1-1 By: Talton (Senate Sponsor - Patterson) H.B. No. 3329
1-2 (In the Senate - Received from the House May 5, 1997;
1-3 May 6, 1997, read first time and referred to Committee on State
1-4 Affairs; May 18, 1997, reported favorably by the following vote:
1-5 Yeas 13, Nays 0; May 18, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to requirements for governmental entities that acquire
1-9 real property held in trust or sell real property to a trustee.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 280.002, Local Government Code, as added
1-12 by Section 1, Chapter 913, Acts of the 74th Legislature, Regular
1-13 Session, 1995, is transferred to Chapter 2252, Government Code,
1-14 redesignated as Subchapter D, and amended to read as follows:
1-15 SUBCHAPTER D. REAL PROPERTY HELD IN TRUST
1-16 Sec. 2252.091 [280.002]. DEFINITION [ACQUIRING LAND HELD IN
1-17 TRUST]. In this subchapter, "governmental entity" means a state
1-18 agency or a political subdivision of the state.
1-19 Sec. 2252.092. IDENTIFICATION OF TRUST PROPERTY REQUIRED.
1-20 (a) A governmental entity [municipality or county] may not
1-21 purchase real property held in trust until the trustee submits to
1-22 the governing body of the governmental entity [municipality or
1-23 county] a copy of the trust agreement identifying the true owner of
1-24 the property. [(b)] The trustee shall identify the true owner of
1-25 the property to a governmental entity [municipality or county].
1-26 (b) A governmental entity may not sell real property to a
1-27 trustee until the governmental entity receives from the trustee a
1-28 copy of the trust agreement identifying the person who will be the
1-29 true owner of the property. The trustee shall identify the person
1-30 who will be the true owner of the property to the governmental
1-31 entity.
1-32 Sec. 2252.093. NONCOMPLIANCE CREATES VOID CONVEYANCE.
1-33 [(c)] A conveyance of property subject to this subchapter [by a
1-34 trustee] is void if a governmental entity [municipality or county]
1-35 fails to comply with Section 2252.092 [Subsection (a)].
1-36 Sec. 2252.094. TRUST AGREEMENT CONFIDENTIAL. [(d)] A trust
1-37 agreement submitted to the governing body of the governmental
1-38 entity [municipality or county] under this subchapter [section] is
1-39 confidential information excepted from the requirements of Section
1-40 552.021, Government Code.
1-41 SECTION 2. The changes in law made by this Act apply only to
1-42 the purchase or sale of real property that occurs on or after the
1-43 effective date of this Act.
1-44 SECTION 3. The importance of this legislation and the
1-45 crowded condition of the calendars in both houses create an
1-46 emergency and an imperative public necessity that the
1-47 constitutional rule requiring bills to be read on three several
1-48 days in each house be suspended, and this rule is hereby suspended.
1-49 * * * * *