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.