HBA-EVB, NIK C.S.S.B. 1896 76(R) BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 1896 By: Jackson Land & Resource Management 5/21/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Under current law, the provisions allowing a county to engage the services of a real estate broker may be ambiguous as to whether or not the county can avoid the competitive bid statute by using the services of the real estate broker. The use of such a process might be an alternative to a public auction. C.S.S.B. 1896 authorizes the commissioners court of a county (commissioners court) to contract with a real estate broker, rather than a person licensed under Article 6573a (The Real Estate License Act), V.T.C.S., to sell a tract of real property that is owned by the county. C.S.S.B. 1896 authorizes the commissioners court after 30 days to sell the tract of real property to a ready, willing, and able buyer produced by any real estate broker using the multiple-listing service and who submits the highest cash offer, if a contract requires a real estate broker to list the tract of real property for sale for 30 days with a multiple-listing service used by other real estate brokers in the county. In addition, this bill authorizes the commissioners court to sell a tract of real property under this section without complying with the requirements for conducting a public auction. 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 263.008, Local Government Code, as follows: Sec. 263.008. New title: REAL ESTATE BROKER AGREEMENTS AND FEES FOR THE SALE OF REAL PROPERTY. Defines "real estate broker." Authorizes the commissioners court of a county to contract with a real estate broker, rather than a person licensed under Article 6573a (Real Estate License Act), V.T.C.S., to sell a tract of real property that is owned by the county. Authorizes the commissioners court of a county to pay a fee if the real estate broker produces a ready, willing, and able buyer to purchase a tract of real property. Deletes the provision that the real property is owned by the county. Authorizes the commissioners court on or after the 30th day after the date the property is listed to sell the tract of real property to a ready, willing, and able buyer who is produced by any real estate broker using a multiple-listing service and who submits the highest cash offer, if a contract made under this section requires a real estate broker to list the tract of the real property for sale for at least 30 days with a multiple-listing service used by other real estate brokers in the county. Authorizes the commissioners court to sell a tract of real property without complying with the requirements for conducting a public auction, including the requirements prescribed by Section 263.001 (Sale or Lease of Real Property), Local Government Code. Makes conforming changes. SECTION 2. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 1896 modifies SECTION 1 (Section 263.008, Local Government Code), of the original bill, to replace "realtor" with "real estate broker" in the title. In Section 263.008(a), the substitute defines "real estate broker," rather than "realtor," and makes conforming changes in Subsections(b), (c), and (d). The substitute modifies the original in proposed Section 263.008(d) to specify that if a contractual requirement dictates that a real estate broker list a tract for at least 30 days, the court is authorized to sell the tract to certain parties on or after the 30th day after the listing of the tract. The original bill did not reference the 30-day period. Provides that the buyer who, in addition to being produced by any real estate broker using the multiple-listing service, also submits the highest cash offer. The substitute modifies the original bill by authorizing the commissioners court to sell a tract of real property without complying with the requirements for conducting a public auction, rather than for notice and bidding or conducting a public auction. The substitute removes reference to the sale of the property complying with the requirements prescribed by Section 272.001 (Notice of Sale or Exchange of Land by Political Subdivision; Exceptions), Local Government Code. The substitute makes conforming and nonsubstantive changes. C.S.S.B. 1896 removes SECTION 2 (Section 272.001(a), Local Government Code) of the original bill, which included Section 263.008 as an exception to a requirement regarding the publication of public notice, before land owned by a political subdivision is authorized to be sold or exchanged for other land. C.S.S.B. 1896 redesignates SECTION 3 (emergency clause) of the original to SECTION 2 of the substitute.