LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 29, 1995



 TO:     Honorable Layton Black, Chair          IN RE:  House Bill No. 2321
         Committee on Administration                    By: Black
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2321 (Relating to legislative space needs and space management.)
this office has determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would designate the Sam Houston and John H. Reagan
buildings for use by  the legislature and legislative agencies.

The bill would, upon written notice from presiding officers of
each respective house of the legislature to the General Services
Commission (GSC), designate the following four state office
buildings for legislative use:
    
     Lorenzo de Zavala State Library and Archives Building,
     Stephen F. Austin Building,
     Lyndon B. Johnson Building, and the
     William B. Travis Building.

The bill would remove authorization for the purchase of the Texas
Employment Commission Building and for the issuance of bonds for
that building.

The bill would also authorize the issuance of bonds in the amount
of $46,000,000 to construct a legislative serivces office
building.  Annual debt service payments are estimated at $300,000
beginning in fiscal year 1997 and $4,370,000 each year for the    




life of the bonds from the General Revenue Fund.   Associated 
maintenace and operations costs are estimated to begin in fiscal
year 1999.

The bill  would require that non-legislative state agencies, move
from the four buildings identified and move to other office
space.   This would also require renovation of that space for the
legislative agencies and funds for moving and leased space for
the non-legislative agencies.  The GSC estimates these costs to
be $40,300,000 the first year of the project and $14,650,000 each
year thereafter from General Revenue Fund.  These costs are not
identified in the table below because moving dates cannot be
determined at this time.










The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
     



            Fiscal  Probable Cost Out      Change in   
             Year      of  General      Number of State
                     Revenue Fund 001   Employees from 
                                            FY 1995    
                                                       
          1996                      $0               .0
          1997                 300,000               .0
                                                       
          1998               4,370,000               .0
                                                       
          1999               5,095,000               .0
          2000               5,795,000               .0
                                                       
                                                       
                                                       
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No fiscal implication to units of local government is
anticipated.    




Source:   General Services Commission
          LBB Staff: JK, MS, DF