LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 17, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 379
Committee on State Affairs By: Ratliff
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB379 ( Relating
to the disposition and sale of certain surplus and salvage property
by the state.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB379-As Introduced
Implementing the bill's requirement that all surplus and salvage
data processing equipment be sold at no less than 50 percent
of its established fair market value would result in a gain
to the state. The gain would depend on the established fair
market value of the equipment.
The bill would amend Chapter 2175 of the Government Code to
require that the General Services Commission (GSC) and the Comptroller
to develop guidelines for determining the fair market value
of data processing equipment. The bill would prohibit the competitive
bid or auction sale of surplus and salvage data processing equipment
for less than 50 percent of the established fair market value.
The provisions of the bill would apply to all state agencies,
including eleemosynary institutions and agencies of higher education.
Current
law requires all surplus and salvage property not transferred
to other state agencies, political subdivisions, or assistance
organizations to be offered for sale by competitive bid or auction.
Under current law, eleemosynary institutions and agencies of
higher education are exempt from GSC procedures for the disposal
of surplus property.
The GSC has indicated that they would
require two additional FTEs to implement the bill's provisions.
However, this analysis assumes that any increased workload could
be absorbed within current agency resources. The comptroller
estimates that the bill would not significantly increase their
administrative costs.
No significant fiscal implication to units of local government
is anticipated.
Source: Agencies: 720 University of Texas System Administration
303 General Services Commission
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,RN