Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  May 14, 1997
      TO: Honorable Bill Ratliff, Chair            IN RE:  House Bill No. 733, 
As Engrossed
          Committee on Finance                              By: Raymond
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on HB733 ( relating 
to the lease of certain state facilities) this office has detemined 
the following:
         Biennial Net Impact to General Revenue Funds by HB733-As Engrossed

Implementing the provisions of the bill would result in a 
net positive impact of $1,146,000 to General Revenue Related 
Funds through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.

Fiscal Analysis
The bill would amend the Subchapter E of the Government Code 
to establish a pilot program to develop private, commercial 
uses for state-owned parking lots and garages in the city of 
Austin in the area bordered by West Fourth Street, Lavaca Street, 
West Third Street, and Nueces Street.  

The bill would allow 
the General Services Commission (GSC) to contract with a private 
vendor to manage the commercial use of state-owned parking facilities. 
 All of the proceeds collected under this pilot program would 
be deposited to the credit of the General Revenue Fund.  The 
bill would require GSC to submit, on or before December 1 of 
each even-numbered year, a report to the Legislature and to 
the Legislative Budget Board describing the effectiveness of 
the pilot program.  The bill would remove limitations on leasing 
building space to private tenants and require the GSC or a state 
agency with charge and control of a state building to prescribe 
rules relating to short-term leases with private tenants.  

current law, all of the money received from a lease under Subchapter 
E may be used by the GSC for the performance of building and 
property services.  This bill would reduce the proportion under 
dedication to 50 percent and exclude from dedication all revenues 
generated by the pilot program.

The bill would allow GSC 
or a state agency with charge and control of a state building 
to enter into a short-term lease for a period not to exceed 
seven days with a private tenant for use of certain facilities.
It estimated that the pilot parking project would include 1,133 
parking spaces and would generate an estimated $424,000 a year 
for the General Revenue Fund, beginning in fiscal year 1998.

addition, it is estimated that short-term leasing of underused 
space would generate $298,000 annually.  This estimate assumes 
that 10 percent of the available conference and training rooms 
in GSC s state-owned buildings in Austin would be leased once 
a year.  The bill would allow GSC to use one-half of the revenue 
for building and property services performed by GSC.  This estimate 
assumes that the remaining revenue would be deposited in the 
General Revenue Fund.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue   
            Gain/(Loss) from                                                                              
            General Revenue                                                                               
       1998          $573,000                                                                        
       1998           573,000                                                                        
       2000           573,000                                                                        
       2001           573,000                                                                        
       2002           573,000                                                                        
         Net Impact on General Revenue Related Funds:

              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
               1998             $573,000
               1999              573,000
               2000              573,000
               2001              573,000
               2002              573,000
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
   Source:            Agencies:   304   Comptroller of Public Accounts
                      LBB Staff:   JK ,RR ,BB ,RN