LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 22, 2001 TO: Honorable James E. "Pete" Laney, Speaker of the House, House of Representatives FROM: John Keel, Director, Legislative Budget Board IN RE: HB834 by Flores (relating to sale of surplus or salvage property.), As Passed 2nd House ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB834, As Passed 2nd House: positive impact of $1,277,000 through * * the biennium ending August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $580,000 * * 2003 697,000 * * 2004 697,000 * * 2005 697,000 * * 2006 697,000 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Revenue Gain/(Loss) Probable Revenue Gain/(Loss) * * Year from General Revenue Fund from Other Funds * * 0001 0997 * * 2002 $580,000 $72,000 * * 2003 697,000 87,000 * * 2004 697,000 87,000 * * 2005 697,000 87,000 * * 2006 697,000 87,000 * *************************************************************************** Technology Impact The Comptroller's office currently maintains a surplus or salvage property website and no additional expenses are estimated for its expansion if this legislation is passed. Fiscal Analysis The bill would amend Chapter 2175 of the Government Code relating to the sale of surplus or salvage state property. The Comptroller's office would be required to advertise state surplus property on its website for not more than 10 business days. The General Services Commission (GSC) would be required to notify all agencies and political subdivisions currently eligible to purchase state surplus or salvage property of the Comptroller's surplus property advertisement. After the 10-day period, the surplus items would be removed from the website, and GSC would offer the property at a price they set for sale on an Internet auction site for at least 10 days. After the 10-day Internet posting period exipired, GSC would have authority to destroy the property. This bill would take effect on September 1, 2001. Methodology According to the Comptroller's office, other states, such as Oregon, have implemented similar programs and seen increases in revenue from surplus property sales of up to 100 percent. The Comptroller assumes a 15% increase in the average annual revenue from the sale of state surplus or salvage property, less vendor fees. First year revenues are adjusted downward to reflect implementation period. The General Services Commission (GSC) currently has a surplus or salvage property program and no significant additional expenses are expected if this legislation is passed. The Comptroller's office currently maintains a surlpus or salvage property website and no significant additional expenses are expected for its expansion if this legislation is passed. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 303 General Services Commission, 304 Comptroller of Public Accounts LBB Staff: JK, RB, JC