BILL ANALYSIS

S.B. 2139

By: King

Culture, Recreation & Tourism

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that in 1953 the state entered into a contract with the City of Mineral Wells to transfer a parcel of property under the agreement that the property only be used for fairs, livestock shows, or rodeo grounds, and that the deed contains a reversionary clause that mandates the transfer of the property back to the state if the property is used for any other purpose. The bill sponsor has also informed the committee that for the last 70 years the property has been used only for its deeded purpose and has been under the jurisdiction of the Palo Pinto County Livestock Association but that, in recent years and due to rapid growth in the surrounding area, Palo Pinto County residents have expressed increased interest in using the property for purposes that would violate the reversionary clause. The bill sponsor has further informed the committee that, because the property was formerly a part of Camp Wolters, the Texas Military Department is the designated party to negotiate the release of the state's reversionary interest in the property. S.B. 2139 seeks to address this issue by providing for a process for the release of the state's reversionary interest in the property.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

S.B. 2139 requires the Texas Military Department to determine the fair market value of certain real property in Palo Pinto County described by the bill that was transferred by the state to the City of Mineral Wells in 1953 to be used as a fair, livestock show, and rodeo ground. The bill requires the department also to determine the present fair market value of interests retained by the state in buildings, structures, and other property located or installed on the transferred property. The bill authorizes these fair market values to be established by an independent appraisal obtained by the department or by another means determined reasonable by the department if an independent appraisal of those values is not feasible.

S.B. 2139 requires the department to do the following:

· upon determining the fair market values, negotiate and close a transaction with the Palo Pinto County Livestock Association for the release of the state's reversionary interest in the transferred property and any other interest of the state in property located or installed on the transferred property;

· in negotiating and closing the transaction:

o determine whether the state has received as consideration for the state's transfer of the property the fair market value of the property through the property's use since its transfer for a fair, livestock show, and rodeo ground in furtherance of a public purpose of the state, as provided by covenants imposed in consideration of the transfer; and

o consider also whether the state has received sufficient additional consideration through that use to equal the present fair market value of property located or installed on the transferred property to which the state retains title; and

· if the department determines that the state has received the fair market value of the transferred property and any property located or installed on the transferred property, release by appropriate instrument the state's reversionary interest in the transferred property and the state's interest in any property located or installed on the transferred property.

The bill authorizes the department to otherwise release those interests in exchange for sufficient monetary consideration, as determined by the department, to provide the remaining value owed to the state for the state's transfer of the property and for any property installed on the transferred property.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.