Relates to the disposition of surplus state personal property

This bill would amend State Finance Law § 167 to: (a) give greater flexibility for the Commissioner of General Services (Commissioner) to authorize local disposition of surplus property; (b) clarify the definition of personal property; (c) reduce the period for advertising the availability of surplus property to municipalities; (d) eliminate the requirement to advertise in local newspapers the availability of surplus property for sale to the public and add a requirement for advertising on the website of the Office of General Services (OGS); (e) conform language pertaining to the treatment of proceeds of certain sales; (f) provide that disposition of computers and/or other electronic equipment must comply with Statewide information security requirements established by the Division of Homeland Security and Emergency Services; and (g) provide for disposition of computers or other electronic equipment as waste pursuant to the E-Waste law.

Existing Law:

State Finance Law § 167 provides for the sale or other disposition of surplus State property, other than real property, and authorizes the Commissioner to dispose of surplus State property placed in her custody and control in specified circumstances.

Prior Legislative History

This is a new proposal.

Statement in Support:

These changes are needed to streamline the process for disposition of surplus State property by OGS to ensure that the process works more efficiently and achieves maximum savings for the State. The definition of "personal property" has been clarified to address situations where the Commissioner's authority to dispose of property is unclear The clarification to the definition of "personal property" will make clear that intangible property, such as a broadcast license, is not within the scope of § 167.

The addition of §167(3)(b) to allow agencies holding surplus property to dispose of such property with the approval of the Commissioner will address two different situations. First, if property is unique, the agency in possession often has greater expertise in the sale of such property. A recent example is the sale of a ship by SUNY Maritime College. The College was in a better position than the Commissioner to know the market of potential buyers, the value of the property, and the regulations governing such sales. Although the Commissioner granted the College the authority to sell the ship under OGS's existing local disposition authority guidelines (and imposed certain conditions, including a minimum bid price and a minimum number of bidders on the sale), OGS believes it is preferable to have the statute expressly provide for such authority. The second situation

arises when the property has limited value and does not warrant a sale conducted by the Commissioner. A recent example is the sale of unclaimed lost & found items by SUNY Potsdam. Here again, the Commissioner granted the College the authority to sell these low-value items under the existing local disposition authority guidelines, but an express statutory authority would be preferable In each case where local disposition authority is granted, the Commissioner would impose criteria on the sale that is "prudent and reasonable in consideration of the best interests of the state."

Eliminating the requirement to advertise the availability of surplus property in newspapers (and permitting them to be advertised on the OGS website) will promote efficiency and save the costs of advertising. Reducing the time for advertising the availability of surplus property to municipalities (from 7 calendar days to 3 business days) and reducing the time in which municipalities must take delivery (from 30 to 10 days) is intended to facilitate the prompt and efficient disposal of surplus property. OGS personnel have found that the longer time periods have delayed the sale of surplus property and have provided little or no benefit to municipalities acquiring surplus property.

The remaining provisions of the bill are primarily technical in nature. Archaic references to the "state treasury" have been updated to "general fund " Adding the word "net" to "proceeds" is intended to clarify that OGS is entitled to recoup its costs of conducting a sale from the sale proceeds it turns over to the general kind. The provisions concerning the disposal of computers and electronic equipment are intended to ensure that such disposal is conducted in accordance with the security policies established by the Division of Homeland Security and Emergency Services and to encourage compliance with the E-Waste Law.

Budget Implications

This legislation is expected to save State resources by streamlining surplus property disposition procedures.

Local impact:

None

Effective Date:

This act shall take effect immediately