SB1012

Regular Session

Relating to authorizing the sale or lease by the State of Texas of certain real property located in Austin, Texas.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

General Land Office (GLO) • Health and Human Services Commission (HHSC)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: Transaction Dependent.
*45th Street:* Solicitations expected Q4 2025 or Q1 2026 ("as soon as practicable" after effective date).
*Shoal Creek:* Delayed Indefinitely. Closing cannot occur until the Texas State Library and Archives Commission (TSLAC) occupies a newly constructed replacement facility (likely 2027-2028).
Agency Rulemaking: The General Land Office (GLO) and Health and Human Services Commission (HHSC) will not issue administrative rules but will release Requests for Proposals (RFPs) that define specific transactional constraints.

Immediate Action Plan

Pull Title Immediately: Direct legal teams to identify the specific deed restrictions on the 45th Street parcel referenced in the Fiscal Note to determine project viability.
Track Appropriations: Monitor the legislative budget process for funding of the "Alternative State Records Facility." Without this funding, the Shoal Creek deal cannot close.
Update Financial Models: Adjust pro formas for the Shoal Creek site to account for a 2-3 year holding period/delay while the replacement facility is constructed.
Map Easements: Pre-plan site layouts for the 45th Street location to accommodate mandatory HHSC easements before the RFP is released.

Operational Changes Required

Contracts

Shoal Creek Acquisitions: Purchase agreements must include a Condition Precedent clause. The transaction cannot legally close until the TSLAC replacement facility is operational. Contracts must include force majeure clauses covering state construction delays.
45th Street Leases: Agreements must legally grant easements to HHSC for adjacent properties. This is a statutory requirement, not a negotiation point.
Use Restrictions: Leases will contain restrictive covenants dictated by HHSC operational compatibility; legal counsel must review these for impact on intended commercial density.

Hiring/Training

Procurement Monitoring: Direct bid teams to set alerts for GLO and HHSC solicitations on the Electronic State Business Daily (ESBD) starting September 1, 2025.
No New Certifications: No new staff certifications are required.

Reporting & Record-Keeping

Proposal Documentation: Bids for the 45th Street property must include a detailed Proposed Use Plan (Section 3(d)(1)) to demonstrate compatibility with HHSC operations.
Surveying: Site plans must explicitly map mandatory easements for adjacent commission properties; failure to document these will render a bid non-compliant.

Fees & Costs

Due Diligence: Budget immediately for Phase I and Phase II Environmental Site Assessments, as state property is generally transferred "as is."
Title Work: Budget for immediate title research regarding deed restrictions referenced in the Fiscal Note.

Strategic Ambiguities & Considerations

The Replacement Facility Funding: The bill authorizes the sale of Shoal Creek but does not appropriate funds to build the required replacement facility. If the Legislature fails to appropriate construction funds in the next session, the Shoal Creek transaction is legally paralyzed.
Deed Restrictions: The Fiscal Note explicitly warns that HHSC may be unable to sell/lease parts of the property due to existing deed restrictions. The bill does not override private property rights.
"As Soon As Practicable": This statutory language grants the GLO and HHSC broad discretion to delay offerings if they deem market conditions unfavorable.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsAustin, City of Property Interests Property Interests--real Property Public Lands, Buildings & Resources General Land Office Libraries & Librarians

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 1012
89R11 KBT-F	By: Kolkhorst
	Business & Commerce
	4/11/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 4025 in the 88th Legislature allowed the state to sell two surplus properties where the Health and Human Services Commission (HHSC) has vacant buildings and the Texas State Library and Archives Commission (TSLAC) operates a warehouse. S.B. 1012 is an identical refile of the legislation as it passed Business & Commerce last session.

Key Provisions

Requires the General Land Office (GLO), as soon as practicable after the effective date of this Act, to offer to sell the real property.
Requires GLO to negotiate and close a transaction under this section under Section 31.158, Natural Resources Code. This requires that proceeds from the transaction be deposited in the general revenue fund.
Requires that the sale of TSLAC property be contingent upon the construction and occupation of an alternative state records facility that replaces the facility.

Changes in Committee Substitute

The HHSC property not being suitable for a sale due to title issues, instead this bill authorizes a long term lease of the property which is located across from Chili's at 45th & Lamar. The bill directs the proceeds of the lease to Fund 542 for benefit of HHSC.
The bill also directs the proceeds from TSLAC property to be put into a general revenue dedicated fund for capital improvements to public facing TSLAC facilities in advance of the Bicentennial in 2036.
The goal of using these proceeds is to make the TSLAC facilities in Austin and in Liberty County more accessible. This ensures that Texans will have access to original source documents.

As proposed, S.B. 1012 amends current law relating to authorizing the sale by the State of Texas of certain real property located in Austin, Texas.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.� (a) Requires the General Land Office (GLO), as soon as practicable after the effective date of this Act, to offer to sell the real property described by Section 2 of this Act under the terms provided by this section.

(b)� Requires the GLO to negotiate and close a transaction under this section under Section 31.158, Natural Resources Code. Requires that proceeds from the transaction be deposited in the general revenue fund.

(c) Requires that the sale of the real property described by Subdivision (1) of Section 2 of this Act be contingent upon the construction and occupation of an alternative state records facility that replaces the facility being operated on the real property by the Texas State Library and Archives Commission on the effective date of this Act.

SECTION 2. Provides that the real property held by the State of Texas is situated in Travis County, Texas, and more particularly described as follows:

(1) 20.3127 acres, more or less, located at 4400 Shoal Creek Boulevard in Austin, Travis County, Texas, and having a legal description of ABS 697 SUR 7 SPEAR G W ACR 20.3127; and

(2) 7.5 acres of a 66 acre tract, more or less, located at 909 W. 45th Street in Austin, Travis County, Texas, and having a legal description of ALL OF OLT 80&82 DIVISION D.

SECTION 3.� Effective date: September 1, 2025.

Senate Authors

Sen. Lois KolkhorstRepublican · Primary Author

Coauthors (1)

Sarah Eckhardt (D)

House Sponsor

Rep. Donna HowardDemocrat · Primary Sponsor

Bill Text(with markup)

S.B. No. 1012

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to authorizing the sale or lease by the State of Texas of
	certain real property located in Austin, Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. (a) As soon as practicable after the effective
	date of this Act, the General Land Office shall offer to sell or
	lease the real property described by Section 2 of this Act under the
	terms provided by this section.
	(b) The General Land Office shall negotiate and close a
	transaction under this section under Section 31.158, Natural
	Resources Code. Proceeds from the transaction shall be deposited
	in a new dedicated account in the general revenue fund, to be known
	as the bicentennial Texas State Library and Archives Commission
	fund. Proceeds from the bicentennial Texas State Library and
	Archives Commission fund shall be used:
	(1) for capital improvements to the Sam Houston
	Regional Library and Research Center and the Lorenzo de Zavala
	State Archives and Library Building; and
	(2) to make original source materials more accessible
	to the public.
	(c) The sale or lease of the real property described by
	Section 2 of this Act shall be contingent upon the construction and
	occupation of an alternative state records facility that replaces
	the facility being operated on the real property by the Texas State
	Library and Archives Commission on the effective date of this Act.
	SECTION 2. The real property to which Section 1 of this Act
	applies is situated in Travis County, Texas, and more particularly
	described as follows:
	20.3127 acres, more or less, located at 4400 Shoal Creek
	Boulevard in Austin, Travis County, Texas, and having a legal
	description of ABS 697 SUR 7 SPEAR G W ACR 20.3127.
	SECTION 3. (a) In this section, "commission" means the
	Health and Human Services Commission.
	(b) As soon as practicable after the effective date of this
	Act, the commission may lease the real property described by
	Section 4 of this Act under the terms provided by this section.
	(c) The commission shall negotiate execution of one or more
	leases under Section 533.087, Health and Safety Code. Proceeds from
	a lease authorized by this section shall be deposited in the Texas
	capital trust fund for the benefit of the commission.
	(d) A lease of all or a portion of the real property
	described by Section 4 of this Act must:
	(1) provide for commission approval and restriction of
	the lessee's proposed use of the property; and
	(2) grant the commission easements to commission
	properties adjacent to the leased property.
	SECTION 4. The real property to which Section 3 of this Act
	applies is situated in Travis County, Texas, and more particularly
	described as follows:
	Approximately 7.5 acres adjoining the south right of way line
	of West 45th street and the East right of way line of Lamar Blvd.,
	located in Austin, Travis County, Texas, and furthermore being
	described as located in LOTS 79, 80 AND 82, DIVISION D OF THE
	GOVERNMENT OUTLOTS on file in the General Land Office.
	SECTION 5. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 14, 2025

TO:	Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1012 by Kolkhorst (Relating to authorizing the sale by the State of Texas of certain real property located in Austin, Texas.), As Introduced

The fiscal implications of the bill would have an indeterminate revenue gain to the state because the timing of the sales and the amount of proceeds that would be received are unknown. In addition, the Health and Human Services Commission (HHSC) may not be able to sell all or part of the property due to deed restrictions. If HHSC can sell, HHSC estimates there may be a savings of $327,000 in All Funds each fiscal year related to the discontinuation of utilities, security, groundskeeping, and other maintenance and upkeep costs related to the property in addition to revenue gained from the property sale.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

The bill would authorize the sale of certain real property held by the State of Texas located in the City of Austin. The real property as described in the bill includes (1) 20.3127 acres, more or less, located at 4400 Shoal Creek Boulevard in Austin, Travis County, Texas, and (2) 7.5 acres of a 66 acre tract, more or less, located at 909 W. 45th Street in Austin, Travis County, Texas. The sale of the property described in Section 2, Subsection (1) of the bill would be contingent upon the construction and occupation of an alternative state records facility that replaces the facility being operated on the property by the Texas State Library and Archives Commission. The General Land Office would conduct the sale and deposit the proceeds in the General Revenue Fund.

According to the Health and Human Services Commission (HHSC), the revenue gain to the state cannot be determined at this time as HHSC may not be able to sell all or part of the property due to deed restrictions. If HHSC can sell, HHSC estimates there may be a savings of $327,000 in All Funds each fiscal year related to the discontinuation of utilities, security, groundskeeping, and other maintenance and upkeep costs related to the property in addition to revenue gained from the property sale.

According to the Comptroller of Public Accounts (CPA), the fiscal impact to the state would be an indeterminate revenue gain because the timing of the sales and the amount of proceeds that would be received are unknown.

Based on information provided by the General Land Office and Veterans' Land Board, the Texas State Library and Archives Commission and the CPA, it is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board, 306 Library & Archives Commission, 529 Health and Human Services Commission

LBB Staff:

JMc, RStu, MW, JDio

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Frequently Asked Questions

Common questions about SB1012

What does Texas SB1012 do?

SB1012 authorizes the disposition of two high-value state properties in Austin (Shoal Creek Blvd and 45th St), creating significant commercial real estate and construction opportunities rather than general compliance mandates. This legislation affects developers and government contractors, but strictly conditions the Shoal Creek transaction on the prior construction and occupation of a replacement state records facility, creating a multi-year delay for that specific parcel. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: Transaction Dependent.

Who authored SB1012?

SB1012 was authored by Texas Senator Lois Kolkhorst during the Regular Session.

When was SB1012 signed into law?

SB1012 was signed into law by Governor Greg Abbott on May 27, 2025.

Which agencies enforce SB1012?

SB1012 is enforced by General Land Office (GLO) and Health and Human Services Commission (HHSC).

How urgent is compliance with SB1012?

The compliance urgency for SB1012 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB1012?

The cost impact of SB1012 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB1012 address?

SB1012 addresses topics including austin, city of, property interests, property interests--real property, public lands, buildings & resources and general land office.

Legislative data provided by LegiScanLast updated: November 25, 2025

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