HBA-NIK C.S.H.B. 2162 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2162
By: Naishtat
Land & Resource Management
5/7/1999
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

Currently, there are no public input requirements when the state sells or
leases its land for nongovernmental use.  Community notification and
participation in the sale or lease of state land for nongovernmental use
may help to ensure responsible and accountable development.   C.S.H.B. 2162
provides guidelines to promote public comment and input  relating to the
development of stateowned land. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of the General Land
Office in SECTION 1 (Section 31.1611, Natural Resources Code) in this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter E, Chapter 31, Natural Resources Code, by
adding Section 31.1611, as follows: 

Sec. 31.1611. PUBLIC HEARING BEFORE PREPARATION OF DEVELOPMENT PLAN. (a)
Requires the asset management division (division) to notify the local
government to which the plan will be submitted under Section 31.162
(Submission of the Plan to Affected Local Government) of the division's
intent to prepare a development plan if the division is requested to
prepare a development plan under Section 31.161(Development Plan). Requires
the division to provide the local government with certain information
relating to the location and best use of the property and the  process for
preparing the development plan and special board review. 

(b)  Authorizes the local government to request the division to hold a
public hearing, within a specified time, to solicit public comment.
Requires the division to hold a public hearing if requested by the local
government. Requires the local government to provide notice of the hearing
to property owners in at least the same manner that notice is provided for
adopting zoning regulations or subdivision requirements in the local
government's jurisdiction.  Requires the division to set the agenda for the
hearing and must complete the hearing not later than the 120th day after
the date the notice is provided under Subsection (a). 

(c) Authorizes the commissioner of the General Land Office (commissioner)
to hold a hearing to solicit public comment if the local government does
not request a public hearing under Subsection (b).  Requires the division
to provide notice of the hearing in the same manner that a local government
is required to provide notice under Subsection (b).  Requires the
commissioner to set the agenda for the hearing and must complete the
hearing not later than the 120th day after the date the notice is provided
under Subsection (a). 

(d) Authorizes a public hearing under this section to include certain
presentations and oral comments relating to the development of the
property. 

(e) Requires the division to prepare a summary of the information and
testimony  presented at a hearing conducted under this section and is
authorized to develop recommendations based on the information and
testimony. Requires the division to prepare and deliver a report to the
commissioner summarizing the information and testimony presented at the
hearing and the views presented by the state, the affected local
governments, and other persons who participated in the hearing process.
Requires the commissioner to review the division's report and is authorized
to instruct the division to incorporate information based on the report in
preparing the development plan under Section 31.161. 

(f) Authorizes the commissioner to adopt rules to implement this section.
Requires the division to administer the process provided by this section. 

SECTION 2. Amends Section 31.167(a), Natural Resource Code, to add text
providing an exception as provided by this subsection.  Authorizes the
division, at the direction of the commissioner, to revise the development
plan to conserve and enhance the value and marketability of the property if
the division does not receive a bid or auction solicitation for the real
property subject to the development plan. 

SECTION 3.  Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2162 removes SECTION 1 of the original bill (Section 31.151,
Natural Resources Code), which added Subdivision (6) to define
"stakeholder." 

The substitute adds new SECTION 1 (proposed Section 31.1611, Natural
Resources Code).  For a complete analysis of this section, please see the
Section-by-Section Analysis in this document. 

C.S.H.B. 2162 removes SECTION 2 of the original bill (proposed Section
31.1572, Natural Resources Code), which required the asset management
division (division) to prepare and issue an initial stakeholder notice to
each stakeholder after the division has reported a property unused or
underused and the commissioner of the General Land Office (commissioner)
has issued a report to the governor under Section 31.157(Report).  Provided
that the notice must include the specified information. 

The substitute amends Section 31.167(a), Natural Resources Code, in new
SECTION 2, to provide an exception.  The substitute also authorizes the
division, at the direction of the commissioner, to revise the development
plan to conserve and enhance the value and marketability of the property if
the division does not receive a bid or auction solicitation for the real
property subject to the development plan.  Section 31.167 was not addressed
in the original. 

C.S.H.B. 2162 removes SECTION 3 of the original bill (proposed Sections
31.1591, 31.1592, and 31.1593, Natural Resources Code), which did the
following: 

Sec. 31.1591. SECOND STAKEHOLDER NOTIFICATION. Requires the division to
prepare and issue a second stakeholder notice to each stakeholder if a
state agency is preparing to conduct a real estate transaction or if the
state agency requests the division to develop a bid packet for a real
estate transaction involving the state agency's real property. Provides
that the notice must include the specified information. 

Sec. 31.1592. STAKEHOLDER PARTICIPATION PROCESS: PUBLIC HEARING. (a)
Requires the division to conduct at least two public hearings to allow
stakeholders to express their views on the proposed real estate transaction
before the governor approves a real estate transaction.  Requires each
hearing to be held at a location within the stakeholders' geographic area. 

(b) Requires the division to provide each stakeholder with written notice
of the date, time, and location of the hearing if the date, time, and
location of the public hearing is changed  after the date the stakeholder
notification is issued under Section 31.1591. 


(c) Requires the division to conduct any public hearing held as provided by
this section or contract with a private entity to conduct the hearing. 

(d) Provides that the public hearing must include a clear explanation of
the real property at issue and the proposed  real estate transaction, a
presentation of any local development plans that apply to the real
property, including any relevant local ordinances or regulations, a process
for developing a community vision statement (statement) during the public
hearing, and a description of the effect of the statement. 

(e) Requires the  division to continue to conduct public hearings until a
statement is developed and agreed on by a majority of the stakeholders
attending the hearings, subject to Subsection (f). 

(f) Prohibits the division from conducting more than five public hearings
on a particular real estate transaction. 

Sec. 31.1593.  COMPLIANCE WITH COMMUNITY VISION STATEMENT. (a) Requires the
statement to be complied with to the extent that compliance is not
detrimental to the best interests of the state as determined by the special
board of review under Section 31.166 (Hearing), if a real estate
transaction is proceeding without a development plan as described by
Section 31.161 and a statement is developed under Section 31.1592. 

(b) Requires the division to provide a copy of the statement to any party
involved in the proposed real estate transaction, as well as any local
government having jurisdiction over the real property that is the subject
of the proposed real estate transaction. 

(c) Requires the division to provide a copy of any part of the statement
that is not detrimental to the best interests of the state to any party
involved in the proposed real estate transaction; and provide a copy of the
entire statement to any local government having jurisdiction over the real
property that is the subject of the proposed real estate transaction,
including a statement detailing the reasons for the determination that
certain parts of the statement are detrimental to the best interests of the
state. 

C.S.H.B. 2162 removes SECTION 4 of the original bill (Section 31.161,
Natural Resources Code), which added Subsection (e) to require the
statement to be incorporated into the plan as provided by Section 31.1611,
if the statement is developed under Section 31.1592. 

C.S.H.B. 2162 removes SECTION 5 of the original bill (proposed Section
31.1611, Natural Resources Code), which did the following: 

Sec. 31.1611. COMPLIANCE WITH COMMUNITY VISION STATEMENT. (a) Requires a
statement developed during the stakeholder participation process to be
complied with to the extent that compliance is not detrimental to the best
interests of the state as determined by the special board of review under
Section 31.166. 

(b) Requires the division to incorporate the statement into the development
plan and attach the statement as a supplement to the development plan,
provide a copy of the statement to any party involved in the proposed real
estate transaction, and to any local government having jurisdiction over
the real property that is the subject of the proposed real estate
transaction. 

(c) Requires the division to incorporate into the development plan any part
of the statement determined not to be detrimental.  Requires the division
to provide a copy of any part of the statement determined not to be
detrimental to  involved parties, or a copy of the entire statement to the
appropriate local government, as specified. 

 

C.S.H.B. 2162 removes SECTION 6 of the original which provided that the
effective date of this Act is September 1, 1999. 

C.S.H.B. 2162 removes SECTION 7 of original, which made application of this
Act prospective. 

C.S.H.B. 2162 redesignates SECTION 8 (short emergency clause) of the
original, to SECTION 3 (long emergency clause) in the substitute.