By Isett                                              H.B. No. 1623
         77R4679 BDH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to accounting procedures for structural components of
 1-3     certain state buildings.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 2101, Government Code, is
 1-6     amended by adding Section 2101.015 to read as follows:
 1-7           Sec. 2101.015.  COMPONENTIZATION FOR AGENCY RECEIVING FEDERAL
 1-8     FUNDS. (a)  In this section "componentization" means the process of
 1-9     separately calculating the depreciation of major building
1-10     structural components, subsystems, and equipment.
1-11           (b)  This section applies only to a state agency that
1-12     receives federal funds to implement federal or joint federal and
1-13     state programs.
1-14           (c)  A state agency shall complete a componentization of any
1-15     agency-owned building with a fair market value of at least $1
1-16     million.  As each building component is replaced, it shall be
1-17     separately depreciated based on its individual useful life.  At a
1-18     minimum, the agency shall complete any componentization using the
1-19     following component categories and suggested useful lives:
1-20                 (1)  building shell, 30 years;
1-21                 (2)  electrical and lighting systems, 20 years;
1-22                 (3)  plumbing systems, 20 years;
1-23                 (4)  fire protection systems, 20 years;
1-24                 (5)  elevator systems, 20 years;
 2-1                 (6)  fixed equipment assets, 20 years;
 2-2                 (7)  heating, ventilation, and cooling systems, 15
 2-3     years;
 2-4                 (8)  floor coverings, 15 years;
 2-5                 (9)  interior finish, 15 years;
 2-6                 (10)  miscellaneous construction features, 15 years;
 2-7     and
 2-8                 (11)  roof coverings, 10 years.
 2-9           (d)  The comptroller by rule may modify the schedule
2-10     prescribed by Subsection (c).
2-11           SECTION 2.  This Act takes effect September 1, 2001, and
2-12     applies only to expenditures on building components, subsystems,
2-13     and equipment by state agencies on or after that date.
2-14     Expenditures made before the effective date of this Act are
2-15     governed by the law in effect immediately before the effective date
2-16     of this Act, and that law is continued in effect for that purpose.