1-1                                   AN ACT
 1-2     relating to the authority of certain municipalities to use
 1-3     property, or to lease or sell property used for the purpose of
 1-4     operating certain properties, located on certain state-owned lands.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 307.001, Local Government Code, is
 1-7     amended to read as follows:
 1-8           Sec. 307.001.  ELIGIBLE MUNICIPALITIES.  A municipality that
 1-9     borders on the Gulf of Mexico and has a population of 50,000
1-10     [60,000] or more may use and occupy for park purposes gulf
1-11     tidelands and adjacent water as provided by this chapter.
1-12           SECTION 2.  Section 307.042, Local Government Code, is
1-13     amended by amending Subsection (c) and adding Subsection (e) to
1-14     read as follows:
1-15           (c)  As additional security for the bonds, notes, or
1-16     warrants, the municipality may, by the terms of a mortgage, grant
1-17     to the purchaser under sale or foreclosure a franchise to operate
1-18     the properties purchased for a period of not more than 99 [75]
1-19     years after the purchase.  If at the time of the sale or
1-20     foreclosure there is a pier, structure, or improvement located in
1-21     whole or in part on or over state-owned tideland, water, and bed of
1-22     the Gulf of Mexico, during that period of 99 [75] years the
1-23     purchaser and the purchaser's heirs,  successors, and assigns have
1-24     the same right of use and occupancy to the state-owned tideland,
1-25     water, and bed as is granted to the municipality under this
 2-1     chapter.  On termination of that period or on cessation of use of
 2-2     the property for that purpose, the right of use and occupancy
 2-3     reverts to the municipality.
 2-4           (e)  The municipality may sell the property described by
 2-5     Subsection (b) if no bonded indebtedness remains outstanding. If
 2-6     the municipality sells the property, the General Land Office may
 2-7     grant to the purchaser a lease of the state-owned tideland, water,
 2-8     and bed beneath the property or, if necessary, a larger area for a
 2-9     period of not more than 99 years after the purchase.  The purchaser
2-10     and the purchaser's heirs, successors, and assigns have the same
2-11     right of use and occupancy to the state-owned tideland, water, and
2-12     bed as is granted to the municipality under this chapter.  On
2-13     termination of that period or on cessation of use of the property
2-14     for that purpose, the right of use and occupancy reverts to the
2-15     municipality.
2-16           SECTION 3.  This Act takes effect immediately if it receives
2-17     a vote of two-thirds of all the members elected to each house, as
2-18     provided by Section 39, Article III, Texas Constitution.  If this
2-19     Act does not receive the vote necessary for immediate effect, this
2-20     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 673 passed the Senate on
         March 15, 2001, by the following vote:  Yeas 30, Nays 0, one
         present, not voting; and that the Senate concurred in House
         amendment on May 17, 2001, by the following vote:  Yeas 30, Nays 0,
         one present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 673 passed the House, with
         amendment, on May 11, 2001, by the following vote:  Yeas 130,
         Nays 0, one present, not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor