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.