HBA-KDB H.B. 2943 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2943
By: Capelo
State Affairs
3/21/2001
Introduced


BACKGROUND AND PURPOSE 

The 65th Legislature authorized the General Services Commission (GSC) to
establish the Facilities Leasing Program (FLP) to oversee, plan, manage,
organizing, and direct the state's leasing program for approximately 100
state agencies occupying 11.7 million square feet of space in approximately
1,300 lease contracts costing approximately $898 million.  There is concern
that the state's leasing process is cumbersome for property owners and
often fails to attract enough bidders, which may lead to unnecessarily high
rents.  Moreover, the 15 members of the FLP staff may be overworked and
undertrained for their duties, which may lead to improper inspection of
state facilities.  To alleviate these problems, GSC may have to partner
with firms in the private sector in order to secure properties at the best
possible rate. House Bill 2943 requires GSC  to contract with one or more
private brokerage or real estate firms to obtain leased spaces for state
agencies at the best possible rates. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the General Services Commission in
SECTION 4 (Section 2167.051, Government Code) of this bill. 

ANALYSIS

House Bill 2943 amends the Government Code to require the General Services
Commission  (GSC), using a competitive bidding process, to contract with
one or more private brokerage or real estate firms (firm) to obtain lease
space for state agencies on behalf of GSC.  The bill authorizes GSC to
adopt rules it considers necessary to administer provisions relating to the
use of firms to obtain lease space.  The bill authorizes a firm with which
GSC contracts to lease space for state agencies to negotiate on behalf of
GSC in leasing facilities for state agencies.   The bill provides that GSC
must approve any leasing arrangement negotiated by a firm on behalf of GSC.
The leasing agreement is considered to be a lease contract entered into by
GSC, and GSC retains lease oversight and management functions under the
lease contract (Section 2167.051).   

The bill requires a firm obtaining leased space on behalf of GSC to give
first consideration, in leasing space for the use of a state agency, to a
building that is designated as a historic structure or to a building that
has been  designated a landmark by a local governing authority under
certain conditions.  The bill requires the firm on behalf of GSC, when it
considers leasing space for a state agency, to notify each individual and
organization that is on a list furnished to GSC or the firm by the Texas
Historical Commission and in the county in which GSC is considering leasing
space (Sec. 2167.003).   

The bill requires GSC to charge an hourly rate for the time which a GSC
employee is providing leasing services to state agencies (Section
2167.007).  The bill deletes provisions that specify the process for
leasing space through competitive bidding and leasing space through
competitive sealed proposals. 

EFFECTIVE DATE

September 1, 2001.