SRC-JEC H.B. 122 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 122
By: West, George "Buddy" (Duncan)
Intergovernmental Relations
5/9/2001
Engrossed


DIGEST AND PURPOSE 

Currently, a municipality that wants to donate property to a nonprofit
organization may not do so without opening the property for bidding, which
risks the loss of the property by the nonprofit association.  As proposed,
H.B. 122 allows a municipality of fewer than 1.9 million people to omit the
bidding process if the city is donating the property to a nonprofit
organization. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 253, Local Government Code, by adding Section
253.011, as follows: 

Sec. 253.011.  CONVEYANCE TO NONPROFIT CORPORATION FOR PUBLIC USE. (a)
Defines "nonprofit organization." 

(b)  Provides that this section does not apply to a municipality with a
population of 1.9 million or more. 

(c)  Authorizes a municipality to transfer to a nonprofit organization, for
consideration described by this section, real property or an interest in
real property without complying with the notice and bidding requirements of
Section 272.001(a) or other law. 

(d)  Requires consideration for the transfer authorized by this section to
be in the form of an agreement between the parties that requires the
nonprofit organization to use the property in a manner that primarily
promotes a public purpose of the municipality. Provides that if the
nonprofit organization at any time fails to use the property in that
manner, ownership of the property automatically reverts to the
municipality. 

(e)  Requires the municipality to transfer the property by an appropriate
instrument of transfer.  Requires the instrument to include a provision
that:  requires the nonprofit organization to use the property in a manner
that primarily promotes a public purpose of the municipality; and indicates
that ownership of the property automatically reverts to the municipality if
the nonprofit organization at any time fails to use the property in that
manner. 

(f)  Requires the municipality, if the real property to be transferred lies
outside the municipality's corporate limits and outside the county where 80
percent of the municipality's residents reside, to obtain the consent of
the county commissioners court in the county where the real property is
located. 

 SECTION 2.  Effective date: upon passage or September 1, 2001.