(a) This section applies only to property that is surplus or salvage property under Chapter 2175, Government Code, and that is:
(1) exempt under § 12.053 from the statewide personal property accounting system; or
(2) lawfully in the possession of an emergency medical services provider or governmental entity as those terms are defined by § 773.003.
(b) The department may negotiate directly with an emergency medical services provider or governmental entity to transfer title to property covered by this section for which the department determines that it holds title. The department and the provider or governmental entity may mutually agree upon the value of the property and shall take any action incident to the transaction that is required by federal law.

(c) The department shall initiate necessary procedures under Chapter 2175, Government Code, to dispose of surplus or salvage property for which the department does not transfer title under this section.