1-1     By:  Jackson                                          S.B. No. 1667
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 9, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 4, Nays 0; April 9, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1667              By:  Barrientos
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the authority of a municipality to lease or sell
1-11     property used for the purpose of operating certain properties
1-12     located on certain state-owned lands.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Section 307.042, Local Government Code, is
1-15     amended by amending Subsection (c) and adding Subsection (e) to
1-16     read as follows:
1-17           (c)  As additional security for the bonds, notes, or
1-18     warrants, the municipality may, by the terms of a mortgage, grant
1-19     to the purchaser under sale or foreclosure a franchise to operate
1-20     the properties purchased for a period of not more than 99 [75]
1-21     years after the purchase.  If at the time of the sale or
1-22     foreclosure there is a pier, structure, or improvement located in
1-23     whole or in part on or over state-owned tideland, water, and bed of
1-24     the Gulf of Mexico, during that period of 99 [75] years the
1-25     purchaser and the purchaser's heirs,  successors, and assigns have
1-26     the same right of use and occupancy to the state-owned tideland,
1-27     water, and bed as is granted to the municipality under this
1-28     chapter.  On termination of that period or on cessation of use of
1-29     the property for that purpose, the right of use and occupancy
1-30     reverts to the municipality.
1-31           (e)  The municipality may sell the property described by
1-32     Subsection (b) if no bonded indebtedness remains outstanding. If
1-33     the municipality sells the property, the General Land Office may
1-34     grant to the purchaser a lease of the state-owned tideland, water,
1-35     and bed beneath the property or, if necessary, a larger area for a
1-36     period of not more than 99 years after the purchase.  The purchaser
1-37     and the purchaser's heirs, successors, and assigns have the same
1-38     right of use and occupancy to the state-owned tideland, water, and
1-39     bed as is granted to the municipality under this chapter.  On
1-40     termination of that period or on cessation of use of the property
1-41     for that purpose, the right of use and occupancy reverts to the
1-42     municipality.
1-43           SECTION 2.  The importance of this legislation and the
1-44     crowded condition of the calendars in both houses create an
1-45     emergency and an imperative public necessity that the
1-46     constitutional rule requiring bills to be read on three several
1-47     days in each house be suspended, and this rule is hereby suspended,
1-48     and that this Act take effect and be in force from and after its
1-49     passage, and it is so enacted.
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