SLC H.B. 3329 75(R)BILL ANALYSIS LAND & RESOURCE MANAGEMENT H.B. 3329 By: Talton 4-23-97 Committee Report (Unamended) BACKGROUND 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. There is no such provision regarding the sale of real property held in trust. PURPOSE HB 3329 prohibits a governmental entity from selling real property to a trustee until they receive a copy of the trust agreement from the trustee which declares the identification of the person who will be the true owner of the property. 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. Section 280.002, Local Government Code, as added by Section 1, Chapter 913, Acts of the 74th Legislature, Regular Session, 1995, is transferred to Chapter 2252, Government Code, redesignated as Subchapter D, and amended to read as follows: SUBCHAPTER D. REAL PROPERTY HELD IN TRUST Section 2252.091. DEFINITION Defines "governmental entity" as an agency or political subdivision of the state. Section 2252.092. IDENTIFICATION OF TRUST PROPERTY REQUIRED. (a) Substitutes "municipality or county" with "governmental entity." (b) Stating that a governmental entity may not sell real property to a trustee unless they receive a trust agreement from the trustee stating the true owner of the property. Section 2252.093. NONCOMPLIANCE CREATES VOID CONVEYANCE. Conveyance of property is void if the governmental entity fails to comply with Section 2252.092. Section 2252.094. TRUST AGREEMENT CONFIDENTIALITY. States that a trust agreement submitted to the governing body of a governmental entity under this subchapter is confidential information from the requirements of Section 552.021, Government Code. SECTION 2. State that this Act only apply to the purchase or sale of real property that occurs on or after the effective date. SECTION 3. Emergency Clause.