OLR Bill Analysis

sHB 5376

AN ACT REQUIRING THE PERFORMANCE OF A COST-BENEFIT ANALYSIS PRIOR TO THE SALE OF SURPLUS STATE PROPERTY.

SUMMARY:

This bill requires state agencies to give the Office of Policy and Management (OPM) secretary written notice six months before they anticipate that they will no longer need property in their custody and control. By law, the OPM must approve an agency's or department's determination that property is not needed and notifies all state agencies of its availability. If no agency submits a proposal to use the property, OPM declares the property surplus and conveys it to the Department of Public Works (DPW), which is responsible for selling, leasing, exchanging, or entering into other agreements to dispose of it. The DPW commissioner must submit any plan for disposing of the property to the Finance and Government Administration and Elections (GAE) committees, which may approve or disapprove it.

Before determining whether to keep or dispose of the property, and within available appropriations, the bill requires the OPM secretary to get an economic cost-benefit analysis. The analysis must document the direct and indirect costs, savings, and qualitative and quantitative benefits that will result from keeping or disposing of the property. At a minimum, the analysis must include an estimate of applicable costs related to getting an environmental remediation or reusing or “mothballing” the property for future use. The bill does not define “mothballing,” thus it is unclear what the cost-benefit analysis would need to include with respect to the future use of the property.

Once the cost-benefit analysis is completed, the OPM secretary must send a copy to the GAE Committee.

Lastly, the bill gives the Finance and GAE committees broader authority with respect to plans for disposing of surplus property. Instead of just approving or disapproving the proposed plans, they may make recommendations to the DPW commissioner concerning them.

EFFECTIVE DATE: October 1, 2009

COMMITTEE ACTION

Government Administration and Elections Committee

Joint Favorable Substitute