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.