79R7923 JRD-D
By: Turner H.B. No. 3147
A BILL TO BE ENTITLED
AN ACT
relating to authorizing the Texas Building and Procurement
Commission to enter into more favorable lease with option to
purchase agreements with regards to certain space currently
occupied under lease with option to purchase agreements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter J, Chapter 2166, Government Code, is
amended by adding Section 2166.454 to read as follows:
Sec. 2166.454. MORE FAVORABLE LEASE WITH OPTION TO PURCHASE
AGREEMENTS WITH REGARD TO CERTAIN LEASED SPACE. (a) This section
applies only in relation to space currently occupied by a state
agency under one of seven leases with an option to purchase
agreements:
(1) entered into by the state before December 1994,
for the benefit of the Texas Commission on Environmental Quality or
its predecessor agency, the office of the attorney general, the
successor of the Department of Human Services, the Department of
Family and Protective Services, or the Texas Department of
Transportation; and
(2) under which the state may acquire title to the
space by paying the purchase price remaining under the terms of the
agreement on September 1 of an odd-numbered year.
(b) If the commission determines that it is advantageous to
the state, the commission may enter into a more favorable lease with
an option to purchase agreement with regard to any or all of the
space to which this section applies by taking the actions
authorized by this section under the conditions prescribed by this
section.
(c) The commission may issue sale and lease purchase revenue
obligations in accordance with this section and use the proceeds of
the revenue obligations to:
(1) pay the commission's expenses in connection with
issuing the revenue obligations;
(2) purchase any or all of the space to which this
section applies according to the terms of the applicable existing
lease with an option to purchase agreement or agreements; and
(3) if it is advisable to make capital improvements to
the space, pay for making the capital improvements.
(d) The revenue obligations issued under Subsection (c)
must be paid in their entirety immediately after issuance by using
the proceeds of the concurrent sale of the space by the commission
to a third party who agrees to lease the space back to the state with
an option to purchase under the following conditions:
(1) the term of the new lease with an option to
purchase agreement does not exceed the remaining term on the
applicable existing lease with an option to purchase agreement, as
of the date on which the transactions described by this section
occur; and
(2) the cost to the state under the new lease with an
option to purchase agreement is less than the cost to the state
under the existing lease with an option to purchase agreement and
the difference in cost justifies any costs incurred by the
commission and the state in taking actions under this section with
regard to the space.
(e) Any sale and lease purchase revenue obligations issued
by the commission under this section and any lease with an option to
purchase agreement entered into under this section must be
submitted to the attorney general for review and approval. If the
attorney general determines that the obligation or agreement, as
applicable, entered into under this section complies with this
section, the attorney general shall approve the issuance of the
obligation or the agreement, as applicable. On approval by the
attorney general, the obligation or agreement, as applicable, is
incontestable for any cause.
(f) The commission is not required to obtain the approval of
the Bond Review Board before issuing a sale and lease purchase
revenue obligation under this section.
(g) A sale and lease purchase revenue obligation issued
under this section is not a debt of the state or any state agency, is
not a pledge of the faith and credit or the taxing power of the
state, and may be paid only from the proceeds of the concurrent sale
of the space to which the sale and lease purchase revenue obligation
relates. A sale and lease purchase revenue obligation issued under
this section must contain a statement to that effect.
(h) A lease with an option to purchase agreement entered
into under this section must contain a statement that the agreement
is not a debt of the state or any state agency and is contingent on
continued legislative appropriations for making the lease
payments.
(i) This section expires December 31, 2005, except that this
section is continued in effect after that date for the limited
purpose of applying with regard to any transaction authorized by
this section that occurs before that date.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect on the 91st day after the last day of the
legislative session.