SRC-SEW S.B. 1745 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1745
By: Haywood
State Affairs
5/4/2001
As Filed


DIGEST AND PURPOSE 

Currently, a governmental entity is authorized to lease space to a private
business.  These entities do so in direct competition with private
enterprise.  Government entities do not pay ad valorem taxes and thus are
at a competitive advantage over the private sector. This creates unfair
competition between government and private business.  As proposed, S.B.
1745 prohibits the lease of office building space by government entities.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 10E, Government Code, by adding Chapter 2206, as
follows: 

CHAPTER 2206.  LEASING OF GOVERNMENT PROPERTY

 Sec. 2206.001.  DEFINITION.  Defines "state or local governmental entity."

Sec. 2206.002.  EXCEPTION.  Provides that this chapter does not apply to
certain institutions of higher education and to public school districts. 

Sec. 2206.003.  GENERAL PROHIBITION ON LEASING GOVERNMENT PROPERTY.
Prohibits a state or local governmental entity from leasing or subleasing
space in an office building owned or leased by the governmental entity to
another state or local governmental entity or a private entity.  Provides
that this section does not apply to certain leases.  Provides that this
section does not apply to the lease of space in an office building for a
vending facility. 

SECTION 2.  Effective date: September 1, 2001.