1997 Minnesota Statutes

     16B.28 Materials distribution. 

    Subdivision 1.    Definitions.  For purposes of this 
 section the following terms have the meanings given them:  

    (a) "Surplus property" means commodities, equipment, 
 materials, supplies, books, printed matter, and other property 
 made available by a governmental unit or nonprofit organization 
 to another governmental unit or nonprofit organization.  

    (b) "Governmental unit or nonprofit organization" means a 
 governmental unit as defined in section 471.59, subdivision 1, 
 an Indian tribal government, and any nonprofit and tax-exempt 
 medical institution, hospital, clinic, health center, school, 
 school system, college, university, or other institution 
 organized and existing for any purpose authorized by federal law 
 to accept surplus federal property.  

    Subd. 2.    Authorization.  (a) The commissioner is the 
 state agency designated to purchase, accept or dispose of 
 federal surplus property for the state and for the benefit of 
 any other governmental unit or nonprofit organization for any 
 purpose authorized by state and federal law and in accordance 
 with federal rules and regulations.  Any governmental unit or 
 nonprofit organization may designate the commissioner to 
 purchase or accept surplus property for it upon mutually 
 agreeable terms and conditions.  The commissioner may acquire, 
 accept, warehouse, and distribute surplus property until it is 
 needed and any expenses incurred in connection with any of these 
 acts shall be paid from the materials distribution revolving 
 fund.  

    (b) To dispose of surplus property or other property that 
 is obsolete or unused that belongs to the state or any other 
 governmental unit or nonprofit organization, the commissioner 
 may transfer or sell it to a governmental unit or nonprofit 
 organization or sell it to any other person.  Federal surplus 
 property that has been transferred to the state for donation to 
 public agencies and nonprofit organizations must be transferred 
 or sold in accordance with the plan developed under paragraph 
 (d).  Expenses incurred in connection with the disposal of 
 surplus property or other property that is obsolete or unused 
 must be paid from the materials distribution revolving fund.  If 
 the commissioner sells the property, the proceeds of the sale, 
 minus any expenses of providing the service set by the 
 commissioner, are appropriated to the governmental unit or 
 nonprofit organization for whose account the sale was made, to 
 be used and expended by the organization for the purposes it 
 determines. 

    (c) The commissioner may centrally acquire, warehouse, and 
 distribute supplies, materials, and equipment for governmental 
 units or nonprofit organizations.  Expenses incurred in 
 connection with acquiring, warehousing, and distributing must be 
 paid from the materials distribution revolving fund.  

    (d) The commissioner shall develop a detailed plan for 
 disposal of donated federal property in conformance with state 
 law and federal regulations.  The plan must be submitted to the 
 governor for certification and submission to the federal 
 administrator of general services. 

    Subd. 3.    Deposit of receipts.  (a)    Creation.  
 The materials distribution revolving fund is a separate fund in 
 the state treasury.  All money resulting from the acquisition, 
 acceptance, warehousing, distribution, and public sale of 
 surplus property, must be deposited in the fund.  All money 
 resulting from the sale of centrally acquired, warehoused, and 
 distributed supplies, materials, and equipment must be deposited 
 in the fund.  Money paid into the materials distribution 
 revolving fund is appropriated to the commissioner for the 
 purposes of the programs and services referred to in this 
 section.  

    (b)    Transfer or sale to state agency.  When the state 
 or an agency operating under a legislative appropriation obtains 
 surplus property from the commissioner, the commissioner of 
 finance must, at the commissioner's request, transfer the cost 
 of the surplus property, including any expenses of acquiring, 
 accepting, warehousing, and distributing the surplus property, 
 from the appropriation of the state agency receiving the surplus 
 property to the materials distribution revolving fund.  The 
 determination of the commissioner is final as to the cost of the 
 surplus property to the state agency receiving the property.  

    (c)    Transfer or sale to other governmental units or 
 nonprofit organizations.  When any governmental unit or 
 nonprofit organization other than a state agency receives 
 surplus property, supplies, materials, or equipment from the 
 commissioner, the governmental unit or nonprofit organization 
 must reimburse the materials distribution revolving fund for the 
 cost of the property, including the expenses of acquiring, 
 accepting, warehousing, and distributing it, in an amount the 
 commissioner sets.  The commissioner may, however, require the 
 governmental unit or nonprofit organization to deposit in 
 advance in the materials distribution revolving fund the cost of 
 the surplus property, supplies, materials, and equipment upon 
 mutually agreeable terms and conditions.  The commissioner may 
 charge a fee to political subdivisions and nonprofit 
 organizations to establish their eligibility for receiving the 
 property and to pay for costs of storage and distribution.  

    HIST: 1984 c 544 s 33; 1988 c 613 s 11; 1989 c 209 art 1 s 5; 
 1990 c 572 s 6; 1990 c 594 art 3 s 1