78R4105 MXM-F

By:  Menendez                                                     H.B. No. 655



A BILL TO BE ENTITLED

AN ACT

relating to the sale of property by a defense base development 
authority.   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 272.001(b), Local Government Code, is 
amended to read as follows:
	(b)  The notice and bidding requirements of Subsection (a) do 
not apply to the types of land and real property interests described 
by this subsection and owned by a political subdivision.  The land 
and those interests described by this subsection may not be 
conveyed, sold, or exchanged for less than the fair market value of 
the land or interest unless the conveyance, sale, or exchange is 
with one or more abutting property owners who own the underlying fee 
simple.  The fair market value is determined by an appraisal 
obtained by the political subdivision that owns the land or 
interest or, in the case of land or an interest owned by a home-rule 
municipality, the fair market value may be determined by the price 
obtained by the municipality at a public auction for which notice to 
the general public is published in the manner described by 
Subsection (a).  The notice of the auction must include, instead of 
the content required by Subsection (a), a description of the land, 
including its location, the date, time, and location of the 
auction, and the procedures to be followed at the auction.  The 
appraisal or public auction price is conclusive of the fair market 
value of the land or interest, regardless of any contrary provision 
of a home-rule charter.  This subsection applies to:
		(1)  narrow strips of land, or land that because of its 
shape, lack of access to public roads, or small area cannot be used 
independently under its current zoning or under applicable 
subdivision or other development control ordinances;
		(2)  streets or alleys, owned in fee or used by 
easement;                   
		(3)  land or a real property interest originally 
acquired for streets, rights-of-way, or easements that the 
political subdivision chooses to exchange for other land to be used 
for streets, rights-of-way, easements, or other public purposes, 
including transactions partly for cash;
		(4)  land that the political subdivision wants to have 
developed by contract with an independent foundation;
		(5)  a real property interest conveyed to a 
governmental entity that has the power of eminent domain; [or]
		(6)  a municipality's land that is located in a 
reinvestment zone designated as provided by law and that the 
municipality desires to have developed under a project plan adopted 
by the municipality for the zone; or
		(7)  a property interest owned by a defense base 
development authority established under Chapter 378, Local 
Government Code, as added by Chapter 1221, Acts of the 76th 
Legislature, Regular Session, 1999.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.