By Flores H.B. No. 834
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to sale of surplus or salvage state property.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2175.121, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 2175.121. STATE AGENCY NOTICE TO COMMISSION. A state
1-7 agency that determines it has surplus or salvage property shall
1-8 inform the commission and the comptroller of the property's kind,
1-9 number, location, condition, original cost or value, and date of
1-10 acquisition.
1-11 SECTION 2. Subchapter C, Chapter 2175, Government Code, is
1-12 amended by adding Section 2175.1215 to read as follows:
1-13 Sec. 2175.1215. ADVERTISING ON COMPTROLLER WEBSITE. Not
1-14 later than the second day after the date the comptroller receives
1-15 notice from a state agency that the agency has surplus or salvage
1-16 property, the comptroller shall advertise the property's kind,
1-17 number, location, and condition on the comptroller's website.
1-18 SECTION 3. Section 2175.122, Government Code, is amended to
1-19 read as follows:
1-20 Sec. 2175.122. COMMISSION NOTICE TO OTHER ENTITIES. The [On
1-21 receiving notice from a state agency that the agency has surplus or
1-22 salvage property, the] commission shall inform other state
1-23 agencies, political subdivisions, and assistance organizations of
1-24 the comptroller's website that lists surplus and salvage property
2-1 that is available for sale [the property's kind, number, location,
2-2 and condition].
2-3 SECTION 4. Section 2175.123, Government Code, is amended to
2-4 read as follows:
2-5 Sec. 2175.123. DIRECT TRANSFER. During the 10 business [30]
2-6 days after the date the property is posted on the comptroller's
2-7 website [following dissemination of information under Section
2-8 2175.122], a state agency, political subdivision, or assistance
2-9 organization may coordinate directly with the reporting state
2-10 agency for a transfer of the property at a price established by the
2-11 reporting agency.
2-12 SECTION 5. Section 2175.124, Government Code, is amended to
2-13 read as follows:
2-14 Sec. 2175.124. NOTICE OF TRANSFER TO COMPTROLLER;
2-15 ADJUSTMENT OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS;
2-16 REMOVAL FROM WEBSITE. (a) If property is transferred under this
2-17 subchapter [to a state agency], the participating entities
2-18 [agencies] shall report the transaction to the comptroller.
2-19 (b) On receiving notice under this section, the comptroller
2-20 shall, if necessary:
2-21 (1) debit and credit the proper appropriations; and
2-22 (2) adjust state property accounting records.
2-23 (c) Not later than the second day after the date the
2-24 comptroller receives notice under Subsection (a), the comptroller
2-25 shall remove the property from the list of surplus and salvage
2-26 property for sale on the comptroller's website.
2-27 SECTION 6. Section 2175.125, Government Code, is amended to
3-1 read as follows:
3-2 Sec. 2175.125. PRIORITY FOR TRANSFER TO STATE AGENCY. During
3-3 the 10 business [30] days after the date the property is posted on
3-4 the comptroller's website [of notice under Section 2175.122], a
3-5 transfer to a state agency has priority over any other transfer
3-6 under rules adopted by the commission.
3-7 SECTION 7. Subchapter D, Chapter 2175, Government Code, is
3-8 amended to read as follows:
3-9 SUBCHAPTER D. DISPOSITION OF SURPLUS OR SALVAGE
3-10 PROPERTY BY COMPETITIVE BIDDING
3-11 Sec. 2175.181. SALE USING INTERNET AUCTION. (a) If a
3-12 disposition of a state agency's surplus or salvage property is not
3-13 made under Subchapter C, the commission shall sell the property
3-14 using an Internet auction site. The commission shall post the
3-15 property on the Internet for at least 10 days.
3-16 (b) The commission may set a minimum sales price for the
3-17 property.
3-18 Sec. 2175.182. DISPOSITION BY COMPETITIVE BIDDING OR
3-19 AUCTION. If a disposition of a state agency's surplus or salvage
3-20 property is not made under Subchapter C or under Section 2175.181,
3-21 the commission may [shall]:
3-22 (1) sell the property by competitive bid or auction;
3-23 or
3-24 (2) destroy the property as provided by Subchapter E
3-25 [delegate to the state agency authority to sell the property by
3-26 competitive bidding].
3-27 Sec. 2175.183 [2175.182]. PURCHASER'S FEE. (a) The
4-1 commission or a state agency disposing of property under this
4-2 subchapter shall collect a fee from the purchaser.
4-3 (b) The commission shall set the fee at an amount that is:
4-4 (1) sufficient to recover costs associated with the
4-5 sale; and
4-6 (2) at least two percent but not more than 12 percent
4-7 of sale proceeds.
4-8 Sec. 2175.184 [2175.183]. ADVERTISEMENT OF SALE. If the
4-9 value of an item or a lot of property to be sold under Section
4-10 2175.182 is estimated to be more than $5,000, the commission [or
4-11 the state agency authorized to sell the property] shall advertise
4-12 the sale at least once in at least one newspaper of general
4-13 circulation in the vicinity in which the property is located.
4-14 Sec. 2175.185 [2175.184]. REPORTING SALE; PROPERTY
4-15 ACCOUNTING ADJUSTMENT. (a) On the sale by the commission of
4-16 surplus or salvage property, the commission shall report the
4-17 property sold and the sale price to the state agency that declared
4-18 the property as surplus or salvage.
4-19 (b) A state agency for which surplus or salvage property is
4-20 sold or that sells surplus or salvage property under authority of
4-21 the commission shall report the sale and amount of sale proceeds to
4-22 the comptroller.
4-23 (c) If property reported under this section is on the state
4-24 property accounting system, the comptroller shall remove the
4-25 property from the property accounting records.
4-26 Sec. 2175.186 [2175.185]. PROCEEDS OF SALE. (a) Proceeds
4-27 from the sale of surplus or salvage property, less the cost of
5-1 advertising the sale, the cost of auctioneer services, and the
5-2 amount of the fee collected under Section 2175.183 [2175.182],
5-3 shall be deposited to the credit of the appropriate appropriation
5-4 item of the state agency for which the sale was made.
5-5 (b) The portion of sale proceeds equal to the cost of
5-6 advertising the sale and the cost of auctioneer services shall be
5-7 deposited in the state treasury to the credit of the appropriation
5-8 item of the commission or other state agency from which the costs
5-9 were paid.
5-10 Sec. 2175.187 [2175.186]. PURCHASER'S TITLE. A purchaser of
5-11 surplus or salvage property at a sale conducted under this
5-12 subchapter obtains good title to the property if the purchaser has
5-13 in good faith complied with:
5-14 (1) the conditions of the sale; and
5-15 (2) applicable commission rules.
5-16 SECTION 8. Subchapter G, Chapter 2175, Government Code, is
5-17 amended by adding Section 2175.373 to read as follows:
5-18 Sec. 2175.373. STATE AGENCY PROPERTY NEEDS. The commission
5-19 shall create a list of property needed by state agencies that may
5-20 be acquired through the federal surplus property program.
5-21 SECTION 9. This Act takes effect September 1, 2001.