By Naishtat                                           H.B. No. 2162
         76R1370 MLS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to public participation in the development of certain
 1-3     state-owned real property.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 31.151, Natural Resources Code, is
 1-6     amended by adding Subdivision (6) to read as follows:
 1-7                 (6)  "Stakeholder" means:
 1-8                       (A)  a property owners' association in a zip code
 1-9     located, in whole or in part, within a two-mile radius of the real
1-10     property identified in a report issued under Section 31.157;
1-11                       (B)  a property owner, business owner, or
1-12     resident in a zip code located, in whole or in part, within a
1-13     two-mile radius of the real property identified in a report issued
1-14     under Section 31.157; and
1-15                       (C)  any local government having jurisdiction
1-16     over the real property identified in a report issued under Section
1-17     31.157.
1-18           SECTION 2.  Subchapter E, Chapter 31, Natural Resources Code,
1-19     is amended by adding Section 31.1572 to read as follows:
1-20           Sec. 31.1572.  INITIAL STAKEHOLDER NOTIFICATION.  (a)  After
1-21     the division has reported a property unused or underused and the
1-22     commissioner has issued a report to the governor under Section
1-23     31.157, the division shall prepare and issue an initial stakeholder
1-24     notice to each stakeholder.
 2-1           (b)  The notice must include:
 2-2                 (1)  a description of the real property identified as
 2-3     unused or underused that is the subject of a proposed real estate
 2-4     transaction;
 2-5                 (2)  a statement that the designation of real property
 2-6     as unused or substantially underused does not necessarily mean that
 2-7     the real property will be developed;
 2-8                 (3)  a complete description of the process involved in
 2-9     a real estate transaction involving real property owned by the
2-10     state, including a description of the various approvals of state
2-11     and local governmental entities that must be obtained and the
2-12     powers of a special board of review under this subchapter;
2-13                 (4)  a statement that any community vision statement
2-14     developed during the stakeholder participation process will be
2-15     complied with to the extent that compliance is not detrimental to
2-16     the best interests of the state as determined by the special board
2-17     of review under Section 31.166; and
2-18                 (5)  the name and telephone number of an appropriate
2-19     state employee who can provide additional information.
2-20           SECTION 3.  Subchapter E, Chapter 31, Natural Resources Code,
2-21     is amended by adding Sections 31.1591, 31.1592, and 31.1593 to read
2-22     as follows:
2-23           Sec. 31.1591.  SECOND STAKEHOLDER NOTIFICATION.  (a)  If a
2-24     state agency is preparing to conduct a real estate transaction or
2-25     if the state agency requests the division to develop a bid packet
2-26     for a real estate transaction involving the state agency's real
2-27     property, the division shall prepare and issue a second stakeholder
 3-1     notice to each stakeholder.
 3-2           (b)  The notice must include:
 3-3                 (1)  the exact location of the real property that is
 3-4     the subject of the proposed real estate transaction;
 3-5                 (2)  a description of the proposed use of the real
 3-6     property;
 3-7                 (3)  the date, time, and location of any public
 3-8     hearings scheduled under Section 31.1592;
 3-9                 (4)  a statement that any community vision statement
3-10     developed during the stakeholder participation process will be
3-11     complied with to the extent that compliance is not detrimental to
3-12     the best interests of the state as determined by the special board
3-13     of review under Section 31.166; and
3-14                 (5)  notice of the land development procedures under
3-15     Section 31.161, including a description of the powers of a special
3-16     board of review.
3-17           Sec. 31.1592.  STAKEHOLDER PARTICIPATION PROCESS: PUBLIC
3-18     HEARING.  (a)  Before the governor approves a real estate
3-19     transaction, the division shall conduct at least two public
3-20     hearings to allow stakeholders to express their views on the
3-21     proposed real estate transaction.  Each hearing shall be held at a
3-22     location within the stakeholders' geographic area.
3-23           (b)  If the date, time, or location of the public hearing is
3-24     changed after the date the stakeholder notification is issued under
3-25     Section 31.1591, the division shall provide each stakeholder with
3-26     written notice of the date, time, and location of the hearing.
3-27           (c)  The division shall conduct any public hearing held as
 4-1     provided by this section or contract with a private entity to
 4-2     conduct the hearing.
 4-3           (d)  A public hearing must include:
 4-4                 (1)  a clear explanation of the real property at issue
 4-5     and the proposed real estate transaction;
 4-6                 (2)  a presentation of any local development plans that
 4-7     apply to the real property, including any relevant local ordinances
 4-8     or regulations;
 4-9                 (3)  a process for developing a community vision
4-10     statement during the public hearing, including a method to
4-11     recommend parameters for the proposed real estate transaction to be
4-12     included in the community vision statement; and
4-13                 (4)  a description of the effect of the community
4-14     vision statement.
4-15           (e)  Subject to Subsection (f), the division shall continue
4-16     to conduct public hearings until a community vision statement is
4-17     developed and agreed on by a majority of the stakeholders attending
4-18     the hearings.
4-19           (f)  The division may not conduct more than five public
4-20     hearings on a particular real estate transaction.
4-21           Sec. 31.1593.  COMPLIANCE WITH COMMUNITY VISION STATEMENT.
4-22     (a)  If a real estate transaction is proceeding without a
4-23     development plan as described by Section 31.161 and a community
4-24     vision statement is developed under Section 31.1592, the community
4-25     vision statement shall be complied with to the extent that
4-26     compliance is not detrimental to the best interests of the state as
4-27     determined by the special board of review under Section 31.166.
 5-1           (b)  If the community vision statement relating to a proposed
 5-2     real estate transaction is determined not to be detrimental to the
 5-3     best interests of the state, the division shall:
 5-4                 (1)  provide a copy of the statement to any party
 5-5     involved in the proposed real estate transaction; and
 5-6                 (2)  provide a copy of the statement to any local
 5-7     government having jurisdiction over the real property that is the
 5-8     subject of the proposed real estate transaction.
 5-9           (c)  If a part of the community vision statement relating to
5-10     a proposed real estate transaction is determined to be detrimental
5-11     to the best interests of the state, the division shall:
5-12                 (1)  provide a copy of any part of the statement that
5-13     is not detrimental to the best interests of the state to any party
5-14     involved in the proposed real estate transaction; and
5-15                 (2)  provide a copy of the entire statement to any
5-16     local government having jurisdiction over the real property that is
5-17     the subject of the proposed real estate transaction, including a
5-18     statement detailing the reasons for the determination that certain
5-19     parts of the statement are detrimental to the best interests of the
5-20     state.
5-21           SECTION 4.  Section 31.161, Natural Resources Code, is
5-22     amended by adding Subsection (e) to read as follows:
5-23           (e)  If a community vision statement is developed under
5-24     Section 31.1592, the statement shall be incorporated into the plan
5-25     as provided by Section 31.1611.
5-26           SECTION 5.  Subchapter E, Natural Resources Code, is amended
5-27     by adding Section 31.1611 to read as follows:
 6-1           Sec. 31.1611.  COMPLIANCE WITH COMMUNITY VISION STATEMENT.
 6-2     (a)  A community vision statement developed during the stakeholder
 6-3     participation process shall be complied with to the extent that
 6-4     compliance is not detrimental to the best interests of the state as
 6-5     determined by the special board of review under Section 31.166.
 6-6           (b)  If the special board of review determines that a
 6-7     community vision statement relating to a proposed real estate
 6-8     transaction is not detrimental to the best interests of the state,
 6-9     the division shall:
6-10                 (1)  incorporate the statement into the development
6-11     plan and attach the statement as a supplement to the development
6-12     plan;
6-13                 (2)  provide a copy of the statement to any party
6-14     involved in the proposed real estate transaction; and
6-15                 (3)  provide a copy of the statement to any local
6-16     government having jurisdiction over the real property that is the
6-17     subject of the proposed real estate transaction.
6-18           (c)  If the special board of review determines that any part
6-19     of a community vision statement relating to a proposed real estate
6-20     transaction is detrimental to the best interests of the state, the
6-21     division shall:
6-22                 (1)  incorporate any part of the statement that is
6-23     determined not to be detrimental to the best interests of the state
6-24     into the development plan and include as an attachment to the plan
6-25     a copy of the entire statement, including a statement detailing the
6-26     reasons for the determination that certain parts of the statement
6-27     are detrimental to the best interests of the state;
 7-1                 (2)  provide a copy of any part of the statement that
 7-2     is determined not to be detrimental to the best interests of the
 7-3     state to any party involved in the proposed real estate
 7-4     transaction; and
 7-5                 (3)  provide a copy of the entire statement to any
 7-6     local government having jurisdiction over the real property that is
 7-7     the subject of the proposed real estate transaction, including a
 7-8     statement detailing the reasons for the determination that certain
 7-9     parts of the statement are detrimental to the best interests of the
7-10     state.
7-11           SECTION 6.  This Act takes effect September 1, 1999.
7-12           SECTION 7.  This Act applies only to a proposed real estate
7-13     transaction that is the subject of a report issued under Section
7-14     31.157, Natural Resources Code, on or after the effective date of
7-15     this Act.  A real estate transaction that is the subject of a
7-16     report issued under Section 31.157, Natural Resources Code, before
7-17     the effective date of this Act is governed by the law in effect at
7-18     the time the report was issued, and that law is continued in effect
7-19     for that purpose.
7-20           SECTION 8.  The importance of this legislation and the
7-21     crowded condition of the calendars in both houses create an
7-22     emergency and an imperative public necessity that the
7-23     constitutional rule requiring bills to be read on three several
7-24     days in each house be suspended, and this rule is hereby suspended.