Proceeds From the Sale of Surplus Property

Overview

Applicable to

State agencies

Policy

All proceeds from sales of surplus property must be deposited to general revenue (GR) in appropriation 99908. Proceeds include sale of surplus property, equipment and commodities.

This applies to:

• Sales made by the Texas Facilities Commission (TFC).
• Sales that TFC authorizes other agencies to make per Texas Government Code, Section 2175.181.

This does not apply to surplus property purchased from trust funds, bond funds, funds held outside the state treasury, and in some cases, federal funds. Proceeds from surplus property do not apply when an agency “purchases” an item (listed by TFC as available) from another agency. This activity is considered a transfer of state assets.

TFC deposits 100 percent of proceeds directly into appropriation 99908. An agency may re-appropriate 25 percent of the receipts from the sale of surplus property for expenditure based on House Bill 1, 88th Legislature, Regular Session, Article IX, Section 8.03.

Agency Responsibility

Each agency is responsible for:

• Moving out of appropriation 99908 any proceeds that do not apply to the surplus property rules/policy.
• After TFC deposits proceeds, transferring up to 25% of the funds from appropriation 99908 to similar General Revenue appropriations (Fund 0001) for expenditure. This transfer must occur during the same fiscal year when receipts are received and after TFC deposits the proceeds.

Legal Citations

HB 1, Article IX, Section 8.03, 89th Legislature, Regular Session, states:

1. Twenty-five percent of the receipts to a state agency specified in this Act received from the sale of surplus property, equipment, commodities or salvage (including recycled products) pursuant to Texas Government Code, Chapter 2175, are appropriated to the state agency for expenditure during the fiscal year in which the receipts are received. Receipts from such surplus equipment, commodities, or salvage (including recycled products) sales shall be expended from the appropriation item from which like property, equipment or commodities would be purchased.