By Raymond                                             H.B. No. 733

         75R9392 MLS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the lease of certain state facilities.


 1-4           SECTION 1.  Section 2165.203, Government Code, is amended to

 1-5     read as follows:

 1-6           Sec. 2165.203.  LEASE; FAIR MARKET VALUE.  (a)  In a

 1-7     state-owned building that is under the commission's control and

 1-8     that is used primarily for office space or vehicle parking for

 1-9     state government, the commission may lease at fair market value

1-10     space to private tenants for  commercial, cultural, educational, or

1-11     recreational activities.

1-12           (b)  In offering space in a state-owned building that is

1-13     under the commission's control under this subchapter, the

1-14     commission may not include contract provisions that would tend to

1-15     diminish the value of the lease space of surrounding privately

1-16     owned buildings.

1-17           (c)  The commission shall collect information on the

1-18     location, size, and type of space that is available for lease in

1-19     state-owned buildings under the control of the commission and

1-20     determine the feasibility of leasing available space to private

1-21     tenants.

1-22           SECTION 2.  Subchapter E, Chapter 2165, Government Code, is

1-23     amended by adding Section 2165.2035 to read as follows:

1-24           Sec. 2165.2035.  PILOT PROGRAM.  (a)  The commission shall

 2-1     establish a pilot program to develop private, commercial uses for

 2-2     state-owned parking lots and garages located in the city of Austin

 2-3     in the area bordered by West Fourth Street, Lavaca Street, West

 2-4     Third Street, and Nueces Street.

 2-5           (b)  The commission shall contract with a private vendor to

 2-6     manage the commercial use of state-owned parking lots and garages.

 2-7           (c)  Money received from a lease under this program shall be

 2-8     deposited to the credit of the general revenue fund.

 2-9           (d)  On or before December 1 of each even-numbered year, the

2-10     commission shall submit a report to the legislature and the

2-11     Legislative Budget Board describing the effectiveness of the pilot

2-12     program.

2-13           (e)  The limitation on the amount of space allocated to

2-14     private tenants prescribed by Section 2165.205(b) does not apply to

2-15     the lease of a state-owned parking lot or garage under this

2-16     section.

2-17           (f)  Any lease of a state-owned parking lot or garage under

2-18     this section must contain a provision that allows state employees

2-19     who work hours other than regular working hours under Section

2-20     658.005 to retain their parking privileges in a state-owned parking

2-21     lot or garage.

2-22           SECTION 3.  Section 2165.205, Government Code, is amended to

2-23     read as follows:

2-24           Sec. 2165.205.  LIMITATIONS ON AMOUNT, LOCATION, AND USE OF

2-25     LEASED SPACE.  (a)  [The commission may not lease space to a

2-26     private tenant for use as private office space unless the private

2-27     office space is related and incidental to another commercial,

 3-1     cultural, educational, recreational, or child care activity of the

 3-2     tenant in the building.]

 3-3           [(b)]  Except as provided by this subchapter and Chapter 663,

 3-4     the commission or a state agency with charge and control of a state

 3-5     building shall determine the amount of space in a building to be

 3-6     allocated to private tenants and the types of activities in which

 3-7     the tenants may engage according to the market for certain

 3-8     activities among employees and visitors in the building and in the

 3-9     vicinity of the building.

3-10           (b) [(c)]  Except as provided by Section 2165.215, the amount

3-11     of space allocated to private tenants may not exceed 15 percent of

3-12     the total space in the building.  Space leased to provide child

3-13     care services for state employees does not count toward the 15

3-14     percent maximum.

3-15           (c)  The commission or a state agency with charge and control

3-16     of a state building may enter into a short-term lease for a period

3-17     not to exceed seven days with a private tenant for the use of

3-18     certain facilities, including conference rooms, meeting rooms,

3-19     auditoriums, and other similar facilities.

3-20           [(d)  If the commission allocates space in a building to a

3-21     private tenant, it shall encourage the tenant to lease space with

3-22     street frontage or space in another area of heavy pedestrian

3-23     activity.]

3-24           SECTION 4.  Section 2165.211, Government Code, is amended to

3-25     read as follows:

3-26           Sec. 2165.211.  USE OF LEASE PROCEEDS.  (a)  Except as

3-27     provided by Subsections (b) and (c), money [Money] received from a

 4-1     lease under Section 2165.203 or any other lease of a state-owned

 4-2     building under the commission's control under this subchapter may

 4-3     be used only for building and property services performed by the

 4-4     commission.

 4-5           (b)  One-half of the money received by the commission or a

 4-6     state agency with charge and control of a state building from a

 4-7     lease under Section 2165.205(c) may be used only for building and

 4-8     property services performed by the commission or the state agency.

 4-9           (c)  This section does not apply to a lease under Section

4-10     2165.2035.

4-11           SECTION 5.  Subchapter E, Chapter 2165, Government Code, is

4-12     amended by adding Section 2165.216 to read as follows:

4-13           Sec. 2165.216.  IMMUNITY FROM LIABILITY.  Notwithstanding

4-14     Chapter 101, Civil Practice and Remedies Code, or any other law,

4-15     the commission is not liable for property damage, personal injury,

4-16     or death arising in connection with a lease of space to a private

4-17     tenant under this subchapter.

4-18           SECTION 6.  Section 2166.102(c), Government Code, is amended

4-19     to read as follows:

4-20           (c)  The master facilities plan must contain:

4-21                 (1)  a projection of the amount of space needed by

4-22     state agencies;

4-23                 (2)  an examination of the use, age, condition, and

4-24     economic life of state-owned buildings on the commission's

4-25     inventory;

4-26                 (3)  an analysis, in accordance with Subchapter D, of

4-27     projects that have been requested by state agencies;

 5-1                 (4)  an examination of the extent to which the state

 5-2     satisfies its need for space by leasing building space;

 5-3                 (5)  an examination of state-paid operation and

 5-4     maintenance costs, including costs for telecommunications services,

 5-5     for existing buildings owned or leased by the state;

 5-6                 (6)  a discussion of the economic and market conditions

 5-7     affecting the costs of the construction or lease of buildings;

 5-8                 (7)  an analysis of whether the state will benefit more

 5-9     from satisfying its needs for space by:

5-10                       (A)  engaging in new projects;

5-11                       (B)  leasing built space;  or

5-12                       (C)  satisfying its needs in another manner;

5-13     [and]

5-14                 (8)  an examination of the location, size, and type of

5-15     building space that is available for lease to private tenants;

5-16                 (9)  an examination of the extent to which the state

5-17     maximizes the use of existing buildings by leasing space to private

5-18     tenants; and

5-19                 (10)  other information relevant to the long-range plan

5-20     that is:

5-21                       (A)  considered appropriate by the commission; or

5-22                       (B)  requested in writing by the governor or the

5-23     presiding officer of either house of the legislature.

5-24           SECTION 7.  The importance of this legislation and the

5-25     crowded condition of the calendars in both houses create an

5-26     emergency and an imperative public necessity that the

5-27     constitutional rule requiring bills to be read on three several

 6-1     days in each house be suspended, and this rule is hereby suspended,

 6-2     and that this Act take effect and be in force from and after its

 6-3     passage, and it is so enacted.