Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Goolsby                                      H.B. No. 3515

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to development of state buildings by the General Services

 1-3     Commission.

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

 1-5           SECTION 1.  Section 2166.052, Government Code, is amended to

 1-6     read as follows:

 1-7           Sec. 2166.052.  Acquisition and Disposition of Property.

 1-8     (a)  The commission, as provided by law and by legislative

 1-9     appropriation, may:

1-10                 (1)  acquire necessary real and personal property and

1-11     modernize, remodel, build, or equip buildings for state purposes;

1-12     and

1-13                 (2)  contract as necessary to accomplish these

1-14     purposes.

1-15           (b)  The commission may not sell or otherwise dispose of real

1-16     property of the state except by specific authority granted by the

1-17     legislature.

1-18           (c)  The commission is hereby specifically authorized to

1-19     enter into a cooperative agreement with the City of Austin to

1-20     govern the transfer, sale or exchange of real property and other

1-21     interests which will facilitate development of the Capital Complex

1-22     in the City of Austin bounded on the North by Martin Luther King,

1-23     Jr. Blvd., on the South by W. 11th Street, on the East by San

1-24     Jacinto Blvd. and on the West by Lavaca.  Such agreement shall

 2-1     allow the vacation of street rights of way, easements and other

 2-2     interests by the City of Austin in favor of the State of Texas, for

 2-3     a reasonable value established by the parties and credited against

 2-4     future property interests the City of Austin may want to acquire

 2-5     from the State of Texas for property beyond the boundaries

 2-6     described above.

 2-7           SECTION 2.  Section 272.001, Local Government Code, is

 2-8     amended to read as follows:

 2-9           Sec. 272.001.  Notice of Sale or Exchange of Land by

2-10     Political Subdivision; Exceptions.  (a)  Except for the types of

2-11     land and interests covered by Subsection (b), (g), (h), or (i), and

2-12     except as provided by Section 253.007, before land owned by a

2-13     political subdivision of the state may be sold or exchanged for

2-14     other land, notice to the general public of the offer of the land

2-15     for sale or exchange must be published in a newspaper of general

2-16     circulation in either the county in which the land is located or,

2-17     if there is no such newspaper, in an adjoining county.  The notice

2-18     must include a description of the land, including its location, and

2-19     the procedure by which sealed bids to purchase the land or offers

2-20     to exchange the land may be submitted.  The notice must be

2-21     published on two separate dates and the sale or exchange may not be

2-22     made until after the 14th day after the date of the second

2-23     publication.

2-24           (b)  The notice and bidding requirements of Subsection (a) do

2-25     not apply to the types of land and real property interests

2-26     described by this subsection and owned by a political subdivision.

2-27     The land and those interests described by this subsection may not

2-28     be conveyed, sold, or exchanged for less than the fair market value

2-29     of the land or interest unless the conveyance, sale, or exchange is

2-30     with one or more abutting property owners who own the underlying

 3-1     fee simple.   The fair market value is determined by an appraisal

 3-2     obtained by the political subdivision that owns the land or

 3-3     interest or, in the case of land or an interest owned by a

 3-4     home-rule municipality, the fair market value may be determined by

 3-5     the price obtained by the municipality at a public auction for

 3-6     which notice to the general public is published in the manner

 3-7     described by Subsection (a).  The notice of the auction must

 3-8     include, instead of the content required by Subsection (a), a

 3-9     description of the land, including its location, the date, time and

3-10     location of the auction, and the procedures to be followed at the

3-11     auction.  The appraisal or public auction price, except as

3-12     authorized in subsection (c)(3) below, is conclusive of the fair

3-13     market value of the land or interest, regardless of any contrary

3-14     provision of a home-rule charter.  This subsection applies to:

3-15                 (1)  narrow strips of land, or land that because of its

3-16     shape, lack of access to public roads, or small area cannot be used

3-17     independently under its current zoning or under applicable

3-18     subdivision or other development control ordinances;

3-19                 (2)  streets or alleys, owned in fee or used by

3-20     easement;

3-21                 (3)  land or a real property interest originally

3-22     acquired for streets, rights-of-way, or easements that the

3-23     political subdivision chooses to exchange for other land to be used

3-24     for streets, rights-of-way, easements, or other public purposes,

3-25     including transactions partly for cash;

3-26                 (4)  land that the political subdivision wants to have

3-27     developed by contract with an independent foundation;

3-28                 (5)  a real property interest conveyed to a

3-29     governmental entity that has the power of eminent domain; or

3-30                 (6)  a municipality's land that is located in a

 4-1     reinvestment zone designated as provided by law and that the

 4-2     municipality desires to have developed under a project plan adopted

 4-3     by the municipality for the zone.

 4-4           (c)  The land or interest described by Subsections (b)(1) and

 4-5     (2) may be sold to:

 4-6                 (1)  abutting property owners in the same subdivision

 4-7     if the land has been subdivided; [or]

 4-8                 (2)  abutting property owners in proportion to their

 4-9     abutting ownership, and the division between owners must be made in

4-10     an equitable manner; or [.]

4-11                 (3)  the State of Texas for a reasonable value agreed

4-12     to between the state and the city for any such interests as are

4-13     located within the area in the City of Austin bounded on the North

4-14     by MLK Blvd, on the South by West 11th, East on San Jacinto and

4-15     West on Lavaca, for the public purpose of furthering the

4-16     development of the Capitol Complex..

4-17           (d)  This section does not require the governing body of a

4-18     political subdivision to accept any bid or offer or to complete a

4-19     sale or exchange.

4-20           (e)  This section does not apply to land in the permanent

4-21     school fund that is authorized by legislature to be exchanged for

4-22     other land of at least equal value.

4-23           (f)  The fair market value of land, an easement, or other

4-24     real property interest in exchange for land, an easement, or other

4-25     real property interest as authorized by Subsection (b)(3) is

4-26     conclusively determined by an appraisal obtained by the political

4-27     subdivision.  The cost of any streets, utilities, or other

4-28     improvements constructed on the affected land or to be constructed

4-29     by an entity other than the political subdivision on the affected

4-30     land may be considered in determining that fair market value.

 5-1           (g)  A political subdivision may acquire or assemble land or

 5-2     real property interest, except by condemnation, and sell, exchange,

 5-3     or otherwise convey the land or interests to an entity for the

 5-4     development of low-income or moderate-income housing.  The

 5-5     municipality shall determine the terms and conditions of the

 5-6     transactions so as to effectuate and maintain the public purpose.

 5-7     If conveyance of land under this subsection serves a public

 5-8     purpose, the land may be conveyed for less than its fair market

 5-9     value.  In this subsection, "entity" means an individual,

5-10     corporation, partnership, or other legal entity.

5-11           (h)  A municipality having a population of 250,000 or less

5-12     and owning land within 5,000 feet of where the shoreline of a lake

5-13     would be if the lake were filled to its storage capacity may,

5-14     without notice or the solicitation of bids, sell the land to the

5-15     person leasing the land for the fair market value of the land as

5-16     determined by a certified appraiser.  While land described by this

5-17     subsection is under lease, the municipality owning the land may not

5-18     sell the land to any person other than the person leasing the land.

5-19     In this subsection "lake" means an inland body of standing water,

5-20     including a reservoir formed by impounding the water of a river or

5-21     creek but not including an impoundment of salt water or brackish

5-22     water, that has a storage capacity of more than 10,000 acre-feet.

5-23           (i)  A political subdivision that acquires land or a real

5-24     property interest with funds received for economic development

5-25     purposes from the community development block grant non-entitlement

5-26     program authorized by Title I of the Housing and Community

5-27     Development Act of 1974 (42 U.S.C. Section 5301 et seq.) may lease

5-28     or convey the land or interest, without the solicitation of bids,

5-29     to a private, for-profit entity or a nonprofit entity that is a

5-30     party to a contract with the political subdivision if the land or

 6-1     interest will be used by the private, for-profit entity or the

 6-2     nonprofit entity in carrying out the purpose of the entity's grant

 6-3     or contract.  The land or interest may be leased or conveyed

 6-4     without the solicitation of bids if the political subdivision

 6-5     adopts a resolution stating the conditions and circumstances for

 6-6     the lease or conveyance and the public purpose that will be

 6-7     achieved by the lease or conveyance.

 6-8           SECTION 3.  The importance of this legislation and the

 6-9     crowded condition of the calendars in both houses create an

6-10     emergency and an imperative public necessity that the

6-11     constitutional rule requiring bills to be read on three several

6-12     days in each house be suspended, and this rule is hereby suspended,

6-13     and that this Act take effect and be in force from and after its

6-14     passage, and it is so enacted.