TITLE 1.ADMINISTRATION

Part 5. TEXAS BUILDING AND PROCUREMENT COMMISSION

Chapter 115. FACILITIES LEASING PROGRAM

Subchapter A. STATE LEASED PROPERTY

1 TAC §115.1

The Texas Building and Procurement Commission (TBPC) adopts amendments with changes in the proposed text in 1 TAC §115.1 concerning definitions related to state leased property, published in the September 5, 2003, edition of the Texas Register (28 TexReg 7519). The amendments with changes affect the definitions of words and terms to be used in Chapter 115, Subchapter A, related to leasing of space for state government agencies, boards and commissions. The Commission finds that these amendments support the public interest by clarifying statutory changes.

The commission received written comments on the proposed amendments on September 19, 2003, from the Texas Department of Banking (TDOB) and on September 30, 2003, from the Texas Department of Transportation (TxDOT).

TDOB Comment on use of the terms "Commission" and "TBPC": Our first comment relates to the use of the terms "Commission" and "TBPC". For example, the term "Commission" is defined in §115.1 and elsewhere as "The Texas Building and Procurement Commission (TBPC)". However, we are unsure if "TBPC" as used in the rules means the state agency or the seven member oversight board. The distinction between board and agency is important; decision by the "board" must be made in open meetings subject to public notice requirements. Decision authority delegated by the board to the "agency" permits a more streamlined process subject to review and oversight by the board. Agencies subject to TBPC jurisdiction will benefit from clear guidance regarding what decisions can be made by agency staff and what decisions are reserved for Commission vote. TBPC has made some effort in this regard; however, often a proposed rule will identify a division of TBPC as having a role but other text in the same rule proposal refers to TBPC, implying that the board assumes duties that may not be intended. Clarification of these roles would be beneficial.

Response: Staff agrees with the intent of the comments, and is working to establish uniform definitions for the Code; however, Staff does not believe that one particular rule is the place to implement changes in definitions which could affect other rules. Staff is conducting a review of all references to Commission, General Services Commission, Texas Building and Procurement Commission, and TBPC to pinpoint all references in order to effectively execute a uniform transition. Accordingly, Staff declines to make the delineation at this time.

Staff is well aware of the difference in decisions made in open meetings and those made under delegated authority and will continue to diligently monitor all activities to insure they are within the parameters of the Open Meetings Act.

The amendment is adopted under the authority of the Texas Government Code, Title 10, Subtitle D, §2152.003 and §2167.008.

The following code is affected by these rules: Government Code, Title 10, Subtitle D, Chapter 2167.

§115.1.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings:

(1) Commission--The Texas Building and Procurement Commission.

(2) Negotiated Lease--A lease negotiated directly with a public or private entity on behalf of the State by the Commission or its tenant representative.

(3) Request for Proposal (RFP)--A procurement for lease space conducted by the Commission or its tenant representative through a public process under the guidelines set forth by procedures established by the Leasing Division and approved by the Commission.

(4) State agency or agency--A board, a commission, or agency established by the Texas Legislature.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 19, 2004.

TRD-200401184

Cynthia de Roch

General Counsel

Texas Building and Procurement Commission

Effective date: March 10, 2004

Proposal publication date: September 5, 2003

For further information, please call: (512) 463-4257


1 TAC §§115.2 - 115.11

The Texas Building and Procurement Commission adopts the repeal of 1 TAC §§115.2 - 115.11, concerning the facilities leasing program, as published in the September 5, 2003, issue of the Texas Register (28 TexReg 7519).

The repeal is being adopted because new rules, which are being adopted simultaneously and published elsewhere in this issue, more accurately reflect agency practices.

The Commission received no comments on the proposed repeal.

The repeal is adopted under the authority of Texas Government Code, Title 10, Subtitle D, §2152.003 and §2167.008.

The following code is affected by the repeal: Government Code, Title 10, Subtitle D, Chapters 2165 and 2167.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401308

Cynthia de Roch

General Counsel

Texas Building and Procurement Commission

Effective date: March 14, 2004

Proposal publication date: September 5, 2003

For further information, please call: (512) 463-4257


1 TAC §§115.2 - 115.4, 115.6, 115.8, 115.10

The Texas Building and Procurement Commission adopts new rules in 1 TAC §§115.2 - 115.4, §115.6, §115.8 and §115.10 concerning the facilities leasing program, with changes to the text as published in the September 5, 2003, edition of the Texas Register (28 TexReg 7520).

The new rules with changes relate to leased space, leasing from private and public sources, lease amendments, lease services, agency compliance requirements and required reports. The new rules support the public interest by clarifying statutory changes.

Sections 115.2 -115.4 and §115.6 establish procedures for a state entity to request lease space or lease services. Section 115.8 prohibits a conflict of interest in any private entity that provides lease services to the agency. Section 115.10 relates to actions of an occupying agency and statutorily required reports on noncompliance.

The commission received written comments on the proposed new rules from the Texas Department of Banking (TDOB) and from the Texas Department of Transportation (TxDOT).

TDOB Comment on Rule 115.2(d): The proposals frequently require agencies to make written applications to TBPC. For example, §115.2(d) relates to a request for a leased space exemption. However, a time frame by which TBPC must respond is not mandated. This uncertainty can lead to an agency feeling as if it is in the dark for an extended period of time. We suggest that TBPC include in these proposals a specific timeframe by which a request will be answered or a necessary delay explained. This will ensure the approval or denial process is timely handled and agencies can better plan for future events.

Response: The new rule does not specify a timetable because it is currently unknown; therefore setting up a timetable with no quantative information to support it would unnecessarily bind the Commission to an arbitrary schedule. Given the nature of lease documents, times will vary depending on the lease renewal date and other variables. Staff declines to make the requested change at this time; however any agency that applies for an exemption should include the agency's perceived deadlines in the application, and §115.2(c) has been changed to reflect this criterion.

TxDOT Comment on §115.2: The changes to §115.2 include language that is vague and ambiguous. Specifically, undefined terms such as "chief administrative officer", whether these phrases refer to the same person or different persons within the same organization. If these terms and phrases refer to the same persons or idea, uniformity in language would be of great benefit to the reader. More substantively, the "chief administrative officer" is charged with personally certifying information about funding and Full Time Employees (FTEs). Previously, this duty could be delegated to an "authorized official" in the agency. Allowing state agencies to delegate certification and verification of this information would benefit both the requesting agency and TBPC by allowing the requesting agency to be flexible in assigning tasks while retaining ultimate responsibility for accuracy of the information provided.

Response: Staff agrees that clarity and flexibility is needed for the rules governing requests, and has modified the language.

TxDOT Comments on §115.6. Subsection (a) does not specify which exemptions to leasing requirements are being discussed. Subsection (b) requires a state agency to agree to pay an unspecified "standard charge" before leasing services will be provided. Requiring a state agency to enter such an agreement may conflict with §115.2 wherein the chief administrative officer is charged with certifying that available funds exist to enter into the lease. State agencies, including the department, will need a set figure for the standard charge or some flexibility in certifying that sufficient funds exist. Alternatively, some description of what cost factors are included in the standard charge would allow the department to retain sufficient reserves to make the required §115.2 certifications.

Response in the order addressed by TxDOT : Specification of the exemptions being discussed: agencies that are statutorily excluded from Commission leasing requirements. Payment of standard charge: the language has been changed to require the requesting agency to pay actual cost of the services to the Commission. Conflict with §115.2 referencing the chief administrative officer: The rule has been changed to require that the requesting agency to certify funds. Description of cost factors: to recover the cost of providing services as authorized by §2167.007(c) of the Texas Government Code; with regard to reserve funds, requesting agency will know how much in reserve funds is available, and should look to that figure before making a request for an exemption.

TxDOT Comments on §115.10. Language in §115.10 is unclear and it is difficult to see how this section follows the requirement of Texas Government Code, §2167.102 which appears to protect state agencies from misdeeds by their lessors. Further, this section appears to place greater restrictions on the state agencies than are included in the lease contract. It is not readily apparent why TBPC would extend greater protections to lessors of property than what lessors have demanded for themselves.

Response : Staff agrees that the subtitle is misleading and has been changed. The intent of the rule was to conform agency activities to §2167.105, Texas Government Code.

The new rules are authorized under the Texas Government Code, Title 10, Subtitle D, §2152.003 and §2167.008.

The following code is affected by these rules: Government Code, Title 10, Subtitle D, Chapters 2165 and 2167.

§115.2.Prerequisites for Leasing Space.

(a) When a board, commission or agency requests to lease property that is not owned by the state, the Commission shall verify that state-owned space is not available.

(b) All requests for lease space must be submitted by the office of the Executive Director or designated the agency representative head of the requesting agency party.

(c) The Chief Administrative Officer of the requesting agency must certify the availability of funds for the requested lease space, the number of full time employees to be located at the requested space and the agency's projected schedule.

(d) §2165.104(c) of the Texas Government Code does not exempt any state entity from statutorily imposed lease space restrictions. All requests for space exemptions from state statute or rule shall be determined on a case by case basis by the Commission. No exemption granted by the Commission will be considered as a precedent for any future exemption requests.

§115.3.Leasing Space for Health and Human Services Agencies.

(a) All requests for lease space by Health and Human Services (HHSC) agencies must be submitted by the office of the Executive Commissioner.

(b) The Chief Administrative Officer of HHSC, or a designated representative, shall certify the availability of funds for the requested leased space, the number of full time employees to be located at the requested lease space and the agency's projected schedule.

§115.4.Delegation of Authority to State Agencies.

A request by an agency for delegated leasing authority must have the approval of the governing body of the agency making the request. Any agency under the authority of an individual Commissioner or Executive Director, appointed by or directly accountable to the Governor, must provide evidence of notification to the Office of the Governor in order for such a request to be considered valid. The Commission may revoke delegated leasing authority upon notice to the affected state entity.

§115.6.Leasing Services to State Agencies.

(a) Any agency excluded from the leasing requirements who seeks the assistance from the Commission for leasing services shall submit the request in writing.

(b) The head of the agency that requests leasing assistance must agree to pay the actual costs of the leasing services provided before the request for lease assistance shall be considered.

§115.8.Use of Private Firms to Obtain Space.

(a) Any entity that provides lease services to the Commission shall immediately disclose any conflict of interest in a transaction to all parties, and shall withdraw from all matters related to the conflict. Final determination of a conflict of interest shall be made by the Commission.

(b) No broker, real estate firm, tenant representative or entity representing the state as an agent in a leasing matter may, during the term of the agency, simultaneously represent, participate or profit from the actions of buyers, sellers, owners or any other entity that possesses an interest in any lease in which the Commission is the lessor.

§115.10.Tenant Agency Responsibility; Reporting.

(a) No state agency occupying state leased space shall commit any act or action that may endanger the State's interest under the lease contract.

(b) Any state agency that the Commission determines has acted in bad faith against the State's interest, or is in noncompliance as referenced in §2167.105 of the Government Code, shall be reported to the Governor, Lt. Governor Office of the Speaker of the House, of Representatives, the House Committee on Appropriations, the Office of the Lt. Governor and the Senate Committee on Finance.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 20, 2004.

TRD-200401187

Cynthia de Roch

General Counsel

Texas Building and Procurement Commission

Effective date: March 14, 2004

Proposal publication date: September 5, 2003

For further information, please call: (512) 463-4257


Chapter 122. FACILITIES PLANNING

The Texas Building and Procurement Commission (TBPC) adopts amendments to Title 1, TAC, Chapter 122, concerning Facilities Planning; Subchapter A, §122.1 and Subchapter B, §122.3 with changes to the text as published in the September 5, 2003, issue of the Texas Register (28 TexReg 7521).

Statutory changes in House Bill 3042 to the Texas Government Code affected existing definitions and required new and revised definitions. The amendments clarify the calculation of gross area and replace references to General Services Commission with that of the Texas Building and Procurement Commission. The Legislature repealed statutory exemptions relating to space allocation, §2165.104(c)(2) of the Texas Government Code effective September 1, 2003.

The rules will inform the public of the agency name, defined terms and the statutory reduction in allocable space per FTE to 135 square feet.

The FTE allocation on the commenting agencies for FY03 and FY04 are set forth below.

Figure: 1 TAC Chapter 122--Preamble

Letters of comment were received from the Texas Department of Banking (DOB), the Texas State Library and Archives Commission (TSLAC) and Texas Department of Transportation (TXDOT).

DOB Comment on §122.1(5): First, by definition "Agency Space Allocation" is not to exceed "135 square feet per FTE", the statutory ideal. This concept appears unrealistic; if no agency has an "Agency Space Allocation" in excess of 135 square feet per FTE, TBPC would not need to adopt rules or monitor efforts to achieve this ideal.

Response: The rule continues on to provide... "less the following exceptions" and also defines a variance in §122.1(11).

DOB Comment on §122.1(5): Further, we had difficulty locating the term "Agency Space Allocation" elsewhere in the proposed rules.

Response: See amended §122.1(11) and §122.3(a).

DOB Comment on §122.1(5): We recommend a new rule entitled "Calculation of Usable Office Space." This new rule should allow the calculation to be whatever results, without adding the requirement that it can never exceed 135 square feet per FTE.

Response: The rule continues on to provide.. "less the following exceptions" and also defines a variance in §122.1(11).

DOB Comment on §122.1(5): With regard to the four proposed "real" exceptions in paragraph (5)(A) - (D), the preamble contains no explanation of the reasons for several deletions and failure to include former statutory exceptions. No evidence appears in the legislative record underlying House Bill 3042 or similar measures indicating that the Legislature intended to both reduce the allocation of usable office space per employee and simultaneously eliminate areas or types of space previously listed as statutory exceptions.

Response: Staff disagrees with DOB's evaluation of legislative intent. No change recommended to the rule, but the preamble has been changed to explain the deletions were based upon statutory changes.

DOB Comment on §122.1(5): With regard to the definition of agency space allocation, "...specifies a calculation less the following exceptions, (A) - (F); however, (E) and (F) are not exceptions, but additional substantive rules..."

Response: Staff agrees: subpargraph (E) has been deleted and subparagraph (F) has been moved to §122.2(3).

TXDOT Comment on §122.1(5), Agency Space Allocation and §122.1(10), Usable Space: The rules do not clearly describe how these two terms interact. Texas Government Code, §2165.104(c) requires, subject to certain exceptions, that the TBPC not allocate to a state agency more than 135 square feet of usable office space per FTE. "Usable Office Space" is not a term defined by the proposed rules. Instead, the phrase "Agency Space Allocation" is used and is defined to mean gross area less certain excepted areas, but not more than 135 square feet per FTE. Hallways and other unusable areas are not automatically excluded from the "Agency Space Allocation," although they appear to be excluded from the "Usable Area" definition. The definition of "Space Allocation Ratio" uses "space allocation" rather than "usable area" as the variable for determining the ratio. Assuming that "space allocation" means "Agency Space Allocation" as defined in §122.1(5), it appears that the ratio would not reflect "usable office space" per FTE as required by the Texas Government Code, §2165.104(c).

Response: The definitions have been amended.

DOB Comment on §122.1(10): "We could not locate the term "usable office space," a term TBPC is charged with defining by Government Code, §2165.104(c)."

Response: Section 122.1(10) had been posted defining "Usable Space." This has been corrected. The rule now defines "Usable Office Space."

DOB Comment on §122.1(10): "We do not believe the intent of the bill was to have janitorial closets or "mechanical, electrical, telecommunication, and data cabling rooms" in a building housing a single tenant to constitute "usable office space." We recommend that the TBPC board reconsider the list of exempted space and add back the deleted areas discussed above along with other reasonable areas such as hearings and conference rooms, libraries and records storage space.

Response: Variances may be granted on a case by case basis.

TSLAC Comments on §122.3: Amend paragraphs (3) and (4) of subsection (c) and add new paragraphs (5) and (6) to subsection (c) and new paragraph (4) to subsection (e) to read:

(c) This section does not apply to:

(3) an agency site which renders application of this section as impractical in carrying out the mandated operations of an agency or as otherwise determined by TBPC;

(4) an agency site which renders application of this section as impractical because of the site type of space or use of space necessary to carry out a mandated operation of an agency, or as otherwise determined by TBPC.

(5) a mandated law or public access library space; or

(6) a mandated records storage or archives (non-office) space.

(e) TBPC may allocate usable office space in excess of 135 square feet per agency employee, if TBPC determines that:

(4) it is necessary for an agency to carry out mandated operations of the agency.

Response: No change is recommended at this time. A request for variance could address the suggested language.

TXDOT Comments on §122.3(a): This section used the phrase "usable square feet space allocation" to describe the limitations for the amount of space that TBPC can allocate to a state agency. Although similar to the terms "Agency Space Allocation" and "Usable Area" defined in §122.1, they are not identical and do not clearly express to state agencies how TBPC will calculate the amount of usable space. If §122.3(a) is being used to express the same idea as in the definition of §122.1(5), "Agency Space Allocation," the language should be revised to avoid ambiguity.

Response: The language has been revised.

TXDOT Comments on §122.3(d): Variances or Waivers of allocation limits uses still more terms to describe the 135 square feet per FTE limitation. By deleting the phrase "net usable" in the second line, it appears that TBPC is requiring state agencies to request a variance whenever the request for space exceeds the 135 square feet/employee ratio based on gross area. Texas Government Code, §2165.104(c) refers to usable office space. It is not clear how this variance procedure is consistent with this Texas Government Code section.

Response: Staff does not agree there is an inconsistency with the Code.

DOB Comments on §122.3: DOB currently has 88 parking spaces for 120 FTE. The closest state parking facility is a ten minute drive away. We do not believe the Legislature intended to meet the 135 square footage requirements by increasing an agency's fiscal burden, requiring the agency to pay for offsite parking and shuttling services. The current proposal does not appear to provide sufficient flexibility for us to qualify for an exemption. We suggest that the following be added to subsection (c):

(5) an agency site where parking cannot be secured within 500 feet of the site adequate to accommodate 90% of the state employees housed at the site.

Response to DOB: These comments are restricted to parking which is not the subject of these rules.

TSLAC comments on Chapter 122 generally (paraphrased): The proposed changes in this chapter of the rules will impose procedures on agencies that will be burdensome and place unnecessary restrictions on the daily operations of state agencies in carrying out their legislative mandate. Many agencies are mandated by the legislature to carry out operations that require space other than staff work areas.

Amendments were also recommended to allow exempted space use status for mandated law and public library space and records storage or archives (non-office) space.

Response: The statute and corresponding proposed rule amendments afford the Commission the authority to make space exemption variances when it is impractical to comply with 135 square feet per FTE.

Subchapter A. APPLICATION FOR STATE-LEASED OR OWNED FACILITIES

1 TAC §122.1

The amendments are adopted under the authority of the Texas Government Code, Title 10, Subtitle D, §§2152.003, 2165.102 and 2165.108.

The following code is affected by the amendments: Texas Government Code, Title 10, Subtitle D, Chapters 2165, 2167 and §2166.260.

§122.1.Definitions.

The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Agency Employee--The full-time equivalent (FTE) of a person performing services on site under the direction of a state agency, including hours worked by full-time employees, part-time employees, and consultant and contract individuals as defined by the state auditor; including employees paid from funds maintained outside the treasury and hours worked by volunteers performing necessary services. Requests must include all contract and volunteer employees' work-hours and functions.

(2) Agency Head--The highest-ranking executive officer with full-time responsibility for the operations of the agency.

(3) Agency Site--A building or building complex on a single site or under a single lease contract, where agency business is transacted or services are provided.

(4) Commission--The Texas Building and Procurement Commission.

(5) Agency Space Allocation--The area assigned to an agency, not to exceed 135 square feet per FTE, calculated on the basis of Gross Area less the following exceptions:

(A) Space designated and regularly used for public activities, including ancillary space such as lobbies, corridors, toilet rooms and refreshment areas associated with the public space. This does not include lobbies and other space ancillary to space primarily intended for internal use by FTE's in the course of interfacing with clients, or to accommodate occasional visits by members of the public;

(B) Vertical shafts or chases used for circulation (elevators or stairs) or mechanical, electrical, telecommunication, or data cabling distributions;

(C) Mechanical, electrical, telecommunication, and data cabling rooms which house equipment serving more than a single tenant; and

(D) Other areas to be determined by the Commission.

(6) Gross Area--Gross Floor Areas shall be the area within the inside perimeter of the outside walls of the building with no deduction for hallways, stairs, closets, interior wall thickness, columns, or other features. When floors open to an atrium, the inside finished surface of the walls enclosing the atrium shall be used in lieu of an outer building wall.

(7) Space Allocation Ratio--The mathematical result of dividing the occupying agency's Space Allocation by the total number of agency employees per site.

(8) Space Use Study--A study conducted by the commission to determine space requirements for state agencies.

(9) State Agency--A board, commission, department, or other authorized agency of the state.

(10) Usable Office Space--That area of space as defined in paragraph (5) of this section, computed by measuring from the finished surface of the office side of a corridor and/or permanent wall, to the center of partitions that separate interior spaces from adjoining Usable Areas, and the inside finished surface of the dominant portion of the permanent outer building walls.

(11) Variance--A request for an Agency Space Allocation of more than 135 square feet per agency employee at a particular site.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401319

Cynthia de Roch

General Counsel

Texas Building and Procurement Commission

Effective date: March 14, 2004

Proposal publication date: September 5, 2003

For further information, please call: (512) 463-4257


Subchapter B. SPACE ALLOCATION

1 TAC §122.3

The amendments are adopted under the authority of the Texas Government Code, Title 10, Subtitle D, §§2152.003, 2165.102 and 2165.104.

The following code is affected by the amendments: Texas Government Code, Title 10, Subtitle D, Chapters 2165, 2167 and §2166.260.

§122.3.Space Allocation.

(a) The Texas Government Code, Title 10, Subtitle D, §2165.104 requires the Commission to allocate space to state agencies in the best and most efficient manner possible. In addition, the Commission may not allocate space to a state agency under Articles I, II, V, VI, VII, and VIII of the General Appropriations Act, the Texas Higher Education Coordinating Board, the Texas Education Agency, the State Board of Educator Certification, the Office of Court Administration of the Texas Judicial System, or other specified state agency in an amount in which the Space Allocation Ratio exceeds 135 square feet.

(b) This section applies to the use of state-leased and owned office facilities obtained and/or managed through the commission.

(c) This section does not apply to:

(1) residential space for a Texas Department of Mental Health and Mental Retardation program;

(2) space to be utilized for less than one month for meetings, conferences, seminars, conventions, displays, examinations, auctions, or similar purposes;

(3) an agency site at which it is not practical to apply this section, as determined by the commission; or

(4) an Agency site at which it is not practical to apply this section because of the site type of space or use of space, as determined by the commission.

(d) Variances or Waivers of allocation limits: Any agency request, the result of which would be a Space Allocation Ratio in excess of 135 square feet, must be submitted to the commission demonstrating conformance with one of the criteria in subsection (e) of this section.

(1) Each request must be signed by the agency head and the chairman of the agency's governing body.

(2) The commission will grant or deny a request in writing.

(3) Requests granted or denied by the commission may be provided to the Legislative Budget Board, the Governor's Budget and Planning Office, the chair of the Senate Finance Committee and the chair of the House Appropriations Committee.

(e) The commission may allocate usable office space in excess of 135 square feet per agency employee, if the commission determines that:

(1) upon Space Use Study conducted by the commission, a particular type of space should be excluded;

(2) a strict application of the standard to a given site is not practical; or

(3) is in the best financial interest of the state to do so.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401320

Cynthia de Roch

General Counsel

Texas Building and Procurement Commission

Effective date: March 14, 2004

Proposal publication date: September 5, 2003

For further information, please call: (512) 463-4257