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


Office of House Bill AnalysisH.B. 834
By: Flores
State Affairs
2/23/2001
Introduced



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 to
advertise surplus property on the comptroller's web site, shortens the
amount of time during which entities coordinate the transfer of property,
and provides for the sale of property through Internet auction sites. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 834 amends the Government Code to require a state agency to
inform the comptroller, in addition to the General Services Commission
(commission), 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 further requires the commission to inform the
other state agencies, political subdivisions, and assistance organizations
(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. 

The bill provides that if a disposition of a state agency's property is not
made through the comptroller's web site, the commission is required to sell
the property using an Internet auction site on which the property is to be
posted for at least 10 days.  The commission may set a minimum sales price
for the property.  If the property is not disposed through the Internet
auction site, the commission is authorized to sell the property by
competitive bid or auction or to destroy the property as worthless salvage. 

The bill requires the commission to create a list of property needed by
state agencies that may be acquired through the federal surplus property
program. 

EFFECTIVE DATE

September 1, 2001.