By Flores                                             H.B. No. 1412
         77R4636 MTB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use and management of real property owned by the
 1-3     Texas Department of Transportation.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subtitle A, Title 6, Transportation Code, is
 1-6     amended by adding Chapter 204 to read as follows:
 1-7      CHAPTER 204.  USE AND MANAGEMENT OF DEPARTMENT PROPERTY; CAPITAL
 1-8                                   CHARGES
 1-9           Sec. 204.001.  DEFINITIONS. In this chapter:
1-10                 (1)  "Capital charge" means an amount paid to the state
1-11     by the department based on real property owned by the department,
1-12     designed to provide budgetary incentives for the department to use
1-13     its property in a cost-effective manner.
1-14                 (2)  "Real property" means land, including improvements
1-15     and fixtures on the land, property of any nature appurtenant to the
1-16     land or used in connection with the land, and a legal or equitable
1-17     estate, interest, or right in land, including leasehold interests,
1-18     terms for years, and a judgment, mortgage, or other lien.
1-19           Sec. 204.002.  REPORT ON REAL PROPERTY; REQUIREMENTS. (a)
1-20     The department shall submit to the General Land Office, on a
1-21     quarterly basis and in a format and manner determined by the
1-22     General Land Office, the following information on any real property
1-23     owned by the department:
1-24                 (1)  total land owned, in acres;
 2-1                 (2)  total building space owned, in square feet;
 2-2                 (3)  location of property owned, by county;
 2-3                 (4)  historical or acquisition costs of property and
 2-4     building space owned, including date of acquisition, method of
 2-5     finance, and nature of any subsequent improvements;
 2-6                 (5)  appraised market value of property, if known,
 2-7     including year of appraisal;
 2-8                 (6)  current use, expected short-term use, and expected
 2-9     long-term use of property;
2-10                 (7)  recommendations on the retention or disposal of
2-11     the property; and
2-12                 (8)  any effects on federal direct and indirect cost
2-13     recovery according to the federal Office of Management and Budget.
2-14           (b)  The General Land Office shall provide the information
2-15     under this section to the comptroller.  The General Land Office, on
2-16     request, shall provide the information to the General Services
2-17     Commission and the Legislative Budget Board.
2-18           (c)  The Legislative Budget Board may request from the
2-19     General Land Office a detailed analysis of real property reported
2-20     under Subsection (a), including potential uses of the property and
2-21     the likelihood of sale or lease of the property in the following
2-22     two-year period.
2-23           Sec. 204.003.  CAPITAL CHARGE ON REAL PROPERTY. (a)  During
2-24     September of each state fiscal year, the department shall pay to
2-25     the state a capital charge in an amount equal to seven percent of
2-26     the appraised value of each item of real property owned by the
2-27     department excluding rights-of-way.
 3-1           (b)  The department may receive legislative appropriations to
 3-2     pay capital charges under this section in an amount equal to a
 3-3     percentage of the department's capital charges for the year
 3-4     computed by dividing the appraised value of real property the
 3-5     General Land Office recommends the department should retain under
 3-6     Section 31.156, Natural Resources Code, by the appraised value of
 3-7     all department real property, excluding rights-of-way.
 3-8           SECTION 2. (a)  Not later than December 1, 2001, the Texas
 3-9     Department of Transportation shall submit to the General Land
3-10     Office the department's first report on real property owned by the
3-11     department, as required by Section 204.002, Transportation Code, as
3-12     added by this Act.
3-13           (b)  Not later than September 1, 2003, the department shall
3-14     determine the appraised value or estimated market value of any real
3-15     property owned by the department.  The department may contract with
3-16     the General Land Office to perform an appraisal or estimate.
3-17           SECTION 3. The department is not required to comply with the
3-18     requirement imposed by Section 204.003, Transportation Code, as
3-19     added by this Act, relating to the payment of a capital charge,
3-20     before September 1, 2003.  If necessary to comply with Section
3-21     204.003, Transportation Code, as added by this Act, the department
3-22     may use the property values from the review under Section 31.156,
3-23     Natural Resources Code.
3-24           SECTION 4. This Act takes effect September 1, 2001.