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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Proceeds From the Sale of Surplus Property

Issued: Oct. 31, 2005
Updated: Sept. 1, 2015 – View Changes

FPP A.032

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) and
  • 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.

An agency may re-appropriate 25 percent of the receipts from the sale of surplus property for expenditure based on Senate Bill 1, 85th Legislature, Regular Session, Article IX, Section 8.03.

TFC deposits 100 percent of proceeds directly into appropriation 99908.

Agency responsibility

Each agency is responsible for:

  1. Moving out of appropriation 99908 any proceeds that do not apply to the surplus property rules/policy.
  2. Moving up to 25 percent of the proceeds out of appropriation 99908 to one or more like appropriations for expenditures out of Fund 0001.

Legal cites

HB 7, 78th Legislature, Regular Session, originally established this procedure that was applied retroactively to fiscal 2003 sales.

HB 1, Article IX, Section 8.03, 84th 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 the provisions of Chapter 2175, Government Code, 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.
  2. One-hundred percent of the receipts of property sold under subsection (a) resulting from the revocation or cessation of operation of an entity under Chapter 12, Texas Education Code, are appropriated to the Texas Education Agency for funding the management and closure of entities and disposition of state property under Chapter 12, Texas Education Code. Any unexpended and unobligated balances identified by this section remaining as of Aug. 31, 2015, are appropriated for the same purpose for the biennium beginning in Sept. 1, 2015. Any unexpended and unobligated balances identified by this section remaining as of Aug. 31, 2016, are appropriated for the same purpose for the fiscal year beginning Sept. 1, 2016.
Changes to this Document
09/01/2017 Updated per acts of the 85th Legislature, Regular Session
08/28/2015 Updated per acts of the 84th Legislature, Regular Session
08/30/2013 Updated per acts of the 83rd Legislature, Regular Session
09/16/2011 Nonsubstantive edits (style, legal cites)
10/18/2007
  • Updated table in Entering deposits in USAS section
  • Added Procedure to move proceed receipts from sale of surplus property section
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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