Senate Research Center

C.S.S.B. 1349


By: Watson


Business & Commerce




Committee Report (Substituted)






S.B. 1349 authorizes the sale of the state facility in downtown Austin known as the Hobby Building due to the poor condition of the building, significant deferred maintenance obligations, and increasing annual investments necessary to maintain habitability.


The William P. Hobby building was built in 1984 (35 years ago), when building technologies and standards were significantly less demanding than today. Texas Facilities Commission (TFC) staff estimates that the building requires at least $49.6 million in repairs for known deficiencies and has requested $19 million for the coming biennium to meet priority health and life safety needs´┐Żincluding fire protection and security system updates and failing cast iron plumbing. (Original Author's/Sponsor's Statement of Intent)


C.S.S.B. 1349 amends current law relating to authorizing the sale of certain real property by the Texas Facilities Commission on behalf of the state.




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




SECTION 1. (a) Authorizes the Texas Facilities Commission (TFC) on behalf of the state, subject to Subsections (b), (c), and (d) of this section, to convey the real property described by Section 2 of this Act.


(b) Prohibits the real property described by Section 2 of this Act from being conveyed by TFC on behalf of the state for an amount less than the fair market value of the real property. Requires the fair market value of the real property to be established by an independent appraisal obtained by the asset management division of the Texas General Land Office (GLO).


(c) Requires GLO to negotiate and close a transaction under this section on behalf of TFC under Section 31.158 (Real Estate Transactions Authorized by Legislature), Natural Resources Code.


(d) Requires the sale of the real property authorized by this section to comply with 26 C.F.R. Sections 1.141-12(a), (b), (c) and (e). Provides that this subsection prevails to the extent of any conflict between this subsection and any provision of this Act or any other law.


SECTION 2. Sets forth the metes and bounds of the real property TFC is authorized to convey.


SECTION 3. Effective date: upon passage or September 1, 2019.