HBA-NIK S.B. 1667 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1667
By: Jackson
Land & Resource Management
4/21/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, a municipality may authorize a franchise to operate certain
properties for a period of 75 years, and is prohibited from selling certain
properties used for the purpose of operating the properties located on
certain state-owned lands. S.B. 1667 authorizes a municipality to lease or
sell property used for the purpose of operating certain properties located
on certain state-owned lands and authorizes a franchise to operate certain
properties for a period of 99 years. 

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 307.042, Local Government Code, by amending
Subsections (c) and adding Subsection (e), as follows: 

(c) Increases the time period for which the municipality is authorized to
grant to the purchaser under sale or foreclosure a franchise to operate the
purchased properties from a period of no more than 75 years after the
purchase to 99 years. Makes a conforming change. 

(e) Authorizes the municipality to sell the property described by this
section if no bonded indebtedness remains outstanding.  Authorizes the
General Land Office to grant to the purchaser a lease of the state-owned
tideland, water, and bed beneath the property or, if necessary, a larger
area for a period of not more than 99 years after the purchase if the
municipality sells the property. Provides that the purchaser and the
purchaser's heirs, successors, and assigns have the same right of use and
occupancy to the state-owned tideland, water, and bed as is granted to the
municipality under this chapter (Use of Tidelands for Park Purposes: Gulf
Coast Municipalities with Population of 60,000 or More). Provides that upon
the termination of that period or on cessation of use of the property for
that purpose, the right of use and occupancy reverts to the municipality. 

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