LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 22, 1997
TO: Honorable James E. "Pete" Laney IN RE: House Bill No. 733,
As Passed 2nd House
Speaker of the House Raymond
House of Representatives
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 Passed 2nd House
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.
Under
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.
Methodolgy
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.
In
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
Fund
0001
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
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