LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 24, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1002 by Zaffirini (Relating to the transfer of certain
state property from the Texas Department of Mental Health
and Mental Retardation to the Border Region MHMR
Community Center.), Committee Report 1st House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1002, Committee Report 1st House, Substituted: positive impact *
* of $150,000 through the biennium ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $50,000 *
* 2003 100,000 *
* 2004 100,000 *
* 2005 100,000 *
* 2006 100,000 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year General Revenue Fund Texas Capital Trust Fund *
* 0001 Account/ GR-Dedicated *
* 0543 *
* 2002 $50,000 $0 *
* 2003 100,000 0 *
* 2004 100,000 0 *
* 2005 100,000 (5,028,337) *
* 2006 100,000 0 *
***************************************************************************
Fiscal Analysis
The bill would authorize the Department of Mental Health and Mental
Retardation (MHMR) to convey the land, buildings and site improvements
of the former Laredo State Center to the Border Region MHMR Community
Center in Webb County. Several of the buildings on the site were
included in a donation to MHMR by the U.S. Department of Health and
Human Services in 1981. The donation was made subject to deed
restrictions (including a requirement that if the property was
transferred, ownership would revert to the federal government, which
would "re-deed" the property to the new entity) and reversionary clauses
that require it be used to provide health services. The conveyance
would occur either when the conditions imposed by the deeds to the state
expire or when the federal government agrees to terminate the conditions
imposed by the deeds to the state, whichever occurs earlier.
Additionally, the conveyance would be made with restrictions and a
reversionary clause such that the facilities would continue to be used
to provide mental health and mental retardation services.
Methodology
An October 2000 appraisal by the General Land Office showed the site and
improvements to be valued at $5,028,337.
The conveyance of this property could create a savings to General Revenue
of $100,000 per year, due to the State not having to provide funds for
major repair and renovation. The savings for FY 2002 is estimated for
one-half year and equals $50,000. This cost is 3% of the Year 2000
facility replacement value ($3.4 million). MHMR has stated their
expectation is to be able to convey the property in the 2002-03 biennium
and the cost estimate above reflects an expected transfer by mid-year
2002. This savings would depend, however, on the aforementioned
conditions imposed by deed.
The bill could also cause a loss of potential General Revenue, due to the
fact that if the property were sold in FY 2005 (the year the conditions
expire on one parcel of land), rather than conveyed, the State would
earn part of the value of the property and improvements. The potential
cost to General Revenue is the appraisal value of the property and
improvements, totaling $5,028,337.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 305 General Land Office, 655 TX Dept. of Mental
Health & Mental Retardation
LBB Staff: JK, HD, MB