1-1     By:  Flores (Senate Sponsor - Shapleigh)              H.B. No. 3623
 1-2           (In the Senate - Received from the House May 10, 2001;
 1-3     May 10, 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 5, 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 transfer of certain underused real property owned
1-10     or controlled by the state to political subdivisions for use as
1-11     affordable and accessible housing.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Section 31.156, Natural Resources Code, is amended
1-14     to read as follows:
1-15           Sec. 31.156.  PROPERTY REVIEW. (a)  The division shall review
1-16     the real property inventory of each state agency not less than
1-17     every four years, and a review shall be made during the calendar
1-18     year before the agency is scheduled for abolition under the Texas
1-19     Sunset Act (Chapter 325, Government Code).  The division may verify
1-20     the accuracy of inventory records provided by an agency.
1-21           (b)  The division shall identify [the] real property owned or
1-22     controlled by the state that is not being used or is being
1-23     substantially underused.
1-24           (c)  The division shall provide a list and an appraisal of
1-25     properties described by Subsection (b) to the Texas Department of
1-26     Housing and Community Affairs. Not later than the 60th day after
1-27     the date of receipt of the list and appraisal, the department shall
1-28     make recommendations to the division regarding the suitability of
1-29     those properties for affordable and accessible housing.
1-30           (d)  For each property identified as not being used or as
1-31     being substantially underused under Subsection (b), the division
1-32     shall [and] make recommendations to the commissioner regarding the
1-33     use of the property or regarding a real estate transaction
1-34     involving the property.
1-35           (e)  If the Texas Department of Housing and Community Affairs
1-36     designates a property as suitable for affordable and accessible
1-37     housing, the  division's recommendations must include a
1-38     recommendation that title to the property be transferred to an
1-39     appropriate political subdivision for use as affordable and
1-40     accessible housing.
1-41           (f)  The division's recommendations must [shall] include an
1-42     analysis of the highest and best use to which the property may
1-43     legally be placed.  It shall include recommendations for
1-44     alternative uses of the property addressing potential for
1-45     commercial or agricultural lease of the property or any other real
1-46     estate transaction or use that the division may deem to be in the
1-47     best interest of the state.  The division shall solicit proposals
1-48     and shall accept any unsolicited proposals about real estate
1-49     transactions involving the property that would be of significant
1-50     benefit to the state.
1-51           (g) [(c)]  The division shall, on completion of a review,
1-52     submit to the commissioner any information pertinent to the
1-53     evaluation of a real estate transaction involving the []real
1-54     property, including the current market value of the property and
1-55     including an evaluation of any proposals received from private
1-56     parties that would be of significant benefit to the state.  If the
1-57     division submits an evaluation of a sale of property, it must also
1-58     submit an evaluation of the lease potential of the property.
1-59           (h) [(d)]  In any year that the division will evaluate
1-60     property under the management and control of the adjutant general's
1-61     department or the Texas National Guard Armory Board, the division
1-62     shall notify the adjutant general's department before the division
1-63     begins the evaluation.
1-64           [(e)  The division shall furnish an appraisal to the Texas
 2-1     Department of Housing and Community Affairs of properties that have
 2-2     been identified as unused or substantially underused.]
 2-3           SECTION 2. Sections 31.157(b) and (c), Natural Resources
 2-4     Code, are amended to read as follows:
 2-5           (b)  The draft report shall be submitted to the State
 2-6     Purchasing and General Services Commission which shall further
 2-7     evaluate the potential use of the property by another state agency
 2-8     or department.  The draft report shall also be submitted, at the
 2-9     same time as it is furnished to the commission, to each agency that
2-10     owns or holds in trust property that is the subject of the draft
2-11     report[, and to the Texas Department of Housing and Community
2-12     Affairs].  The commission may comment on any findings or
2-13     recommendations made by the commissioner and may make additional
2-14     recommendations regarding the use of the property.  The commission
2-15     shall complete the review of the draft report within 60 days of the
2-16     receipt of the report and forward the comments to the commissioner.
2-17     [The Texas Department of Housing and Community Affairs may comment
2-18     on any findings or recommendations made by the commissioner and may
2-19     make additional recommendations regarding the suitability of the
2-20     property for affordable housing.]
2-21           (c)  The commissioner shall prepare and issue a final report
2-22     that:
2-23                 (1)  incorporates any [incorporating the]
2-24     recommendations of the division regarding the transfer of title to
2-25     the property to a political subdivision for use as affordable and
2-26     accessible housing; and
2-27                 (2)  incorporates any recommendations of the commission
2-28     regarding the use of the []property [by another state agency] and
2-29     addresses any [addressing all] comments received from the
2-30     commission.
2-31           SECTION 3. Section 31.158, Natural Resources Code, is amended
2-32     by adding Subsections (d) and (e) to read as follows:
2-33           (d)  If the legislature authorizes the transfer of title to
2-34     real property to a political subdivision for use as affordable and
2-35     accessible housing, the division shall take possession and control
2-36     of the property and shall conduct the transaction as provided by
2-37     the policy adopted under Subsection (e).
2-38           (e)  The division shall adopt a policy regarding the method
2-39     of transferring title to real property designated as suitable for
2-40     affordable and accessible housing to a political subdivision for
2-41     use as affordable and accessible housing.  The policy must include
2-42     monitoring and enforcement provisions to ensure that the property
2-43     is used for affordable and accessible housing.
2-44           SECTION 4. This Act takes effect September 1, 2001.
2-45                                  * * * * *