school districts and the 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 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

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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.