By Staples S.B. No. 1604 77R4007 BDH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the use and management of certain state-owned real 1-3 property. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle E, Title 10, Government Code, is amended 1-6 by adding Chapter 2206 to read as follows: 1-7 CHAPTER 2206. USE AND MANAGEMENT OF STATE PROPERTY; CAPITAL 1-8 CHARGES 1-9 SUBCHAPTER A. GENERAL PROVISIONS 1-10 Sec. 2206.001. DEFINITIONS. In this chapter: 1-11 (1) "Capital charge" means an amount paid to the state 1-12 by a state agency based on real property owned by the agency and 1-13 designed to provide budgetary incentives for an agency to use its 1-14 property in a cost-effective manner. 1-15 (2) "Real property" means land, including improvements 1-16 and fixtures on the land, property of any nature appurtenant to the 1-17 land or used in connection with the land, and a legal or equitable 1-18 estate, interest, or right in land, including leasehold interests, 1-19 terms for years, and a judgment, mortgage, or other lien. 1-20 (Sections 2206.002-2206.010 reserved for expansion) 1-21 SUBCHAPTER B. INFORMATION ON REAL PROPERTY 1-22 Sec. 2206.011. CONSOLIDATED REAL PROPERTY DATABASE. The 1-23 General Land Office, the General Services Commission, and the 1-24 comptroller shall: 2-1 (1) consolidate their respective databases of real 2-2 property owned by the state; and 2-3 (2) adopt reporting standards established by the 2-4 Governmental Accounting Standards Board. 2-5 Sec. 2206.012. REPORT ON REAL PROPERTY; REQUIREMENTS. (a) 2-6 Each state agency shall submit to the General Land Office, on a 2-7 quarterly basis and in a format and manner determined by the 2-8 General Land Office, the following information on any real property 2-9 owned by the agency: 2-10 (1) total land owned, in acres; 2-11 (2) location of property owned, by county; 2-12 (3) historical or acquisition costs of property owned, 2-13 including date of acquisition, method of finance, and nature of any 2-14 subsequent improvements; 2-15 (4) appraised market value of property, if known, 2-16 including year of appraisal; 2-17 (5) current use, expected short-term use, and expected 2-18 long-term use of property; 2-19 (6) recommendations on the retention or disposal of 2-20 the property; and 2-21 (7) any effects on federal direct and indirect cost 2-22 recovery according to the federal Office of Management and Budget. 2-23 (b) The General Land Office shall provide the information 2-24 under this section to the comptroller. The General Land Office, on 2-25 request, shall provide the information to the General Services 2-26 Commission and the Legislative Budget Board. 2-27 (c) The Legislative Budget Board may request from the 3-1 General Land Office a detailed analysis of real property reported 3-2 under Subsection (a), including potential uses of the property and 3-3 the likelihood of sale or lease of the property in the following 3-4 two-year period. 3-5 (d) The comptroller shall modify any accounting systems of 3-6 the comptroller's office as necessary to accept and translate data 3-7 received under this section. 3-8 (Sections 2206.013-2206.020 reserved for expansion) 3-9 SUBCHAPTER C. CAPITAL CHARGES 3-10 Sec. 2206.021. CAPITAL CHARGE ON REAL PROPERTY. (a) During 3-11 September of each state fiscal year, each state agency shall pay to 3-12 the state a capital charge in an amount equal to seven percent of 3-13 the fair market value of each item of real property owned by the 3-14 agency. If the fair market value is unavailable, the agency shall 3-15 pay a charge based on the historical costs of the property. 3-16 (b) The Legislative Budget Board may assess a different 3-17 value to real property owned by a state agency from the value 3-18 submitted by the agency under Subsection (a). 3-19 (c) A state agency may not receive legislative 3-20 appropriations to pay capital charges under this section in an 3-21 amount equal to the net amount of capital charge assessments less 3-22 an amount equal to not more than 100 percent or less than 90 3-23 percent of the agency's capital charges for the year. 3-24 Sec. 2206.022. PROCEEDS FROM SALE OF REAL PROPERTY. 3-25 Notwithstanding any other provisions of this code, the proceeds 3-26 from a state agency's sale of real property owned by the agency 3-27 shall be used to pay any existing capital charges, and at least 60 4-1 percent of any remaining amount shall be credited to the agency's 4-2 budget, as determined by the Legislative Budget Board. 4-3 SECTION 2. (a) Not later than December 1, 2001, each state 4-4 agency shall submit to the General Land Office the agency's first 4-5 report on real property owned by the agency, as required by Section 4-6 2206.012, Government Code, as added by this Act. 4-7 (b) Not later than September 1, 2002, the General Land 4-8 Office, the General Services Commission, and the comptroller of 4-9 public accounts shall each adopt reporting standards established by 4-10 the Governmental Accounting Standards Board, as required by Section 4-11 2206.011, Government Code, as added by this Act. 4-12 (c) Not later than September 1, 2003, a state agency 4-13 required to submit a report under Section 2206.012, Government 4-14 Code, as added by this Act, shall determine the appraised value or 4-15 estimated market value of any real property owned by the agency. 4-16 An agency may contract with the General Land Office to perform an 4-17 appraisal or estimate. 4-18 SECTION 3. A state agency is not required to comply with the 4-19 requirement imposed by Section 2206.021, Government Code, as added 4-20 by this Act, relating to the payment of a capital charge, before 4-21 September 1, 2003. 4-22 SECTION 4. This Act takes effect September 1, 2001.