HBA- SEP H.B. 834 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 834
By: Flores
State Affairs
7/18/2001
Enrolled



BACKGROUND AND PURPOSE 

The efficiency of Texas' system for disposing of surplus property may be
improved by selling the property through Internet auction sites, providing
immediate postings that prevent property value depreciation, minimizing
sales costs associated with hard-copy distribution of surplus property
notifications, and minimizing storage costs associated with a required
month long advertising period.  House Bill 834 requires the comptroller of
public accounts to advertise surplus or salvage property on the
comptrollers web site not later than the second day after notice of the
property is received. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the General Services Commission in
SECTION 1 (Section 2175.129, Government Code) of this bill.   

ANALYSIS

House Bill 834 amends the Government Code to require a state agency to
inform the comptroller, in addition to the General Services Commission
(GSC), of the kind, number, location, condition, original cost or value,
and the date of acquisition of surplus or salvage property (property) and
to require the comptroller to advertise the property on the comptroller's
web site not later than the second day after the date the notice is
received.  The bill requires a state agency, based on the property's
condition, to determine whether the property is salvage property or surplus
property that should be offered for direct transfer to another state
agency, political subdivision, or an assistance organization (entities) or
sold to the public.  A state agency is also required to inform GSC and the
comptroller of its determination.  GSC is required to inform the entities
of the comptroller's web site listing the property available for sale.  The
bill decreases the time period, from 30 days to 10 business days after
property is posted on the comptroller's web site, during which entities may
coordinate for the transfer of property and during which a transfer of
property to a state agency is given priority over any other transfer.  When
property is transferred from a state agency to another entity, the
comptroller is required to remove the purchased  property from its web site
not later than the second day after the entities report a transaction. 

If a disposition of a state agency's property is not made by direct
transfer, GSC is required to sell the property, in addition to existing
means, by direct sale to the public or by delegating to the state agency
the authority to sell the property by competitive auction or direct sell to
the public, including a sale using an Internet auction site.  An agency to
which such authority is delegated is required to determine which method of
sale will be used based on the method that is most advantageous to the
state.  GSC is also required to adopt rules establishing guidelines for
making that determination.  In using an Internet auction site to sell
surplus property, GSC or the state agency is required to post the property
on the site for at least 10 days. If GSC or a state agency to which
authority is delegated determines that selling the property by competitive
bid or auction would not maximize the resale value of the property to the
state, GSC or the agency is authorized to sell surplus or salvage property
directly to the public.  In such a case, GSC, in cooperation with the state
agency, is required to set a fixed price for the property.   

The bill specifies that GSC or a state agency disposing of property by a
method other than direct transfer  is required to collect a fee from the
purchaser.  

EFFECTIVE DATE

September 1, 2001.