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.

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