H.B. 82 78(1)    BILL ANALYSIS


H.B. 82
By: Hamric
Government Reform
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

 The State Aircraft Pooling Board (SAPB) provides charter service for
Texas state government officials and employees for less than its full cost
of operation, using an aging fleet of aircraft with high maintenance
costs.  SAPB is based in a state facility adjacent to Austin-Bergstrom
International Airport, and provides maintenance service for about 37 state
aircraft, including the 11 operated by SAPB.  Agencies other than SAPB
that own aircraft include:  Texas A&M University (two); Texas Department
of Criminal Justice (two); Texas Forest Service (one); Texas Parks and
Wildlife Department (four); Texas Department of Public Safety (15); The
University of Texas System (one); and, Texas State Technical College (19).

 State law requires SAPB to operate on a cost-recovery basis, recovering
direct costs through charges on its users.  These charges, however, do not
include several important business costs, including capital expenditures
for new aircraft, building expenses, custodial services, and other general
support.  The agency charges hourly rates based on the aircraft and the
requesting entity involved.  SAPB pilots are underused and fly only about
half the hours of comparable charter service pilots.  Moreover, about half
of SAPB's flights go to destinations already served by commercial
airlines.  Passengers associated with state universities account for
almost 58 percent of the total SAPB passengers, the majority of them from
university athletic departments.  

 House Bill 82 abolishes the State Aircraft Pooling Board (SAPB) and
transfers the maintenance functions of the agency to the Texas Department
of Public Safety (DPS).  In addition, the bill: 
 (1)liquidates all SAPB equipment, except equipment to be transferred to
DPS for maintenance operations; 
 (2)liquidates all SAPB assets, except for the two newest King Air 200
aircraft; and, 
 (3)sells all SAPB real estate, except the maintenance and hanger
facilities at AustinBergstrom International Airport which may be leased or
sold. 
Charter services formerly performed by the SAPB would be coordinated by
DPS. 


RULEMAKING AUTHORITY

SECTION 11 [Section 2205.043(b), Government Code] requires DPS to adopt
rules consistent with Subtitle A, Title 11, Government Code. 


ANALYSIS

 SECTION 1.  Amends heading to Chapter 2205, Government Code, as follows:
 CHAPTER 2205.  STATE-OPERATED AIRCRAFT

 SECTION 2.  Amends Subchapter B, Chapter 2205, Government Code, by adding
Section 2205.0315 as follows: 
  Section 2205.0315:defines references within the chapter to "department"
as DPS. 




  SECTION 3.  Amends Section 2205.032, Government Code, as follows:
  Sec. 2205.032.  TRANSPORTATION AND MAINTENANCE
Section 2205.32(a):requires DPS to maintain all state aircraft.
Section 2205.32(b):authorizes DPS to provide passenger transportation
under Section 2205.036, Transportation Code. 

 SECTION 4.  Amends Section 2205.034, Government Code, as follows:
Section 2205.34(a):makes conforming changes authorizing DPS, rather than
SAPB, to acquire facilities. 
Section 2205.34(b):makes conforming changes prohibiting, except in cases
of emergency, an agency that operates aircraft from using a facility in
Austin other than a facility operated by DPS, rather than SAPB. 

 SECTION 5.  Amends Section 2205.036, Government Code, as follows:
  Section 2205.036:makes conforming changes requiring DPS, rather than
SAPB, to coordinate charter aircraft transportation for various passengers
and requires DPS to monitor and ensure compliance with this section. 

 SECTION 6.  Amends Subchapter B, Chapter 2205, Government Code, by adding
Section 2205.0365 as follows: 
  Sec. 2205.0365.  CONTRACTS
  Section 2205.0365(a):authorizes DPS to negotiate contracts with private
charter aircraft providers to obtain the most cost-effective rates
possible for transportation of state officers and employees traveling on
official business. 
  Section 2205.0365(b):authorizes DPS to contract with a flight safety
consultant in developing safety guidelines for charter aircraft providers. 
  Section 2205.0365(c):authorizes a contract described in Subsection (a)
to provide that: 
      (1) a state agency using charter services shall pay the charter
aircraft provider directly for charter services; or 
      (2) DPS shall pay the charter aircraft provider for services and be
reimbursed by the state agency using the charter service. 

 SECTION 7.  Amends Section 2205.038, Government Code, as follows:
  Section 2205.038(a):makes conforming changes requiring DPS, rather than
SAPB, to undertake the following: 
      (1)preparation of a manual that establishes minimum operating
standards for state agencies and charter aircraft providers serving the
state; and 
      (2)adoption of procedures for the distribution of such manual.
  Section 2205.038(b):makes conforming changes for the provisions of the
manual. 
  Section 2205.038(c):makes conforming changes requiring DPS, rather than
SAPB, to confer with and solicit the written advice of state agencies that
operate state-owned aircraft and state agencies DPS determines are
principal users of aircraft operated by SAPB and, to the extent
practicable, incorporate that advice into the manual. 
   Section 2205.038(d): makes conforming changes requiring DPS, rather
than SAPB, to give an statewide elected official priority in scheduling
charters; and, makes conforming changes authorizing DPS, rather than SAPB,
to require appropriate advance notice, rather than 12-hour notice, by the
statewide elected official in order to obtain priority scheduling. 

 SECTION 8.  Amends Section 2205.039, Government Code, as follows:
  Section 2205.039:makes conforming changes requiring DPS, rather than
SAPB, to work in cooperation with the Legislative Budget Board (LBB)
regarding the development of and criteria for travel logs; requires DPS to
monitor and ensure compliance with this section; and, requires DPS to
annually report to the LBB on air travel information received under this
section. 

 SECTION 9.  Amends Section 2205.040, Government Code, as follows:
  Section 2205.040makes conforming changes requiring DPS, rather than
SAPB, to adopt rates for interagency aircraft services sufficient to
recover all direct and indirect costs; and, requires LBB, in cooperation
with DPS and the state auditor, to prescribe a billing procedure for
passenger travel. 

 SECTION 10.  Amends Section 2205.041(a), Government Code, as follows:
  Section 2205.041(a):makes conforming changes requiring DPS, rather than
SAPB, to work in cooperation with LBB regarding the development and
submission of an annual aircraft use form. 

 SECTION 11.  Amends Section 2205.043(b), Government Code, as follows:
  Section 2205.043(b):makes conforming changes requiring DPS, rather than
SAPB, to adopt rules consistent with federal and state regulations
governing the color, size, and location of marks of identification
required by the section. 

 SECTION 12.  Amends Section 2205.044, Government Code, as follows:
  Section 2205.044:makes conforming changes authorizing DPS, rather than
SAPB, to contract with a state or local government agency or political
subdivision to provide aircraft fuel or maintenance. 

 SECTION 13.  Amends Section 2205.045(a), Government Code, as follows:
  Section 2205.045(a):makes conforming changes requiring DPS, rather than
SAPB, to negotiate insurance loss and liability contracts to protect the
state. 

 SECTION 14.  Amends Section 2205.047, Government Code, as follows:
  Section 2204.47:makes conforming changes requiring DPS, rather than
SAPB, to maintain and post information on a generally accessible internet
site. 

 SECTION 15.  Repeals the following laws:
  (1)Subchapter A, Chapter 2205, Government Code (Aircraft Pooling); 
  (2)Section 2205.035, Government Code (Aircraft Leases);
  (3) Section 2205.042, Government Code (Pilots);
  (4)Section 2205.046, Government Code (Aircraft for Flight Training
Programs). 

  SECTION 16.
  (a)Requires DPS and the Texas Public Finance Authority (TPFA), in
consultation with Texas Building and Procurement Commission (TBPC) and the
General Land Office (GLO), to establish a transition team to oversee the
orderly transition of property and services from SAPB to DPS; and,
requires the team to: 
   (1)inventory all equipment and other property to be transferred or sold;
   (2)ensure elimination of all non-maintenance employee positions; and,
  (b)Abolishes SAPB; transfers all maintenance employees to DPS; and,
transfers all SAPB contracts, records and property to DPS. 

 SECTION 17.
  (a)Requires TBPC, in consultation with DPS, to sell by September 1,
2004, all state aircraft and aircraft-related equipment, other than
aircraft maintenance equipment formerly under the custody of SAPB and two
King Air 200s, ID Nos. N808WD and N7265K; and, in the case of bonds issued
in connection with SAPB activities, requires proceeds from sale of these
assets to be used to pay off such bonds. 
  (b)Requires GLO, in consultation with TPFA, to sell or lease by
September 1, 2005, all SAPB facilities located at Austin-Bergstrom
International Airport (IAB), other than facilities used for aircraft
maintenance or housing of aircraft owned or operated by state agencies
other than SAPB; in the case of bonds issued in connection with these
facilities, requires proceeds from sale or lease of the facility to be
used to pay off state bond obligations to the extent TPFA deems
appropriate; authorizes GLO to offer the IAB facilities for sale by
competitive bid; and, alternatively, GLO may negotiate direct sale of the
IAB facilities to: 
   (1)a current lessee;
   (2)a neighboring property owner; or
   (3)a political subdivision of the state, including Travis County or the
City of Austin. 
  (c)Requires GLO to sell by September 1, 2005, the SAPB facility located
at former Robert Mueller Municipal Airport (Mueller); in the case of bonds
issued in connection with this facility, requires proceeds from sale of
the facility to be used to pay off such bonds; authorizes GLO to offer the
Mueller facilities for sale by competitive bid; and, alternatively, GLO
may negotiate direct sale of the Mueller facilities to: 
   (1)a current lessee;
   (2)a neighboring property owner; or
   (3)a political subdivision of the state, including Travis County or the
City of Austin. 

 SECTION 18.  Effective Date:  immediate effect upon two-thirds vote of
all members of both the House and Senate; or, September 1, 2003. 


EFFECTIVE DATE

Immediate effect upon two-thirds vote of all members of both the House and
Senate; or, September 1, 2003.