SRC-MKV S.B. 673 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 673
77R5333 PAM-DBy: Jackson
Natural Resources
2/19/2001
As Filed


DIGEST AND PURPOSE 

Currently, a municipality may authorize a franchise to operate certain
properties for a period of 75 years, and is prohibited from selling certain
properties used for the purpose of operating the properties located on
certain state-owned lands.  S.B. 673 authorizes a municipality to lease or
sell property used for the purpose of operating certain properties located
on certain state-owned lands and authorizes a franchise to operate certain
properties for a period of 99 years. 

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 Section 307.042, Local Government Code, by amending
Subsection (c) and adding Subsection (e), as follows: 

(c) Changes the period in which a purchaser of certain properties may
operate the properties from 75 years to 99 years after the purchase. 

(e) Authorizes the municipality to sell the property described by
Subsection (b) if no bonded indebtedness remains outstanding.  Authorizes
the General Land Office, if the municipality sells the property, to grant
to the purchaser a lease of the state-owned tideland, water, and bed
beneath the property, or, if necessary, a larger area for a period of not
more than 99 years after the purchase.  Provides that the purchaser and the
purchaser's heirs, successors, and assigns have the same right of use and
occupancy to the state-owned tideland, water, and bed as is granted to the
municipality under this chapter.  Provides that on termination of that
period or on cessation of use of the property for that purpose, the right
of use and occupancy reverts to the municipality. 

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