HBA-KDB S.B. 482 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 482 By: Duncan State Affairs 5/5/2001 Engrossed BACKGROUND AND PURPOSE Current federal grant and contract guidelines allow public entities to recover, over a long period of time, the costs of acquiring and maintaining facilities used in connection with federal programs. The federal government authorizes state agencies to calculate the depreciation of these buildings. However, building components, such as a heating and air conditioning system, may not have the same useful life as the building itself. Senate Bill 482 requires states agencies that receive federal funds to calculate the depreciation of building components separately. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the comptroller of public accounts in SECTION 1 (Section 2101.015, Government Code) of this bill. ANALYSIS Senate Bill 482 amends the Government Code to require a state agency to complete a componentization, which is the process of separately calculating the depreciation of major building structural components, subsystems, and equipment, of any agency-owned building with a fair market value of at least $1 million. As each building component is replaced, it is required to be separately depreciated based on its individual useful life. The bill establishes component strategies and suggested useful lives to be utilized by an agency when completing any componentization. The bill authorizes the comptroller of public accounts by rule to modify the component categories and suggested useful lives. The bill applies only to a state agency that receives federal funds to implement federal or joint federal and state programs. EFFECTIVE DATE September 1, 2001.