By Duncan                                              S.B. No. 396
         77R475 PAM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to authorizing a municipality to transfer real property to
 1-3     a nonprofit organization to use for public purposes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 253, Local Government Code, is amended by
 1-6     adding Section 253.011 to read as follows:
 1-7           Sec. 253.011.  CONVEYANCE TO NONPROFIT CORPORATION FOR PUBLIC
 1-8     USE. (a)  In this section, "nonprofit organization" means an
 1-9     organization exempt from federal taxation under Section 501(c)(3),
1-10     Internal Revenue Code of 1986, as amended.
1-11           (b)  A municipality may transfer to a nonprofit organization,
1-12     for consideration described by this section, real property or an
1-13     interest in real property without complying with the notice and
1-14     bidding requirements of Section 272.001(a) or other law.
1-15           (c)  Consideration for the transfer authorized by this
1-16     section shall be in the form of an agreement between the  parties
1-17     that requires the nonprofit organization to use the property in a
1-18     manner that primarily promotes a public purpose of the
1-19     municipality.  If the nonprofit organization at any time fails to
1-20     use the property in that manner, ownership of the property
1-21     automatically reverts to the municipality.
1-22           (d)  The municipality shall transfer the property by an
1-23     appropriate instrument of transfer. The instrument must include a
1-24     provision that:
 2-1                 (1)  requires the nonprofit organization to use the
 2-2     property in a manner that primarily promotes a public purpose of
 2-3     the municipality; and
 2-4                 (2)  indicates that ownership of the property
 2-5     automatically reverts to the municipality if the nonprofit
 2-6     organization at any time fails to use the property in that manner. 
 2-7           SECTION 2. This Act takes effect immediately if it receives a
 2-8     vote of two-thirds of all the members elected to each house, as
 2-9     provided by Section 39, Article III, Texas Constitution.  If this
2-10     Act does not receive the vote necessary for immediate effect, this
2-11     Act takes effect September 1, 2001.