1-1  By:  Montford                                         S.B. No. 1262
    1-2        (In the Senate - Filed March 10, 1995; March 16, 1995, read
    1-3  first time and referred to Committee on State Affairs;
    1-4  April 21, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 12, Nays 0; April 21, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 1262              By:  Armbrister
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the management, development, accounting, and
   1-11  disposition of certain state property.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Subsections (b) and (d), Section 31.157, Natural
   1-14  Resources Code, are amended to read as follows:
   1-15        (b)  The draft report shall be submitted to the State
   1-16  Purchasing and General Services Commission which shall further
   1-17  evaluate the potential use of the property by another state agency
   1-18  or department.  The draft report shall also be submitted, at the
   1-19  same time as it is furnished to the commission, to each agency that
   1-20  owns or holds in trust property that is the subject of the draft
   1-21  report.  The commission may comment on any findings or
   1-22  recommendations made by the commissioner and may make additional
   1-23  recommendations regarding the use of the property.  The commission
   1-24  shall complete the review of the draft report within 60 days of the
   1-25  receipt of the report and forward the comments to the commissioner.
   1-26        (d)  The final report shall be submitted to the governor, the
   1-27  presiding officers of both houses of the legislature, the
   1-28  Legislative Budget Board, and the governor's budget office not
   1-29  later than September 1 of each <the> year <preceding a regular
   1-30  session of the legislature>.  If the report contains an evaluation
   1-31  of a sale of property, it must also contain an evaluation of the
   1-32  lease potential of the property.
   1-33        SECTION 2.  Subchapter E, Chapter 31, Natural Resources Code,
   1-34  is amended by adding Section 31.1571 to read as follows:
   1-35        Sec. 31.1571.  DISPOSAL OF UNUSED OR UNDERUSED PROPERTY.
   1-36  (a)  Notwithstanding any other law, after the division has reported
   1-37  a property unused or underused and the commissioner has made a
   1-38  recommendation to the governor and Legislative Budget Board for a
   1-39  real estate transaction involving the property, the state agency
   1-40  that owns or controls the property may not develop, sell, or
   1-41  otherwise dispose of the property before the earlier of:
   1-42              (1)  the date the governor or Legislative Budget Board
   1-43  rejects a recommended real estate transaction involving the
   1-44  property pursuant to Chapter 672, Acts of the 71st Legislature,
   1-45  Regular Session, 1989 (Article 5421t, Vernon's Texas Civil
   1-46  Statutes); or
   1-47              (2)  two years from the date the recommendation is
   1-48  approved by operation of law under Chapter 672, Acts of the 71st
   1-49  Legislature, Regular Session, 1989 (Article 5421t, Vernon's Texas
   1-50  Civil Statutes).
   1-51        (b)  If a state agency that owns or controls property that
   1-52  the division has reported as unused or underused intends to dispose
   1-53  of or change the use of the property prior to the time provided by
   1-54  Subsection (a), the state agency shall submit to the governor and
   1-55  Legislative Budget Board a general development plan for future use
   1-56  of the property.  The plan shall be submitted no later than 30 days
   1-57  prior to the time that the real estate transaction would be
   1-58  approved by operation of law if not disapproved by the governor or
   1-59  Legislative Budget Board pursuant to Chapter 672, Acts of the 71st
   1-60  Legislature, Regular Session, 1989 (Article 5421t, Vernon's Texas
   1-61  Civil Statutes).  The governor and Legislative Budget Board may
   1-62  take such plan into consideration in determining whether to reject
   1-63  the commissioner's recommendation.
   1-64        SECTION 3.  Subsections (e) and (f), Section 2, Chapter 672,
   1-65  Acts of the 71st Legislature, Regular Session, 1989 (Article 5421t,
   1-66  Vernon's Texas Civil Statutes), are amended to read as follows:
   1-67        (e)  The expenses incurred by the division in conducting the
   1-68  real estate transaction, including the payment of reasonable
    2-1  brokerage fees, may be deducted from the proceeds of the
    2-2  transaction prior to deposit  of the proceeds <in the Texas capital
    2-3  trust fund or other appropriate depository account>.  The division
    2-4  may promulgate rules relating to the payment of reasonable
    2-5  brokerage fees.  Unless the proceeds of the transaction are
    2-6  dedicated by the constitution, the proceeds of the transaction
    2-7  shall be deposited as follows:
    2-8              (1)  if the agency is eligible to participate in the
    2-9  Texas capital trust fund under Chapter 2201, Government Code, the
   2-10  deposit shall be made to that fund;
   2-11              (2)  if the agency is not eligible to participate in
   2-12  the Texas capital trust fund pursuant to Chapter 2201, Government
   2-13  Code, the deposit shall be made into the state treasury to the
   2-14  credit of the affected agency; or
   2-15              (3)  notwithstanding Subdivisions (1) and (2) of this
   2-16  section, if the Legislative Budget Board determines within 90 days
   2-17  of the closing of the transaction that the funds should be made
   2-18  available to another agency or for another purpose, the funds shall
   2-19  be deposited as directed by the board.
   2-20        (f)  This article does not apply to a real estate transaction
   2-21  involving real property owned by the state which the division has
   2-22  no duty to review under the provisions of Section 31.155(d),
   2-23  Natural Resources Code <Act is not applicable to any real estate
   2-24  transaction administered by a state agency that, pursuant to
   2-25  Article 601e, Revised Statutes, is ineligible to benefit from the
   2-26  Texas capital trust fund or to any real estate transaction
   2-27  involving permanent school fund land>.
   2-28        SECTION 4.  Subsections (a), (b), and (c), Section 3, Chapter
   2-29  672, Acts of the 71st Legislature, Regular Session, 1989 (Article
   2-30  5421t, Vernon's Texas Civil Statutes), are amended to read as
   2-31  follows:
   2-32        (a)  After properties are recommended for alternate use by
   2-33  the division during the recurring property review and report
   2-34  required by Subchapter E, Chapter 31, Natural Resources Code, the
   2-35  agency possessing the real property recommended for alternative use
   2-36  shall have 60 days after the date it receives the written
   2-37  recommendation to file its comments on or objections to the
   2-38  recommendations with the governor and Legislative Budget Board.
   2-39  <If, within 90 days after the date the governor receives the
   2-40  written recommendation, the governor disapproves of the alternate
   2-41  use recommended, the division may not enter into any real estate
   2-42  transaction involving those properties until authorized by the
   2-43  legislature.  After the governor disapproves a recommendation, the
   2-44  governor may request and the division may make additional
   2-45  recommendations relating to the property.>
   2-46        (b)  If the division reports a property as unused or
   2-47  underused and the commissioner of the General Land Office
   2-48  recommends a real estate transaction involving the property, the
   2-49  commissioner is authorized to conduct the transaction unless the
   2-50  recommendation is disapproved by the governor or Legislative Budget
   2-51  Board no later than 90 days after receiving the commissioner's
   2-52  written recommendation.  The governor may disapprove a recommended
   2-53  real estate transaction by providing written notice of the
   2-54  disapproval to the commissioner of the General Land Office no later
   2-55  than 90 days after receiving the commissioner's written
   2-56  recommendation.  The Legislative Budget Board may disapprove a
   2-57  recommendation if a majority of the members of the board from each
   2-58  house file written letters of disapproval with the executive
   2-59  director of the Legislative Budget Office no later than 90 days
   2-60  after receiving the commissioner's written recommendation.  The
   2-61  executive director of the Legislative Budget Office shall notify
   2-62  the commissioner of the General Land Office within 10 days of the
   2-63  board's disapproval.  <After finding that a real estate transaction
   2-64  would be appropriate, the governor may propose that the division
   2-65  complete the recommended real estate transaction.  The governor may
   2-66  make a proposal at any time except during a regular or special
   2-67  session of the legislature.>
   2-68        (c)  If a recommended real estate transaction is approved as
   2-69  provided by Subsection (b) of this section, the division shall take
   2-70  appropriate charge and control of the real property to undertake
    3-1  the real estate transaction recommended.  <The governor shall
    3-2  specify the details of the proposal, give the complete legal
    3-3  description and location of the property, and direct the secretary
    3-4  of state to publish the proposal in the Texas Register.>
    3-5        SECTION 5.  Subsections (d) through (l), Section 3, Chapter
    3-6  672, Acts of the 71st Legislature, Regular Session, 1989 (Article
    3-7  5421t, Vernon's Texas Civil Statutes), are repealed.
    3-8        SECTION 6.  This Act takes effect September 1, 1995.
    3-9        SECTION 7.  Not later than November 1, 1995, the asset
   3-10  management division of the General Land Office shall provide the
   3-11  governor and the Legislative Budget Board with a certified list of
   3-12  all properties identified as unused and underused in the division's
   3-13  most recent evaluation and, where appropriate, recommendations for
   3-14  real estate transactions regarding the listed properties.
   3-15        SECTION 8.  The importance of this legislation and the
   3-16  crowded condition of the calendars in both houses create an
   3-17  emergency and an imperative public necessity that the
   3-18  constitutional rule requiring bills to be read on three several
   3-19  days in each house be suspended, and this rule is hereby suspended.
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