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