SLC C.S.H.B. 733 75(R)BILL ANALYSIS LAND & RESOURCE MANAGEMENT C.S.H.B. 733 By: Raymond 4-3-97 Committee Report (Substituted) BACKGROUND State law prohibits the use of most state property for non-state purposes. This prohibition prevents most agencies from taking advantage of opportunities to generate non-tax revenue by leasing underutilized facilities. PURPOSE Establish a pilot program to develop private, commercial uses for state-owned parking lots and garages in the city of Austin near areas where entertainment businesses are concentrated. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sec. 2165.203, Gov. Code, as follows: Sec. 2165.203. LEASE; FAIR MARKET VALUE. (a) Allows the GSC to lease state office or parking space at fair market value to private tenants for commercial, cultural, educational, or recreational activities. (b) States that the GSC "may not include contract provisions that would tend to diminish the value of the lease space of surrounding privately owned buildings." (c) Requires the GSC to collect information on the location, size, and type of space that is available for lease in state-owned buildings under the GSC control. SECTION 2. Amends Subchapter E, Chapter 2165, Gov. Code, by adding Section 2165.2035: Sec. 2165.2035. PILOT PROGRAM (a) establishes a pilot program to develop private, commercial uses for state-owned parking lots and garages located in the city of Austin, but confined to the "area bordered by West Fourth Street, Lavaca Street, West Third Street, and Nueces Street." (b) states that the General Service Commission (GSC) shall contract with a private vendor to manage the parking lots and garages. (c) states that money received from this program shall be deposited to the credit of the general revenue fund. (d) requires the GSC to submit a report on each even-numbered year to the legislature and the LBB on the effectiveness of the pilot program. (e) Specifies that the space limitation to private tenants stated in Sec. 2165.205(b) does not apply to state-owned parking lots or garages. (f) States that state employees retain their parking privileges for working purposes. SECTION 3. Amends Section 2165.205, Government Code, as follows: deletes language preventing the GSC from leasing state-owned space to private tenants for use as private office space. Sec. 2165.205. LIMITATIONS ON AMOUNT, LOCATION, AND USE OF LEASED SPACE. (a) requires the GSC or any other state agency with charge and control of a state building to determine the amount of space in a building to be allocated to private tenants and the types of activities in which the tenants may engage. (b) limits the amount of space which may be allocated to private tenants to not more than 15 percent of the total space of the building. Space leased to provide child care services for state employees does not count toward the 15 percent maximum. (c) States that the GSC or a state agency with charge and control of a state building may enter into a short-term leases for a period not exceed 7 days with a private tenant for the use of certain facilities. SECTION 4. Amends Section 2165.211, Government Code, as follows: Sec. 2165.211. USE OF LEASE PROCEEDS. (a) Except as provided by (b) and (c), money received from a lease under Sec. 2165.203 or any other lease of a state-owned building under the commission's control under this subchapter may be used only for building and property services performed by the commission. (b) States that one half of the money received by the commission or a state agency from a lease under Sec. 2165.205(c) may be used only for building and property services performed by the commission or state agency. (c) does not apply to a lease under Sec. 2165.2035. SECTION 5. Amends Subchapter E, Chapter 2165, Gov. Code, by adding Sec. 2165.216 as follows: Sec. 2165.216. IMMUNITY FROM LIABILITY. Exempts the GSC from property damage, personal injury, or death arising in connection with a lease of space to a private tenant. SECTION 6. Amends Sec. 2166.102(c), Government Code, by requiring the master facilities plan to contain certain information and items. SECTION 7. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE CSHB 733 adds new language in SECTION 1. That states that the GSC may not include provisions in lease contracts that would tend to diminish the value of lease space in surrounding privately-owned buildings. The original did not contain this provision. SECTION 1. also adds language that states that the GSC will collect information on available leasing space. CSHB 733 establishes a pilot program for the use of state owned parking garages and lots for commercial uses in the City of Austin in an area bordered by West Fourth Street, Lavaca Street, West Third Street, and Nueces Street. The original legislation did not confine the program to a specific area in Austin, it only stated in areas of entertainment concentration. CSHB also states that space limitations prescribed in Sec. 2165.205(b) does not apply to the lease of parking. It also contains provisions that allow state employees to keep their parking privileges even if it is not during regular working hours. The original legislation did not contain these provisions. SECTION 3. of CSHB 733 Allows any state agency with charge and control of a state building, in addition to the GSC, to determine the amount of space to be allocated to private tenants. SECTION 3. also prescribes terms for short-term leases. These provisions were not contained in the original legislation. SECTION 5. of CSHB 733 Gives the GSC and state agencies immunity from liability in leasing agreements. The original legislation did not contain this provision.