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.