H.B. No. 2078
1-1 AN ACT
1-2 relating to the sale or lease of property by municipalities,
1-3 counties, or other political subdivisions.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 272.001(a), (b), (c), (f), and (g),
1-6 Local Government Code, are amended to read as follows:
1-7 (a) Except for the types of land and interests covered by
1-8 Subsection (b), (g), <or> (h), or (i), and except as provided by
1-9 Section 253.007, before land owned by a political subdivision of
1-10 the state may be sold or exchanged for other land, notice to the
1-11 general public of the offer of the land for sale or exchange must
1-12 be published in a newspaper of general circulation in either the
1-13 county in which the land is located or, if there is no such
1-14 newspaper, in an adjoining county. The notice must include a
1-15 description of the land, including its location, and the procedure
1-16 by which sealed bids to purchase the land or offers to exchange the
1-17 land may be submitted. The notice must be published on two
1-18 separate dates and the sale or exchange may not be made until after
1-19 the 14th day after the date of the second publication.
1-20 (b) The notice and bidding requirements of Subsection (a) do
1-21 not apply to the types of land and real property interests
1-22 described by this subsection and owned by a political subdivision.
1-23 The land and those interests described by this subsection may not
1-24 be conveyed, sold, or exchanged for less than the fair market value
2-1 of the land or interest unless the conveyance, sale, or exchange is
2-2 with one or more abutting property owners who own the underlying
2-3 fee simple. The fair market value is determined by an appraisal
2-4 obtained by the political subdivision that owns the land or
2-5 interest or, in the case of land or an interest owned by a
2-6 home-rule municipality, the fair market value may be determined by
2-7 the price obtained by the municipality at a public auction for
2-8 which notice to the general public is published in the manner
2-9 described by Subsection (a). The notice of the auction must
2-10 include, instead of the content required by Subsection (a), a
2-11 description of the land, including its location, the date, time,
2-12 and location of the auction, and the procedures to be followed at
2-13 the auction. The appraisal or public auction price is conclusive
2-14 of the fair market value of the land or interest, regardless of any
2-15 contrary provision of a home-rule charter. This subsection applies
2-16 to:
2-17 (1) narrow strips of land, or land that because of its
2-18 shape, lack of access to public roads, or small area cannot be used
2-19 independently under its current zoning or under applicable
2-20 subdivision or other development control ordinances;
2-21 (2) streets or alleys, owned in fee or used by
2-22 easement;
2-23 (3) <an easement for which one or more abutting
2-24 property owners own the underlying fee simple;>
2-25 <(4)> land or a real property interest originally
2-26 acquired for streets, rights-of-way, or easements that the
2-27 political subdivision chooses to exchange for other land to be used
3-1 for streets, rights-of-way, <or> easements, or other public
3-2 purposes, including transactions partly for cash;
3-3 (4) <(5)> land that the political subdivision wants to
3-4 have developed by contract with an independent foundation;
3-5 (5) <(6)> a real property interest conveyed to a
3-6 governmental entity that has the power of eminent domain; or
3-7 (6) <(7)> a municipality's land that is located in a
3-8 reinvestment zone designated as provided by law and that the
3-9 municipality desires to have developed under a project plan adopted
3-10 by the municipality for the zone.
3-11 (c) The land or interests described by Subsections (b)(1)
3-12 and<,> (2)<, and (3)> may be sold to:
3-13 (1) abutting property owners in the same subdivision
3-14 if the land has been subdivided; or
3-15 (2) abutting property owners in proportion to their
3-16 abutting ownership, and the division between owners must be made in
3-17 an equitable manner.
3-18 (f) The fair market value of land, an easement, or other
3-19 real property interest <to be dedicated or conveyed by plat or deed
3-20 to a political subdivision> in exchange for land, an easement, or
3-21 other real property interest as authorized by Subsection (b)(3) is
3-22 conclusively determined by an appraisal obtained by the political
3-23 subdivision <to which the land, easement, or other interest is to
3-24 be dedicated or conveyed>. The cost of any streets, utilities, or
3-25 other improvements constructed on the affected land or to be
3-26 constructed by an entity other than the political subdivision on
3-27 the affected land may be considered in determining that fair market
4-1 value.
4-2 (g) A political subdivision may acquire or assemble land or
4-3 real property interest, except by condemnation, and sell, exchange,
4-4 or otherwise convey the land or interests to an entity for the
4-5 development of low-income or moderate-income housing. The
4-6 municipality shall determine the terms and conditions of the
4-7 transactions so as to effectuate and maintain the public purpose.
4-8 If conveyance of land under this subsection serves a public
4-9 purpose, the land may be conveyed for less than its fair market
4-10 value. In this subsection, "entity" means an individual,
4-11 corporation, partnership, or other legal entity.
4-12 SECTION 2. This Act takes effect September 1, 1995.
4-13 SECTION 3. The importance of this legislation and the
4-14 crowded condition of the calendars in both houses create an
4-15 emergency and an imperative public necessity that the
4-16 constitutional rule requiring bills to be read on three several
4-17 days in each house be suspended, and this rule is hereby suspended.