SRC-BWC H.B. 834 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 834
By: Flores (Carona)
State Affairs
5/6/2001
Engrossed


DIGEST 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. H.B. 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

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2175.121, Government Code, to require a state
agency that determines it has surplus or salvage property to inform the
General Services Commission (commission) and the comptroller of the
property's kind, number, location, condition, original cost or value, and
date of acquisition. 

SECTION 2.  Amends Chapter 2175C, Government Code, by adding Section
2175.1215 as follows: 

Sec. 2175.1215.  ADVERTISING ON COMPTROLLER WEBSITE.  Requires the
comptroller to advertise the property's kind, number, location, and
condition on the comptroller's website not later than the second day after
the date the comptroller receives notice from a state agency that the
agency has surplus or salvage property. 

SECTION 3.  Amends Section 2175.122, Government Code, to require the
commission to inform other state agencies, political subdivisions, and
assistance organizations of the comptroller's web site that lists surplus
and salvage property that is available for sale, rather than the commission
receiving notice of surplus or salvage property and specifically informing
certain entities of the property's kind, number, location, and condition.  

SECTION 4.  Amends Section 2175.123, Government Code, to authorize certain
entities to coordinate directly with the reporting state agency for a
transfer of the property during the 10 business days after the date the
property is posted on the comptroller's website, rather than 30 days after
the date the property is posted on the comptroller's website. 

SECTION 5.  Amends Section 2175.124, Government Code, as follows:

Sec. 2175.124.  New heading:  NOTICE OF TRANSFER TO COMPTROLLER; ADJUSTMENT
OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS; REMOVAL FROM WEBSITE.
Requires that, if property is transferred under this  subchapter, the
participating entities report the transaction to the comptroller.  Requires
that the comptroller remove the property from the list of surplus and
salvage property for sale on the comptroller's website not later than the
second day after the date the comptroller receives notice of the transfer
of said property.  Makes conforming changes. 

SECTION 6.  Amends Section 2175.125, Government Code, to make conforming
changes.      

SECTION 7.  Amends Chapter 2175D, Government Code, by adding Section
2175.181, as follows: 

SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE
PROPERTY BY COMPETITIVE BIDDING

Sec.  2175.181.  SALE USING INTERNET AUCTION.  Requires the commission, if
a disposition of a state agency's surplus or salvage property is not made
under Subchapter C, to sell the property using an Internet auction site and
post the property on the Internet for at least 10 days.  Authorizes the
commission to set a minimum sales price for the property. 

Section 2175.182.  DISPOSITION BY COMPETITIVE BIDDING OR AUCTION.
Authorizes, rather than requires, the commission, if a disposition of a
state agency's surplus or salvage property is not made under Subchapter C
or under Section 2175.181, to sell the property by competitive bid or
auction or destroy the property as provided by Subchapter E, rather than
delegate to the state agency authority to sell the property by competitive
bidding. 

Section 2175.183.  PURCHASER'S FEE.  Redesignates existing Section 2175.182
to Section 2175.183.  

Section 2175.184.  ADVERTISEMENT OF SALE.  Redesignates existing Section
2175.183 to Section 2175.184.  Makes conforming changes. 

Section 2175.185.  REPORTING SALE; PROPERTY ACCOUNTING ADJUSTMENT.
Redesignates existing Section 2175.184 to Section 2175.185. 

Section 2175.186.  PROCEEDS OF SALE.  Redesignates existing Section
2175.185 to Section 2175.186.  Makes conforming changes. 

Section 2175.187.  PURCHASER'S TITLE.  Redesignates existing Section
2175.186 to Section 2175.187. 

SECTION 8.  Amends Chapter 2175G, Government Code, by adding Section
2175.373, as follows: 

Sec. 2175.373.  STATE AGENCY PROPERTY NEEDS.  Requires the commission to
create a list of property needed by state agencies authorized to be
acquired through the federal surplus property program. 

SECTION 9.  Effective date:  September 1, 2001.