79(R) HB 3147 - Senate Committee Report version


                                                                                


By:  Turner, et al. (Senate Sponsor - Van de Putte)               H.B. No. 3147
	(In the Senate - Received from the House May 10, 2005; 
May 12, 2005, read first time and referred to Committee on 
Government Organization; May 17, 2005, reported favorably by the 
following vote:  Yeas 7, Nays 0; May 17, 2005, sent to printer.)


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.



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