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.
3-20 * * * * *