1-1 By: Jackson S.B. No. 1672
1-2 (In the Senate - Filed March 9, 2001; March 14, 2001, read
1-3 first time and referred to Committee on Natural Resources;
1-4 March 28, 2001, reported favorably by the following vote: Yeas 6,
1-5 Nays 0; March 28, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the disposition of certain real property owned by the
1-9 state.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 31.153, Natural Resources Code, is
1-12 amended by adding Subsections (d) and (e) to read as follows:
1-13 (d) If a state agency intends to dispose of or change the
1-14 use of real property possessed by the agency and determined by the
1-15 division to be unused or underused, the agency must notify the
1-16 division not later than the 30th day before the date of the
1-17 proposed disposition or change, including before any proposed
1-18 improvement, development, lease, or sale of the property.
1-19 (e) Not later than January 30 of each year, each state
1-20 agency shall report to the division about any unused or underused
1-21 real property possessed by the agency, as determined by the
1-22 division. The report must include:
1-23 (1) a description of each item of property recommended
1-24 by the division for alternate use or for lease or sale;
1-25 (2) the status of each property; and
1-26 (3) any agency plans to dispose of or convert the use
1-27 of any of the property.
1-28 SECTION 2. Subsections (a), (b), and (d), Section 31.155,
1-29 Natural Resources Code, are amended to read as follows:
1-30 (a) The division is not responsible for maintaining the
1-31 inventory records of the real property administered by the Texas
1-32 Department of Transportation, [the Texas National Research
1-33 Laboratory Commission,] an institution of higher education, the
1-34 Employees Retirement System of Texas, or the Teacher Retirement
1-35 System of Texas. The agencies administering the property shall
1-36 maintain those records.
1-37 (b) The Texas Department of Transportation, [or the Texas
1-38 National Research Laboratory Commission,] on the request of the
1-39 division, shall submit its real property inventory records to the
1-40 division. The real property inventory records of an institution of
1-41 higher education, the Employees Retirement System of Texas, and the
1-42 Teacher Retirement System of Texas, on the request of the division,
1-43 but not more often than semiannually, shall be submitted to the
1-44 division for information purposes only.
1-45 (d) The duty under this subchapter of the division to review
1-46 and verify real property records and to make recommendations
1-47 regarding real property and of the commissioner to prepare a report
1-48 involving real property does not apply to:
1-49 (1) the real property of an institution of higher
1-50 education;
1-51 (2) the real property that is part of a fund created
1-52 or specifically authorized by the constitution of this state and
1-53 that is administered by or with the assistance of the land office;
1-54 (3) the real property of the Employees Retirement
1-55 System of Texas; [or]
1-56 (4) the real property of the Teacher Retirement System
1-57 of Texas;
1-58 (5) the real property administered by the Texas
1-59 Historical Commission;
1-60 (6) the real property administered by the State
1-61 Preservation Board;
1-62 (7) the real property comprising the Alamo; or
1-63 (8) the real property comprising the French Legation.
1-64 SECTION 3. Subsections (a) and (b), Section 31.156, Natural
2-1 Resources Code, are amended to read as follows:
2-2 (a) The division shall review and verify the accuracy of the
2-3 real property inventory of each state agency not less often than
2-4 every four years, and a review shall be made not later than one
2-5 year [during the calendar year] before the date the agency is
2-6 scheduled for abolition under the Texas Sunset Act (Chapter 325,
2-7 Government Code). [The division may verify the accuracy of
2-8 inventory records provided by an agency.]
2-9 (b) The division shall identify the real property not being
2-10 used or being substantially underused and make recommendations to
2-11 the commissioner regarding the use of the property or regarding a
2-12 real estate transaction involving the property. The
2-13 recommendations shall include an analysis of the highest and best
2-14 use to which the property may legally be placed. It shall include
2-15 recommendations for alternative uses of the property addressing
2-16 potential for commercial or agricultural lease of the property or
2-17 any other real estate transaction or use that the division may deem
2-18 to be in the best interest of the state. The division shall
2-19 [solicit proposals and shall] accept any unsolicited proposals
2-20 about real estate transactions involving the property that would be
2-21 of significant benefit to the state.
2-22 SECTION 4. The heading of Section 31.157, Natural Resources
2-23 Code, is amended to read as follows:
2-24 Sec. 31.157. EVALUATION REPORT.
2-25 SECTION 5. Subsections (b) and (c), Section 31.157, Natural
2-26 Resources Code, are amended to read as follows:
2-27 (b) The draft report shall be submitted to the [State
2-28 Purchasing and] General Services Commission, which shall further
2-29 evaluate the potential use of the property by another state agency
2-30 or department. The draft report shall also be submitted for
2-31 review[, at the same time as it is furnished to the commission,] to
2-32 each agency that owns or holds in trust property that is the
2-33 subject of the draft report, and to the Texas Department of Housing
2-34 and Community Affairs, which shall evaluate the suitability of the
2-35 property for affordable housing. Each agency [The commission] may
2-36 comment on any findings or recommendations made by the commissioner
2-37 and may make additional recommendations regarding the use of the
2-38 property. Each agency [The commission] shall complete the review
2-39 of the draft report not later than the 60th day after the date
2-40 [within 60 days] of [the] receipt of the report and forward the
2-41 comments to the commissioner. [The Texas Department of Housing and
2-42 Community Affairs may comment on any findings or recommendations
2-43 made by the commissioner and may make additional recommendations
2-44 regarding the suitability of the property for affordable housing.]
2-45 (c) The commissioner shall prepare and issue a final report
2-46 incorporating the recommendations of each agency [the commission]
2-47 regarding use of the property [by another state agency and
2-48 addressing all comments received from the commission].
2-49 SECTION 6. Section 31.1571, Natural Resources Code, is
2-50 amended to read as follows:
2-51 Sec. 31.1571. RECOMMENDATION REGARDING DISPOSITION
2-52 [DISPOSAL] OF UNUSED OR UNDERUSED PROPERTY. (a) If the
2-53 commissioner reports under Section 31.157 that an item of real
2-54 property is unused or underused, the commissioner may make a
2-55 written recommendation to the governor for disposition of the
2-56 property through a real estate transaction.
2-57 (b) Not later than the 60th day after the date the governor
2-58 receives a written recommendation for a real estate transaction
2-59 under Subsection (a), the state agency that possesses the property
2-60 may submit to the governor and the division a comment regarding or
2-61 an objection to the recommendation.
2-62 (c) Notwithstanding any other law, after the division has
2-63 reported a property unused or underused under Section 31.156 and
2-64 the commissioner has made a recommendation to the governor under
2-65 Section 31.157 for disposition of the property through a real
2-66 estate transaction [involving the property], the state agency that
2-67 possesses [owns or controls] the property may not develop, sell, or
2-68 otherwise dispose of the property before the earlier of:
2-69 (1) the date the governor rejects [a recommended real
3-1 estate transaction involving] the recommendation [property pursuant
3-2 to Subchapter I]; or
3-3 (2) two years from the date the recommendation is
3-4 approved by operation of law [under Subchapter I].
3-5 (d) The commissioner may conduct the recommended real estate
3-6 transaction unless the governor gives the commissioner written
3-7 notice of disapproval not later than the 90th day after the date
3-8 the governor receives the recommendation.
3-9 (e) Not later than the 30th day after the governor approves
3-10 or is considered to have approved a recommended real estate
3-11 transaction for real property under this section, the division
3-12 shall provide the Texas Department of Housing and Community Affairs
3-13 with an appraisal of the property for evaluating the suitability of
3-14 the property for affordable housing.
3-15 [(b) If a state agency that owns or controls property that
3-16 the division has reported as unused or underused intends to dispose
3-17 of or change the use of the property prior to the time provided by
3-18 Subsection (a), the state agency shall submit to the governor a
3-19 general development plan for future use of the property. The plan
3-20 shall be submitted no later than 30 days prior to the time that the
3-21 real estate transaction would be approved by operation of law if
3-22 not disapproved by the governor pursuant to Subchapter I. The
3-23 governor may take such plan into consideration in determining
3-24 whether to reject the commissioner's recommendation.]
3-25 SECTION 7. Subchapter E, Chapter 31, Natural Resources Code,
3-26 is amended by adding Section 31.1572 to read as follows:
3-27 Sec. 31.1572. REAL ESTATE TRANSACTION AUTHORIZED OR
3-28 CONSIDERED TO BE AUTHORIZED BY GOVERNOR. (a) This section applies
3-29 to a real estate transaction authorized under Section 31.1571.
3-30 This section does not apply to a real estate transaction involving
3-31 real property that the division is not required to review under
3-32 Section 31.155(d).
3-33 (b) In conducting a real estate transaction, the division
3-34 shall:
3-35 (1) take charge and control of the real property; and
3-36 (2) act on behalf of the state agency that had charge
3-37 and control of the real property.
3-38 (c) Any expenses incurred by the division in conducting a
3-39 real estate transaction, including the payment of reasonable
3-40 brokerage fees, may be deducted from the proceeds of the
3-41 transaction before the proceeds are deposited under Subsection (d).
3-42 The division may adopt rules relating to the payment of reasonable
3-43 brokerage fees.
3-44 (d) Unless the proceeds of the real estate transaction are
3-45 dedicated by the constitution of this state, the proceeds shall be
3-46 deposited:
3-47 (1) to the credit of the Texas capital trust fund, if
3-48 the affected agency is eligible under Chapter 2201, Government
3-49 Code, to participate in that fund; or
3-50 (2) in the state treasury to the credit of a special
3-51 fund or account created by the comptroller for the affected agency,
3-52 if the agency is not eligible under Chapter 2201, Government Code,
3-53 to participate in the Texas capital trust fund.
3-54 (e) Money deposited under Subsection (d)(2) may be
3-55 appropriated only to the affected agency.
3-56 SECTION 8. Section 31.158, Natural Resources Code, is
3-57 amended by adding Subsections (d) and (e) to read as follows:
3-58 (d) Notwithstanding Subsection (c), the commissioner may
3-59 offer to a lessee of the state the first option for a real estate
3-60 transaction involving real property under this section if:
3-61 (1) the lessee leases real property adjacent to the
3-62 property that is the subject of the transaction; and
3-63 (2) the commissioner determines that the transaction
3-64 serves the best interest of the state.
3-65 (e) If the commissioner determines that an exchange of real
3-66 property is in the best interest of the state, the division may
3-67 negotiate and complete an exchange transaction in the manner
3-68 provided for the trade of land dedicated to the permanent school
3-69 fund.
4-1 SECTION 9. The following provisions are repealed:
4-2 (1) Subsection (e), Section 31.156, Natural Resources
4-3 Code;
4-4 (2) Subchapter I, Chapter 31, Natural Resources Code;
4-5 and
4-6 (3) Section 51.294, Natural Resources Code.
4-7 SECTION 10. This Act takes effect September 1, 2001.
4-8 * * * * *