BILL ANALYSIS

 

 

                                                                                                                                           H.B. 2618

                                                                                                                                          By: Guillen

                                                                                                                                    County Affairs

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

Local Government Code requires counties to engage in competitive bidding when they lease their property. This has the effect of nearly always excluding possible government tenants, since private businesses can almost always beat a government's bid. Having a government as a tenant has many positive affects for both local residents and property owners.

 

H.B. 2618 would  allow counties to lease county-owned property to local, state and federal government entities without the need for competitive bidding. 

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. 

 

ANALYSIS

 

H.B. 2618 adds a section to the Local Government Code to authorize a political subdivision to lease political subdivision owned properties to local, state and federal government entities without engaging in a competitive bidding process. It states that political subdivisions shall determine the terms of the lease so as to promote and maintain the public purpose of the property and may lease the property below market value to a government entity.

 

EFFECTIVE DATE

 

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2007.