HBA-LJP C.S.H.B. 1628 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1628 By: Deshotel Land & Resource Management 3/30/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Prior to the 76th legislative session, the Texas Department of Mental Health and Mental Retardation (MHMR) provided mental health and mental retardation services at the Beaumont State Center. Sunset legislation for MHMR passed in the 76th legislative session (Senate Bill 358) contained a provision that authorized the transfer of Beaumont State Center to local governance. As a part of the transfer, the Beaumont State Center facility was leased to Spindletop Mental Health and Mental Retardation Services (Spindletop). However, Spindletop would like to establish ownership, but Spindletop's budget does not provide funds to purchase a facility such as the former Beaumont State Center. C.S.H.B. 1628 authorizes MHMR to transfer certain real property for nonmonetary consideration to Spindletop for use as a facility 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. ANALYSIS C.S.H.B. 1628 amends law to authorize the Texas Department of Mental Health and Mental Retardation (MHMR) to transfer, no later than May 31, 2002, all or part of specified real property to Spindletop Mental Health and Mental Retardation Services (Spindletop). The bill requires the consideration for the transfer to be in the form of an agreement between the parties that requires Spindletop to use the property in a manner that primarily promotes a public purpose of the state by using the property to provide community-based mental health or mental retardation services. The bill provides that the transfer does not obligate Spindletop for any debt related to the property accrued before the transfer. The bill provides that any restrictive conditions imposed by a deed transferring the property to the state recorded in the real property records of Jefferson County are binding on the property transaction. The bill requires MHMR to transfer the property by deed without warranties regarding covenants of title and provides that the instrument of transfer must include provisions that indicate any restrictive conditions imposed by a deed are binding on the described property transaction, requires Spindletop to use the property in a manner that primarily promotes a public purpose of the state, and indicates that the ownership of the property automatically reverts to MHMR if Spindletop fails to use the property in a manner that complies with the imposed restrictions for more than 180 continuous days. The bill provides that the state reserves its property interest in all oil, gas, and other minerals in and under the land conveyed and the right and power to remove any and all of the oil, gas, and minerals, including any right and power to grant oil, gas, and mineral leases held by the state before the conveyance of the property. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1628 modifies the original by providing that the Texas Department of Mental Health and Mental Retardation may only transfer certain real property no later than May 31, 2002. The substitute requires the consideration for the transfer to be in the form of an agreement between the parties that requires Spindletop Mental Health and Mental Retardation Services (Spindletop) to use the property in a manner that primarily promotes community-based mental health or mental retardation services. The substitute also adds that the transfer does not obligate Spindletop for any debt related to the property accrued before the transfer. The substitute differs from the original by not providing certain exemptions from law for the transfer.