By Gray                                               H.B. No. 2618
         76R8709 PAM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of a municipality to lease or sell
 1-3     property used for the purpose of operating certain properties
 1-4     located on certain state-owned lands.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 307.042, Local Government Code, is
 1-7     amended by amending Subsection (c) and adding Subsection (e) to
 1-8     read as follows:
 1-9           (c)  As additional security for the bonds, notes, or
1-10     warrants, the municipality may, by the terms of a mortgage, grant
1-11     to the purchaser under sale or foreclosure a franchise to operate
1-12     the properties purchased for a period of not more than 99 [75]
1-13     years after the purchase.  If at the time of the sale or
1-14     foreclosure there is a pier, structure, or improvement located in
1-15     whole or in part on or over state-owned tideland, water, and bed of
1-16     the Gulf of Mexico, during that period of 99 [75] years the
1-17     purchaser and the purchaser's heirs,  successors, and assigns have
1-18     the same right of use and occupancy to the state-owned tideland,
1-19     water, and bed as is granted to the municipality under this
1-20     chapter.  On termination of that period or on cessation of use of
1-21     the property for that purpose, the right of use and occupancy
1-22     reverts to the municipality.
1-23           (e)  The municipality may sell the property described by
1-24     Subsection (b) if no bonded indebtedness remains outstanding.  If
 2-1     the municipality sells the property, the General Land Office may
 2-2     grant to the purchaser a franchise to operate the properties
 2-3     purchased for a period of not more than 99 years after the
 2-4     purchase.  The purchaser and the purchaser's heirs,  successors,
 2-5     and assigns have the same right of use and occupancy to the
 2-6     state-owned tideland, water, and bed as is granted to the
 2-7     municipality under this chapter.  On termination of that period or
 2-8     on cessation of use of the property for that purpose, the right of
 2-9     use and occupancy reverts to the municipality.
2-10           SECTION 2.  The importance of this legislation and the
2-11     crowded condition of the calendars in both houses create an
2-12     emergency and an imperative public necessity that the
2-13     constitutional rule requiring bills to be read on three several
2-14     days in each house be suspended, and this rule is hereby suspended,
2-15     and that this Act take effect and be in force from and after its
2-16     passage, and it is so enacted.