S.B. No. 1262
                                        AN ACT
    1-1  relating to the management, development, accounting, and
    1-2  disposition of certain state property.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subsections (b) and (d), Section 31.157, Natural
    1-5  Resources Code, are amended to read as follows:
    1-6        (b)  The draft report shall be submitted to the State
    1-7  Purchasing and General Services Commission which shall further
    1-8  evaluate the potential use of the property by another state agency
    1-9  or department.  The draft report shall also be submitted, at the
   1-10  same time as it is furnished to the commission, to each agency that
   1-11  owns or holds in trust property that is the subject of the draft
   1-12  report.  The commission may comment on any findings or
   1-13  recommendations made by the commissioner and may make additional
   1-14  recommendations regarding the use of the property.  The commission
   1-15  shall complete the review of the draft report within 60 days of the
   1-16  receipt of the report and forward the comments to the commissioner.
   1-17        (d)  The final report shall be submitted to the governor, the
   1-18  presiding officers of both houses of the legislature, the
   1-19  Legislative Budget Board, and the governor's budget office not
   1-20  later than September 1 of each <the> year <preceding a regular
   1-21  session of the legislature>.  If the report contains an evaluation
   1-22  of a sale of property, it must also contain an evaluation of the
   1-23  lease potential of the property.
   1-24        SECTION 2.  Subchapter E, Chapter 31, Natural Resources Code,
    2-1  is amended by adding Section 31.1571 to read as follows:
    2-2        Sec. 31.1571.  DISPOSAL OF UNUSED OR UNDERUSED PROPERTY.
    2-3  (a)  Notwithstanding any other law, after the division has reported
    2-4  a property unused or underused and the commissioner has made a
    2-5  recommendation to the governor for a real estate transaction
    2-6  involving the property, the state agency that owns or controls the
    2-7  property may not develop, sell, or otherwise dispose of the
    2-8  property before the earlier of:
    2-9              (1)  the date the governor rejects a recommended real
   2-10  estate transaction involving the property pursuant to Chapter 672,
   2-11  Acts of the 71st Legislature, Regular Session, 1989 (Article 5421t,
   2-12  Vernon's Texas Civil Statutes); or
   2-13              (2)  two years from the date the recommendation is
   2-14  approved by operation of law under Chapter 672, Acts of the 71st
   2-15  Legislature, Regular Session, 1989 (Article 5421t, Vernon's Texas
   2-16  Civil Statutes).
   2-17        (b)  If a state agency that owns or controls property that
   2-18  the division has reported as unused or underused intends to dispose
   2-19  of or change the use of the property prior to the time provided by
   2-20  Subsection (a), the state agency shall submit to the governor a
   2-21  general development plan for future use of the property.  The plan
   2-22  shall be submitted no later than 30 days prior to the time that the
   2-23  real estate transaction would be approved by operation of law if
   2-24  not disapproved by the governor pursuant to Chapter 672, Acts of
   2-25  the 71st Legislature, Regular Session, 1989 (Article 5421t,
   2-26  Vernon's Texas Civil Statutes).  The governor may take such plan
   2-27  into consideration in determining whether to reject the
    3-1  commissioner's recommendation.
    3-2        SECTION 3.  Subsections (e) and (f), Section 2, Chapter 672,
    3-3  Acts of the 71st Legislature, Regular Session, 1989 (Article 5421t,
    3-4  Vernon's Texas Civil Statutes), are amended to read as follows:
    3-5        (e)  The expenses incurred by the division in conducting the
    3-6  real estate transaction, including the payment of reasonable
    3-7  brokerage fees, may be deducted from the proceeds of the
    3-8  transaction prior to deposit  of the proceeds <in the Texas capital
    3-9  trust fund or other appropriate depository account>.  The division
   3-10  may promulgate rules relating to the payment of reasonable
   3-11  brokerage fees.  Unless the proceeds of the transaction are
   3-12  dedicated by the constitution, the proceeds of the transaction
   3-13  shall be deposited as follows:
   3-14              (1)  if the agency is eligible to participate in the
   3-15  Texas capital trust fund under Chapter 2201, Government Code, the
   3-16  deposit shall be made to that fund;
   3-17              (2)  if the agency is not eligible to participate in
   3-18  the Texas capital trust fund pursuant to Chapter 2201, Government
   3-19  Code, the deposit shall be made into the state treasury to the
   3-20  credit of the affected agency; or
   3-21              (3)  notwithstanding Subdivisions (1) and (2) of this
   3-22  subsection, as otherwise directed pursuant to the procedures of
   3-23  Chapter 317, Government Code.
   3-24        (f)  This article does not apply to a real estate transaction
   3-25  involving real property owned by the state which the division has
   3-26  no duty to review under the provisions of Section 31.155(d),
   3-27  Natural Resources Code <Act is not applicable to any real estate
    4-1  transaction administered by a state agency that, pursuant to
    4-2  Article 601e, Revised Statutes, is ineligible to benefit from the
    4-3  Texas capital trust fund or to any real estate transaction
    4-4  involving permanent school fund land>.
    4-5        SECTION 4.  Subsections (a), (b), and (c), Section 3, Chapter
    4-6  672, Acts of the 71st Legislature, Regular Session, 1989 (Article
    4-7  5421t, Vernon's Texas Civil Statutes), are amended to read as
    4-8  follows:
    4-9        (a)  After properties are recommended for alternate use by
   4-10  the division during the recurring property review and report
   4-11  required by Subchapter E, Chapter 31, Natural Resources Code, the
   4-12  agency possessing the real property recommended for alternative use
   4-13  shall have 60 days after the date it receives the written
   4-14  recommendation to file its comments on or objections to the
   4-15  recommendations with the governor.  <If, within 90 days after the
   4-16  date the governor receives the written recommendation, the governor
   4-17  disapproves of the alternate use recommended, the division may not
   4-18  enter into any real estate transaction involving those properties
   4-19  until authorized by the legislature.  After the governor
   4-20  disapproves a recommendation, the governor may request and the
   4-21  division may make additional recommendations relating to the
   4-22  property.>
   4-23        (b)  If the division reports a property as unused or
   4-24  underused and the commissioner of the General Land Office
   4-25  recommends a real estate transaction involving the property, the
   4-26  commissioner is authorized to conduct the transaction unless the
   4-27  recommendation is disapproved by the governor no later than 90 days
    5-1  after receiving the commissioner's written recommendation.  The
    5-2  governor may disapprove a recommended real estate transaction by
    5-3  providing written notice of the disapproval to the commissioner of
    5-4  the General Land Office no later than 90 days after receiving the
    5-5  commissioner's written recommendation.  <After finding that a real
    5-6  estate transaction would be appropriate, the governor may propose
    5-7  that the division complete the recommended real estate transaction.
    5-8  The governor may make a proposal at any time except during a
    5-9  regular or special session of the legislature.>
   5-10        (c)  If a recommended real estate transaction is approved as
   5-11  provided by Subsection (b) of this section, the division shall take
   5-12  appropriate charge and control of the real property to undertake
   5-13  the real estate transaction recommended.  <The governor shall
   5-14  specify the details of the proposal, give the complete legal
   5-15  description and location of the property, and direct the secretary
   5-16  of state to publish the proposal in the Texas Register.>
   5-17        SECTION 5.  Subsections (d) through (l), Section 3, Chapter
   5-18  672, Acts of the 71st Legislature, Regular Session, 1989 (Article
   5-19  5421t, Vernon's Texas Civil Statutes), are repealed.
   5-20        SECTION 6.  This Act takes effect September 1, 1995.
   5-21        SECTION 7.  Not later than November 1, 1995, the asset
   5-22  management division of the General Land Office shall provide the
   5-23  governor and the Legislative Budget Board with a certified list of
   5-24  all properties identified as unused and underused in the division's
   5-25  most recent evaluation and, where appropriate, recommendations for
   5-26  real estate transactions regarding the listed properties.
   5-27        SECTION 8.  The importance of this legislation and the
    6-1  crowded condition of the calendars in both houses create an
    6-2  emergency and an imperative public necessity that the
    6-3  constitutional rule requiring bills to be read on three several
    6-4  days in each house be suspended, and this rule is hereby suspended.