1-1     By:  Shapleigh                                         S.B. No. 896

 1-2           (In the Senate - Filed March 3, 1997; March 6, 1997, read

 1-3     first time and referred to Committee on Finance; April 21, 1997,

 1-4     reported adversely, with favorable Committee Substitute by the

 1-5     following vote:  Yeas 10, Nays 0; April 21, 1997, sent to printer.)

 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 896                 By:  Moncrief

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the lease of certain state facilities.

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

1-11           SECTION 1.  Section 2165.203, Government Code, is amended to

1-12     read as follows:

1-13           Sec. 2165.203.  LEASE; FAIR MARKET VALUE.  (a)  In a

1-14     state-owned building that is under the commission's control and

1-15     that is used primarily for office space or vehicle parking for

1-16     state government, the commission may lease at fair market value

1-17     space to private tenants for commercial, cultural, educational, or

1-18     recreational activities.

1-19           (b)  In offering space in a state-owned building under this

1-20     section, the commission may not include contract provisions that

1-21     would tend to diminish the value of the lease space of surrounding

1-22     privately owned buildings.

1-23           SECTION 2.  Subchapter E, Chapter 2165, Government Code, is

1-24     amended by adding Section 2165.2035 to read as follows:

1-25           Sec. 2165.2035.  PILOT PROGRAM.  (a)  The commission shall

1-26     establish a pilot program to develop private, commercial uses for

1-27     state-owned parking lots and garages located in the city of Austin

1-28     in the area bordered by West Fourth Street, Lavaca Street, West

1-29     Third Street, and Nueces Street.

1-30           (b)  The commission shall contract with a private vendor to

1-31     manage the commercial use of state-owned parking lots and garages.

1-32           (c)  Money received from a lease under this program shall be

1-33     deposited to the credit of the general revenue fund.

1-34           (d)  On or before December 1 of each even-numbered year, the

1-35     commission shall submit a report to the legislature and the

1-36     Legislative Budget Board describing the effectiveness of the pilot

1-37     program.

1-38           (e)  The limitation on the amount of space allocated to

1-39     private tenants prescribed by Section 2165.205(b) does not apply to

1-40     the lease of a state-owned parking lot or garage under this

1-41     section.

1-42           (f)  Any lease of a state-owned parking lot or garage under

1-43     this section must contain a provision that allows state employees

1-44     who work hours other than regular working hours under Section

1-45     658.005 to retain their parking privileges in a state-owned parking

1-46     lot or garage.

1-47           SECTION 3.  Section 2165.205, Government Code, is amended to

1-48     read as follows:

1-49           Sec. 2165.205.  LIMITATIONS ON AMOUNT, LOCATION, AND USE OF

1-50     LEASED SPACE.  (a)  [The commission may not lease space to a

1-51     private tenant for use as private office space unless the private

1-52     office space is related and incidental to another commercial,

1-53     cultural, educational, recreational, or child care activity of the

1-54     tenant in the building.]

1-55           [(b)]  Except as provided by this subchapter and Chapter 663,

1-56     the commission or a state agency with charge and control of a state

1-57     building shall determine the amount of space in a building to be

1-58     allocated to private tenants and the types of activities in which

1-59     the tenants may engage according to the market for certain

1-60     activities among employees and visitors in the building and in the

1-61     vicinity of the building.

1-62           (b) [(c)]  Except as provided by Section 2165.215, the amount

1-63     of space allocated to private tenants may not exceed 15 percent of

1-64     the total space in the building.  Space leased to provide child

 2-1     care services for state employees does not count toward the 15

 2-2     percent maximum.

 2-3           (c)  The commission or a state agency with charge and control

 2-4     of a state building may enter into a short-term lease with a

 2-5     private tenant for the use of certain facilities, including

 2-6     conference rooms and training facilities.

 2-7           [(d)  If the commission allocates space in a building to a

 2-8     private tenant, it shall encourage the tenant to lease space with

 2-9     street frontage or space in another area of heavy pedestrian

2-10     activity.]

2-11           SECTION 4.  Section 2165.211, Government Code, is amended to

2-12     read as follows:

2-13           Sec. 2165.211.  USE OF LEASE PROCEEDS.  (a)  Except as

2-14     provided by Subsections (b) and (c), money [Money] received from a

2-15     lease under Section 2165.203 or any other lease of a state-owned

2-16     building under the commission's control under this subchapter may

2-17     be used only for building and property services performed by the

2-18     commission.

2-19           (b)  One-half of the money received by the commission or a

2-20     state agency with charge and control of a state building from a

2-21     lease under Section 2165.205(c) may be used only for building and

2-22     property services performed by the commission or the state agency.

2-23           (c)  This section does not apply to a lease under Section

2-24     2165.2035.

2-25           SECTION 5.  Subsection (c), Section 2166.102, Government

2-26     Code, is amended to read as follows:

2-27           (c)  The master facilities plan must contain:

2-28                 (1)  a projection of the amount of space needed by

2-29     state agencies;

2-30                 (2)  an examination of the use, age, condition, and

2-31     economic life of state-owned buildings on the commission's

2-32     inventory;

2-33                 (3)  an analysis, in accordance with Subchapter D, of

2-34     projects that have been requested by state agencies;

2-35                 (4)  an examination of the extent to which the state

2-36     satisfies its need for space by leasing building space;

2-37                 (5)  an examination of state-paid operation and

2-38     maintenance costs, including costs for telecommunications services,

2-39     for existing buildings owned or leased by the state;

2-40                 (6)  a discussion of the economic and market conditions

2-41     affecting the costs of the construction or lease of buildings;

2-42                 (7)  an analysis of whether the state will benefit more

2-43     from satisfying its needs for space by:

2-44                       (A)  engaging in new projects;

2-45                       (B)  leasing built space; or

2-46                       (C)  satisfying its needs in another manner;

2-47     [and]

2-48                 (8)  an examination of the location, size, and type of

2-49     building space that is available for lease to private tenants;

2-50                 (9)  an examination of the extent to which the state

2-51     maximizes the use of existing buildings by leasing space to private

2-52     tenants; and

2-53                 (10)  other information relevant to the long-range plan

2-54     that is:

2-55                       (A)  considered appropriate by the commission; or

2-56                       (B)  requested in writing by the governor or the

2-57     presiding officer of either house of the legislature.

2-58           SECTION 6.  The importance of this legislation and the

2-59     crowded condition of the calendars in both houses create an

2-60     emergency and an imperative public necessity that the

2-61     constitutional rule requiring bills to be read on three several

2-62     days in each house be suspended, and this rule is hereby suspended,

2-63     and that this Act take effect and be in force from and after its

2-64     passage, and it is so enacted.

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