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.