SRC-MWN S.B. 1672 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1672
By: Jackson
Natural Resources
5/21/2001
Enrolled


DIGEST AND PURPOSE 

The Asset Management Division of the General Land Office (division) is
governed by Chapter 31 of the Natural Resources Code. Those statutes have
been repeatedly modified by the legislature to reflect new duties and
changes in state real property management practices. Most of these
modifications are procedural and are found throughout Chapter 31, Texas
Natural Resources Code. S.B. 1672 reorganizes and consolidates provisions
in Chapter 31 related to the duties and responsibilities of the division. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the asset management division
in SECTION 7 (Section 31.1572, Natural Resources Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 31.153, Natural Resources Code, by adding
Subsections (d) and (e), to require the agency, if a state agency intends
to dispose of or change the use of real property possessed by the agency
and determined by the division to be used or underused, to notify the asset
management division of the General Land Office (division) not later than a
certain date of the proposed disposition or change, including before any
proposed improvement, development, lease, or sale of the property. Requires
each state agency, not later than January 31 annually, to report to the
division about certain criteria as determined by the division. Requires the
report to include certain information. 

SECTION 2. Amends Section 31.155, Natural Resources Code, by amending
Subsections (a), (b), and (d), to provide that the duty under this
subchapter of the division to review and verify real property records and
to make recommendations regarding property and of the Commissioner of the
Land Office (commissioner) to prepare a report involving real property does
not apply to certain real property criteria. Deletes text regarding the
Texas National Research Laboratory Commission. Makes a conforming change
and a nonsubstantive change. 

SECTION 3. Amends Sections 31.156 (a) and (b), Natural Resources Code, to
require the division to review and verify the accuracy of the real property
inventory of each state agency not less often than every four years, and to
require a review to be made not later than one year, rather than during
calender year, before the date the agency is scheduled for abolition under
the Texas Sunset Act (Chapter 325, Government Code). Deletes text
authorizing the division to verify the accuracy of inventory records.
Deletes text requiring the division to solicit proposals. 

SECTION 4. Amends the heading of Section 31.157, Natural Resources Code, to
read as follows: 

 Sec. 31.157. EVALUATION REPORT. 

SECTION 5. Amends Sections 31.157(b) and (c), Natural Resources Code, to
require the report to be submitted for review to each agency that owns or
holds in trust property that is the subject of the draft report and to the
Texas Department of Housing and Community Affairs, which is required to
evaluate the suitability of the property for affordable housing. Authorizes
each agency, rather than the General Services Commission (commission), to
comment on any findings or recommendations made by the commissioner and to
make additional recommendations regarding the use of the property. Requires
each agency, rather than the commission, to complete the review of the
draft report not later than the 60th day after the date, rather than within
60 days, of receipt of the report and forward the comments to the
commission. Makes a change in reference to the General Services Commission.
Deletes text regarding time the report is furnished to the commission.
Deletes text regarding the Texas Department of Housing and Community
Affairs. Deletes text regarding the use of property by another state agency
and addressing comments. Makes a conforming change. 

SECTION 6. Amends Section 31.1571, Natural Resources Code, as follows:

Sec. 31.1571. New heading: RECOMMENDATION REGARDING DISPOSITION OF UNUSED
OR UNDERUSED PROPERTY. Authorizes the commissioner, if the commissioner
reports under Section 31.157 that an item of real property is unused or
underused, to make a written recommendation to the governor for disposition
of the property through a real estate transaction. Authorizes the state
agency that possesses the property, not later than the 60th day after the
date the governor receives a written recommendation for a real estate
transaction under Subsection (a), to submit to the governor and the
division a comment regarding or objection to the recommendation. 
Provides that notwithstanding any other law, after the division has
reported a property unused or underused under Section 31.156 and the
commissioner has made a recommendation to the governor under Section 31.157
for disposition of the property through a real estate transaction, the
state agency that possesses, rather than owns or controls, the property is
prohibited from developing, selling, or otherwise disposing of the property
before the earlier of certain dates. Authorizes the commissioner to conduct
the recommended real estate transaction unless the governor gives the
commissioner written notice of disapproval not later than the 90th day
after the date the governor receives the recommendation. Requires the
division, not later than the 30th day after the governor approves or is
considered to have approved a recommended real estate transaction for real
property under this section, to provide the Texas Department of Housing and
Community Affairs with an appraisal of the property for evaluating the
suitability of the property for affordable housing. Deletes text regarding
a state agency submitting to the governor a general development plan for
land the agency controls or owns. Makes conforming and nonsubstantive
changes. 

SECTION 7. Amends Chapter 31E, Natural Resources Code, by adding Section
31.1572, as follows: 

Sec. 31.1572. REAL ESTATE TRANSACTION AUTHORIZED OR CONSIDERED TO BE
AUTHORIZED BY GOVERNOR. Provides that this section applies to a real estate
transaction authorized under Section 31.1571. Provides that this section
does not apply to a real estate transaction involving real property that
the division is not required to review under this section. Requires the
division, in conducting a real estate transaction, to perform certain
procedures. Authorizes any expenses incurred by the division in conducting
a real estate transaction, including the payment of reasonable brokerage
fees, to be deducted from the proceeds of the transaction before the
proceeds are deposited under this section. Authorizes the division to adopt
rules relating to the payment of reasonable brokerage fees. Requires the
proceeds, unless the proceeds of the real estate transaction are dedicated
by the constitution of this state, to be deposited to certain areas. 
Authorizes money deposited under this section to be appropriated only to
the affected agency. 

SECTION 8. Amends Section 31.158, Natural Resources Code, by adding
Subsections (d) and (e), to authorize the commissioner to offer to a lessee
of the state the first option for a real estate transaction involving real
property under this section if certain conditions are met. Authorizes the
division, if the commissioner determines that an exchange of real property
is in the best interest of the state, to negotiate and complete an exchange
transaction in the manner provided for the trade of land dedicated  to the
permanent school fund. 

SECTION 9. Repealer: Section 31.156(e) (Division is required to furnish an
appraisal to the                               Texas Department of Housing
and Community Affairs), Natural Resources Code. 
                      Repealer: Chapter 31I (Real Estate Transaction Not
Authorized By
Legislature), Natural Resources Code. 
                      Repealer: Section 51.294 (Forms for Grant), Natural
Resources Code. 

SECTION 10. Effective date: September 1, 2001.