HBA-BSM H.B. 1490 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1490 By: Geren Land & Resource Management 7/26/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, a municipality with a population of 250,000 or less that owned land within 5,000 feet of a shoreline of a lake could sell the land to the leaseholder without notice or the solicitation of bids. Under previous law, larger cities were required to accept public bids on such property and award the property to the highest bidder. However, many of these properties are currently leased to individuals that have resided on the property for a number of years. Although the land being leased is owned by the city, the improvements on the leased land are usually owned by the resident. Therefore, the bid requirement puts into place a process that may cause the current leaseholder to move from the property and sell any improvements. House Bill 1490 authorizes a municipality with a population of 575,000 or less to sell such land at the fair market value directly to the leaseholder. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1490 amends the Local Government Code to raise from 250,000 to 575,000 the population limit for a municipality to have the authority to sell land within 5,000 feet of where the shoreline of a lake would be if the lake were filled to its storage capacity to the person leasing the land for the fair market value of the land without notice or the solicitation of bids. EFFECTIVE DATE June 15, 2001.