(1) The State of Nebraska hereby assents to the provisions of section 514 of the Public Works and Economic Act of 1965, as amended, 42 U.S.C. 3193, and to 13 C.F.R. part 570, and authorizes the various state agencies of the State of Nebraska to participate in the excess property program administered pursuant to such act and regulations.

(2) In accordance with the authorization granted in subsection (1) of this section, each such state agency is authorized to procure and maintain, at its own cost, public bodily injury liability and public property damage liability insurance as required by such act and regulations and pursuant to the obligations and limits established in the administration of the excess property program. Such insurance shall be purchased from existing appropriations of the participating state agency.