By Duncan S.B. No. 642
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.