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.