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.