1-1 By: Jackson S.B. No. 673
1-2 (In the Senate - Filed February 12, 2001; February 14, 2001,
1-3 read first time and referred to Committee on Natural Resources;
1-4 March 8, 2001, reported favorably by the following vote: Yeas 6,
1-5 Nays 0; March 8, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the authority of a municipality to lease or sell
1-9 property used for the purpose of operating certain properties
1-10 located on certain state-owned lands.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. 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
1-26 chapter. On termination of that period or on cessation of use of
1-27 the property for that purpose, the right of use and occupancy
1-28 reverts to the municipality.
1-29 (e) The municipality may sell the property described by
1-30 Subsection (b) if no bonded indebtedness remains outstanding. If
1-31 the municipality sells the property, the General Land Office may
1-32 grant to the purchaser a lease of the state-owned tideland, water,
1-33 and bed beneath the property or, if necessary, a larger area for a
1-34 period of not more than 99 years after the purchase. The purchaser
1-35 and the purchaser's heirs, successors, and assigns have the same
1-36 right of use and occupancy to the state-owned tideland, water, and
1-37 bed as is granted to the municipality under this chapter. On
1-38 termination of that period or on cessation of use of the property
1-39 for that purpose, the right of use and occupancy reverts to the
1-40 municipality.
1-41 SECTION 2. This Act takes effect immediately if it receives
1-42 a vote of two-thirds of all the members elected to each house, as
1-43 provided by Section 39, Article III, Texas Constitution. If this
1-44 Act does not receive the vote necessary for immediate effect, this
1-45 Act takes effect September 1, 2001.
1-46 * * * * *