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.