SRC-SLL H.B. 3515 75(R) BILL ANALYSIS Senate Research Center H.B. 3515 By: Goolsby (Harris) State Affairs 5-16-97 Engrossed DIGEST Currently, the General Services Commission has to have specific legislative authority to dispose of any state property interest in its inventory, including sales or exchanges of real property under Section 2166.052, Government Code. The City of Austin, under Section 272.001, Local Government Code, is required to value all municipally-owned property it grants, sells, or conveys at full, fair market value, based on appraisal. Specific authority to deviate from that valuation standard is necessary. A ledger agreement has been proposed as a mechanism to address a current impasse between the General Services Commission and the City of Austin over the Robert E. Johnson Project. This office and parking structure project straddles Brazos Street between 15th and 16th Streets in the Capitol Complex, and was designed not to interfere with the Capitol view corridor. The state requires Brazos Street to be vacated in order to accommodate the building structure which encroaches on the rights-of-way. In addition, the parking structure and the building are connected by an elevated pedestrian bridge which encroaches the aerial rights over the rights-ofway. The project budget does not contain sufficient funds to pay an estimated fair market value of $500,000 and $600,000 for the Brazos rights-of-way. This bill will provide additional regulations regarding the transfer, sale, or exchange of real property between the General Services Commission and the City of Austin. PURPOSE As proposed, H.B. 3515 provides additional regulations regarding the transfer, sale, or exchange of real property between the General Services Commission and the City of Austin. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2166.052, Government Code, by adding Subsection (c), to authorize the General Service Commission (commission) to enter into a contract with the City of Austin to govern the transfer, sale, or exchange of real property and interests in real property, including the vacation of street rights-of-way, easements, and other interests, as necessary or advantageous to both parties. Authorizes the agreement to provide for the transfer, sale, or exchange by one party in favor of the other for a reasonable value established by the parties and to provide for a transfer, sale, or exchange to be credited against future property or interests to be transferred, sold, or exchanged between the parties. Provides that Section 272.001, Local Government Code, does not apply to a transaction governed by this section. SECTION 2. Emergency clause. Effective date: upon passage.