1-1                                   AN ACT

 1-2     relating to the allocation of space to state agencies.

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

 1-4           SECTION 1.  Subchapter C, Chapter 2165, Government Code, is

 1-5     amended by adding Section 2165.1061 to read as follows:

 1-6           Sec. 2165.1061.  SPACE ALLOCATION PLANS; TRANSITION PLANS.

 1-7     (a)  In this section:

 1-8                 (1)  "Administrative office space" includes state-owned

 1-9     administrative office space and administrative office space leased

1-10     by the state from other sources, but does not include space used by

1-11     a health and human services agency as defined by Section 2167.004

1-12     for the delivery of direct client services or space located in a

1-13     county with a population of 75,000 or less.

1-14                 (2)  "State agency" means a department, commission,

1-15     board, office, or other agency in the executive branch of state

1-16     government created by the state constitution or a state statute,

1-17     but does not include a university system or an institution of

1-18     higher education as defined by Section 61.003, Education Code.

1-19           (b)  The commission shall study the space requirements of

1-20     state agencies that occupy administrative office space.  Each state

1-21     agency shall conduct an on-site space analysis and develop a space

1-22     allocation plan using rules developed by the commission.  The space

1-23     allocation plan shall identify usable and exempt space and shall

1-24     specify whether each facility occupied by the state agency meets

 2-1     the requirements of Section 2165.104(c).  Each state agency shall

 2-2     submit a copy of its space allocation plan to the commission not

 2-3     later than September 30 of each odd-numbered year.

 2-4           (c)  Based on a review of space allocation plans, the

 2-5     commission shall:

 2-6                 (1)  identify areas of the state in which more than one

 2-7     state agency occupies administrative office space and that have the

 2-8     greatest potential for cost savings; and

 2-9                 (2)  evaluate the feasibility of colocating

2-10     administrative office space within the same local labor market as

2-11     defined by Section 2308.002.

2-12           (d)  The commission, in cooperation with affected state

2-13     agencies, shall develop transition plans to implement the

2-14     colocation of administrative office space.  Each plan must include

2-15     a detailed statement of the costs and benefits of the proposed

2-16     colocation.

2-17           (e)  The commission shall use the transition plans to

2-18     colocate certain administrative office space of state agencies.

2-19           (f)  The commission shall conduct a study of the commission's

2-20     efforts to colocate administrative office space at least once each

2-21     fiscal biennium and shall report the findings to the Governor's

2-22     Office of Budget and Planning, the Legislative Budget Board, and

2-23     the comptroller not later than July 1 of each even-numbered year.

2-24           (g)  The commission shall study the potential for colocating

2-25     the administrative office space of a state agency with the office

2-26     space of a federal agency.

2-27           (h)  In addition to the requirements of Subsection (f), not

 3-1     later than July 1 of each even-numbered year, the commission shall

 3-2     complete a study on the amount of each state agency's

 3-3     administrative office space in Travis County to identify locations

 3-4     that exceed the space limitations prescribed by Section 2165.104(c)

 3-5     and report the findings to the Governor's Office of Budget and

 3-6     Planning, the Legislative Budget Board, and the comptroller. The

 3-7     report shall include:

 3-8                 (1)  the location of office space that exceeds the

 3-9     space limitations prescribed by Section 2165.104(c);

3-10                 (2)  the amount of excess space;

3-11                 (3)  the cost of the excess space;

3-12                 (4)  the expiration dates of any leases covering the

3-13     excess space;

3-14                 (5)  the amount of exempt and nonexempt space under

3-15     Section 2165.104(c); and

3-16                 (6)  recommendations for the most cost-effective method

3-17     by which a state agency could comply with the requirements of

3-18     Section 2165.104(c), including recommendations that identify the

3-19     amount and cost of office space that could be reduced or

3-20     eliminated, state the moving costs and expenses associated with

3-21     reductions in space, and state the earliest date by which the space

3-22     reductions could be feasibly achieved.

3-23           (i)  Based on the commission's report under Subsection (h),

3-24     not later than October 1, 1998, the comptroller shall reduce funds

3-25     appropriated to each affected state agency by an amount equal to

3-26     the lease costs that would have been incurred for the remainder of

3-27     the biennium if the state agency had occupied the same amount of

 4-1     administrative office space, less the moving costs and expenses

 4-2     identified by the commission.  This subsection expires August 31,

 4-3     1999.

 4-4           SECTION 2.  Section 2166.102, Government Code, is amended by

 4-5     amending Subsections (b) and (c) and adding Subsection (e) to read

 4-6     as follows:

 4-7           (b)  The commission shall maintain a six-year capital

 4-8     planning cycle and shall file a master facilities plan with the

 4-9     Governor's Office of Budget and Planning, [and] the Legislative

4-10     Budget Board, and the comptroller before July 1 of each

4-11     even-numbered year.

4-12           (c)  The master facilities plan must contain:

4-13                 (1)  projections [a projection] of the amount of

4-14     administrative office space and client service space needed by

4-15     state agencies;

4-16                 (2)  an examination of the use, age, condition, and

4-17     economic life of state-owned buildings on the commission's

4-18     inventory;

4-19                 (3)  an analysis, in accordance with Subchapter D, of

4-20     projects that have been requested by state agencies;

4-21                 (4)  an examination of the extent to which the state

4-22     satisfies its need for space by leasing building space;

4-23                 (5)  an examination of state-paid operation and

4-24     maintenance costs, including costs for telecommunications services,

4-25     for existing buildings owned or leased by the state;

4-26                 (6)  a discussion of the economic and market conditions

4-27     affecting the costs of the construction or lease of buildings;

 5-1                 (7)  an analysis of whether the state will benefit more

 5-2     from satisfying its needs for space by:

 5-3                       (A)  engaging in new projects;

 5-4                       (B)  leasing built space; or

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

 5-6     [and]

 5-7                 (8)  an examination of the amount of exempt and

 5-8     nonexempt office space under Section 2165.104(c); and

 5-9                 (9)  other information relevant to the long-range plan

5-10     that is:

5-11                       (A)  considered appropriate by the commission; or

5-12                       (B)  requested in writing by the governor or the

5-13     presiding officer of either house of the legislature.

5-14           (e)  For purposes of this section, "administrative office

5-15     space" has the meaning assigned by Section 2165.1061.

5-16           SECTION 3.  This Act takes effect September 1, 1997.

5-17           SECTION 4.  The importance of this legislation and the

5-18     crowded condition of the calendars in both houses create an

5-19     emergency and an imperative public necessity that the

5-20     constitutional rule requiring bills to be read on three several

5-21     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2018 was passed by the House on May

         2, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2018 was passed by the Senate on May

         26, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor