BILL ANALYSIS H.B. 2078 By: Puente 4-5-95 Committee Report (Unamended) BACKGROUND Section 272.001 of the Local Government Code controls the resale of surplus property owned by a local government entity. The statute conflicts with current court interpretation of property rights by restricting the ability of local governments to efficiently dispose of surplus property by requiring the expense of conducting a "public bid" for sale of property that is otherwise landlocked. Allowing local government entities to exchange current surplus property for parcels needed to complete public projects and by eliminating doubt regarding the qualifications for participation in certain affordable housing projects with incorporate surplus property owned by local governmental entities will greatly increase the ability of local governments to efficiently dispose of surplus property and benefit the community. PURPOSE To allow government entities to efficiently dispose of surplus property. HB 2078 conforms statutory law to current case law defining private property rights. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 272.001, Local Government Code as follows: (b)(1) is amended to allow a private sale of surplus real estate to an adjoining landowner when the only means of access to the property is by way of the adjoining owner's property. (b)(3) is deleted as it conflicts with current case law determinations of private property rights. (b)(4) is amended to allow a local government entity to exchange surplus property that was obtained for streets, rights-of-way or easements to exchanged for property that is needed for those purposes or other public purposes. (c) is amended to conform to the changes in (b)(3) and to conform to the rights of private sale to court interpretations of the underlaying private property rights which are restricted to owners in the same division. (f) is amended to more closely conform to the terms of (b)(4). (g) is amended to provide definition of "entity" in an effort to encourage the use of this procedure to provide development of low income or moderate income housing. Section 2. This bill takes effect September 1,1995. Section 3. Emergency clause. SUMMARY OF COMMITTEE ACTION HB 2078 was considered by the County Affairs Committee in a public hearing on 4/5/95. Representative Puente opened and closed. HB 2078 was reported favorably with the recommendation that it do pass and be printed and be sent to the Local and Consent Calendar, by the record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.