By Capelo                                             H.B. No. 2943
         77R5209 BDH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the General Services Commission's facilities leasing
 1-3     program.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 2167.003, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 2167.003.  FIRST CONSIDERATION TO HISTORIC STRUCTURE.
 1-8     (a)  In leasing space for the use of a state agency, the commission
 1-9     and the private brokerage or real estate firm obtaining leased
1-10     space on behalf of the commission shall give first consideration to
1-11     a building that is designated as a historic structure under Section
1-12     442.001 or to a building that has been designated a landmark by a
1-13     local governing authority, if:
1-14                 (1)  the building meets requirements and
1-15     specifications; and
1-16                 (2)  the cost is not substantially higher than the cost
1-17     for other available buildings that meet requirements and
1-18     specifications.
1-19           (b)  When it considers leasing space for a state agency, the
1-20     private brokerage or real estate firm obtaining leased space on
1-21     behalf of the commission shall notify each individual and
1-22     organization that is:
1-23                 (1)  on a list furnished to the commission or firm by
1-24     the Texas Historical Commission under Section 442.005; and
 2-1                 (2)  in the county in which the commission is
 2-2     considering leasing space.
 2-3           (c)  At the end of a biennium, the commission shall report to
 2-4     the legislature the [commission's] reasons for rejecting during the
 2-5     biennium the lease of any historic structure that was offered as
 2-6     [in a bid to] lease space to the state.
 2-7           SECTION 2. Section 2167.0051(b), Government Code, is amended
 2-8     to read as follows:
 2-9           (b)  An institution of higher education may lease classroom
2-10     and instructional space through a competitive bidding process [in
2-11     accordance with Section 2167.053] or through a process of
2-12     competitive sealed proposals [in accordance with Section 2167.054]
2-13     or may negotiate for that space on making a determination that
2-14     competition is not available and shall include provisions to obtain
2-15     a lease contract for classroom and instructional space in
2-16     accordance with Section 2167.053 [2167.055].
2-17           SECTION 3. Section 2167.007(c), Government Code, is amended
2-18     to read as follows:
2-19           (c)  The commission shall:
2-20                 (1)  establish a system of charges and billings to
2-21     assure the recovery of the cost of providing services under
2-22     Subsection (a);
2-23                 (2)  charge an hourly rate under Subdivision (1) for
2-24     the time during which a commission employee is providing the
2-25     services; and
2-26                 (3)  [shall] submit, after the close of each month, a
2-27     purchase voucher or journal voucher to an agency for which services
 3-1     were provided.
 3-2           SECTION 4. Subchapter B, Chapter 2167, Government Code, is
 3-3     amended to read as follows:
 3-4         SUBCHAPTER B. PROCEDURES FOR LEASING SPACE; LEASE CONTRACT
 3-5           Sec. 2167.051.  USE OF PRIVATE FIRMS TO OBTAIN SPACE.
 3-6     (a)  Using a competitive bidding process, the commission shall
 3-7     contract with one or more private brokerage or real estate firms to
 3-8     obtain lease space for state agencies on behalf of the commission
 3-9     under this chapter.  The commission may adopt rules the commission
3-10     considers necessary to administer this section.
3-11           (b)  A private brokerage or real estate firm with which the
3-12     commission contracts under Subsection (a) may negotiate on behalf
3-13     of the commission in leasing facilities under this chapter.  In
3-14     negotiating on behalf of the commission, the firm shall attempt to
3-15     secure a leasing arrangement that is the best value available and
3-16     that is in the state's best interest.
3-17           (c)  The commission must approve any leasing arrangement
3-18     negotiated by a private brokerage or real estate firm on behalf of
3-19     the commission under this section. The leasing arrangement is
3-20     considered to be a lease contract entered into by the commission,
3-21     and the commission retains lease oversight and management functions
3-22     under the lease contract.
3-23           Sec. 2167.052.  LEASING SPACE FROM ANOTHER GOVERNMENTAL
3-24     ENTITY OR FROM PRIVATE SOURCE. Space may be leased:
3-25                 (1)  through an interagency contract from another state
3-26     agency; or
3-27                 (2)  through a negotiated contract from:
 4-1                       (A)  the federal government;
 4-2                       (B)  a political subdivision, including a county,
 4-3     municipality, school district, water or irrigation district,
 4-4     hospital district, council of governments, or regional planning
 4-5     commission;
 4-6                       (C)  a statewide Texas public retirement system
 4-7     in a commercial building that is completely owned, directly or
 4-8     indirectly, by the retirement system; [or]
 4-9                       (D)  a children's advocacy center established
4-10     under Subchapter E, Chapter 264, Family Code; or
4-11                       (E)  any private source.
4-12           [Sec. 2167.052.  LEASING SPACE FROM PRIVATE SOURCE.
4-13     (a)  Space may be leased from a private source through:]
4-14                 [(1)  competitive bidding; or]
4-15                 [(2)  competitive sealed proposals under Section
4-16     2167.054.]
4-17           [(b)  The commission may negotiate for space on making a
4-18     written determination that competition is not available.]
4-19           [Sec. 2167.053.  LEASING SPACE THROUGH COMPETITIVE BIDDING.
4-20     (a)  When space is leased through competitive bidding, the
4-21     commission shall determine the lowest and best bid after
4-22     considering moving costs, the cost of time lost in moving, the cost
4-23     of telecommunications services, and other relevant factors.]
4-24           [(b)  The commission shall send to the leasing state agency:]
4-25                 [(1)  a copy of all bids received; and]
4-26                 [(2)  the commission's recommended award.]
4-27           [(c)  If, after review of the bids and evaluation of all
 5-1     relevant factors, the leasing state agency's opinion is that the
 5-2     bid selected by the commission is not the lowest and best bid, it
 5-3     may file with the commission a written recommendation that the
 5-4     award be made to a bidder other than the commission's recommended
 5-5     bidder.  The leasing state agency's recommendation must contain the
 5-6     agency's justification for its recommendation and a complete
 5-7     explanation of all factors it considered.]
 5-8           [(d)  The commission shall fully consider the leasing state
 5-9     agency's recommendation and, if it does not agree, shall notify the
5-10     agency of its disagreement in writing.  The leasing state agency
5-11     and the commission shall attempt to agree on the award.]
5-12           [(e)  If the commission and the leasing state agency do not
5-13     agree within 30 days, all bids and pertinent documents shall be
5-14     sent to the governor.  The governor shall designate the bidder to
5-15     which the award shall be made.]
5-16           [Sec. 2167.054.  LEASING SPACE THROUGH COMPETITIVE SEALED
5-17     PROPOSALS. (a)  The commission may lease space using competitive
5-18     sealed proposals if the commission first determines that
5-19     competitive bidding is not practical or is disadvantageous to the
5-20     state.]
5-21           [(b)  The commission shall solicit proposals by publishing a
5-22     notice of request for proposals in:]
5-23                 [(1)  the Texas Register; and]
5-24                 [(2)  a newspaper of general circulation in the county
5-25     in which the space is to be leased.]
5-26           [(c)  The commission shall open each proposal in a manner
5-27     that does not disclose the contents of the proposal during the
 6-1     process of negotiating with competing offerors.]
 6-2           [(d)  As provided in a request for proposals and under rules
 6-3     adopted by the commission, the commission may discuss acceptable or
 6-4     potentially acceptable proposals with offerors to assess an
 6-5     offeror's ability to meet the solicitation requirements and to
 6-6     obtain the most advantageous lease contract for the state.  The
 6-7     commission shall invite a leasing state agency to participate in
 6-8     discussions and negotiations conducted under this section.  After
 6-9     receiving a proposal but before making an award, the commission may
6-10     permit the offeror to revise the proposal to obtain the best final
6-11     proposal.]
6-12           [(e)  The commission may not disclose information derived
6-13     from proposals submitted from competing offerors in conducting
6-14     discussions under Subsection (d).]
6-15           [(f)  The commission shall provide each offeror whose
6-16     proposal meets the minimum requirements in the request for
6-17     proposals a reasonable opportunity to discuss and revise its
6-18     proposal.]
6-19           [(g)  The commission shall make a written award of a lease to
6-20     the offeror whose proposal is the most advantageous to the state,
6-21     considering price and the evaluation factors in the request for
6-22     proposals.  The commission may not use other factors or criteria in
6-23     its evaluation.  The commission shall state in writing in the
6-24     contract file the reasons for which an award is made.]
6-25           [(h)  The commission shall refuse all proposals if it
6-26     determines that none of the proposals is acceptable.]
6-27           [(i)  If the competitive sealed proposal procedure for
 7-1     leasing space is used by an institution of higher education that
 7-2     has been delegated leasing authority under Section 2167.005, the
 7-3     institution:]
 7-4                 [(1)  must first determine that competitive bidding is
 7-5     not practical or is disadvantageous to the state; and]
 7-6                 [(2)  shall follow the procedures outlined by this
 7-7     section and any rules adopted by the commission.]
 7-8           Sec.  2167.053 [2167.055].  CONTRACT FOR LEASE OF SPACE.
 7-9     (a)  In a contract by the commission for the lease of space under
7-10     this chapter, the state, acting through the commission, is the
7-11     lessee.
7-12           (b)  [The lease contract must reflect the provisions
7-13     contained in the invitation for bids or request for proposals, the
7-14     successful bid or proposal, and the award of the contract.]
7-15           [(c)]  A lease contract may:
7-16                 (1)  provide for an original term that does not exceed
7-17     10 years; and
7-18                 (2)  include options to renew for as many terms that do
7-19     not exceed 10 years each as the commission considers to be in the
7-20     state's best interest.
7-21           (c) [(d)]  A lease contract that does not contain an option
7-22     to renew may, on agreement of the parties, be renewed once under
7-23     the provisions of the original contract for a term that does not
7-24     exceed one year.
7-25           (d) [(e)]  A lease contract is contingent on the availability
7-26     of money appropriated by the legislature to pay for the lease.
7-27           (e) [(f)]  The obligation of the lessor to provide lease
 8-1     space and of the commission to accept the space is binding on the
 8-2     award of the contract.
 8-3           Sec. 2167.054 [2167.056].  OPTION TO PURCHASE. (a)  If the
 8-4     commission considers it advisable, the commission may lease space
 8-5     for a state agency under a contract that contains an option for the
 8-6     commission to purchase the space subject to the legislature's
 8-7     appropriation of money for the purchase.
 8-8           (b)  A lease contract containing the option must indicate:
 8-9                 (1)  the amount that will accumulate and be credited
8-10     toward the purchase at various times during the lease term; and
8-11                 (2)  the purchase price of the property at the
8-12     beginning of each fiscal biennium during the lease term.
8-13           SECTION 5.  (a)  As soon as possible after the effective date
8-14     of this Act, the General Services Commission shall enter into one
8-15     or more contracts with private brokerage or real estate firms to
8-16     obtain leased space for state agencies on behalf of the commission
8-17     under Chapter 2167, Government Code, as amended by this Act.
8-18     Chapter 2167, Government Code, as amended by this Act, applies to a
8-19     subsequent leasing arrangement negotiated by a private brokerage or
8-20     real estate firm on behalf of and entered into by the commission.
8-21           (b)  Until June 1, 2002, the commission may enter into a
8-22     lease contract under Chapter 2167, Government Code, as it existed
8-23     immediately before the effective date of this Act, to lease space
8-24     in an area of the state for which the commission has not yet
8-25     contracted with one or more private brokerage or real estate firms
8-26     to negotiate leasing arrangements on behalf of the commission.
8-27           (c)  A lease contract entered into by the commission under
 9-1     Subsection (b) of this section or entered into before the effective
 9-2     date of this Act under Chapter 2167, Government Code, is governed
 9-3     during the remaining term of the lease by Chapter 2167, Government
 9-4     Code, as it existed immediately before the effective date of this
 9-5     Act, and the prior law is continued in effect for this purpose.
 9-6     Chapter 2167, Government Code, as amended by this Act, applies to
 9-7     the renewal of a lease described by this subsection.
 9-8           SECTION 6.  This Act takes effect September 1, 2001.