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. 1-50 * * * * *