LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 17, 2009

TO:	Honorable Garnet Coleman, Chair, House Committee on County Affairs
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2737 by Bolton (Relating to the sale of used, surplus, or salvage property and firefighting equipment by an emergency services district.), Committee Report 1st House, Substituted

No fiscal implication to the State is anticipated.

The bill would add Subchapter I to Chapter 775, Health and Safety Code, to authorize an emergency services district to sell surplus firefighting equipment to any volunteer fire department or any district in Texas for fair market value if the equipment met the National Fire Protection Association (NFPA)Standards at the original time of purchase and at the time of sale it meets NFPA Standards in effect at the original time of purchase or the standards in effect.

A district would also be authorized to contract to supply surplus property to any volunteer fire department or district in Texas at fair market value. A district would be authorized to sell salvage property to any person in Texas at fair market value or to destroy or otherwise dispose of the property as worthless. The district would be authorized to determine the fair market value.

Local Government Impact

The revenue gain from the sale of equipment or of salvage property would vary depending on how much equipment a district would sell and what the fair market value would be. The cost to a purchasing volunteer fire department or district would also vary depending on the same issues; however, it is assumed that the purchase of used equipment would result in an overall savings to the purchasing district.

Source Agencies:

LBB Staff:

JOB, DB