By Dunnam                                             H.B. No. 3387
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the disposition of public property in a defense
 1-3     economic readjustment zone.
 1-5           SECTION 1. Section 2310.410, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 2310.410.  Disposition of Public Property in
 1-8     Readjustment Zone. (a)  After an area is designated as a
 1-9     readjustment zone, the state, a municipality, or a county that owns
1-10     a surplus building (including any structure) or vacant land in the
1-11     zone may dispose of the building or land by:
1-12                 (1)  selling the building or land at a public auction;
1-13                 (2)  selling the building or land without notice or
1-14     bidding as provided by Subsection (d); or
1-15                 (3)  establishing an urban homestead program described
1-16     by Subsection (e).
1-17           (b)  A municipality or county may sell a surplus building or
1-18     vacant land in the readjustment zone at less than fair market value
1-19     if the governing body of the municipality or county by ordinance or
1-20     order, as appropriate, adopts criteria that specify the conditions
1-21     and circumstances under which the sale may occur and the public
1-22     purpose to be achieved by the sale.  A copy of the ordinance or
1-23     order must be filed with the department not later than the day on
1-24     which the sale occurs.
 2-1           (c)  If the surplus building or vacant land is sold at a
 2-2     public auction, the building or land may be sold to a buyer who is
 2-3     not the highest bidder if the criteria and public purpose specified
 2-4     in the ordinance or order adopted under Subsection (b) are
 2-5     satisfied.
 2-6           (d)  The surplus building or vacant land may be sold without
 2-7     complying with notice or bidding requirements (including election
 2-8     or voter approval requirements imposed by other law, if any) if the
 2-9     criteria and public purpose specified in the ordinance or order
2-10     adopted under Subsection (b) are satisfied.
2-11           (e)  An urban homestead program must provide that:
2-12                 (1)  the state, municipality, or county is to sell to
2-13     an individual a residence or part of a residence that it owns for
2-14     an amount not to exceed $100;
2-15                 (2)  as a condition of the sale, the individual must
2-16     agree by covenant in the deed conveying the residence to live in
2-17     the residence for at least seven years and to renovate or remodel
2-18     the residence to meet the level of maintenance stated in an
2-19     agreement between the individual and the governmental entity; and
2-20                 (3)  after the individual satisfies the seven-year
2-21     residency and property improvement requirements of the agreement,
2-22     the governmental entity shall assign the residence to the
2-23     individual.
2-24           SECTION 2.  This Act takes effect September 1, 2001.