1-1     By:  Raymond (Senate Sponsor - Shapleigh)              H.B. No. 733

 1-2           (In the Senate - Received from the House May 1, 1997;

 1-3     May 2, 1997, read first time and referred to Committee on Finance;

 1-4     May 16, 1997, reported favorably by the following vote:  Yeas 10,

 1-5     Nays 0; May 16, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the lease of certain state facilities.


1-10           SECTION 1.  Section 2165.203, Government Code, is amended to

1-11     read as follows:

1-12           Sec. 2165.203.  LEASE; FAIR MARKET VALUE.  (a)  In a

1-13     state-owned building that is under the commission's control and

1-14     that is used primarily for office space or vehicle parking for

1-15     state government, the commission may lease at fair market value

1-16     space to private tenants for  commercial, cultural, educational, or

1-17     recreational activities.

1-18           (b)  In offering space in a state-owned building that is

1-19     under the commission's control under this subchapter, the

1-20     commission may not include contract provisions that would tend to

1-21     diminish the value of the lease space of surrounding privately

1-22     owned buildings.

1-23           (c)  The commission shall collect information on the

1-24     location, size, and type of space that is available for lease in

1-25     state-owned buildings under the control of the commission and

1-26     determine the feasibility of leasing available space to private

1-27     tenants.

1-28           SECTION 2.  Subchapter E, Chapter 2165, Government Code, is

1-29     amended by adding Section 2165.2035 to read as follows:

1-30           Sec. 2165.2035.  PILOT PROGRAM.  (a)  The commission shall

1-31     establish a pilot program to develop private, commercial uses for

1-32     state-owned parking lots and garages located in the city of Austin

1-33     in the area bordered by West Fourth Street, Lavaca Street, West

1-34     Third Street, and Nueces Street.

1-35           (b)  The commission shall contract with a private vendor to

1-36     manage the commercial use of state-owned parking lots and garages.

1-37           (c)  Money received from a lease under this program shall be

1-38     deposited to the credit of the general revenue fund.

1-39           (d)  On or before December 1 of each even-numbered year, the

1-40     commission shall submit a report to the legislature and the

1-41     Legislative Budget Board describing the effectiveness of the pilot

1-42     program.

1-43           (e)  The limitation on the amount of space allocated to

1-44     private tenants prescribed by Section 2165.205(b) does not apply to

1-45     the lease of a state-owned parking lot or garage under this

1-46     section.

1-47           (f)  Any lease of a state-owned parking lot or garage under

1-48     this section must contain a provision that allows state employees

1-49     who work hours other than regular working hours under Section

1-50     658.005 to retain their parking privileges in a state-owned parking

1-51     lot or garage.

1-52           SECTION 3.  Section 2165.205, Government Code, is amended to

1-53     read as follows:

1-54           Sec. 2165.205.  LIMITATIONS ON AMOUNT, LOCATION, AND USE OF

1-55     LEASED SPACE.  (a)  [The commission may not lease space to a

1-56     private tenant for use as private office space unless the private

1-57     office space is related and incidental to another commercial,

1-58     cultural, educational, recreational, or child care activity of the

1-59     tenant in the building.]

1-60           [(b)]  Except as provided by this subchapter and Chapter 663,

1-61     the commission or a state agency with charge and control of a state

1-62     building shall determine the amount of space in a building to be

1-63     allocated to private tenants and the types of activities in which

1-64     the tenants may engage according to the market for certain

 2-1     activities among employees and visitors in the building and in the

 2-2     vicinity of the building.

 2-3           (b) [(c)]  Except as provided by Section 2165.215, the amount

 2-4     of space allocated to private tenants may not exceed 15 percent of

 2-5     the total space in the building.  Space leased to provide child

 2-6     care services for state employees does not count toward the 15

 2-7     percent maximum.

 2-8           (c)  The commission or a state agency with charge and control

 2-9     of a state building may enter into a short-term lease for a period

2-10     not to exceed seven days with a private tenant for the use of

2-11     certain facilities, including conference rooms, meeting rooms,

2-12     auditoriums, and other similar facilities.

2-13           [(d)  If the commission allocates space in a building to a

2-14     private tenant, it shall encourage the tenant to lease space with

2-15     street frontage or space in another area of heavy pedestrian

2-16     activity.]

2-17           SECTION 4.  Section 2165.211, Government Code, is amended to

2-18     read as follows:

2-19           Sec. 2165.211.  USE OF LEASE PROCEEDS.  (a)  Except as

2-20     provided by Subsections (b) and (c), money [Money] received from a

2-21     lease under Section 2165.203 or any other lease of a state-owned

2-22     building under the commission's control under this subchapter may

2-23     be used only for building and property services performed by the

2-24     commission.

2-25           (b)  One-half of the money received by the commission or a

2-26     state agency with charge and control of a state building from a

2-27     lease under Section 2165.205(c) may be used only for building and

2-28     property services performed by the commission or the state agency.

2-29           (c)  This section does not apply to a lease under Section

2-30     2165.2035.

2-31           SECTION 5.  Subchapter E, Chapter 2165, Government Code, is

2-32     amended by adding Section 2165.216 to read as follows:

2-33           Sec. 2165.216.  IMMUNITY FROM LIABILITY.  Notwithstanding

2-34     Chapter 101, Civil Practice and Remedies Code, or any other law,

2-35     the commission is not liable for property damage, personal injury,

2-36     or death arising in connection with a lease of space to a private

2-37     tenant under this subchapter.

2-38           SECTION 6.  Section 2166.102(c), Government Code, is amended

2-39     to read as follows:

2-40           (c)  The master facilities plan must contain:

2-41                 (1)  a projection of the amount of space needed by

2-42     state agencies;

2-43                 (2)  an examination of the use, age, condition, and

2-44     economic life of state-owned buildings on the commission's

2-45     inventory;

2-46                 (3)  an analysis, in accordance with Subchapter D, of

2-47     projects that have been requested by state agencies;

2-48                 (4)  an examination of the extent to which the state

2-49     satisfies its need for space by leasing building space;

2-50                 (5)  an examination of state-paid operation and

2-51     maintenance costs, including costs for telecommunications services,

2-52     for existing buildings owned or leased by the state;

2-53                 (6)  a discussion of the economic and market conditions

2-54     affecting the costs of the construction or lease of buildings;

2-55                 (7)  an analysis of whether the state will benefit more

2-56     from satisfying its needs for space by:

2-57                       (A)  engaging in new projects;

2-58                       (B)  leasing built space;  or

2-59                       (C)  satisfying its needs in another manner;

2-60     [and]

2-61                 (8)  an examination of the location, size, and type of

2-62     building space that is available for lease to private tenants;

2-63                 (9)  an examination of the extent to which the state

2-64     maximizes the use of existing buildings by leasing space to private

2-65     tenants; and

2-66                 (10)  other information relevant to the long-range plan

2-67     that is:

2-68                       (A)  considered appropriate by the commission; or

2-69                       (B)  requested in writing by the governor or the

 3-1     presiding officer of either house of the legislature.

 3-2           SECTION 7.  The importance of this legislation and the

 3-3     crowded condition of the calendars in both houses create an

 3-4     emergency and an imperative public necessity that the

 3-5     constitutional rule requiring bills to be read on three several

 3-6     days in each house be suspended, and this rule is hereby suspended,

 3-7     and that this Act take effect and be in force from and after its

 3-8     passage, and it is so enacted.

 3-9                                  * * * * *