1-1     By:  Junell (Senate Sponsor - Shapiro)                H.B. No. 3368

 1-2           (In the Senate - Received from the House May 5, 1997;

 1-3     May 6, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 18, 1997, reported favorably by the following vote:

 1-5     Yeas 13, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the acquisition of real property by the General

 1-9     Services Commission as an alternative to leasing space.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 2166.453, Government Code, is amended to

1-12     read as follows:

1-13           Sec. 2166.453.  ACQUISITION OF REAL PROPERTY [EXISTING

1-14     BUILDING] AS ALTERNATIVE TO LEASING SPACE.  (a)  This section

1-15     applies only to meeting [office] space needs of one or more state

1-16     agencies in a county in which the state leases 50,000 square feet

1-17     or more of [usable office] space.

1-18           (b)  The commission may meet [office] space needs of one or

1-19     more state agencies that are being met through leased space by

1-20     purchasing or constructing one or more [existing] buildings under

1-21     this section.  The purchase or construction of a building may

1-22     include the purchase of the building's grounds and related

1-23     improvements.  The purchase or construction of a building under

1-24     this section must be:

1-25                 (1)  financed through bonds issued by the Texas Public

1-26     Finance Authority; and

1-27                 (2)  approved by the legislature if it is in session or

1-28     by the Legislative Budget Board if the legislature is not in

1-29     session.

1-30           (c)  The commission may purchase or construct a building

1-31     under this section only if the commission determines that the

1-32     projected annual total space occupancy costs of the purchased or

1-33     constructed space will not exceed, over the term of the bonded

1-34     indebtedness, the projected annual total space occupancy costs of

1-35     meeting the same space needs through leased space.

1-36           (d)  If the commission makes the necessary determination

1-37     under Subsection (c) and the purchase or construction is approved

1-38     under Subsection (b), the Texas Public Finance Authority shall

1-39     issue and sell bonds to finance the purchase or construction under

1-40     the Texas Public Finance Authority Act (Article 601d, Vernon's

1-41     Texas Civil Statutes), and the commission may purchase or construct

1-42     the building under that Act and other applicable law.

1-43           (e)  The limitation prescribed by Section 9, Texas Public

1-44     Finance Authority Act (Article 601d, Vernon's Texas Civil

1-45     Statutes), relating to the location of a building for which bonds

1-46     may be issued and sold does not apply to financing the purchase or

1-47     construction of a building under this section.

1-48           (f)  A person from whom real property or an existing building

1-49     or other improvement is purchased under this section shall provide

1-50     to the commission the name and the last known address of each

1-51     person who:

1-52                 (1)  owns record legal title to the real property or

1-53     building or other improvement; or

1-54                 (2)  owns a beneficial interest in the real property or

1-55     building or other improvement through a trust, nominee, agent, or

1-56     other legal entity.

1-57           (g)  If a state agency vacates leased space to move into

1-58     space in a building purchased or constructed under this section or

1-59     if the leased  space itself is purchased under this section, the

1-60     money specifically appropriated by the legislature or the money

1-61     available to and budgeted by the agency for lease payments for the

1-62     leased space for the remainder of the biennium may be used only for

1-63     rental or installment payments for the purchased or constructed

1-64     space under Section 12(b), Texas Public Finance Authority Act

 2-1     (Article 601d, Vernon's Texas Civil Statutes), and for the payment

 2-2     of operating expenses for the purchased or constructed space that

 2-3     are incurred by the commission.  The comptroller may adopt rules

 2-4     for the administration of this subsection.

 2-5           (h)  In this section, "total space occupancy costs" include:

 2-6                 (1)  for leased space, the direct cost of the lease

 2-7     payments for the space;

 2-8                 (2)  for purchased or constructed space, the direct

 2-9     cost of rental or installment payments for the space under Section

2-10     12(b), Texas Public Finance Authority Act (Article 601d, Vernon's

2-11     Texas Civil Statutes);

2-12                 (3)  the cost of necessary renovations;

2-13                 (4)  operating costs, including janitorial and utility

2-14     costs; and

2-15                 (5)  for purchased or constructed space, the cost of

2-16     maintaining a cash replacement reserve sufficient to service

2-17     structural maintenance requirements reflecting the expected

2-18     performance life of the major capital expense items of the building

2-19     for the term of the bonded indebtedness.

2-20           SECTION 2.  This Act takes effect September 1, 1997.

2-21           SECTION 3.  The importance of this legislation and the

2-22     crowded condition of the calendars in both houses create an

2-23     emergency and an imperative public necessity that the

2-24     constitutional rule requiring bills to be read on three several

2-25     days in each house be suspended, and this rule is hereby suspended.

2-26                                  * * * * *