1-1                                   AN ACT

 1-2     relating to requirements for governmental entities that acquire

 1-3     real property held in trust or sell real property to a trustee.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 280.002, Local Government Code, as added

 1-6     by Section 1, Chapter 913, Acts of the 74th Legislature, Regular

 1-7     Session, 1995, is transferred to Chapter 2252, Government Code,

 1-8     redesignated as Subchapter D, and amended to read as follows:

 1-9                 SUBCHAPTER D.  REAL PROPERTY HELD IN TRUST

1-10           Sec. 2252.091 [280.002].  DEFINITION [ACQUIRING LAND HELD IN

1-11     TRUST].  In this subchapter, "governmental entity" means a state

1-12     agency or a political subdivision of the state.

1-13           Sec. 2252.092.  IDENTIFICATION OF TRUST PROPERTY REQUIRED.

1-14     (a)  A governmental entity [municipality or county] may not

1-15     purchase real property held in trust until the trustee submits to

1-16     the governing body of the governmental entity [municipality or

1-17     county] a copy of the trust agreement identifying the true owner of

1-18     the property.  [(b)]  The trustee shall identify the true owner of

1-19     the property to a governmental entity [municipality or county].

1-20           (b)  A governmental entity may not sell real property to a

1-21     trustee until the governmental entity receives from the trustee a

1-22     copy of the trust agreement identifying the person who will be the

1-23     true owner of the property.  The trustee shall identify the person

1-24     who will be the true owner of the property to the governmental

 2-1     entity.

 2-2           Sec. 2252.093.  NONCOMPLIANCE CREATES VOID CONVEYANCE.

 2-3     [(c)]  A conveyance of property subject to this subchapter [by a

 2-4     trustee] is void if a governmental entity [municipality or  county]

 2-5     fails to comply with Section 2252.092 [Subsection (a)].

 2-6           Sec. 2252.094.  TRUST AGREEMENT CONFIDENTIAL.  [(d)]  A trust

 2-7     agreement submitted to the governing body of the governmental

 2-8     entity [municipality or county] under this subchapter [section] is

 2-9     confidential information excepted from the requirements of Section

2-10     552.021, Government Code.

2-11           SECTION 2.  The changes in law made by this Act apply only to

2-12     the purchase or sale of real property that occurs on or after the

2-13     effective date of this Act.

2-14           SECTION 3.  The importance of this legislation and the

2-15     crowded condition of the calendars in both houses create an

2-16     emergency and an imperative public necessity that the

2-17     constitutional rule requiring bills to be read on three several

2-18     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 3329 was passed by the House on May

         2, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 3329 was passed by the Senate on May

         22, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor