HBA-CBW H.B. 1412 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1412
By: Flores
Land & Resource Management
2/23/2001
Introduced



BACKGROUND AND PURPOSE 

The General Land Office (GLO) has statutory authority to review the real
property holdings of the Texas Department of Transportation (TxDOT) every
four years.  Despite the current appraisal value of these properties, state
government accounts record the purchase price of the property or the
appraised value of the property on the date of acquisition, regardless of
whether the acquisition occurred in 1890 or 1990.  

In a report by the Texas Comptroller of Public Accounts entitled,  "Paving
the Way," GLO records of TxDOT's real property reveal a total historical
cost of $92.3 million; yet, GLO's 1996 report on TxDOT lands and buildings,
not including lands owned for highway rights-of-way, appraised TxDOT's real
property at $165.3 million, nearly twice the historical cost.  The 1998
market value of  TxDOT's real property holdings was placed at $266.4
million, almost three times the historical cost.   House Bill 1412 requires
TxDOT to pay an annual capital charge, which may be viewed as an annual
market-based rent applied by a government to its units that own real
property, for each item of real property,  excluding rightsof-way, owned by
TxDOT, to create an incentive for TxDOT to manage its real property more
efficiently. 

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. 

ANALYSIS

House Bill 1412 amends the Transportation Code to require the Texas
Department of Transportation (TxDOT) to pay  to the state, during September
of each state fiscal year, a capital charge in an amount equal to seven
percent of the appraised value of each item of real property owned by TxDOT
excluding rights-of-way. The bill authorizes TxDOT to receive legislative
appropriations to pay capital charges in an amount equal to a percentage of
TxDOT's capital charge for the year computed in a specified manner. 

The bill requires  TxDOT  to submit to the General Land Office (GLO), on a
quarterly basis and in a format and manner determined by GLO, specified
information on any real property owned by TxDOT. The bill requires GLO to
provide such information to the Texas Comptroller of Public Accounts.  In
addition,  the bill requires GLO, on request,  to provide the information
to the General Services Commission and the Legislative Budget Board (LBB).
The bill authorizes LBB to request from GLO a detailed analysis of real
property owned by TxDOT, including potential uses of the property and the
likelihood of lease or sale of the property in the following two-year
period.   

The bill requires TxDOT to submit to GLO TxDOT's first report on real
property owned by TxDOT  not later than December 1, 2001.  The bill
requires TxDOT to determine the appraised value or estimated market value
of any real property owned by TxDOT not later than September 1, 2003. The
bill authorizes TxDOT to contract with GLO to perform an appraisal or
estimate. 

The bill provides that TxDOT is not required to pay a capital charge before
September 1, 2003. 

 EFFECTIVE DATE

September 1, 2001.