IMF H.B. 1051 75(R)BILL ANALYSIS


STATE AFFAIRS
H.B. 1051
By: Gutierrez
4-19-97
Committee Report (Unamended)



BACKGROUND 

The Texas Open Meetings Act currently allows governmental bodies to
deliberate real estate transactions (discussions regarding the purchase,
exchange, lease or value of land) in closed meetings.  The rationale
behind this exception is based on the fact that open discussions of how
much a governmental body would be willing to buy or sell property would
put them at a negotiating disadvantage.  Otherwise, a city or county could
"telegraph its punch," to the detriment of taxpayers.  While the exception
was not intended to be used as a blank check to cut private deals without
public input or debate, recent actions by the University of Texas-Pan
American and the Edinburg Independent School District have raised the
question of whether or not the exception is a good idea when all parties
to a transaction are governmental bodies. 

PURPOSE

This bill removes the open meetings exception for real estate transactions
if both parties to the transaction are governmental bodies. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 5, Chapter 551, Government Code, by adding Sec.
551.072(b) that would remove the real estate transaction exception to the
open meetings law if each party to the proposed transaction is a
governmental  body. 

SECTION 2. Effective date:  September 1, 1997.  A meeting is considered to
have been conducted before September 1, 1997 if any part of the meeting
was conducted before that date. 

SECTION 3. Emergency clause.