BILL ANALYSIS H.B. 2461 By: Counts April 11, 1995 Committee Report (Unamended) BACKGROUND The Texas Health and Safety Code, Section 533.084, authorizes the TX MHMR Board to lease (but not sell) surplus real property under its control. In addition, the TX MHMR Board has adopted an Asset Management Policy stating that transactions involving assets not required for services should be directed at maximizing the monetary return to the department. This action was initiated when the Texas Department of Mental Health and Mental Retardation (TX MHMR) received a request from the City of Big Spring to release the deed restriction and reversionary clause on a 70.67 acre tract of land (the Property) that was deeded to the city through the adoption of S.B. 238 in the 64th Legislature, Regular Session, 1975. The Property is adjacent to the Big Spring State Hospital Pursuant to S.B. 238, the property was conveyed to the City in 1976. The conveyance was conditioned on the exclusive use of the Property for public park and/or recreational purposes. The conveyance included a clause that would cause title to revert to the State upon cessation of the allowable use. The TX MHMR Board has determined that the release of conditions on the Property will not directly impact the utilization of any campus or community-based facilities. An agreement addressing development on common property lines is necessary to insure that future development on the Property is compatible with the ongoing operations of the hospital. After determining that the Property is not necessary for the present or future delivery of services at the Big Spring State Hospital, the TX MHMR Board designated the Property as surplus on February 10, 1995. Because the conditions were established by a prior legislative act, the Board directed the commissioner to seek legislation to authorize their release. This legislation provides the required authorization. The Texas General Land Office (GLO) is responsible for overseeing the management of state-owned real property under Chapter 31 of the Natural Resources Code and through a Memorandum of Understanding with TX MHMR. The GLO has analyzed the proposal and has recommended releasing the conditions for a price equal to the market value of the Property without the conditions, less the value of the Property as currently held by the City (with the conditions in place). PURPOSE To release the interest of the State of Texas in a tract of land in Howard County, Big Spring Texas, further described by metes and bounds in this bill. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1 (a) Gives the General Land Office permission to release the state's reversionary interest described in Section 2, Chapter 85, Acts of the 64th Legislature, Regular Session, 1975, in the real property conveyed to the City of Big Spring and described by Section 2 of this Act if: (1) the City of Big Spring and the TX MHMR execute an agreement ensuring that future uses of the property will be compatible with the operation of the Big Spring State Hospital; (2) the City of Big Spring ensures that the portion of the property set aside for public use will be accessible to persons with disabilities; and (3) the City of Big Spring pays the amount determined by the General Land Office. (b) Describes how the General Land Office will determine fair market value. SECTION 2 Provides the legal description of the property to be conveyed. SECTION 3 Emergency clause. Effective upon passage. SUMMARY OF COMMITTEE ACTION H.B. 2461 was considered by the committee in a public hearing on April 11, 1995. The following person testified in favor of the bill: Representative David Counts. The following person testified neutrally on the bill: Commissioner Garry Mauro, representing the General Land Office. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.