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.