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.