HBA-NIK H.B. 2162 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2162 By: Naishtat Land & Resource Management 4/5/1999 Introduced 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. Neither the state nor the residents of Texas neighborhoods benefit when the state develops its land without adequate "stakeholder" involvement. H.B. 2162 establishes a stakeholder participation process for the development of state-owned land. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 31.151, Natural Resources Code, by adding Subdivision (6), to define "stakeholder." SECTION 2. Amends Subchapter E, Chapter 31, Natural Resources Code, by adding Section 31.1572, as follows: Sec. 31.1572. INITIAL STAKEHOLDER NOTIFICATION. Requires 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. Provides that the notice must include the specified information. SECTION 3. Amends Subchapter E, Chapter 31, Natural Resources Code, by adding Sections 31.1591, 31.1592, and 31.1593, as follows: 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. SECTION 4. Amends Section 31.161, Natural Resources Code, by adding 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. SECTION 5. Amends Subchapter E, Natural Resources Code, by adding Section 31.1611, as follows: 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. SECTION 6. Effective date: September 1, 1999. SECTION 7. Makes application of this Act prospective. SECTION 8. Emergency clause.