BILL ANALYSIS


                                                     C.S.S.B. 993
                                                   By: Barrientos
                                      Intergovernmental Relations
                                                         04-18-95
                                   Committee Report (Substituted)
BACKGROUND

In 1839, the State of Texas granted certain land to the City of
Austin on which the Brackenridge Children's Hospital is now
located.  In 1981, the legislature changed the restriction on the
use of the property from "hospital" to "public purpose."  Due to
increased competition and consolidation in the marketplace, the
City of Austin believes the interests of the city and its residents
will be best served by leasing its hospital facilities to a
nonprofit corporation to achieve economies of scale, avoid
duplication of services, and thereby increase the accessibility and
reduce the cost of health service to residents.  Existing statutes
and the city charter authorize the city to lease the Children's
Hospital to a nonprofit corporation as part of a transaction,
provided that the same qualifies as "public purpose" use. 
Clarification that a lease would qualify as public purpose use so
long as the lessee is a nonprofit corporation would enable a title
company to give a title policy on the leasehold interest of a
lease.

PURPOSE

As proposed, C.S.S.B. 993 authorizes the City of Austin to use
certain real property designated for a public purpose.

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. Sets forth the findings of the legislature relating to
the feasibility of the City of Austin transferring the operation of
hospital property on a nonprofit basis to another entity
experienced in providing health care services.

SECTION 2. Amends Section 2, Chapter 492, Acts of the 67th
Legislature, Regular Session, 1981, as follows:

     Sec. 2.  Provides that the City of Austin is empowered to use
     designated land as shown on a plat and as patented to the City
     of Austin by patent dated July 15, 1994, for any public
     purpose.  Defines "public purpose."
     
     SECTION 2.     Emergency clause.
           Effective date: upon passage.