HOUSE BILL NO. 584

INTRODUCED BY C. JUNEAU

A BILL FOR AN ACT ENTITLED: "AN ACT AUTHORIZING SURPLUS STATE PROPERTY TO BE DONATED TO SCHOOL DISTRICTS FOR CLASSROOM USE; AMENDING SECTIONS 2-17-202, 18-4-226, AND 18-6-101, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 2-17-202, MCA, is amended to read:

"2-17-202. Inventory -- property to be charged to receiving agency. (1) Each person in charge of any state property shall, upon request of the department of administration, furnish a sworn statement of all personal property in the person's possession or under the person's charge belonging to the state, together with an estimate of its value. The person shall furnish any other information in connection with the statement that the department requires.

(2) Each state department, office, board, commission, and institution must be charged with all items of personal property and all other personal property placed at the disposal of the state department, office, board, commission, or institution and must be credited with all worn out, used, lost, injured, or destroyed property from time to time as reported to the department of administration. The entity is responsible for all items of personal property not accounted for. Property may be accounted for as provided in 18-6-101."

Section 2. Section 18-4-226, MCA, is amended to read:

"18-4-226. Surplus supply -- rules. (1) As used in this section, the following definitions apply:

(a) "Supplies" means supplies owned by the state.

(b) "Surplus supplies" means any supplies having a remaining useful life but that are no longer required by the agency in possession of them. This includes obsolete supplies, scrap materials, and supplies that have completed their useful life cycle.

(2) The department shall adopt rules governing:

(a) the management of supplies during their entire life cycle;

(b) the sale, lease, or disposal of surplus supplies by public auction, competitive sealed bidding, donation to a school district as provided in 18-6-101, or other appropriate method designated by rule;

(c) transfer of surplus supplies.

(3) An employee of the owning or disposing agency directly involved with the disposal may not purchase supplies sold by the employee's agency.

(4) Proceeds from the sale, lease, or disposal of surplus supplies must be allocated as provided by 18-6-101, less a reasonable handling fee."

Section 3. Section 18-6-101, MCA, is amended to read:

"18-6-101. Power to sell state property -- proceeds credited to general fund. (1) The department has exclusive power, subject to the approval of the governor, to sell or otherwise dispose of or to authorize the sale or other disposition of all materials and supplies, service equipment, or other personal property of any kind owned by the state but not needed or used by any state institution or by any department of state government. Upon request, the department shall authorize a state department or entity to donate property to a school district for classroom use.

(2) Unless otherwise provided by law, the department shall credit the general fund with all money received.

(3) Whenever the personal property was accounted for in an enterprise or internal service fund or designated subfund account, the proceeds of the sale must be credited to the appropriate enterprise or internal service fund or designated subfund account."

NEW SECTION. Section 4. Effective date. [This act] is effective on passage and approval.

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