SRC-CTC, SEW, TBR S.B. 396 77(R)BILL ANALYSIS


Senate Research CenterS.B. 396
77R475 PAM-DBy: Duncan
Intergovernmental Relations
3/13/2001
Committee Report (Amended)


DIGEST AND PURPOSE 

Under current law, before land owned by a political subdivision of the
state may be sold or exchanged for other land, notice to the general public
of the offer of land for sale or exchange must be published. Many
municipalities allow non-profit entities to occupy facilities and would
like to transfer the title to these non-profit entities so that the
municipality can divest itself of any maintenance, insurance, and liability
responsibilities.  In order to do so, the municipality has to participate
in the bid process and hope that no one else puts in a bid to take over any
of these buildings.  S.B. 396 permits a municipality to transfer property
to a non-profit organization without complying with existing notice and
bidding requirements, while still requiring it to place a notice of
transfer on the agenda of a public and posted meeting of the city council
for approval. 

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)  Authorizes a municipality to a transfer to 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. 

(c)  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. 

(d)  Requires the municipality to transfer the property by an appropriate
instrument of transfer.  Requires the instrument to include certain a
provisions. 

(e)  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.

 

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  Amends As Filed S.B. 396 by adding Subsection (e) to proposed
Section 253.011, Local Government Code.