BILL ANALYSIS


                                                     C.S.S.B. 771
                                                     By: Moncrief
                                      Intergovernmental Relations
                                                         03-22-95
                                   Committee Report (Substituted)
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, C.S.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 263.001, Local Government Code, by adding
Subsection (d), as follows:

     (d)  Authorizes the commissioners court of a county to lease
     real property owned or controlled by the county to a federal,
     state, or local governmental entity for any purpose, or to a
     nonprofit organization that is tax-exempt under Section
     501(c)(3), 26 U.S.C. (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 public auction process or
     any other competitive bidding process.  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.
     
     SECTION 2.     Emergency clause.
           Effective date: upon passage.