1-1 By: Ellis S.B. No. 803
1-2 (In the Senate - Filed March 2, 1999; March 3, 1999, read
1-3 first time and referred to Committee on State Affairs;
1-4 May 13, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; May 13, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 803 By: Lucio
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the sale or lease of underused lands by the state.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (a), Section 31.153, Natural Resources
1-13 Code, is amended to read as follows:
1-14 (a) All real property owned by the state shall be accounted
1-15 for by the state agency that possesses the property. Not later
1-16 than the last day of each fiscal year, each state agency shall
1-17 provide the division with a report on the status of real property
1-18 owned or controlled by the agency.
1-19 SECTION 2. Subsections(a), (b), and (d), Section 31.155,
1-20 Natural Resources Code, are amended to read as follows:
1-21 (a) The division is not responsible for maintaining the
1-22 inventory records of the real property administered by the Texas
1-23 Department of Transportation, [the Texas National Research
1-24 Laboratory Commission,] an institution of higher education, the
1-25 Employees Retirement System of Texas, or the Teacher Retirement
1-26 System of Texas. The agencies administering the property shall
1-27 maintain those records.
1-28 (b) The Texas Department of Transportation[, or the Texas
1-29 National Research Laboratory Commission], on the request of the
1-30 division, shall submit its real property inventory records to the
1-31 division. The real property inventory records of an institution of
1-32 higher education, the Employees Retirement System of Texas, and the
1-33 Teacher Retirement System of Texas, on the request of the division,
1-34 but not more than semiannually, shall be submitted to the division
1-35 for information purposes only.
1-36 (d) The duty under this subchapter of the division to review
1-37 and verify real property records and to make recommendations
1-38 regarding real property and of the commissioner to prepare a report
1-39 involving real property does not apply to:
1-40 (1) the real property of an institution of higher
1-41 education;
1-42 (2) the real property that is part of a fund created
1-43 or specifically authorized by the constitution of this state and
1-44 that is administered by or with the assistance of the land office;
1-45 (3) the real property of the Employees Retirement
1-46 System of Texas; [or]
1-47 (4) the real property of the Teacher Retirement System
1-48 of Texas; or
1-49 (5) the real property of the Texas Historical
1-50 Commission.
1-51 SECTION 3. Subsections (b) and (c), Section 31.157, Natural
1-52 Resources Code, are amended to read as follows:
1-53 (b) The draft report shall be submitted to the [State
1-54 Purchasing and] General Services Commission which shall further
1-55 evaluate the potential use of the property by another state agency
1-56 or department. The draft report shall also be submitted, at the
1-57 same time as it is furnished to the commission, to each agency that
1-58 owns or holds in trust property that is the subject of the draft
1-59 report. Each agency may comment on the findings or
1-60 recommendations, including the agency's specific reasons for
1-61 supporting or opposing the recommendations and detailing any
1-62 efforts the agency has made in attempting to put the property to
1-63 use or sell or lease the property. The commission may comment on
1-64 any findings or recommendations made by the commissioner and may
2-1 make additional recommendations regarding the use of the property.
2-2 The commission shall complete the review of the draft report within
2-3 60 days of the receipt of the report and forward the comments to
2-4 the commissioner.
2-5 (c) The commissioner shall prepare and issue a final report
2-6 incorporating the recommendations of the commission regarding use
2-7 of the property by another state agency and addressing all comments
2-8 received from the commission and the state agency that owns or
2-9 controls the property that is the subject of the report.
2-10 SECTION 4. Section 31.1571, Natural Resources Code, is
2-11 amended to read as follows:
2-12 Sec. 31.1571. DISPOSAL OF UNUSED OR UNDERUSED PROPERTY.
2-13 (a) Notwithstanding any other law, after the division has reported
2-14 a property unused or underused and the commissioner has made a
2-15 recommendation to the governor for a real estate transaction
2-16 involving the property, the state agency that owns or controls the
2-17 property may not develop, sell, or otherwise dispose of the
2-18 property before the earlier of:
2-19 (1) the date the governor rejects a recommended real
2-20 estate transaction involving the property as provided by Section
2-21 31.1572 [pursuant to Chapter 672, Acts of the 71st Legislature,
2-22 Regular Session, 1989 (Article 5421t, Vernon's Texas Civil
2-23 Statutes)]; or
2-24 (2) two years from the date the recommendation is
2-25 approved by operation of law under Section 31.1572 [Chapter 672,
2-26 Acts of the 71st Legislature, Regular Session, 1989 (Article 5421t,
2-27 Vernon's Texas Civil Statutes)].
2-28 (b) If a state agency that owns or controls property that
2-29 the division has reported as unused or underused intends to dispose
2-30 of or change the use of the property prior to the time provided by
2-31 Subsection (a), the state agency shall submit to the governor and
2-32 the division a general development plan for future use of the
2-33 property. The plan shall be submitted no later than 30 days prior
2-34 to the time that the real estate transaction would be approved by
2-35 operation of law if not disapproved by the governor as provided by
2-36 Section 31.1572 [pursuant to Chapter 672, Acts of the 71st
2-37 Legislature, Regular Session, 1989 (Article 5421t, Vernon's Texas
2-38 Civil Statutes)]. The governor may take such plan into
2-39 consideration in determining whether to reject the commissioner's
2-40 recommendation.
2-41 (c) Before final authorization is given to dispose of or
2-42 change the use of property that the division has reported as unused
2-43 or underused, the state agency that owns or controls the property
2-44 shall notify the division of any planned development, acquisition,
2-45 disposition, lease, or exchange of the property, including any
2-46 planned construction of new improvements or major modifications to
2-47 existing improvements.
2-48 SECTION 5. Subchapter E, Chapter 31, Natural Resources Code,
2-49 is amended by adding Section 31.1572 to read as follows:
2-50 Sec. 31.1572. REAL ESTATE TRANSACTION AUTHORIZED BY
2-51 GOVERNOR. (a) A real estate transaction authorized by this
2-52 section shall be conducted as provided by this section.
2-53 (b) After a property is recommended for an alternative use
2-54 by the division during the recurring property review and report
2-55 under this subchapter, the state agency that owns or controls the
2-56 property may file comments on or objections to the recommendation
2-57 with the governor and the division on or before the 60th day after
2-58 the date the agency receives the written recommendation from the
2-59 division.
2-60 (c) If the division reports a property as unused or
2-61 underused and the commissioner recommends a real estate transaction
2-62 involving the property, the commissioner may conduct the
2-63 transaction unless the recommendation is disapproved by the
2-64 governor on or before the 90th day after the date the governor
2-65 receives the commissioner's written recommendation. The governor
2-66 may disapprove a recommended real estate transaction by providing
2-67 written notice to the commissioner on or before the 90th day after
2-68 the date the governor receives the commissioner's written
2-69 recommendation.
3-1 (d) If the commissioner conducts a recommended real estate
3-2 transaction as provided by Subsection (c), the division shall take
3-3 possession and control of the real property as necessary to
3-4 negotiate and close the recommended real estate transaction.
3-5 (e) The expenses incurred by the division in conducting a
3-6 real estate transaction, including the payment of reasonable
3-7 brokerage fees, may be deducted from the proceeds of the
3-8 transaction before the proceeds are deposited as provided by
3-9 Subsection (f). The division may adopt rules relating to the
3-10 payment of reasonable brokerage fees.
3-11 (f) Unless the proceeds of the real estate transaction are
3-12 dedicated by the Texas Constitution, the proceeds of the
3-13 transaction shall be deposited as follows:
3-14 (1) if the state agency is eligible to participate in
3-15 the Texas capital trust fund under Chapter 2201, Government Code,
3-16 the proceeds shall be deposited to the credit of that fund; or
3-17 (2) if the state agency is not eligible to participate
3-18 in the Texas capital trust fund under Chapter 2201, Government
3-19 Code, the proceeds shall be deposited to the credit of that state
3-20 agency.
3-21 (g) This section does not apply to a real estate transaction
3-22 involving real property owned by the state if the division is not
3-23 required to review the property under Section 31.155(d).
3-24 SECTION 6. Section 31.158, Natural Resources Code, is
3-25 amended by adding Subsections (d), (e), and (f) to read as follows:
3-26 (d) After a bid or proposal is accepted under this section,
3-27 the commissioner may negotiate an amendment to the terms of the
3-28 sale, exchange, or lease agreement with the party whose bid or
3-29 proposal was accepted only if:
3-30 (1) the sale, exchange, or lease of the property is
3-31 not completed within six months of the date the bid or proposal was
3-32 accepted; and
3-33 (2) the commissioner finds that the amendment is in
3-34 the best interest of the state.
3-35 (e) If the division determines that an exchange of real
3-36 property is in the best interest of the state, the division may
3-37 negotiate and close the exchange transaction in the same manner
3-38 provided for the sale or lease of state property under this
3-39 section.
3-40 (f) Notwithstanding Subsection (c), the commissioner may
3-41 offer a first option to purchase or lease real property owned or
3-42 held in trust by the state to an adjacent property owner or lessee
3-43 only if:
3-44 (1) the owner or lessee acquired the owner's or
3-45 lessee's interest in the adjacent real property from the state; and
3-46 (2) the commissioner determines that the real estate
3-47 transaction will enhance the value of the remaining state property
3-48 and serve the best interest of the state.
3-49 SECTION 7. Chapter 672, Acts of the 71st Legislature,
3-50 Regular Session, 1989 (Article 5421t, Vernon's Texas Civil
3-51 Statutes), is repealed.
3-52 SECTION 8. This Act takes effect September 1, 1999, and
3-53 applies only to a report issued under Section 31.157, Natural
3-54 Resources Code, on or after the effective date of this Act. A
3-55 report issued under Section 31.157, Natural Resources Code, before
3-56 the effective date of this Act is governed by the law in effect at
3-57 the time the report was issued, and that law is continued in effect
3-58 for that purpose.
3-59 SECTION 9. The importance of this legislation and the
3-60 crowded condition of the calendars in both houses create an
3-61 emergency and an imperative public necessity that the
3-62 constitutional rule requiring bills to be read on three several
3-63 days in each house be suspended, and this rule is hereby suspended.
3-64 * * * * *