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.
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