By Flores                                             H.B. No. 3623
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the transfer of certain underused real property owned
 1-3     or controlled by the state to political subdivisions for use as
 1-4     affordable or accessible housing.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 31.156, Natural Resources Code, is amended
 1-7     to read as follows:
 1-8           Sec. 31.156.  PROPERTY REVIEW. (a)  The division shall review
 1-9     the real property inventory of each state agency not less than
1-10     every four years, and a review shall be made during the calendar
1-11     year before the agency is scheduled for abolition under the Texas
1-12     Sunset Act (Chapter 325, Government Code).  The division may verify
1-13     the accuracy of inventory records provided by an agency.
1-14           (b)  The division shall identify [the] real property owned or
1-15     controlled by the state that is not being used or is being
1-16     substantially underused.
1-17           (c)  The division shall provide a list and an appraisal of
1-18     properties described by Subsection (b) to the Texas Department of
1-19     Housing and Community Affairs. Not later than the 60th day after
1-20     the date of receipt of the list and appraisal, the department shall
1-21     make recommendations to the division regarding the suitability of
1-22     those properties for affordable or accessible housing.
1-23           (d)  For each property identified as not being used or as
 2-1     being substantially underused under Subsection (b), the division
 2-2     shall [and] make recommendations to the commissioner regarding the
 2-3     use of the property or regarding a real estate transaction
 2-4     involving the property.
 2-5           (e)  If the Texas Department of Housing and Community Affairs
 2-6     designates a property as suitable for affordable or accessible
 2-7     housing, the  division's recommendations must include a
 2-8     recommendation that title to the property be transferred to an
 2-9     appropriate political subdivision for use as affordable or
2-10     accessible housing.
2-11           (f)  The division's recommendations must [shall] include an
2-12     analysis of the highest and best use to which the property may
2-13     legally be placed.  It shall include recommendations for
2-14     alternative uses of the property addressing potential for
2-15     commercial or agricultural lease of the property or any other real
2-16     estate transaction or use that the division may deem to be in the
2-17     best interest of the state.  The division shall solicit proposals
2-18     and shall accept any unsolicited proposals about real estate
2-19     transactions involving the property that would be of significant
2-20     benefit to the state.
2-21           (g) [(c)]  The division shall, on completion of a review,
2-22     submit to the commissioner any information pertinent to the
2-23     evaluation of a real estate transaction involving the []real
2-24     property, including the current market value of the property and
2-25     including an evaluation of any proposals received from private
2-26     parties that would be of significant benefit to the state.  If the
 3-1     division submits an evaluation of a sale of property, it must also
 3-2     submit an evaluation of the lease potential of the property.
 3-3           (h) [(d)]  In any year that the division will evaluate
 3-4     property under the management and control of the adjutant general's
 3-5     department or the Texas National Guard Armory Board, the division
 3-6     shall notify the adjutant general's department before the division
 3-7     begins the evaluation.
 3-8           [(e)  The division shall furnish an appraisal to the Texas
 3-9     Department of Housing and Community Affairs of properties that have
3-10     been identified as unused or substantially underused.]
3-11           SECTION 2. Sections 31.157(b) and (c), Natural Resources
3-12     Code, are amended to read as follows:
3-13           (b)  The draft report shall be submitted to the State
3-14     Purchasing and General Services Commission which shall further
3-15     evaluate the potential use of the property by another state agency
3-16     or department.  The draft report shall also be submitted, at the
3-17     same time as it is furnished to the commission, to each agency that
3-18     owns or holds in trust property that is the subject of the draft
3-19     report[, and to the Texas Department of Housing and Community
3-20     Affairs].  The commission may comment on any findings or
3-21     recommendations made by the commissioner and may make additional
3-22     recommendations regarding the use of the property.  The commission
3-23     shall complete the review of the draft report within 60 days of the
3-24     receipt of the report and forward the comments to the commissioner.
3-25     [The Texas Department of Housing and Community Affairs may comment
3-26     on any findings or recommendations made by the commissioner and may
 4-1     make additional recommendations regarding the suitability of the
 4-2     property for affordable housing.]
 4-3           (c)  The commissioner shall prepare and issue a final report
 4-4     that:
 4-5                 (1)  incorporates any [incorporating the]
 4-6     recommendations of the division regarding the transfer of title to
 4-7     the property to a political subdivision for use as affordable or
 4-8     accessible housing; and
 4-9                 (2)  incorporates any recommendations of the commission
4-10     regarding the use of the []property [by another state agency] and
4-11     addresses any [addressing all] comments received from the
4-12     commission.
4-13           SECTION 3. Section 31.158, Natural Resources Code, is amended
4-14     by adding Subsections (d) and (e) to read as follows:
4-15           (d)  If the legislature authorizes the transfer of title to
4-16     real property to a political subdivision for use as affordable or
4-17     accessible housing, the division shall take possession and control
4-18     of the property and shall conduct the transaction as provided by
4-19     the policy adopted under Subsection (e).
4-20           (e)  The division shall adopt a policy regarding the method
4-21     of transferring title to real property designated as suitable for
4-22     affordable or accessible housing to a political subdivision for use
4-23     as affordable or accessible housing.  The policy must include
4-24     monitoring and enforcement provisions to ensure that the property
4-25     is used for affordable or accessible housing.
4-26           SECTION 4. This Act takes effect September 1, 2001.