1-1 By: Puente (Senate Sponsor - Madla) H.B. No. 2078
1-2 (In the Senate - Received from the House May 1, 1995;
1-3 May 2, 1995, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 10, 1995, reported adversely, with
1-5 favorable Committee Substitute by the following vote: Yeas 8, Nays
1-6 0; May 10, 1995, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2078 By: Madla
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the sale or lease of property by municipalities,
1-11 counties, or other political subdivisions.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Sections 272.001(a), (b), (c), (f), and (g),
1-14 Local Government Code, are amended to read as follows:
1-15 (a) Except for the types of land and interests covered by
1-16 Subsection (b), (g), <or> (h), or (i), and except as provided by
1-17 Section 253.007, before land owned by a political subdivision of
1-18 the state may be sold or exchanged for other land, notice to the
1-19 general public of the offer of the land for sale or exchange must
1-20 be published in a newspaper of general circulation in either the
1-21 county in which the land is located or, if there is no such
1-22 newspaper, in an adjoining county. The notice must include a
1-23 description of the land, including its location, and the procedure
1-24 by which sealed bids to purchase the land or offers to exchange the
1-25 land may be submitted. The notice must be published on two
1-26 separate dates and the sale or exchange may not be made until after
1-27 the 14th day after the date of the second publication.
1-28 (b) The notice and bidding requirements of Subsection (a) do
1-29 not apply to the types of land and real property interests
1-30 described by this subsection and owned by a political subdivision.
1-31 The land and those interests described by this subsection may not
1-32 be conveyed, sold, or exchanged for less than the fair market value
1-33 of the land or interest unless the conveyance, sale, or exchange is
1-34 with one or more abutting property owners who own the underlying
1-35 fee simple. The fair market value is determined by an appraisal
1-36 obtained by the political subdivision that owns the land or
1-37 interest or, in the case of land or an interest owned by a
1-38 home-rule municipality, the fair market value may be determined by
1-39 the price obtained by the municipality at a public auction for
1-40 which notice to the general public is published in the manner
1-41 described by Subsection (a). The notice of the auction must
1-42 include, instead of the content required by Subsection (a), a
1-43 description of the land, including its location, the date, time,
1-44 and location of the auction, and the procedures to be followed at
1-45 the auction. The appraisal or public auction price is conclusive
1-46 of the fair market value of the land or interest, regardless of any
1-47 contrary provision of a home-rule charter. This subsection applies
1-48 to:
1-49 (1) narrow strips of land, or land that because of its
1-50 shape, lack of access to public roads, or small area cannot be used
1-51 independently under its current zoning or under applicable
1-52 subdivision or other development control ordinances;
1-53 (2) streets or alleys, owned in fee or used by
1-54 easement;
1-55 (3) <an easement for which one or more abutting
1-56 property owners own the underlying fee simple;>
1-57 <(4)> land or a real property interest originally
1-58 acquired for streets, rights-of-way, or easements that the
1-59 political subdivision chooses to exchange for other land to be used
1-60 for streets, rights-of-way, <or> easements, or other public
1-61 purposes, including transactions partly for cash;
1-62 (4) <(5)> land that the political subdivision wants to
1-63 have developed by contract with an independent foundation;
1-64 (5) <(6)> a real property interest conveyed to a
1-65 governmental entity that has the power of eminent domain; or
1-66 (6) <(7)> a municipality's land that is located in a
1-67 reinvestment zone designated as provided by law and that the
1-68 municipality desires to have developed under a project plan adopted
2-1 by the municipality for the zone.
2-2 (c) The land or interests described by Subsections (b)(1)
2-3 and<,> (2)<, and (3)> may be sold to:
2-4 (1) abutting property owners in the same subdivision
2-5 if the land has been subdivided; or
2-6 (2) abutting property owners in proportion to their
2-7 abutting ownership, and the division between owners must be made in
2-8 an equitable manner.
2-9 (f) The fair market value of land, an easement, or other
2-10 real property interest <to be dedicated or conveyed by plat or deed
2-11 to a political subdivision> in exchange for land, an easement, or
2-12 other real property interest as authorized by Subsection (b)(3) is
2-13 conclusively determined by an appraisal obtained by the political
2-14 subdivision <to which the land, easement, or other interest is to
2-15 be dedicated or conveyed>. The cost of any streets, utilities, or
2-16 other improvements constructed on the affected land or to be
2-17 constructed by an entity other than the political subdivision on
2-18 the affected land may be considered in determining that fair market
2-19 value.
2-20 (g) A political subdivision may acquire or assemble land or
2-21 real property interest, except by condemnation, and sell, exchange,
2-22 or otherwise convey the land or interests to an entity for the
2-23 development of low-income or moderate-income housing. The
2-24 municipality shall determine the terms and conditions of the
2-25 transactions so as to effectuate and maintain the public purpose.
2-26 If conveyance of land under this subsection serves a public
2-27 purpose, the land may be conveyed for less than its fair market
2-28 value. In this subsection, "entity" means an individual,
2-29 corporation, partnership, or other legal entity.
2-30 SECTION 2. This Act takes effect September 1, 1995.
2-31 SECTION 3. The importance of this legislation and the
2-32 crowded condition of the calendars in both houses create an
2-33 emergency and an imperative public necessity that the
2-34 constitutional rule requiring bills to be read on three several
2-35 days in each house be suspended, and this rule is hereby suspended.
2-36 * * * * *