HBA-NLM S.B. 1446 76(R)BILL ANALYSIS Office of House Bill AnalysisS.B. 1446 By: Barrientos Land & Resource Management 5/6/1999 Committee Report (Amended) BACKGROUND AND PURPOSE Currently, the City of Austin intends to construct an art museum in downtown Austin. The city planned initially to obtain donated property critical to the museum from a local developer. However, the developer forfeited the property to another entity and the city now seeks to purchase similarly necessary property. The General Services Commission (commission) owns downtown property that the city is interested in acquiring for the museum. Although the commission owns the property, it plans no future development on the site, and it could be sold to the city. S.B. 1446 conveys certain state-owned property to the City of Austin at 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), subject to the approval of the Legislative Budget Board, 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) Requires the purchase and sale agreement relating to the conveyance authorized by this section to be for cash consideration in an amount no less than equal to the fair market value of the property as established by an independent appraisal obtained by the commission, closing to occur at the mutual convenience of the parties, and 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, and authorizes the proceeds to be used only by the commission for deposit into the interest and sinking fund of the outstanding bonds related to the real property described in Subsection (e), Section 1, of this Act in amounts sufficient to defease said bonds. SECTION 3. Emergency clause. Effective date: upon passage. EXPLANATION OF AMENDMENTS Amendment #1 Amends S.B. 1446, SECTION 1 (a), to provide that the conveyance described by this section is also subject to the approval of the Office of the Governor.