S.B. 1895 78(R)    BILL ANALYSIS


S.B. 1895
By: Ellis, Rodney
Urban Affairs
Committee Report (Amended)


BACKGROUND AND PURPOSE

Currently, a municipality with a population of 1.5 million or more may
enter into leases for terms not to exceed 60 years if the lessee proposes
to invest more than $20 million to renovate or redevelop an existing civic
center building and facilities and the governing body of the municipality
finds that the renovated building and facilities will generate additional
revenue for the municipality and a term that exceeds 30 years is necessary
to the lessee to recoup its investment or to obtain financing for the
project.  As proposed, S.B. 1895 adjusts the population bracket from 1.5
million to 1 million, and adds that municipalities can enter into leases
with lessees who propose to construct a new building or facilities on land
administered, operated, or used as a civic center property. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1504.012, Government Code, to authorize a
municipality with a population of 1 million or more, rather than 1.5
million or more, to enter into leases for terms not to exceed 60 years if,
the lessee proposes to invest more than $20 million to develop a new
building or facilities on land administered, operated, or used as a civic
center property and, the governing body of the municipality finds that the
renovated or redeveloped building and facilities or the new building or
facilities will generate additional revenue for the municipality.  

SECTION 2.  Effective date

EFFECTIVE DATE:  Upon passage, or, if the Act does not receive the
necessary vote, the Act takes effect September 1, 2003. 

EXPLANATION OF AMENDMENTS

Committee Amendment #1 would allow cities of 1 million or more to enter
into leases for terms not to exceed 60 years if, the lessee proposes to
invest more than $20 million to develop a new building or facilities on
land administered, operated, or used as a civic center property and, the
governing body of the municipality finds that the renovated or redeveloped
building and facilities or the new building or facilities will generate
additional revenue for the municipality.