Amends TCA Section 12-2-420.

Under present law, local governments may purchase, trade or receive as a gift, upon approval of the governing bodies involved in the transaction, any used or surplus personal property from another local government, state government, or federal government without regard to any laws regarding public advertisement and competitive bidding. This bill requires that such a transfer of surplus personal property from the state satisfy the present law requirements specified in section 12-2-407 of the State Surplus Personal Property Act. Tennessee Code Annotated, section 12-2-407, provides the following: (1) The transfer of surplus property to governmental entities and nonprofit corporations is governed by regulations from the procurement commission. These regulations must include, but are not limited to, the prices set surplus property, restrictions on resale and reversion to the state of profit from any resale; (2) A nonprofit corporation must be listed as an authorized donee under the federal surplus property program; (3) The commissioner of general services approves the declaration of property as surplus and assigns it for disposal. The commissioner must set the price based on the fair market value for each item pursuant to the regulations of the procurement commission. Governmental entities and authorized donees may purchase such items at the price set by the commissioner, as specified by regulations of the procurement commission, prior to the date of disposal by other methods; (4) For all surplus property, governmental entities and authorized donees must retain possession of such property for one year unless disposal is approved by the procurement commission; (5) Transfers of surplus property must be made at locations designated by the commissioner; (6) Any transfer of motor vehicles, subject to the registration laws of this state, to a governmental entity or authorized donee must become null and void, and any property must revert to the state if the governmental entity or authorized donee does not transfer the registration of title of the motor vehicle to its name within seven days after the sale; (7) Nonprofit contractors designated by the department of human services have first priority to purchase passenger motor vehicles declared to be surplus. The vehicles must be purchased for use by current or future programs established by the department in which recipients of assistance in the families first program, any successor program, or persons who are transitioning from those programs, are provided the opportunity to purchase such passenger motor vehicles as part of the person's efforts to obtain or maintain employment; (8) Nonprofit contractors designated by the department have first priority to purchase up to 50 percent of the available estimated yearly supply of passenger motor vehicles declared as surplus in fiscal year 2001, and up to 25 percent in each fiscal year after. The vehicles may be purchased at a price not to exceed the loan value of such vehicles. The price of these vehicles must take into consideration the mileage and condition of the vehicle at the time offered for purchase; and (9) Upon payment of the purchase price to the department of general services for the passenger motor vehicle, the nonprofit contractor designated by the department of human services must receive possession and title to the vehicle from the department of general services for use of the vehicle in accordance with the department of human services' assistance program, or any successor program, and in accordance with the contract between the nonprofit contractor and the department of human services.