SRC-PNG H.B. 2388 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2388
By: Solis, Jim (Madla)
Intergovernmental Relations
5/14/1999
Engrossed


DIGEST 

Currently, Section 381.004(c)(3), Local Government Code, provides that the
commissioners court may use county employees or funds for a program
designed to stimulate economic development in a county. The statute does
not specifically address the use of a county's real property as an
incentive for the location of businesses. Article 725d (County Acquisition
of Land and Facilities for Lease to Public or Private Entities), V.T.C.S.,
allows for the leasing of real property for economic development purposes
but does not address the purchase of property. A site for establishing a
business is an important element of a package offered to encourage a
business to locate within a jurisdiction. Various sale statutes applicable
to counties make the negotiation of development incentive packages
difficult to achieve, particularly laws requiring that real property be
sold under an auction or sealed bid procedure. There is no exemption in the
applicable statutes for real property used for economic development
purposes. For that reason, counties are often unable to directly negotiate
with any degree of certainty the terms of the sale. H.B. 2388 authorizes
counties to sell property for economic development purposes without going
through the competitive bid process. 

PURPOSE

As proposed, H.B. 2388  authorizes counties to sell property for economic
development purposes without going through the competitive bid process. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 381.004, Local Government Code, by amending
Subsection (c) and adding Subsections (f) and (g), as follows:  

(c) Makes a conforming change. 

(f) Authorizes the commissioners court to sell or lease real property of
the county for use in a program established under this section if the
county acquired the property on or before September 1, 1999.  Authorizes
the commissioners court to negotiate directly with a business participating
in the program in selling and leasing the property. Provides that a sale or
lease of property under this subsection is exempt from the requirements of
Sections 263.001 (Sale or Lease of Real Property), 263.007 (Sale or Lease
of Real Property Through Sealed-Bid Procedure), and 272.001(a) (Notice of
Sale or Exchange of Land by Political Subdivision; Exceptions).  

(g) Authorizes the commissioners court to sell real property under
Subsection (f) for less than the appraised fair market value only as part
of a transaction allowing the county to recover the value or benefits of
the property's use if the business purchasing the property fails to comply
with the standards of the program established under this section.  

SECTION 2.  Makes application of this Act prospective. 

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