BILL ANALYSIS S.B. 771 By: Moncrief (G. Lewis) 4-19-95 Committee Report (Unamended) BACKGROUND Tarrant County bought the property surrounding the Fort Worth State School. When the school ceased to exist, the county, as the managing entity of the property, expressed an interest in using it to house a "resource connection," comprising nonprofit agencies. Under current law, the county has to go through a competitive bid process, which takes several months and is expensive to administrate. PURPOSE As proposed, S.B. 771 authorizes a county to lease real property to certain organizations, and sets forth procedures for such leases. 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 Section 263.007, Local Government Code, as follows: (e) Authorizes the commissioners court of a county to lease real property that was formerly owned or controlled by the Texas Department of Mental Health and Mental Retardation to a federal, state, or local governmental entity for any purpose, or to a nonprofit organization that is tax-exempt under 26 U.S.C. § 501(c)(3) (Internal Revenue Code of 1986), to conduct health and human service activities or such other activities which the commissioners court finds to be in the public interest, without using the sealed bid or sealed proposal process or any other competitive bidding process otherwise required by law. Requires the commissioners court to declare its intent to lease through written notice posted in the prescribed manner no later than 30 days prior to the beginning of the lease period. Authorizes the commissioners court to consider local business custom regarding leases, the reasonable market value of the leasehold, and the extent to which the provision of services or the other activities to be performed by the lessee will benefit the public, but provides that the commissioners court is not bound thereby. Provides that this section does not limit the ability of the commissioners court to enter into interlocal agreements, contracts, or any other arrangement permitted by law. (f) This section is relettered accordingly. SECTION 2. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE ACTION SB 771 was considered by the County Affairs Committee in a public hearing on 4/19/95. SB 771 was reported favorably with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by the record vote of 5 ayes, 0 nays, 0 pnv, 4 absent.