BILL ANALYSIS H.B. 1979 By: Hightower (Armbrister) State Affairs 5-5-95 Senate Committee Report (Unamended) BACKGROUND The General Land Office's asset management division is charged with reviewing the real property inventory of each state agency, identifying real property not being used or being underused, and reporting ultimately to the state leadership. The Texas Department of Criminal Justice (TDCJ) also maintains and updates internally its own extensive inventory of real property. This process has yielded a particularly up-to-date list of properties that the TDCJ feels can and should be sold at fair market value for the benefit of the state. Although the TDCJ has authority to lease real property, it does not presently have statutory authority to sell it. PURPOSE As proposed, H.B. 1979 authorizes the Texas Department of Criminal Justice to sell real property at fair market value using the established staff and procedures within the General Land Office to make the transaction. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 496A, Government Code, by adding Section 496.0021, as follows: Sec. 496.0021. SALE OF DEPARTMENT REAL PROPERTY. (a) Authorizes the Texas Board of Criminal Justice (board) to sell state-owned real property under the board's management and control at the real property's fair market value. Requires the General Land Office to negotiate and close a transaction on behalf of the board using procedures under Section 31.158(c), Natural Resources Code. Requires proceeds from the transaction to be deposited in the Texas capital trust fund. (b) Authorizes the board to authorize the sale of land directly to a local government at fair market value without the requirement of a sealed bid sale if the local government acquires the property for use as a local correctional facility. SECTION 2. Emergency clause. Effective date: upon passage.