Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  February 28, 1997
      TO: Honorable Fred M. Bosse, Chair            IN RE:  House Bill No. 733
          Committee on Land and Resource Management                              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 Introduced

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 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 
near areas where entertainment businesses are concentrated. 

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 
certain limitations on leasing building space to private tenants 
and require the GSC 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 GSC dedication to 50 percent while 
excluding from dedication all revenues generated by the pilot 
 It is 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 

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, or $149,000 
per year, 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   Change in Number   
            Gain/(Loss) from   of State                                                                   
            General Revenue    Employees from                                                             
            Fund               FY 1997                                                                    
       1998          $573,000               0.0                                                      
       1998           573,000               0.0                                                      
       2000           573,000               0.0                                                      
       2001           573,000               0.0                                                      
       2002           573,000               0.0                                                      
         Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
              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
                                         303   General Services Commission
                      LBB Staff:   JK ,BB ,RN