HBA-NIK C.S.H.B. 2949 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2949
By: Dukes
Land & Resource Management
4/21/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

As part of its ongoing urban renewal plan for the East 11th and 12th Street
corridors, the Austin Revitalization Authority (ARA) has proposed to buy
the State Support Center site which is currently owned and operated by the
General Services Commission.  Pursuant to the purchase of this land, the
ARA plans to develop a mixed-use community including office and retail
space, as well as housing for all income groups through market-rate housing
opportunities, housing assistance programs, or rehabilitation and new
construction of affordable housing.  The ARA will also coordinate a plan to
utilize public investment to leverage and encourage private investment
throughout the area. C.S.H.B. 2949 provides for the sale of this specific
property by the state to the ARA for fair market value. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  (a) Authorizes the General Services Commission (commission) to
convey, on behalf of the state, the state's interest in the real property
described by Subsection (f) to the Austin Revitalization Authority (ARA). 

(b) Provides that consideration for the conveyance authorized by this
section must be in cash in an amount equal to the fair market value of the
property as established by an independent appraisal obtained by the
commission.  Provides that the purchase and sale agreement relating to the
conveyance must provide for the closing to occur at the mutual convenience
of the parties and authorizes other terms to be negotiated by the
commission and the ARA. 

(c) Authorizes the commission to transfer the real property only by a
special warranty deed. 

(d) Provides that Section 31.158 (Real Estate Transaction Authorized by
Legislature) and 31.159 (First Option to Purchase), Natural Resources Code,
does not apply to the conveyance authorized by this section. 

(e) Requires the commission to deposit the proceeds from the conveyance
authorized by this section to the credit of the commission account.
Provides that the commission account is an account in the general revenue
fund that may be appropriated only to the commission. 

(f) Provides that the real property to which Subsection (a) refers has the
specified description. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2949 modifies the original bill in SECTION 1, by removing text
from proposed Subsection  (a) that describes the Austin Revitalization
Authority as a 501(c)(3), non-profit organization with involvement in
efforts leading to designation of the East 11th and 12th Street corridors
as an urban renewal area and with primary responsibility for implementation
of the Community Redevelopment Plan for the City of Austin. Makes a
conforming change. 

(b) Reorganizes this subsection for the purpose of clarification and to
conform with Legislative Council format. 

(c) Makes no changes in this subsection.

(d) Adds Section 31.159 (First Option to Purchase), Natural Resources Code,
as another section which does not apply to the conveyance authorized by
this section. 

(e) Redesignated from proposed Subsection (f) of the original, which
requires the proceeds from the conveyance to be deposited in the state
treasury and authorizes their use by the commission for any lawful purpose.
The requires the commission to deposit the proceeds from the conveyance
authorized by this section to the credit of the commission account. The
substitute also provides that the commission account is an account in the
general revenue fund that may be appropriated only to the commission. 

(f) Redesignated from proposed Subsection (e).