By: Jackson S.B. No. 673
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of a municipality to lease or sell
1-3 property used for the purpose of operating certain properties
1-4 located on certain state-owned lands.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 307.042, Local Government Code, is
1-7 amended by amending Subsection (c) and adding Subsection (e) to
1-8 read as follows:
1-9 (c) As additional security for the bonds, notes, or
1-10 warrants, the municipality may, by the terms of a mortgage, grant
1-11 to the purchaser under sale or foreclosure a franchise to operate
1-12 the properties purchased for a period of not more than 99 [75]
1-13 years after the purchase. If at the time of the sale or
1-14 foreclosure there is a pier, structure, or improvement located in
1-15 whole or in part on or over state-owned tideland, water, and bed of
1-16 the Gulf of Mexico, during that period of 99 [75] years the
1-17 purchaser and the purchaser's heirs, successors, and assigns have
1-18 the same right of use and occupancy to the state-owned tideland,
1-19 water, and bed as is granted to the municipality under this
1-20 chapter. On termination of that period or on cessation of use of
1-21 the property for that purpose, the right of use and occupancy
1-22 reverts to the municipality.
1-23 (e) The municipality may sell the property described by
1-24 Subsection (b) if no bonded indebtedness remains outstanding. If
1-25 the municipality sells the property, the General Land Office may
2-1 grant to the purchaser a lease of the state-owned tideland, water,
2-2 and bed beneath the property or, if necessary, a larger area for a
2-3 period of not more than 99 years after the purchase. The purchaser
2-4 and the purchaser's heirs, successors, and assigns have the same
2-5 right of use and occupancy to the state-owned tideland, water, and
2-6 bed as is granted to the municipality under this chapter. On
2-7 termination of that period or on cessation of use of the property
2-8 for that purpose, the right of use and occupancy reverts to the
2-9 municipality.
2-10 SECTION 2. This Act takes effect immediately if it receives
2-11 a vote of two-thirds of all the members elected to each house, as
2-12 provided by Section 39, Article III, Texas Constitution. If this
2-13 Act does not receive the vote necessary for immediate effect, this
2-14 Act takes effect September 1, 2001.