LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                               May 11, 1999
  
  
          TO:  Honorable J.E. "Buster" Brown, Chair, Senate Committee on
               Natural Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB 2019 by Staples (Relating to the conveyance of certain
               state-owned real property in Cherokee County to the City
               of Rusk.), As Engrossed
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated.        *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
The bill would authorize the sale of 12.74 acres of land owned by the
Department of Mental Health and Mental Retardation (MHMR) to the City of
Rusk.  Proceeds from the sale are to be deposited in the Texas Capital
Trust Fund and may be appropriated only for improvements of MHMR
facilities.

In 1997, the General Land Office (GLO) appraised the property at $51,000.
The bill would require the GLO to conduct another appraisal of the
property to determine its fair market value.  That review is currently
underway and could result in a change in the property value.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.  The
fiscal impact to the City of Rusk is noted above.
  
  
Source Agencies:   655   Texas Department of Mental Health and Mental
                   Retardation, 305   General Land Office and Veterans'
                   Land Board, 304   Comptroller of Public Accounts
LBB Staff:         JK, DE, MG