SLC H.B. 3368 75(R)BILL ANALYSIS LAND & RESOURCE MANAGEMENT H.B. 3368 By: Junell 4-18-97 Committee Report (Unamended) BACKGROUND The General Services Commission currently evaluates meeting office space needs in counties with greater than 50,000 square feet of need by comparing continued leasing with acquiring an existing building per Section 2166.453, Government Code. The existing statute does not allow the consideration of constructing a building, nor does it allow the commission to pursue types of space other than office space, such as laboratories, warehouses, or shops. This bill recognizes the need for comprehensive evaluations when meeting state space needs. PURPOSE HB 3368 allows the commission to consider a cost-effective alternative of constructing a building as part of the commission's evaluation process. It also allows the commission to acquire and construct space other than office space. 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 Section 2166.453, Government Code, as follows: Amends the caption on Sec. 2166.453, Government Code, as follows: Sec. 2166.453 ACQUISITION OF REAL PROPERTY AS ALTERNATIVE TO LEASING SPACE. (a) Removes the requirement that the space being considered be "office space " when meeting space needs in counties with greater than 50,000 square feet or more of space. (b) Adds the option of constructing a building, in addition to leasing and purchasing an existing building, in the commission's evaluation of space needs. (c) Includes in the comparative analyses of the total space occupancy costs (over the period of bonded indebtedness) the costs of constructing a building, as well as purchasing a building, compared to continuing to lease. (d) Allows the commission to construct a building and TPFA to sell and issue bonds (under TPFA Authority Act, Article 601d, VTCS) for constructing a building. (e) Extends the limitation prescribed under TPFA Authority Act regarding the location of a building funded by bonds to not apply to constructing a building, as is the case with purchasing a building. (g) Clarifies that a state agency moving from leased space to state-owned, may use appropriated and unexpended lease money only for installment payments to TPFA and operating expenses of the constructed building, as well as the purchased building. (h) Clarifies that "total space occupancy costs" include installment payments to TPFA and a cash replacement reserve for capital expense items for a constructed building, as well as a purchased building. SECTION 2. Effective Date: September 1, 1997. SECTION 3. Emergency clause.