SRC-JRN H.B. 3329 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 3329
By: Talton (Patterson)
State Affairs
5-14-97
Engrossed


DIGEST 

Currently, according to Section 280.002, Local Government Code, a
governmental entity may not purchase real property held in trust until the
trustee submits to the governmental entity a copy of the trust agreement
identifying the owner of the real property.  No provision exists regarding
the sale of real property held in trust.  This bill prohibits a
governmental entity from selling real property to a trustee until the
person has received a copy of the trust agreement from the trustee which
declares the identification of the person who will be the owner of the
property. 

PURPOSE

As proposed, H.B. 3329 prohibits a governmental entity from selling real
property to a trustee until the person has received a copy of the trust
agreement from the trustee which declares the identification of the person
who will be the owner of the property. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Redesignates Section 2252.091, Local Government Code, as
Subchapter D, from Section 280.002, as follows: 

SUBCHAPTER D.  REAL PROPERTY HELD IN TRUST

Sec. 2252.091.  New heading:  DEFINITION.  Defines "governmental entity."

Sec. 2252.092.  IDENTIFICATION OF TRUST PROPERTY REQUIRED.  Prohibits a
governmental entity, rather than a municipality or county, from purchasing
real property under certain conditions.  Prohibits a governmental entity
from selling real property to a trustee until the governmental entity
receives from the trustee a copy of the trust agreement identifying the
person who will be the true owner of the property.  Requires the trustee
to identify the person who will be the true owner of the property to the
governmental entity. Makes conforming changes. 

Sec. 2252.093.  NONCOMPLIANCE CREATES VOID CONVEYANCE.  Provides that a
conveyance of property subject to this subchapter is void if a
governmental entity fails to comply with Section 2252.092.   

Sec. 2252.094.  TRUST AGREEMENT CONFIDENTIAL.  Provides that a trust
agreement submitted to the governing body of the governmental entity under
this subchapter is confidential information excepted from the requirements
of Section 552.021, Government Code. 

SECTION 2. Makes application of this Act prospective.

SECTION 3. Emergency clause.
  Effective date:  90 days after adjournment.