1-1     By:  Duncan                                            S.B. No. 396
 1-2           (In the Senate - Filed January 25, 2001; January 29, 2001,
 1-3     read first time and referred to Committee on Intergovernmental
 1-4     Relations; March 15, 2001, reported favorably, as amended, by the
 1-5     following vote:  Yeas 7, Nays 0; March 15, 2001, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                              By:  Lindsay
 1-7     Amend S.B. No. 396, in SECTION 1 of the bill, by adding Subsection
 1-8     (e) as follows:
 1-9           (e)  If the real property to be transferred lies outside the
1-10     municipality's corporate limits and outside the county where 80
1-11     percent of the municipality's residents reside, the municipality
1-12     must obtain the consent of the county commissioners court in the
1-13     county where the real property is located.
1-14                            A BILL TO BE ENTITLED
1-15                                   AN ACT
1-16     relating to authorizing a municipality to transfer real property to
1-17     a nonprofit organization to use for public purposes.
1-18           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-19           SECTION 1.  Chapter 253, Local Government Code, is amended by
1-20     adding Section 253.011 to read as follows:
1-21           Sec. 253.011.  CONVEYANCE TO NONPROFIT CORPORATION FOR PUBLIC
1-22     USE.  (a)  In this section, "nonprofit organization" means an
1-23     organization exempt from federal taxation under Section 501(c)(3),
1-24     Internal Revenue Code of 1986, as amended.
1-25           (b)  A municipality may transfer to a nonprofit organization,
1-26     for consideration described by this section, real property or an
1-27     interest in real property without complying with the notice and
1-28     bidding requirements of Section 272.001(a) or other law.
1-29           (c)  Consideration for the transfer authorized by this
1-30     section shall be in the form of an agreement between the  parties
1-31     that requires the nonprofit organization to use the property in a
1-32     manner that primarily promotes a public purpose of the
1-33     municipality.  If the nonprofit organization at any time fails to
1-34     use the property in that manner, ownership of the property
1-35     automatically reverts to the municipality.
1-36           (d)  The municipality shall transfer the property by an
1-37     appropriate instrument of transfer.  The instrument must include a
1-38     provision that:
1-39                 (1)  requires the nonprofit organization to use the
1-40     property in a manner that primarily promotes a public purpose of
1-41     the municipality; and
1-42                 (2)  indicates that ownership of the property
1-43     automatically reverts to the municipality if the nonprofit
1-44     organization at any time fails to use the property in that manner.
1-45           SECTION 2.  This Act takes effect immediately if it receives
1-46     a vote of two-thirds of all the members elected to each house, as
1-47     provided by Section 39, Article III, Texas Constitution.  If this
1-48     Act does not receive the vote necessary for immediate effect, this
1-49     Act takes effect September 1, 2001.
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