| TO: | Honorable David Swinford, Chair, House Committee on Government Reform |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB3047 by Cook, Robby (Relating to the disposition of certain surplus and salvage property of the state.), As Introduced |
The bill would amend Chapter 2175 of the Government Code, relating to the disposition of state surplus and salvage property. The bill would require that the proceeds from the sale of surplus and salvage property be deposited to the General Revenue Fund 0001. Because the legislation would create a dedicated account in the General Revenue Fund, the account included in this bill would be subject to funds consolidation review by the current legislature.
Currently, the proceeds of the sale of surplus and salvage property, less costs are deposited to the credit of the appropriation of the state agency for which the sale was made. The bill would direct the Building and Procurement Commission to deposit the proceeds from the sale of surplus or salvage property to the credit of the General Revenue Fund 0001.
According to the Comptroller, there were approximately $16.6 million in surplus property proceeds. Of this amount, $1.5 million was credited to an agency appropriation related to a Fund/Account other than Fund 0001.
There would be a gain to General Revenue of approximately $1.5 million and a loss to General Revenue-Dedicated Accounts and Special Funds because the bill would require that all proceeds be credited to the General Revenue Fund 0001. Proceeds from the sale of surplus and salvage property purchased with federal funds may have to be returned to the federal government.
| Source Agencies: | 303 Building and Procurement Commission, 304 Comptroller of Public Accounts
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| LBB Staff: | JK, GO, MS, RG
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