By: Jackson S.B. No. 1672
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the disposition of certain real property owned by the
1-3 state.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 31.153, Natural Resources Code, is
1-6 amended by adding Subsections (d) and (e) to read as follows:
1-7 (d) If a state agency intends to dispose of or change the
1-8 use of real property possessed by the agency and determined by the
1-9 division to be unused or underused, the agency must notify the
1-10 division not later than the 30th day before the date of the
1-11 proposed disposition or change, including before any proposed
1-12 improvement, development, lease, or sale of the property.
1-13 (e) Not later than January 30 of each year, each state
1-14 agency shall report to the division about any unused or underused
1-15 real property possessed by the agency, as determined by the
1-16 division. The report must include:
1-17 (1) a description of each item of property recommended
1-18 by the division for alternate use or for lease or sale;
1-19 (2) the status of each property; and
1-20 (3) any agency plans to dispose of or convert the use
1-21 of any of the property.
1-22 SECTION 2. Subsections (a), (b), and (d), Section 31.155,
1-23 Natural Resources Code, are amended to read as follows:
1-24 (a) The division is not responsible for maintaining the
1-25 inventory records of the real property administered by the Texas
2-1 Department of Transportation, [the Texas National Research
2-2 Laboratory Commission,] an institution of higher education, the
2-3 Employees Retirement System of Texas, or the Teacher Retirement
2-4 System of Texas. The agencies administering the property shall
2-5 maintain those records.
2-6 (b) The Texas Department of Transportation, [or the Texas
2-7 National Research Laboratory Commission,] on the request of the
2-8 division, shall submit its real property inventory records to the
2-9 division. The real property inventory records of an institution of
2-10 higher education, the Employees Retirement System of Texas, and the
2-11 Teacher Retirement System of Texas, on the request of the division,
2-12 but not more often than semiannually, shall be submitted to the
2-13 division for information purposes only.
2-14 (d) The duty under this subchapter of the division to review
2-15 and verify real property records and to make recommendations
2-16 regarding real property and of the commissioner to prepare a report
2-17 involving real property does not apply to:
2-18 (1) the real property of an institution of higher
2-19 education;
2-20 (2) the real property that is part of a fund created
2-21 or specifically authorized by the constitution of this state and
2-22 that is administered by or with the assistance of the land office;
2-23 (3) the real property of the Employees Retirement
2-24 System of Texas; [or]
2-25 (4) the real property of the Teacher Retirement System
2-26 of Texas;
3-1 (5) the real property administered by the Texas
3-2 Historical Commission;
3-3 (6) the real property administered by the State
3-4 Preservation Board;
3-5 (7) the real property comprising the Alamo; or
3-6 (8) the real property comprising the French Legation.
3-7 SECTION 3. Subsections (a) and (b), Section 31.156, Natural
3-8 Resources Code, are amended to read as follows:
3-9 (a) The division shall review and verify the accuracy of the
3-10 real property inventory of each state agency not less often than
3-11 every four years, and a review shall be made not later than one
3-12 year [during the calendar year] before the date the agency is
3-13 scheduled for abolition under the Texas Sunset Act (Chapter 325,
3-14 Government Code). [The division may verify the accuracy of
3-15 inventory records provided by an agency.]
3-16 (b) The division shall identify the real property not being
3-17 used or being substantially underused and make recommendations to
3-18 the commissioner regarding the use of the property or regarding a
3-19 real estate transaction involving the property. The
3-20 recommendations shall include an analysis of the highest and best
3-21 use to which the property may legally be placed. It shall include
3-22 recommendations for alternative uses of the property addressing
3-23 potential for commercial or agricultural lease of the property or
3-24 any other real estate transaction or use that the division may deem
3-25 to be in the best interest of the state. The division shall
3-26 [solicit proposals and shall] accept any unsolicited proposals
4-1 about real estate transactions involving the property that would be
4-2 of significant benefit to the state.
4-3 SECTION 4. The heading of Section 31.157, Natural Resources
4-4 Code, is amended to read as follows:
4-5 Sec. 31.157. EVALUATION REPORT.
4-6 SECTION 5. Subsections (b) and (c), Section 31.157, Natural
4-7 Resources Code, are amended to read as follows:
4-8 (b) The draft report shall be submitted to the [State
4-9 Purchasing and] General Services Commission, which shall further
4-10 evaluate the potential use of the property by another state agency
4-11 or department. The draft report shall also be submitted for
4-12 review[, at the same time as it is furnished to the commission,] to
4-13 each agency that owns or holds in trust property that is the
4-14 subject of the draft report, and to the Texas Department of Housing
4-15 and Community Affairs, which shall evaluate the suitability of the
4-16 property for affordable housing. Each agency [The commission] may
4-17 comment on any findings or recommendations made by the commissioner
4-18 and may make additional recommendations regarding the use of the
4-19 property. Each agency [The commission] shall complete the review
4-20 of the draft report not later than the 60th day after the date
4-21 [within 60 days] of [the] receipt of the report and forward the
4-22 comments to the commissioner. [The Texas Department of Housing and
4-23 Community Affairs may comment on any findings or recommendations
4-24 made by the commissioner and may make additional recommendations
4-25 regarding the suitability of the property for affordable housing.]
4-26 (c) The commissioner shall prepare and issue a final report
5-1 incorporating the recommendations of each agency [the commission]
5-2 regarding use of the property [by another state agency and
5-3 addressing all comments received from the commission].
5-4 SECTION 6. Section 31.1571, Natural Resources Code, is
5-5 amended to read as follows:
5-6 Sec. 31.1571. RECOMMENDATION REGARDING DISPOSITION
5-7 [DISPOSAL] OF UNUSED OR UNDERUSED PROPERTY. (a) If the
5-8 commissioner reports under Section 31.157 that an item of real
5-9 property is unused or underused, the commissioner may make a
5-10 written recommendation to the governor for disposition of the
5-11 property through a real estate transaction.
5-12 (b) Not later than the 60th day after the date the governor
5-13 receives a written recommendation for a real estate transaction
5-14 under Subsection (a), the state agency that possesses the property
5-15 may submit to the governor and the division a comment regarding or
5-16 an objection to the recommendation.
5-17 (c) Notwithstanding any other law, after the division has
5-18 reported a property unused or underused under Section 31.156 and
5-19 the commissioner has made a recommendation to the governor under
5-20 Section 31.157 for disposition of the property through a real
5-21 estate transaction [involving the property], the state agency that
5-22 possesses [owns or controls] the property may not develop, sell, or
5-23 otherwise dispose of the property before the earlier of:
5-24 (1) the date the governor rejects [a recommended real
5-25 estate transaction involving] the recommendation [property pursuant
5-26 to Subchapter I]; or
6-1 (2) two years from the date the recommendation is
6-2 approved by operation of law [under Subchapter I].
6-3 (d) The commissioner may conduct the recommended real estate
6-4 transaction unless the governor gives the commissioner written
6-5 notice of disapproval not later than the 90th day after the date
6-6 the governor receives the recommendation.
6-7 (e) Not later than the 30th day after the governor approves
6-8 or is considered to have approved a recommended real estate
6-9 transaction for real property under this section, the division
6-10 shall provide the Texas Department of Housing and Community Affairs
6-11 with an appraisal of the property for evaluating the suitability of
6-12 the property for affordable housing.
6-13 [(b) If a state agency that owns or controls property that
6-14 the division has reported as unused or underused intends to dispose
6-15 of or change the use of the property prior to the time provided by
6-16 Subsection (a), the state agency shall submit to the governor a
6-17 general development plan for future use of the property. The plan
6-18 shall be submitted no later than 30 days prior to the time that the
6-19 real estate transaction would be approved by operation of law if
6-20 not disapproved by the governor pursuant to Subchapter I. The
6-21 governor may take such plan into consideration in determining
6-22 whether to reject the commissioner's recommendation.]
6-23 SECTION 7. Subchapter E, Chapter 31, Natural Resources Code,
6-24 is amended by adding Section 31.1572 to read as follows:
6-25 Sec. 31.1572. REAL ESTATE TRANSACTION AUTHORIZED OR
6-26 CONSIDERED TO BE AUTHORIZED BY GOVERNOR. (a) This section applies
7-1 to a real estate transaction authorized under Section 31.1571.
7-2 This section does not apply to a real estate transaction involving
7-3 real property that the division is not required to review under
7-4 Section 31.155(d).
7-5 (b) In conducting a real estate transaction, the division
7-6 shall:
7-7 (1) take charge and control of the real property; and
7-8 (2) act on behalf of the state agency that had charge
7-9 and control of the real property.
7-10 (c) Any expenses incurred by the division in conducting a
7-11 real estate transaction, including the payment of reasonable
7-12 brokerage fees, may be deducted from the proceeds of the
7-13 transaction before the proceeds are deposited under Subsection (d).
7-14 The division may adopt rules relating to the payment of reasonable
7-15 brokerage fees.
7-16 (d) Unless the proceeds of the real estate transaction are
7-17 dedicated by the constitution of this state, the proceeds shall be
7-18 deposited:
7-19 (1) to the credit of the Texas capital trust fund, if
7-20 the affected agency is eligible under Chapter 2201, Government
7-21 Code, to participate in that fund; or
7-22 (2) in the state treasury to the credit of a special
7-23 fund or account created by the comptroller for the affected agency,
7-24 if the agency is not eligible under Chapter 2201, Government Code,
7-25 to participate in the Texas capital trust fund.
7-26 (e) Money deposited under Subsection (d)(2) may be
8-1 appropriated only to the affected agency.
8-2 SECTION 8. Section 31.158, Natural Resources Code, is
8-3 amended by adding Subsections (d) and (e) to read as follows:
8-4 (d) Notwithstanding Subsection (c), the commissioner may
8-5 offer to a lessee of the state the first option for a real estate
8-6 transaction involving real property under this section if:
8-7 (1) the lessee leases real property adjacent to the
8-8 property that is the subject of the transaction; and
8-9 (2) the commissioner determines that the transaction
8-10 serves the best interest of the state.
8-11 (e) If the commissioner determines that an exchange of real
8-12 property is in the best interest of the state, the division may
8-13 negotiate and complete an exchange transaction in the manner
8-14 provided for the trade of land dedicated to the permanent school
8-15 fund.
8-16 SECTION 9. The following provisions are repealed:
8-17 (1) Subsection (e), Section 31.156, Natural Resources
8-18 Code;
8-19 (2) Subchapter I, Chapter 31, Natural Resources Code;
8-20 and
8-21 (3) Section 51.294, Natural Resources Code.
8-22 SECTION 10. This Act takes effect September 1, 2001.