Enrolled Bill Summary

            House Bill 2044 revises and updates Chapter 31 of the Natural Resources Code, relating to the asset management duties of the General Land Office. The bill authorizes the asset management division of the land office (division) to sell to a political subdivision for market value any real property owned by the state if the governor approves the sale and the land commissioner determines the sale is in the best interest of the state. A state agency or political subdivision is authorized to sell or exchange real property held jointly with the School Land Board for the benefit of the permanent school fund if the sale or exchange is for market value and the governor approves the sale. The bill requires each state agency, at a time set by the division, to furnish the Texas Historical Commission with information related to certain state buildings, and requires the division to maintain the inventory records of the former Texas National Research Laboratory Commission. The bill specifies that the duties of the division to make recommendations regarding real property and of the land commissioner to prepare a report involving real property do not apply to real property of the Texas Historical Commission, Alamo, French Legation, Governor's Mansion, State Cemetery, and property administered by the State Preservation Board, or to highway rights-of-way owned by the Texas Department of Transportation. The bill deletes a provision requiring the division to provide a list of unused or underused state property to the Texas Department of Housing and Community Affairs for evaluation of the suitability of the property for affordable housing and adds provisions relating to review of proposed real estate transactions for use as affordable housing by the department after the land commissioner has submitted them to the governor. For real estate transactions authorized by the governor, the bill authorizes expenses incurred by the land office, including brokerage fees, to be deducted from the proceeds of a transaction and specifies where proceeds are to be deposited. The bill requires proceeds from the sale of real property purchased with general revenue funds during calendar years 1995 through 2002 to be deposited in the unobligated portion of the general revenue fund and to be appropriated only to the state agency that possessed the property at the time of the sale. It gives the School Land Board the first option to purchase real property authorized for sale by the legislature or the governor and sets forth procedures for determining the market value of the property. Finally, the bill adds a new subchapter to Chapter 51 of the Natural Resources Code, relating to grants to allow a lessee of real property owned by the permanent school fund and used for grazing or agricultural purposes to apply to the land commissioner for a grant to construct a permanent improvement on the leased property and provides that any improvement constructed with grant funds is the real property of the permanent school fund.