1-1     By:  West (Senate Sponsor - Duncan)                    H.B. No. 122
 1-2           (In the Senate - Received from the House March 14, 2001;
 1-3     March 15, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 9, 2001, reported favorably by the
 1-5     following vote:  Yeas 6, Nays 0; May 9, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to authorizing a municipality to transfer real property to
 1-9     a nonprofit organization to use for public purposes.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1. Chapter 253, Local Government Code, is amended by
1-12     adding Section 253.011 to read as follows:
1-13           Sec. 253.011.  CONVEYANCE TO NONPROFIT CORPORATION FOR PUBLIC
1-14     USE. (a)  In this section, "nonprofit organization" means an
1-15     organization exempt from federal taxation under Section 501(c)(3),
1-16     Internal Revenue Code of 1986, as amended.
1-17           (b)  This section does not apply to a municipality with a
1-18     population of 1.9 million or more.
1-19           (c)  A municipality may transfer to a nonprofit organization,
1-20     for consideration described by this section, real property or an
1-21     interest in real property without complying with the notice and
1-22     bidding requirements of Section 272.001(a) or other law.
1-23           (d)  Consideration for the transfer authorized by this
1-24     section shall be in the form of an agreement between the  parties
1-25     that requires the nonprofit organization to use the property in a
1-26     manner that primarily promotes a public purpose of the
1-27     municipality.  If the nonprofit organization at any time fails to
1-28     use the property in that manner, ownership of the property
1-29     automatically reverts to the municipality.
1-30           (e)  The municipality shall transfer the property by an
1-31     appropriate instrument of transfer. The instrument must include a
1-32     provision that:
1-33                 (1)  requires the nonprofit organization to use the
1-34     property in a manner that primarily promotes a public purpose of
1-35     the municipality; and
1-36                 (2)  indicates that ownership of the property
1-37     automatically reverts to the municipality if the nonprofit
1-38     organization at any time fails to use the property in that manner. 
1-39           (f)  Provided, however, that if the real property to be
1-40     transferred lies outside the municipality's corporate limits and
1-41     outside the county where 80 percent of the municipality's residents
1-42     reside, the municipality must obtain the consent of the county
1-43     commissioners court in the county where the real property is
1-44     located.
1-45           SECTION 2. This Act takes effect immediately if it receives a
1-46     vote of two-thirds of all the members elected to each house, as
1-47     provided by Section 39, Article III, Texas Constitution.  If this
1-48     Act does not receive the vote necessary for immediate effect, this
1-49     Act takes effect September 1, 2001.
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