HB-5701, As Passed House, June 2, 2016

SUBSTITUTE FOR

HOUSE BILL NO. 5701

     A bill to amend 1984 PA 431, entitled

"The management and budget act,"

by amending section 267 (MCL 18.1267), as amended by 2012 PA 237.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 267. (1) The department shall issue directives to provide

for the disclosure, transfer, and disposal of surplus personal

property of state agencies. The Except as otherwise provided in

subsection (4), the department may dispose of surplus personal

property by donating the surplus personal property to a nonprofit

entity, or selling it to a unit of local government, or selling it

at a public sale.

     (2) The department may sell surplus personal property at fair

market value. The department may also exchange surplus personal

property for goods and services at fair market value with a private

company that is contracted to provide state services, and the

surplus personal property is essential to providing those services.

     (3) The department may pay necessary costs incurred in the

conduct of the transfers or sale of surplus personal property

including the necessary warehousing and reconditioning costs from

the proceeds of the sale or by assessing a handling fee for surplus

personal property being donated.

     (4) Beginning October 1, 2016, prior to donating, disposing

of, or selling surplus snow removal equipment or surplus road

construction or maintenance equipment that was owned by the state

transportation department, the department shall make that equipment

available for sale at fair market value to local road agencies in

this state. The department shall issue directives to implement this

subsection. As used in this subsection, "local road agencies" means

a local road agency as that term is defined in section 9a of 1951

PA 51, MCL 247.659a.