1-1     By:  Naishtat (Senate Sponsor - Barrientos)           H.B. No. 2544
 1-2           (In the Senate - Received from the House May 11, 2001;
 1-3     May 11, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 4, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the acquisition and disposition of land or another real
1-10     property interest by a political subdivision.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 251.001, Local Government Code, is
1-13     amended by adding Subsection (c) to read as follows:
1-14           (c)  Unless the municipality obtains the written approval of
1-15     the governing body of the county in which the property to be
1-16     acquired is located, a municipality may not exercise the right of
1-17     eminent domain under Subsection (a) to acquire public or private
1-18     property that is located:
1-19                 (1)  outside the municipality;
1-20                 (2)  outside the county in which the municipality is
1-21     located; and
1-22                 (3)  in a county that has a population of 15,000 or
1-23     less.
1-24           SECTION 2. Section 272.001(g), Local Government Code, is
1-25     amended to read as follows:
1-26           (g)  A political subdivision may acquire or assemble land or
1-27     real property interest, except by condemnation, and sell, exchange,
1-28     or otherwise convey the land or interests to an entity for the
1-29     development of low-income or moderate-income housing.  The
1-30     political subdivision [municipality] shall determine the terms and
1-31     conditions of the transactions so as to effectuate and maintain the
1-32     public purpose.  If conveyance of land under this subsection serves
1-33     a public purpose, the land may be conveyed for less than its fair
1-34     market value.  In this subsection, "entity" means an individual,
1-35     corporation, partnership, or other legal entity.
1-36           SECTION 3.  The change in law made by Section 251.001(c),
1-37     Local Government Code, as added by this Act, applies only to a
1-38     municipality that files a petition under Chapter 21, Property Code,
1-39     to acquire property by eminent domain on or after the effective
1-40     date of this Act. A municipality that files a petition before the
1-41     effective date of this Act is governed by the law in effect when
1-42     the petition was filed, and the former law is continued in effect
1-43     for that purpose.
1-44           SECTION 4.  This Act takes effect immediately if it receives
1-45     a vote of two-thirds of all the members elected to each house, as
1-46     provided by Section 39, Article III, Texas Constitution.  If this
1-47     Act does not receive the vote necessary for immediate effect, this
1-48     Act takes effect September 1, 2001.
1-49                                  * * * * *