HBA-ALS C.S.H.B. 3419 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3419
By: Maxey
Land & Resource Management
4/23/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Hobby Building complex consists of three blocks of state-owned land in
downtown Austin, Texas, which include the Hobby Building, a surface parking
lot, and a parking garage.  The building is currently on the list of
surplus state land to be sold and the General Service Commission's master
plan calls for the consolidation of state offices at the Capitol Complex
and the Robert Mueller airport redevelopment site.  The City of Austin's
long-term development plans call for the consolidation of city offices and
the construction of a new city hall in the same general downtown area as
the Hobby Complex. C.S.H.B. 3419 allows the General Services Commission to
sell the Hobby Complex to the City of Austin. 

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 (e) of this section to the City of Austin (city). 
 
(b) Provides that consideration for the conveyance authorized by this
section must be for cash in an amount no less than the fair market value of
the property as determined by an independent appraisal obtained by the
General Services 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 such an agreement to
require other terms and conditions negotiated by the commission and the
city. 
   
(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), Natural Resources Code, does not apply to the conveyance
authorized by this section.  

(e) Describes the real property to be conveyed under this section.
 
SECTION 2.  Requires the proceeds from the conveyance to be deposited in
the state treasury. Requires the funds to only be used by the commission
for deposit into the interest and sinking fund of the outstanding bonds
related to the real property described in amounts sufficient to defease
said bonds.  

SECTION 3.  Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 1 (Section (b)) to conform
to Legislative Council format, and to specify that the purchase and sale
agreement relating to the conveyance must provide  for the closing to occur
at the mutual convenience of the parties.   

The substitute modifies the original in SECTION 1 (Section (e)) to describe
the property to be conveyed as the tract or parcel of land situtated within
the city limits of Austin, Travis County, Texas, being approximately 275
feet east and west and 270 feet north and south, lying directly west,
rather than east, of Guadalupe Street, north of Third Street, south of West
Fourth, and east of San Antonio Street. 

The substitute modifies the original in SECTION 2 to require, rather than
authorize, the proceeds from the conveyance authorized by this section to
be used only by the General Services Commission for repayment of the
outstanding bonds related to the real property described in this section.
The original bill provided that the proceeds may be used only by the
commission for deposit into the applicable interest and sinking fund in an
amount sufficient to defease the outstanding bonds.