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.