SRC-ARR H.B. 3161 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 3161
76R8962 PAM-FBy: Dunnam (Sibley)
Veterans Affairs and Military Installations
5/7/1999
Engrossed


DIGEST 

Chapter 2310, Government Code, provides for special assistance to local
communities which have experienced the closing of a Department of Defense
military base or facility. This chapter provides for the creation of a
defense economic readjustment zone (DERZ) wherein approved projects are
eligible for special benefits, exemption from regulations, and certain
incentives. The designation of an area as a DERZ also qualifies the area as
a reinvestment zone for tax increment financing and abatement purposes. The
overall purpose of DERZ designation is to encourage economic redevelopment
to offset the impact to the local economy when a military base closes.
However, a city which has entered into long negotiations with an industrial
prospect is then required to sell the land through a competitive bidding
process.  This may result in the land being sold to a completely different
entity, which has made no commitment to the city regarding the type of
development to be placed on the property or the number of persons to be
employed. This situation creates an obstacle to economic development on
former defense bases and makes negotiations of economic development
awkward. H.B. 3161 authorizes buildings or city-owned land located in a
readjustment zone to be sold without notice or bidding if the sale
satisfies the criteria and public purpose designated by the governing body
in an ordinance.  

PURPOSE

As proposed, H.B. 3161 sets forth requirements for the disposition of
public property in a readjustment zone.  

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 2310.410, Government Code, to authorize the
state, a municipality, or a county that owns a surplus building or vacant
land in a defense economic readjustment zone to dispose of the building or
land by selling the building or land without notice or bidding as provided
by Subsection (d). Authorizes the building or land to be sold to a buyer
who is not the highest bidder if the criteria and public purpose specified
in the ordinance or order adopted under Subsection (b) are satisfied, if
the surplus building or vacant land is sold at a public auction. Authorizes
the surplus building or vacant land to be sold without complying with
notice or bidding requirements if the criteria and public purpose specified
in the ordinance or order adopted under Subsection (b) are satisfied.
Deletes text authorizing the building or land to be sold to a buyer who is
not the highest bidder under certain conditions. Makes conforming changes.  

SECTION 2. Emergency clause.
                      Effective date: upon passage.