By: Guillen H.B. No. 2514
A BILL TO BE ENTITLED
AN ACT
relating to interim studies on real property owned by the state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. INTERIM STUDY. (a) The State Office of Risk
Management shall conduct an interim study on insurable state
assets, using information provided by the Legislative Budget Board,
to develop a statewide strategy to ensure that all real property
owned by the state, including buildings, facilities, and land, is
adequately insured.
(b) The Legislative Budget Board shall collect the
information described by this section from each state agency and
institution of higher education that possesses real property and
require each agency and institution to submit the information to
the board by a date prescribed by the board. The board shall
coordinate with the following entities to collect the information:
(1) the comptroller of public accounts;
(2) the state auditor's office;
(3) the State Office of Risk Management;
(4) the General Land Office;
(5) the Texas Facilities Commission;
(6) the Texas Higher Education Coordinating Board; and
(7) any other state agency.
(c) The Legislative Budget Board shall coordinate the
collection of comprehensive real property data for official state
use, including for a state agency other than an institution of
higher education, as defined by Section 61.003, Education Code:
(1) for each state-owned building or facility:
(A) the name of the state agency that has charge
and control of the building or facility;
(B) the number or name of the building or
facility;
(C) the address and geographic coordinates of the
building or facility;
(D) a description of the building or facility,
including the type of construction based on the Insurance Services
Office classification system, the cost of construction, and a
statement on the quality of the construction;
(E) the year the building or facility was built
or the acquisition date of the building or facility;
(F) the number of stories and the square footage
of the building or facility;
(G) the occupancy type of the building or
facility;
(H) the amount of space in the building or
facility that is being used, expressed as a percentage;
(I) the status of the fire alarm system within
the building or facility;
(J) information on protection systems and
features of the building or facility, including fire protection
systems and features and any violations for which the building or
facility has been cited;
(K) the value of the building or facility based
on replacement value, market value, donated value, or purchase
price, including the year the building or facility was appraised;
(L) the value of the contents of the building or
facility;
(M) the fund from which the building or facility
was purchased;
(N) information on the flood zone status of the
building or facility;
(O) any surrounding use of the building or
facility; and
(P) the type of fund profiled under the uniform
statewide accounting system that the state agency used to purchase
the building or facility; and
(2) for state-owned land:
(A) the name of the state agency that has charge
and control of the land;
(B) the address and geographic coordinates of the
land;
(C) the name of the land, if any;
(D) whether a historical marker is located on the
land, and if so, a description of the historical marker;
(E) the amount of acres of the land;
(F) whether the land is located in a flood zone;
(G) any surrounding use of the land;
(H) the value of the land based on market value,
donated value, or purchase price and the year the land was
appraised; and
(I) the fund from which the land was purchased.
(d) The Legislative Budget Board shall collect the real
property data of an institution of higher education, as defined by
Section 61.003, Education Code, from:
(1) the Texas Higher Education Coordinating Board, as
such data is reported to that board, including, for each building or
facility owned by an institution:
(A) the name of the institution that has charge
and control of the building or facility, including the number
assigned to the institution by the Federal Interagency Committee on
Education;
(B) the number or name of the building or
facility;
(C) the address and geographic coordinates of the
building or facility;
(D) a description of the building or facility,
including the type of construction;
(E) the year the building or facility was built
or the acquisition date of the building or facility;
(F) the number of stories and the square footage
of the building or facility;
(G) the occupancy type of the building or
facility;
(H) the amount of space in the building or
facility that is being used, expressed as a percentage;
(I) the value of the building or facility based
on replacement value; and
(J) information on the flood zone status of the
building or facility; and
(2) each institution of higher education, including,
for land owned by the institution:
(A) the name of the institution that has charge
and control of the land, including the number assigned to the
institution by the Federal Interagency Committee on Education;
(B) the address and geographic coordinates of the
land;
(C) the name of the land, if any;
(D) the amount of acres of the land; and
(E) the value of the land based on the market
value or acquisition value.
(e) The Legislative Budget Board shall report the
information submitted by each state agency and institution of
higher education to the State Office of Risk Management by a date
prescribed by the State Office of Risk Management.
(f) Not later than June 1, 2024, the State Office of Risk
Management shall consolidate the information received by the
Legislative Budget Board and enter it into a single database
accessible by the legislature and all state agencies and
institutions of higher education.
(g) Not later than August 31, 2024, the State Office of Risk
Management shall conduct the insurable state asset interim study
and report the office's findings and recommendations to the
legislature. The report must include a statewide strategy that
will ensure all real property owned by the state is adequately
insured.
SECTION 2. SELECT INTERIM COMMITTEES; STUDY. (a) A Senate
Select Committee on State Real Property Data Collection, Reporting,
and Assessment and a House Select Committee on State Real Property
Data Collection, Reporting, and Assessment are established to,
separately or jointly, study:
(1) the potential benefits of maintaining a
comprehensive database of all real property owned by the state;
(2) the potential financial loss to the state that
could result from the state owning uninsured and underinsured real
property;
(3) any efficiencies or cost savings potentially
achieved by requiring the General Land Office to submit the annual
report required under Section 31.157, Natural Resources Code, to
the Texas Department of Transportation, the Employees Retirement
System of Texas, and the Teacher Retirement System of Texas;
(4) the potential benefits or burdens, including
administrative burdens, of requiring each state agency and
institution of higher education to report information on the real
property it possesses, at the same time and in a uniform manner, to
a single entity, and how often the information should be reported;
(5) which state agency is best suited to collect
information on all real property owned by the state and the
appropriate method for collecting this information;
(6) the information that is currently reported by
state agencies and institutions of higher education regarding real
property of which agencies and institutions have charge and
control;
(7) the distinction between state agencies and
institutions of higher education that report information on real
property owned by the state as compared to state agencies and
institutions of higher education that collect information for a
report on real property owned by the state;
(8) information determined by the Legislative Budget
Board as necessary for the State Office of Risk Management to
conduct an insurable state asset study to develop a statewide
strategy that will ensure all real property owned by the state is
adequately insured;
(9) how often the State Office of Risk Management
should submit an insurable state asset study to the legislature;
(10) the results of the appraisal required by
Subsection (e) of this section, and the potential loss to the state
by inadequately insuring the Capitol Complex, as defined by Section
443.0071, Government Code; and
(11) other potential ways to ensure that the state is
able to identify, track, and maintain a database of the location,
condition, and replacement value of all real property owned by the
state.
(b) Not later than November 30, 2023, the lieutenant
governor shall appoint five senators to the Senate Select Committee
on State Real Property Data Collection, Reporting, and Assessment
and designate one senator to serve as the chair, and the speaker of
the house of representatives shall appoint five state
representatives to the House Select Committee on State Real
Property Data Collection, Reporting, and Assessment and select one
state representative to serve as the chair.
(c) The committees established under this section shall
convene separately at the call of the chair of the respective
committee, or jointly at the call of both chairs. In joint
meetings, the chairs of each committee shall act as joint chairs.
(d) Following consideration of the factors listed in
Subsection (a) of this section, the committees established under
this section shall jointly adopt recommendations and report in
writing any findings and adopted recommendations to the legislature
not later than January 13, 2025. The report, at a minimum, must
identify a single entity to collect information on all real
property owned by the state, including buildings, facilities, and
land.
(e) The committees established under this section shall
conduct an appraisal of all or part of the Capitol Complex, as
defined by Section 443.0071, Government Code. The appraisal must
be completed in a manner that ensures that the committees can comply
with the requirements of Subsection (a)(10) of this section. To
conduct the appraisal required under this subsection, the
committees may:
(1) use the services of the State Office of Risk
Management, including any existing appraisal contracts developed
by the office; or
(2) contract with a state certified or state licensed
real estate appraiser in accordance with Subchapter A, Chapter
2254, Government Code, and other applicable state procurement
practices.
SECTION 3. EXPIRATION. This Act expires September 1, 2025.
SECTION 4. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2023.