Honorable Burt R. Solomons, Chair, House Committee on State Affairs
John S. O'Brien, Director, Legislative Budget Board
HB1732 by Chavez (Relating to the lease of certain state parking facilities to other persons.), As Introduced
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The bill would implement recommendations in the report, "Optimize the Use of State Parking Facilities," in the Legislative Budget Board (LBB) Government Effectiveness and Efficiency Report submitted to the Eighty-First Texas Legislature, 2009.
The bill would expand the Texas Facilities Commissionís (TFC) authority related to the operations of state-owned parking lots and garages in the city of
The LBB estimates that implementing the provisions of the bill would result in revenue of $771,000 per year. This estimate is based on leasing 40 percent of the currently available excess parking spaces in the Capitol Complex to individuals at $50 per month. Because the exact implementation (number of parking spaces to be leased and the contract lease rate to be applied) are currently unknown, the Comptroller of Public Accounts cannot provide a certifiable revenue estimate at this time. Changes in the implementation of the program from the assumptions made above will alter projected revenue.
The implementation of a program to lease specific parking spaces to individuals would require TFC to hire an additional employee due to the quantity of leases involved. The additional employee would cost $63,000 of General Revenue Funds in fiscal year 2010 and $58,000 of General Revenue Funds in fiscal year 2011, for a biennial cost of $121,000. TFC could manage the lease of entire parking facilities, or segments of parking facilities, with existing resources due to the limited number of opportunities.
The Texas Public Finance Authority (TPFA) reports that leasing state parking facilities to private businesses, or the operation of a leasing program by a private vendor, could jeopardize the standing of the stateís tax-exempt bonds related to the construction and maintenance of these facilities, if the use is not within specified limits. The calculation and analysis of such limits would require TPFA to obtain outside legal counsel. TPFA cannot calculate the potential cost to the state of losing tax-exempt status on any outstanding bond issuances; however, such a cost is considered significant.
303 Facilities Commission, 304 Comptroller of Public Accounts, 347 Public Finance Authority
JOB, KJG, JI, KY