1-1                                   AN ACT

 1-2     relating to the acquisition of real property by the General

 1-3     Services Commission as an alternative to leasing space.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 2166.453, Government Code, is amended to

 1-6     read as follows:

 1-7           Sec. 2166.453.  ACQUISITION OF REAL PROPERTY [EXISTING

 1-8     BUILDING] AS ALTERNATIVE TO LEASING SPACE.  (a)  This section

 1-9     applies only to meeting [office] space needs of one or more state

1-10     agencies in a county in which the state leases 50,000 square feet

1-11     or more of [usable office] space.

1-12           (b)  The commission may meet [office] space needs of one or

1-13     more state agencies that are being met through leased space by

1-14     purchasing or constructing one or more [existing] buildings under

1-15     this section.  The purchase or construction of a building may

1-16     include the purchase of the building's grounds and related

1-17     improvements.  The purchase or construction of a building under

1-18     this section must be:

1-19                 (1)  financed through bonds issued by the Texas Public

1-20     Finance Authority; and

1-21                 (2)  approved by the legislature if it is in session or

1-22     by the Legislative Budget Board if the legislature is not in

1-23     session.

1-24           (c)  The commission may purchase or construct a building

 2-1     under this section only if the commission determines that the

 2-2     projected annual total space occupancy costs of the purchased or

 2-3     constructed space will not exceed, over the term of the bonded

 2-4     indebtedness, the projected annual total space occupancy costs of

 2-5     meeting the same space needs through leased space.

 2-6           (d)  If the commission makes the necessary determination

 2-7     under Subsection (c) and the purchase or construction is approved

 2-8     under Subsection (b), the Texas Public Finance Authority shall

 2-9     issue and sell bonds to finance the purchase or construction under

2-10     the Texas Public Finance Authority Act (Article 601d, Vernon's

2-11     Texas Civil Statutes), and the commission may purchase or construct

2-12     the building under that Act and other applicable law.

2-13           (e)  The limitation prescribed by Section 9, Texas Public

2-14     Finance Authority Act (Article 601d, Vernon's Texas Civil

2-15     Statutes), relating to the location of a building for which bonds

2-16     may be issued and sold does not apply to financing the purchase or

2-17     construction of a building under this section.

2-18           (f)  A person from whom real property or an existing building

2-19     or other improvement is purchased under this section shall provide

2-20     to the commission the name and the last known address of each

2-21     person who:

2-22                 (1)  owns record legal title to the real property or

2-23     building or other improvement; or

2-24                 (2)  owns a beneficial interest in the real property or

2-25     building or other improvement through a trust, nominee, agent, or

2-26     other legal entity.

2-27           (g)  If a state agency vacates leased space to move into

 3-1     space in a building purchased or constructed under this section or

 3-2     if the leased  space itself is purchased under this section, the

 3-3     money specifically appropriated by the legislature or the money

 3-4     available to and budgeted by the agency for lease payments for the

 3-5     leased space for the remainder of the biennium may be used only for

 3-6     rental or installment payments for the purchased or constructed

 3-7     space under Section 12(b), Texas Public Finance Authority Act

 3-8     (Article 601d, Vernon's Texas Civil Statutes), and for the payment

 3-9     of operating expenses for the purchased or constructed space that

3-10     are incurred by the commission.  The comptroller may adopt rules

3-11     for the administration of this subsection.

3-12           (h)  In this section, "total space occupancy costs" include:

3-13                 (1)  for leased space, the direct cost of the lease

3-14     payments for the space;

3-15                 (2)  for purchased or constructed space, the direct

3-16     cost of rental or installment payments for the space under Section

3-17     12(b), Texas Public Finance Authority Act (Article 601d, Vernon's

3-18     Texas Civil Statutes);

3-19                 (3)  the cost of necessary renovations;

3-20                 (4)  operating costs, including janitorial and utility

3-21     costs; and

3-22                 (5)  for purchased or constructed space, the cost of

3-23     maintaining a cash replacement reserve sufficient to service

3-24     structural maintenance requirements reflecting the expected

3-25     performance life of the major capital expense items of the building

3-26     for the term of the bonded indebtedness.

3-27           SECTION 2.  This Act takes effect September 1, 1997.

 4-1           SECTION 3.  The importance of this legislation and the

 4-2     crowded condition of the calendars in both houses create an

 4-3     emergency and an imperative public necessity that the

 4-4     constitutional rule requiring bills to be read on three several

 4-5     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. 3368 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. 3368 was passed by the Senate on May

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

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor