1-1     By:  Dunnam (Senate Sponsor - Sibley)                 H.B. No. 3387
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Veteran
 1-4     Affairs and Military Installations; May 10, 2001, reported
 1-5     favorably by the following vote:  Yeas 4, Nays 0; May 10, 2001,
 1-6     sent to printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the disposition of public property in a defense
1-10     economic readjustment zone.
1-12           SECTION 1. Section 2310.410, Government Code, is amended to
1-13     read as follows:
1-14           Sec. 2310.410.  Disposition of Public Property in
1-15     Readjustment Zone. (a)  After an area is designated as a
1-16     readjustment zone, the state, a municipality, or a county that owns
1-17     a surplus building (including any structure) or vacant land in the
1-18     zone may dispose of the building or land by:
1-19                 (1)  selling the building or land at a public auction;
1-20                 (2)  selling the building or land without notice or
1-21     bidding as provided by Subsection (d); or
1-22                 (3)  establishing an urban homestead program described
1-23     by Subsection (e).
1-24           (b)  A municipality or county may sell a surplus building or
1-25     vacant land in the readjustment zone at less than fair market value
1-26     if the governing body of the municipality or county by ordinance or
1-27     order, as appropriate, adopts criteria that specify the conditions
1-28     and circumstances under which the sale may occur and the public
1-29     purpose to be achieved by the sale.  A copy of the ordinance or
1-30     order must be filed with the department not later than the day on
1-31     which the sale occurs.
1-32           (c)  If the surplus building or vacant land is sold at a
1-33     public auction, the building or land may be sold to a buyer who is
1-34     not the highest bidder if the criteria and public purpose specified
1-35     in the ordinance or order adopted under Subsection (b) are
1-36     satisfied.
1-37           (d)  The surplus building or vacant land may be sold without
1-38     complying with notice or bidding requirements (including election
1-39     or voter approval requirements imposed by other law, if any) if the
1-40     criteria and public purpose specified in the ordinance or order
1-41     adopted under Subsection (b) are satisfied.
1-42           (e)  An urban homestead program must provide that:
1-43                 (1)  the state, municipality, or county is to sell to
1-44     an individual a residence or part of a residence that it owns for
1-45     an amount not to exceed $100;
1-46                 (2)  as a condition of the sale, the individual must
1-47     agree by covenant in the deed conveying the residence to live in
1-48     the residence for at least seven years and to renovate or remodel
1-49     the residence to meet the level of maintenance stated in an
1-50     agreement between the individual and the governmental entity; and
1-51                 (3)  after the individual satisfies the seven-year
1-52     residency and property improvement requirements of the agreement,
1-53     the governmental entity shall assign the residence to the
1-54     individual.
1-55           SECTION 2.  This Act takes effect September 1, 2001.
1-56                                  * * * * *