By Geren                                              H.B. No. 1490
         77R5548 PAM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the right of certain lessees of land owned by a
 1-3     municipality to purchase the land.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 272.001(h), Local Government Code, is
 1-6     amended to read as follows:
 1-7           (h)  A municipality having a population of 575,000 [250,000]
 1-8     or less and owning land within 5,000 feet of where the shoreline of
 1-9     a lake would be if the lake were filled to its storage capacity
1-10     may, without notice or the solicitation of bids, sell the land to
1-11     the person leasing the land for the fair market value of the land
1-12     as determined by a certified appraiser.  While land described by
1-13     this subsection is under lease, the municipality owning the land
1-14     may not sell the land to any person other than the person leasing
1-15     the land.  To protect the public health, safety, or welfare and to
1-16     ensure an adequate municipal water supply, property sold by the
1-17     municipality under this subsection is not eligible for and the
1-18     owner is not entitled to the exemption provided by Section
1-19     11.142(a), Water Code.  The instrument conveying property under
1-20     this subsection must include a provision stating that the exemption
1-21     does not apply to the conveyance.  In this subsection, "lake" means
1-22     an inland body of standing water, including a reservoir formed by
1-23     impounding the water of a river or creek but not including an
1-24     impoundment of salt water or brackish water, that has a storage
 2-1     capacity of more than 10,000 acre-feet.
 2-2           SECTION 2.  This Act takes effect immediately if it receives
 2-3     a vote of two-thirds of all the members elected to each house, as
 2-4     provided by Section 39, Article III, Texas Constitution.  If this
 2-5     Act does not receive the vote necessary for immediate effect, this
 2-6     Act takes effect September 1, 2001.