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.