HBA-NLM C.S.S.B. 396 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 396 By: Moncrief Land & Resource Management 5/18/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, the State of Texas owns certain real property in Howard and Tarrant counties. The purpose of this bill is to authorize the Texas Department of Mental Health and Mental Retardation (MHMR) to convey certain real property to certain companies to provide community-based mental health and mental retardation services. C.S.S.B. 396 conveys certain state-owned real property in Howard and Tarrant counties to certain companies to provide community-based mental health and mental retardation services. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. (a) Authorizes the Texas Department of Mental Health and Mental Retardation (MHMR) to convey, on behalf of the state, all or any portion of the interest of the state in the real property described by Subsection (e) of this section, to the West Texas Centers for Mental Health and Mental Retardation (centers) for use as a facility to provide community-based mental health and mental retardation services. (b) Requires the reservations contained in the deed to the State of Texas recorded at volume 642, page 480, of the Deed Records of Howard County to run with the land and continue to be binding on the community mental health and mental retardation center. (c) Authorizes the centers to use the conveyed property for the purpose of providing community-based mental health and mental retardation services. Reverts ownership of the property automatically to MHMR, if the centers discontinue using the property for the specified purpose for more than 180 continuous days. (d) Requires MHMR to convey the property by an appropriate instrument of conveyance and sets forth provisions required to be included in the instrument. (e) Describes the real property authorized for conveyance by Subsection (a) of this Section. SECTION 2. (a) Authorizes MHMR to convey, on behalf of the state, all or any portion of the interest of the state in the real property, including the land and all improvements affixed to the land described by Subsection (f) of this section, to Tarrant County Mental Health and Mental Retardation Services (TCMHMR) for use as a facility to provide community-based mental health and mental retardation services or services for the treatment of alcohol and substance abuse. (b) Provides that the conditions precedent and possibility of reverter established in the deed to the State of Texas recorded at volume 8528, page 2057, of the Deed Records of Tarrant County run with the land and are binding on TCMHMR. (c) Authorizes TCMHMR to use the conveyed property only for the purpose of providing community-based mental health and mental retardation services or services for the treatment of alcohol and substance abuse. Requires TCMHMR to immediately notify MHMR if TCMHMR determines that the property will not be used to provide the services described by this subsection for more than 60 continuous days. (d) Authorizes TCMHMR to enter into a binding agreement to sell or otherwise dispose of the property if TCMHMR provides notice of the intent to sell or otherwise dispose of the property to MHMR within a specified time period, and obtains approval from the Texas Board of Mental Health and Mental Retardation regarding the use and allocation of the proceeds of the sale or other disposition of the property. (e) Requires MHMR to convey the property by an appropriate instrument of conveyance and sets forth provisions required to be included in the instrument. (f) Describes the real property authorized for conveyance by Subsection (a) of this Act. SECTION 3. Establishes that the state reserves its property interest in all oil, gas, and other minerals in and under the land conveyed as authorized by this Act and the right and power to remove any and all of said minerals, including the right and power to grant oil, gas, and mineral leases held by the state before the conveyance of the property described by this Act. SECTION 4. Provides that Sections 31.1571 (Disposal of Unused or Underused Property) and 31.158 (Real Estate Transaction Authorized by Legislature), Natural Resources Code, and Sections 533.084 (Management of Surplus Real Property) and 533.087 (Lease of Real Property), Health and Safety Code, do not apply to the conveyances authorized by this Act. SECTION 5. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 396 modifies the original in the caption to provide that this Act relates to "authorizing the conveyance" of certain property located in Howard and Tarrant counties. C.S.S.B. 396 redesignates SECTION 2 of the original to SECTION 1(e) in the substitute. The substitute creates Subsections (a) and (b) from existing text of SECTION 1 of the original. In Subsection (a), the substitute removes the provision that describes the authority granted to MHMR as 'notwithstanding Section 533.084 (Management of Surplus Real Property), Health and Safety Code." In addition, the substitute adds new Subsections (c) and (d) as follows: (c) Authorizes the centers to use the conveyed property for the purpose of providing community-based mental health and mental retardation services. Reverts ownership of the property automatically to the Texas Department of Mental Health and Mental Retardation (MHMR), if the centers discontinue using the property for the specified purpose for more than 180 continuous days. (d) Requires MHMR to convey the property by an appropriate instrument of conveyance and sets forth provisions required to be included in the instrument. C.S.S.B. 396 redesignates SECTION 3 of the original to SECTION 2 in the substitute and includes the provision that the property conveyed to Tarrant County Mental Health and Mental Retardation Services may be used as a facility to provide services for the treatment of alcohol and substance abuse. The substitute creates Subsections (a) and (b) from existing text of SECTION 3 of the original. In Subsection (a) the substitute removes the provision that describes the authority granted to MHMR as " notwithstanding Section 533.084 (Management of Surplus Real Property), Health and Safety Code." In addition, the substitute adds new Subsections (c)-(e) as follows: (c) Authorizes TCMHMR to use the conveyed property only for the purpose of providing community-based mental health and mental retardation services or services for the treatment of alcohol and substance abuse. Requires TCMHMR to immediately notify MHMR if TCMHMR determines that the property will not be used to provide the services described by this subsection for more than 60 continuous days. (d) Authorizes TCMHMR to enter into a binding agreement to sell or otherwise dispose of the property if TCMHMR provides notice of the intent to sell or otherwise dispose of the property to MHMR by a specified time period, and obtains approval from the Texas Board of Mental Health and Mental Retardation regarding the use and allocation of the proceeds of the sale or other disposition of the property. (e) Requires MHMR to convey the property by an appropriate instrument of conveyance and sets forth provisions required to be included in the instrument. In addition, the substitute redesignates SECTION 4 of the original to SECTION 2(f) in the substitute. C.S.S.B. 396 redesignates SECTIONS 5-7 in the original to SECTIONS 3-5 in the substitute, making nonsubstantive changes in predesignated SECTION 3.