1-1                                   AN ACT

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

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 2165.004, Government Code, is amended to

 1-5     read as follows:

 1-6           Sec. 2165.004.  LEASE OF SPACE TO PUBLIC TENANTS IN [CERTAIN]

 1-7     STATE-OWNED BUILDINGS.  (a)  The commission or a state agency with

 1-8     charge and control of a state building may enter into a lease

 1-9     agreement with a department, commission, board, agency, or other

1-10     instrumentality of the state, a political subdivision of the state,

1-11     or the federal government or its instrumentalities for space in the

1-12     [an office] building [subject to Chapter 2166].  Except as provided

1-13     by Subchapter E or other law, the commission may not lease space in

1-14     a state office [the] building to an individual, private

1-15     corporation, association, partnership, or other private interest.

1-16           (b)  The commission or a state agency with charge and control

1-17     of a state building may adopt rules necessary to implement this

1-18     section.

1-19           (c)  In this section, "political subdivision" includes a

1-20     county, municipality, school district, water or irrigation

1-21     district, hospital district, council of governments, or regional

1-22     planning commission.

1-23           SECTION 2.  Section 2165.203, Government Code, is amended to

1-24     read as follows:

 2-1           Sec. 2165.203.  LEASE; FAIR MARKET VALUE.  (a)  In a

 2-2     state-owned building that is under the commission's control and

 2-3     that is used primarily for office space or vehicle parking for

 2-4     state government, the commission may lease at fair market value

 2-5     space to private tenants for  commercial, cultural, educational, or

 2-6     recreational activities.

 2-7           (b)  In offering space in a state-owned building that is

 2-8     under the commission's control under this subchapter, the

 2-9     commission may not include contract provisions that would tend to

2-10     diminish the value of the lease space of surrounding privately

2-11     owned buildings.

2-12           (c)  The commission shall collect information on the

2-13     location, size, and type of space that is available for lease in

2-14     state-owned buildings under the control of the commission and

2-15     determine the feasibility of leasing available space to private

2-16     tenants.

2-17           SECTION 3.  Subchapter E, Chapter 2165, Government Code, is

2-18     amended by adding Section 2165.2035 to read as follows:

2-19           Sec. 2165.2035.  PILOT PROGRAM.  (a)  The commission shall

2-20     establish a pilot program to develop private, commercial uses for

2-21     state-owned parking lots and garages located in the city of Austin

2-22     in the area bordered by West Fourth Street, Lavaca Street, West

2-23     Third Street, and Nueces Street.

2-24           (b)  The commission shall contract with a private vendor to

2-25     manage the commercial use of state-owned parking lots and garages.

2-26           (c)  Money received from a lease under this program shall be

2-27     deposited to the credit of the general revenue fund.

 3-1           (d)  On or before December 1 of each even-numbered year, the

 3-2     commission shall submit a report to the legislature and the

 3-3     Legislative Budget Board describing the effectiveness of the pilot

 3-4     program.

 3-5           (e)  The limitation on the amount of space allocated to

 3-6     private tenants prescribed by Section 2165.205(b) does not apply to

 3-7     the lease of a state-owned parking lot or garage under this

 3-8     section.

 3-9           (f)  Any lease of a state-owned parking lot or garage under

3-10     this section must contain a provision that allows state employees

3-11     who work hours other than regular working hours under Section

3-12     658.005 to retain their parking privileges in a state-owned parking

3-13     lot or garage.

3-14           SECTION 4.  Section 2165.205, Government Code, is amended to

3-15     read as follows:

3-16           Sec. 2165.205.  LIMITATIONS ON AMOUNT, LOCATION, AND USE OF

3-17     LEASED SPACE.  (a)  [The commission may not lease space to a

3-18     private tenant for use as private office space unless the private

3-19     office space is related and incidental to another commercial,

3-20     cultural, educational, recreational, or child care activity of the

3-21     tenant in the building.]

3-22           [(b)]  Except as provided by this subchapter and Chapter 663,

3-23     the commission or a state agency with charge and control of a state

3-24     building shall determine the amount of space in a building to be

3-25     allocated to private tenants and the types of activities in which

3-26     the tenants may engage according to the market for certain

3-27     activities among employees and visitors in the building and in the

 4-1     vicinity of the building.

 4-2           (b) [(c)]  Except as provided by Section 2165.215, the amount

 4-3     of space allocated to private tenants may not exceed 15 percent of

 4-4     the total space in the building.  Space leased to provide child

 4-5     care services for state employees does not count toward the 15

 4-6     percent maximum.

 4-7           (c)  The commission or a state agency with charge and control

 4-8     of a state building may enter into a short-term lease for a period

 4-9     not to exceed seven days with a private tenant for the use of

4-10     certain facilities, including conference rooms, meeting rooms,

4-11     auditoriums, and other similar facilities.

4-12           [(d)  If the commission allocates space in a building to a

4-13     private tenant, it shall encourage the tenant to lease space with

4-14     street frontage or space in another area of heavy pedestrian

4-15     activity.]

4-16           SECTION 5.  Section 2165.211, Government Code, is amended to

4-17     read as follows:

4-18           Sec. 2165.211.  USE OF LEASE PROCEEDS.  (a)  Except as

4-19     provided by Subsections (b) and (c), money [Money] received from a

4-20     lease under Section 2165.203 or any other lease of a state-owned

4-21     building under the commission's control under this subchapter may

4-22     be used only for building and property services performed by the

4-23     commission.

4-24           (b)  One-half of the money received by the commission or a

4-25     state agency with charge and control of a state building from a

4-26     lease under Section 2165.205(c) may be used only for building and

4-27     property services performed by the commission or the state agency.

 5-1           (c)  This section does not apply to a lease under Section

 5-2     2165.2035.

 5-3           SECTION 6.  Subchapter E, Chapter 2165, Government Code, is

 5-4     amended by adding Section 2165.216 to read as follows:

 5-5           Sec. 2165.216.  IMMUNITY FROM LIABILITY.  Notwithstanding

 5-6     Chapter 101, Civil Practice and Remedies Code, or any other law,

 5-7     the commission is not liable for property damage, personal injury,

 5-8     or death arising in connection with a lease of space to a private

 5-9     tenant under this subchapter.

5-10           SECTION 7.  Section 2166.102(c), Government Code, is amended

5-11     to read as follows:

5-12           (c)  The master facilities plan must contain:

5-13                 (1)  a projection of the amount of space needed by

5-14     state agencies;

5-15                 (2)  an examination of the use, age, condition, and

5-16     economic life of state-owned buildings on the commission's

5-17     inventory;

5-18                 (3)  an analysis, in accordance with Subchapter D, of

5-19     projects that have been requested by state agencies;

5-20                 (4)  an examination of the extent to which the state

5-21     satisfies its need for space by leasing building space;

5-22                 (5)  an examination of state-paid operation and

5-23     maintenance costs, including costs for telecommunications services,

5-24     for existing buildings owned or leased by the state;

5-25                 (6)  a discussion of the economic and market conditions

5-26     affecting the costs of the construction or lease of buildings;

5-27                 (7)  an analysis of whether the state will benefit more

 6-1     from satisfying its needs for space by:

 6-2                       (A)  engaging in new projects;

 6-3                       (B)  leasing built space;  or

 6-4                       (C)  satisfying its needs in another manner;

 6-5     [and]

 6-6                 (8)  an examination of the location, size, and type of

 6-7     building space that is available for lease to private tenants;

 6-8                 (9)  an examination of the extent to which the state

 6-9     maximizes the use of existing buildings by leasing space to private

6-10     tenants; and

6-11                 (10)  other information relevant to the long-range plan

6-12     that is:

6-13                       (A)  considered appropriate by the commission; or

6-14                       (B)  requested in writing by the governor or the

6-15     presiding officer of either house of the legislature.

6-16           SECTION 8.  The importance of this legislation and the

6-17     crowded condition of the calendars in both houses create an

6-18     emergency and an imperative public necessity that the

6-19     constitutional rule requiring bills to be read on three several

6-20     days in each house be suspended, and this rule is hereby suspended,

6-21     and that this Act take effect and be in force from and after its

6-22     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 733 was passed by the House on April

         30, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 733 on May 23, 1997, by the following

         vote:  Yeas 140, Nays 0, 1 present, not voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 733 was passed by the Senate, with

         amendments, on May 21, 1997, by the following vote:  Yeas 30, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor