By Naishtat                                           H.B. No. 2544
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the acquisition and disposition of land or another real
 1-3     property interest by a political subdivision.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 251.001, Local Government Code, is
 1-6     amended by adding Subsection (c) to read as follows:
 1-7           (c)  Unless the municipality obtains the written approval of
 1-8     the governing body of the county in which the property to be
 1-9     acquired is located, a municipality may not exercise the right of
1-10     eminent domain under Subsection (a) to acquire public or private
1-11     property that is located:
1-12                 (1)  outside the municipality;
1-13                 (2)  outside the county in which the municipality is
1-14     located; and
1-15                 (3)  in a county that has a population of 15,000 or
1-16     less.
1-17           SECTION 2. Section 272.001(g), Local Government Code, is
1-18     amended to read as follows:
1-19           (g)  A political subdivision may acquire or assemble land or
1-20     real property interest, except by condemnation, and sell, exchange,
1-21     or otherwise convey the land or interests to an entity for the
1-22     development of low-income or moderate-income housing.  The
1-23     political subdivision [municipality] shall determine the terms and
1-24     conditions of the transactions so as to effectuate and maintain the
 2-1     public purpose.  If conveyance of land under this subsection serves
 2-2     a public purpose, the land may be conveyed for less than its fair
 2-3     market value.  In this subsection, "entity" means an individual,
 2-4     corporation, partnership, or other legal entity.
 2-5           SECTION 3.  The change in law made by Section 251.001(c),
 2-6     Local Government Code, as added by this Act, applies only to a
 2-7     municipality that files a petition under Chapter 21, Property Code,
 2-8     to acquire property by eminent domain on or after the effective
 2-9     date of this Act. A municipality that files a petition before the
2-10     effective date of this Act is governed by the law in effect when
2-11     the petition was filed, and the former law is continued in effect
2-12     for that purpose.
2-13           SECTION 4.  This Act takes effect immediately if it receives
2-14     a vote of two-thirds of all the members elected to each house, as
2-15     provided by Section 39, Article III, Texas Constitution.  If this
2-16     Act does not receive the vote necessary for immediate effect, this
2-17     Act takes effect September 1, 2001.