SRC-PNG S.B. 1667 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1667
76R8709 PAM-DBy: Jackson
Natural Resources
4/1/1999
As Filed


DIGEST 

Currently, under Texas law, 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.  This bill would authorize a
municipality to lease or sell property used for the purpose of operating
certain properties located on certain state-owned lands and authorize a
franchise to operate certain properties for a period of 99 years.  

PURPOSE

As proposed, 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. 

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 307.042, Local Government Code, by amending
Subsection (c) and adding Subsection (e), to authorize a municipality, by
the terms of a mortgage, to grant to the purchaser under sale or
foreclosure a franchise to operate the properties purchased for a period of
not more than 99 years, rather than 75 years, after the purchase, as
additional security for the bonds, notes, or warrants.  Authorizes a
municipality to sell the property described by Subsection (b) if no bonded
indebtedness remains outstanding.  Authorizes the General Land Office to
grant to the purchaser a franchise to operate the properties purchased 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.  Provides that on termination of that period or
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.