HBA-ALS H.B. 3419 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3419
By: Maxey
Land & Resource Management
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

The Hobby Building complex consists of three blocks of state-owned land in
downtown Austin, Texas, which include the Hobby Building, a surface parking
lot, and a parking garage.  The building is currently on the list of
surplus state land to be sold and the General Service Commission's master
plan calls for the consolidation of state offices at the Capitol Complex
and the Robert Mueller airport redevelopment site.  The City of Austin's
long-term development plans call for the consolidation of city offices and
the construction of a new city hall in the same general downtown area as
the Hobby complex.  H.B. 3419 allows the General Services Commission to
sell the Hobby complex to the City of Austin. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  (a)  Authorizes the General Services Commission (commission) to
convey, on behalf of the state, the state's interest in the real property
described by Subsection (e) of this section to the City of Austin (city). 
 
(b)  Requires that a purchase and sale agreement relating to the conveyance
authorized by this section be for cash consideration in an amount no less
than equal to the fair market value of the property as determined by an
independent appraisal obtained by the General Services Commission and
closing to occur at the mutual convenience of the parties, and authorizes
such an agreement to require other terms and conditions negotiated by the
commission and the city. 
   
(c)  Authorizes the commission to transfer the real property only by a
special warranty deed.  

(d)  Provides that Section 31.158 (Real Estate Transaction Authorized by
Legislature), Natural Resources Code, does not apply to the conveyance
authorized by this section.  

(e) Describes the real property to be conveyed under this section.
 
SECTION 2.  Requires the proceeds from the conveyance to be deposited in
the state treasury to be used only by the commission for deposit into the
interest and sinking fund of the outstanding bonds related to the real
property described in amounts sufficient to defease said bonds.  

SECTION 3.  Emergency clause.
  Effective date: upon passage.