CHAPTER 101

AN ACT TO AMEND TITLE 29, DELAWARE CODE, BY CREATING A STATE DISTRIBUTION AGENCY TRANSFERRING TO THAT AGENCY THE SURPLUS DISTRIBUTION PROGRAM OF THE STATE.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Chapter 68, Title 29, Delaware Code, is amended to read:

CHAPTER 68. STATE DISTRIBUTION AGENCY

§ 6801. Definitions

As used in this chapter, "Distribution Agency" means the State Distribution Agency.

§ 6802. Composition; appointment; term; qualifications; vacancy

(a) The State Distribution Agency shall consist of 5 members.

(b) The members of the Distribution Agency shall be appointed by the Governor. When this chapter becomes law, the Governor shall appoint 2 members for a term of 3 years each; 1 member for a term of 2 years and 1 member for a term of 1 year. Upon the expiration of each stated term, the Governor shall thereafter appoint successors to the offices for terms of 3 years each, commencing in each case from the date of the expiration of the term of his predecessor. The fifth member of the Agency shall serve at the pleasure of the Governor and shall be the chairman of the Agency. He may be removed at any time by the Governor and shall serve until he is removed by the Governor.

(c) In case of a vacancy for any reason, the Governor shall fill the vacancy for the unexpired term.

§ 6803. Oath

Before entering upon the duties of the office, each member shall take and subscribe the oath or affirmation prescribed in the Constitution.

§ 6804. Quorum; meetings

(a) A majority of the members shall constitute a quorum. A majority of the members present at any meeting constituting a quorum shall be sufficient for any action.

() The members shall meet at least once each month.

§ 6805. Compensation and expenses

The members shall receive no compensation for their services, but shall receive their actual expenses incurred while on official business.

§ 6806. Director; appointment; bond

(a) The Distribution Agency shall employ a Director. He may be discharged by the Agency for cause at any time.

(b) The Director, before entering upon the duties of his office, shall give such bond as may be required by the Agency for the faithful performance of his duties and shall take and subscribe on oath or affirmation like that required of a member of the Agency.

(c) The compensation of the Director shall be determined by the members of the Distribution Agency subject to the limitations imposed by the annual appropriations to the Distribution Agency.

§ 6807. Powers and Duties of Director

(a) The Director shall be responsible to the Distribution Agency for the administration of all of its affairs.

(b) The members of the Distribution Agency shall formulate policies for the operation of the agency and the Director shall have full power and authority to execute those policies.

(c) The Director shall appoint and remove the employees of the Distribution Agency, fix their salaries and prescribe their duties.

The Director shall present a complete report of the activities of the Distribution Agency to the members at least monthly. He shall present an annual report to the members of the Distribution Agency, to the Governor, the General Assembly, the Legislative Reference Bureau, the State Treasurer, the Auditor of Accounts and the Budget Director.

(d) The Director shall prepare a plan of operation for the programs receiving federal assistance and shall submit the plans to the proper federal agencies in accordance with Federal regulations.

§ 6808. General Powers and duties of the Distribution Agency

(a) The Distribution Agency may—

(1) make and enter into any and all contracts, agreements or stipulations for the execution of the purposes of this chapter;

(2) employ and discharge through the Director such persons as shall be necessary to carry out the purposes of this chapter;

(3) secure and equip adequate quarters;

(4) purchase all materials, supplies, equipment and instrumentalities whatsoever as may be necessary;

(5) do whatever is incidental and germane to its powers and duties;

(6) adopt such rules and regulations as it deems necessary for the proper administration of this chapter;

(7) adopt regulations concerning the receipt or use of any property distributed by it.

(b) The Distribution Agency shall—

(1) keep a record of its minutes and proceedings which shall be public records;

(2) maintain a system of accounting adequate to give in detail the receipts and expenditures of the Distribution Agency and the costs of its operation.

§ 6809. Power and duties relating to distribution of surplus property

(a) The Distribution Agency may—

(1) acquire from the United States of America in conformity with the provisions of the Federal Property and Administration Services Act of 1949 as amended, surplus property;

(2) warehouse such property;

(3) distribute such property within the State to tax-supported medical institutions, hospitals, clinics, health centers, school systems, schools, colleges and universities within the State, to other non-profit medical institutions ; hospitals, clinics, health centers, schools, colleges and universities which have been held exempt from taxation under section 501 (c) (3) of the United States Internal Revenue Code of 1954, to civil defense organizations of the State, or political subdivisions and instrumentalities thereof, which are established pursuant to State law, and to such other types of institutions or activities as may become eligible under Federal law to acquire such property;

(4) receive applications from eligible institutions for the acquisition of Federal surplus real property, investigate the same, make recommendations regarding the need of such applicant for the property, and otherwise assist in the processing of such applications for acquisition of real and related personal property of the United States under Section 203 (k) of the Federal Property Administrative Service Act of 1949;

(5) make such certifications, take such action, make such expenditures and enter into such contracts, agreements and undertakings for and in the name of the State (including cooperative agreements with any Federal agencies providing for utilization by and exchange between them of the property, facilities, personnel and services of each by the other, require

such reports and make such investigations as may be required by law or regulation of the United States of America in connection with the disposal of real property and the receipt, warehousing, and distribution of personal property received from the United States of America.

(b) The Distribution Agency shall—

(1) act as the responsible agency to operate the Surplus Commodity Program for needy families in the State of Delaware, in accordance with the regulations and procedures prescribed by the United States Department of Agriculture. The Distribution Agency may take such action, make such expenditures, and enter into such contracts, agreements and undertakings for the state, to provide for the distribution of available commodities to all eligible needy families in the state who make proper application therefor. "Needy Families" as used in this subsection shall mean those persons or families so certified by the State Department of Public Welfare;

(2) act as the sole state agency to receive, warehouse and distribute food commodities issued by the Federal Government for use in non-profit school lunch programs, non-profit summer camps for children, non-penal, non-profit, tax exempt private or public institutions, state correctional institutions for minors, and assistance of other needy persons in accordance with Section 416 of the Agricultural Act of 1949, as amended and other applicable Federal laws and regulations. Provided, however, that the State Distribution Agency shall have no control over the administration of the school lunch program beyond receiving, warehousing and distributing such food commodities;

(3) act as the sole state agency to administer the Special Milk Program of the United States Department of Agriculture for non-profit nursery schools, child care centers, settlement houses, summer camps for children and similar non-profit institutions devoted to the care and training of children.

§ 6810. Powers and duties relating to central purchasing The Distribution Agency may—

(a) inaugurate a system of central purchasing for those agencies of the State desiring to participate;

(b) serve as a clearing house for information on central or joint purchasing by 2 or more agencies of the State;

(c) with the consent of any state agency, act as the purchasing and contracting agent for any state agency for the purchasing of supplies or obtaining of contractual services;

(d) collect and furnish to any state agency market prices and such other information as will be useable in purchasing;

(e) serve as a clearing house for information on bids for supplies, materials or contractual services for State Agencies;

(f) perform such other services and duties as may encourage the most economical purchasing by state agencies.

§ 6811. Service charges

The Director may charge any agency of this State, for which the Distribution Agency makes purchases or to which it distributes materials, a reasonable service charge.

§ 6812. Payment by state agencies

Any state agency for which the Distribution Agency makes purchases or supplies contractual services shall pay to the Distribution Agency the cost of such purchases or services.

§ 6813. Special Fund

The State Treasurer shall maintain in the name of the State Distribution Agency a special revolving account. There shall be deposited in the special account all monies and credits received by the Distribution Agency from other state agencies.

Funds shall be expended from the special account for the costs of handling and distribution of materials and the costs of supplies and contractual services purchased for or supplied to another state agency. Whenever the Distribution Agency and the Governor determine that the special account contains a surplus, the surplus shall be turned over to the General Fund of the State.

Section 2. This Act shall become effective July 1, 1965.

Approved June 4, 1965.