LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 20, 2001
TO: Honorable Steven Wolens, Chair, House Committee on State
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB834 by Flores (Relating to sale of surplus or salvage
state property.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB834, As Introduced: 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. *
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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:
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*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 *
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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