By: McReynolds (Senate Sponsor - Staples) H.B. No. 2044
(In the Senate - Received from the House May 7, 2003;
May 9, 2003, read first time and referred to Committee on Natural
Resources; May 23, 2003, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 8, Nays 0;
May 23, 2003, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 2044 By: Staples
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the General Land Office and the
accounting and disposition of state-owned real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.001, Natural Resources Code, is
amended to read as follows:
Sec. 31.001. DEFINITIONS. In this chapter:
(1) "Appraiser" means a state-certified or
state-licensed real estate appraiser who:
(A) is employed by or contracts with the land
office; and
(B) performs professional valuation services
completely and in a manner that is independent, impartial, and
objective ["State" means the State of Texas].
(2) "Board" means the School Land Board.
(3) "Commissioner" means the Commissioner of the
General Land Office.
(4) "Division" means the asset management division of
the General Land Office or any other division delegated the duties
of the asset management division by the commissioner.
(5) "Evaluation report" means the annual report
prepared by the commissioner as provided by Subchapter E.
(6) "Exchange" means an exchange of equal value or an
exchange of real property accompanied by consideration.
(7) "Governor's report" means the report prepared by
the commissioner as provided by Section 31.157.
(8) "Institution of higher education" means the Texas
State Technical College System, the Southwest Collegiate Institute
for the Deaf, or an institution of higher education, excluding a
public junior college, as defined by Section 61.003, Education
Code.
(9) [(3)] "Land office" means the General Land Office.
(10) "Market value" means the value of real property
determined by an appraisal of the real property performed by an
appraiser.
(11) "Political subdivision" means a municipality,
county, public school district, levee improvement district,
municipal utility district, or any other special purpose district
authorized by state law.
(12) "Real estate transaction" means a sale, lease,
trade, exchange, gift, grant, or other conveyance of a real
property interest.
(13) "Real property owned by the state" means any
interest in real property in the possession of the state or a state
agency, including real property held in trust by a state agency.
(14) "State" means the State of Texas.
(15) "State agency" means a board, commission,
department, institution, office, or other agency of state
government, including an institution of higher education but
excluding a special purpose district or authority.
SECTION 2. Section 31.013(b), Natural Resources Code, is
amended to read as follows:
(b) Any bonds required by law to be executed by employees of
the land office shall be executed and approved in the manner
provided for the commissioner in Subsection (a) of this section.
The land office shall pay the expenses necessary and incidental to
the execution of the bonds.
SECTION 3. Sections 31.016 and 31.017, Natural Resources
Code, are amended to read as follows:
Sec. 31.016. ABSTRACT CLERK. The commissioner shall
designate one of his clerks as the abstract clerk and shall assign
to him the special duty to correct the abstracts of patented,
titled, and surveyed real property [land] required to be kept in the
land office to reflect errors, changes caused by cancellation of
patents and in county lines, and the creation of new counties and to
add new patented surveys on the date they are patented.
Sec. 31.017. RECEIVER [RECEIVING CLERK]. (a) With the
consent of the governor, the commissioner shall appoint a suitable
person to serve as receiver [receiving clerk] for the land office.
(b) The receiver [receiving clerk] shall execute a bond for
$25,000.
SECTION 4. Section 31.018(c), Natural Resources Code, is
amended to read as follows:
(c) The translator shall translate into English [and record
in a book] any laws and public contracts relating to titles to real
property [land] and any original titles or papers which are written
in the Spanish language and which are filed in the land office.
SECTION 5. Section 31.019, Natural Resources Code, is
amended to read as follows:
Sec. 31.019. SURVEYORS [DRAFTSMEN]. (a) The commissioner
shall appoint a chief surveyor [draftsman] and as many assistant
surveyors [draftsmen] as authorized by law.
(b) The chief surveyor [draftsman] and the chief surveyor's
[his] assistant surveyors [draftsmen] shall draw and complete
county maps.
(c) The chief surveyor [draftsman] and the chief surveyor's
[his] assistant surveyors [draftsmen] shall perform drafting and
other duties required by the commissioner for the benefit of the
state or individuals.
SECTION 6. Section 31.051, Natural Resources Code, is
amended to read as follows:
Sec. 31.051. GENERAL DUTIES. The commissioner shall:
(1) superintend, control, and direct the official
conduct of subordinate officers of the land office;
(2) execute and perform all acts and other things
relating to public real property [land] of the state or rights of
individuals in public real property [land] which is required by
law;
(3) make and enforce suitable rules consistent with
the law; and
(4) give information when required to the governor and
the legislature relating to public real property [land] and the
land office.
SECTION 7. Section 31.052(a), Natural Resources Code, is
amended to read as follows:
(a) Books, accounts, records, papers, maps, and original
documents relating to real property [land] titles which are termed
archives by law shall be the books and papers of the land office
under the control and custody of the commissioner.
SECTION 8. Sections 31.054, 31.055, 31.056, 31.057, 31.058,
31.059, and 31.060, Natural Resources Code, are amended to read as
follows:
Sec. 31.054. PUBLIC ACCESS TO AND REMOVAL OF PAPERS. (a)
Any person who desires to examine any paper, record, or file must
make a written request on a form and according to procedures
prescribed by the commissioner. The commissioner may establish
procedures as reasonably necessary to maintain the integrity of the
records. [obtain the written consent of the commissioner or the
chief clerk and an order for the detail of a clerk to be present and
superintend the examination.]
(b) [After the examination, the clerk shall carefully
examine the papers of the file and make sure that they are all in
place.
[Sec. 31.055. REMOVING PAPERS. (a)] No transfer or deed
which may be a link in any chain of title to any certificate on file
in the land office may be removed by any person, but the
commissioner shall deliver to the interested person on demand
certified copies which shall have the same force and effect as the
originals.
(c) [(b)] If the genuineness of any original paper is
questioned in a suit, the commissioner, on order of the court in
which the suit is pending, shall deliver the original paper to the
proper person and shall retain a certified copy of the paper which
will have the same force and effect as the original if the original
is lost.
[(c) If the commissioner has good reason to doubt the
genuineness of any transfer, power of attorney, or other paper on
file in his office, he shall not permit any person to obtain an
official copy of the paper until the doubts have been removed.]
Sec. 31.056. REVISION, [AND] COMPILATION, AND PRINTING OF
ABSTRACTS. (a) The commissioner shall prepare a revision and
compilation of the various volumes of the abstracts of patented,
titled, and surveyed real property [land] which were previously
made by the land office.
(b) The various counties of the state shall be apportioned
into one of not more than eight districts for the purpose of
revising and compiling the abstracts and the abstracts of each of
the districts shall be compiled in a separate volume.
(c) The commissioner may distribute to the officers of the
state who require its use but have not previously received a set,
one complete set of the abstracts, as supplemented, of patented,
titled, and surveyed real property. The commissioner may
distribute to officers of counties who are required to use
abstracts copies of supplementary abstracts [land and may sell the
surplus volumes to any persons who apply for them at a price that is
not less than the cost to the state].
(d) The commissioner may provide the abstracts and
supplementary abstracts electronically [Any money received from
the sale of surplus volumes shall be deposited in the general
revenue fund].
(e) The commissioner may make available [have] a sufficient
number of volumes and supplementary abstracts of patented, titled,
and surveyed real property [printed] to meet the demand.
(f) The land office shall pay the cost of the abstracts and
the supplementary abstracts from its appropriated funds. [Printing
and binding shall be done exclusively in the State of Texas.]
(g) Copies of the abstracts and supplementary abstracts
[None of the provisions of this section affect the provisions of
Section 31.057 of this code.
[Sec. 31.057. PRINTING SUPPLEMENTARY ABSTRACTS. (a) The
commissioner may have not more than 1,500 copies of the
supplementary abstracts of patented, titled, and surveyed land
printed and bound annually for distribution to the officers of the
state and counties whose duties require them to use it, and surplus
copies] may be sold at a reasonable price to any person who applies
for a copy.
[(b) The cost incurred in printing the copies shall be paid
from the land office appropriation for printing.
[(c)] The commissioner shall deposit any money received
from the sale of surplus volumes and supplementary abstracts [the
copies of the State Treasury] to the credit of the General Revenue
Fund.
Sec. 31.058. RECEIVING FUNDS. (a) The receiver [receiving
clerk] shall receive funds required by law to be paid to the
commissioner and on request shall give to each person who deposits
money a receipt [certificate of deposit] stating the amount, the
name of the person, and a description of the purpose of the
remittance [the type of claim on which the deposit was made].
(b) If funds are received which are of a general character
in advance of fees and dues, it shall be stated.
(c) The receiver [clerk] shall be responsible to the state
or individual for the funds.
Sec. 31.059. RECEIVER'S [RECEIVING CLERK'S] BOOKS. (a) The
receiver [receiving clerk] shall keep books in which the following
[he] shall be entered [enter]:
(1) each deposit separately; and
(2) the name of the person[; and
[(3) the number of the claim and the location of the
land to be perfected].
(b) The receiver [He] shall keep letters and other vouchers
filed in neat and regular order and number corresponding with the
[his] books of the office.
(c) The receiver [receiving clerk] shall report to the
comptroller and pay in kind [on the last day of each month] funds in
the receiver's [his] possession which are due to the state in
accordance with the Government Code [and shall receive a receipt in
his own name].
(d) In the [his] books of the office, the receiver
[receiving clerk] shall keep separate columns indicating the amount
of [specie or the amount of currency or other] funds paid [to him].
(e) On removal from office or resignation, the receiver
[receiving clerk] shall turn over the [his] books of the office,
accounts, and money to the appointed [his] successor [if he has
qualified] or to the commissioner and shall receive a receipt for
them.
Sec. 31.060. FINANCIAL REPORT. On or before the meeting of
the legislature, the commissioner [receiving clerk] shall prepare
and furnish to the governor [through the commissioner] a correct
report of the condition of the [his] office, including the amount of
money received, the type of claim, the amount of money paid out, and
the type of payment.
SECTION 9. Section 31.064, Natural Resources Code, is
amended to read as follows:
Sec. 31.064. SETTING AND COLLECTING FEES. The commissioner
shall set and collect, for the use of the state, reasonable fees in
amounts [determined by the commissioner] for filing fees,
preparation of certificates of fact, certified copies, maps,
reproduction of maps and sketches, Spanish translations, patents
and deeds of acquittance, and for other miscellaneous services,
including but not limited to shipping in a mailing tube and typed
transcriptions or taped copies of tapes or other sound recordings,
and any other provided services and products.
SECTION 10. Section 31.065(c), Natural Resources Code, is
amended to read as follows:
(c) If the commissioner determines that the real property
acquired by the state by gift, devise, or bequest is not suitable
for the purpose for which the gift, devise, or bequest was
originally made, the commissioner together with the agency, board,
commission, department, or other state entity designated to
possess, administer, or use the real property may exchange the real
property for real property that is suitable for such purpose.
SECTION 11. Section 31.066(b), Natural Resources Code, is
amended to read as follows:
(b) Following state assumption of ownership, the Texas
Commission on Environmental Quality [Natural Resource Conservation
Commission] shall provide for maintenance of the real property,
including necessary environmental monitoring, consistent with
terms of contracts and cooperative agreements with the federal
government entered in accordance with the Water Code and Chapter
361, Health and Safety Code.
SECTION 12. Section 31.067, Natural Resources Code, is
amended to read as follows:
Sec. 31.067. AUTHORITY TO SELL CERTAIN AGENCY REAL PROPERTY
[LANDS]. The [asset management] division [of the General Land
Office] is authorized to sell any real property acquired on behalf
of the state pursuant to Section 402.025, Government Code. Sale of
such real property shall be conducted in accordance with the
provisions of Section 31.158 of this code unless otherwise provided
by law. Proceeds of sale shall be deposited in the General Revenue
Fund as specified in Section 402.025, Government Code.
SECTION 13. Subchapter C, Chapter 31, Natural Resources
Code, is amended by adding Sections 31.0671 and 31.0672 to read as
follows:
Sec. 31.0671. AGENCY AUTHORITY TO SELL OR EXCHANGE REAL
PROPERTY. Any state agency or political subdivision may directly
sell or exchange real property to which it holds title with the
School Land Board for the benefit of the permanent school fund if
the sale or exchange is for market value. Section 272.001, Local
Government Code, does not apply to an exchange under this section.
A political subdivision must provide the governor with advance
notice of a proposed sale or exchange under this section, which
notice must be sent to the governor at least 30 days before the
transaction may be effected. In addition, the governor may
disapprove any sale or exchange of real property by a state agency
under this section prior to the sale or exchange. The state agency
contemplating a sale or exchange under this section shall submit to
the governor a formal request for approval. The state agency may
conduct the sale or exchange unless the governor gives the state
agency written notice disapproving the sale or exchange. The
governor must provide written notice of disapproval under this
section not later than the 30th day after the date the governor
receives the written request for approval.
Sec. 31.0672. AUTHORITY TO CONDUCT CERTAIN REAL PROPERTY
TRANSACTIONS. (a) The division may directly sell to a political
subdivision any real property owned by the state that the
legislature has authorized or the governor has approved for sale
under Subchapter E if the commissioner determines the sale is in the
best interest of the state.
(b) The governor must approve any sale of real property
under this section. Failure of the governor to approve the sale
constitutes a veto of the transaction.
(c) A sale of real property under this chapter must be for
market value and under other terms and conditions the commissioner
determines to be in the best interest of the state.
SECTION 14. Section 31.068(a), Natural Resources Code, is
amended to read as follows:
(a) The commissioner and the attorney general have standing
to enforce a:
(1) restrictive covenant affecting real property
owned by the permanent school fund or a state agency;
(2) restriction expressed in a transfer document or
legislative act conveying real property then owned by the state; or
(3) statutory restriction on the sale or lease of real
property [land] patented or leased by the state to a navigation
district, including a restriction provided by Section 61.116 or
61.117, Water Code.
SECTION 15. Sections 31.153, 31.154, 31.155, 31.156,
31.157, and 31.1571, Natural Resources Code, are amended to read as
follows:
Sec. 31.153. REAL PROPERTY ACCOUNTING AND RECORDS. (a) All
real property owned by the state shall be accounted for by the state
agency that possesses the real property.
(b) Each state agency shall maintain a record of each item
of real property it possesses. The record must include the
following information and[, on the request of the division,] shall
be furnished to the division:
(1) a description of each item of real property by
reference to a volume number, and page or image number or numbers of
the official public records of real property in a particular
county, or if not applicable, by a legal description;
(2) the date of purchase of the real property, if
applicable;
(3) the purchase price of the real property, if
applicable;
(4) the name of the state agency holding title to the
real property for the state;
(5) a description of the current uses of the real
property and of the projected future uses of the real property
[during the next 15 years]; and
(6) a description of each building or other
improvement located on the real property.
(c) If the description of real property required under [by]
this section is excessively voluminous, [as in the case of
parkland,] the division may direct the agency in possession of the
real property to furnish the description only in summary form, as
agreed to by the division and the state agency involved.
(d) Each state agency, annually at the time set by the
division, shall furnish the Texas Historical Commission with a
photograph and information that specifies and identifies the age of
each building:
(1) that was acquired by the agency after the date of
the preceding annual submission and that is at least 45 years old on
the date of the current submission; or
(2) that is possessed by the agency and has become 45
years old since the date the information was previously submitted.
(e) On request, each state agency shall provide the division
with any photographs and information furnished to the Texas
Historical Commission under this section.
Sec. 31.154. REAL PROPERTY INVENTORY. The division shall
review and keep inventory records of all real property owned by the
state. The division shall compile the inventory records from the
information submitted [to the division] under Sections 31.153 and
31.155 of this subchapter.
Sec. 31.155. SPECIAL STATUS OF CERTAIN AGENCIES. (a) The
division is not responsible for maintaining the inventory records,
as provided by Section 31.154, of the real property administered by
the Texas Department of Transportation, [the Texas National
Research Laboratory Commission,] an institution of higher
education, the Employees Retirement System of Texas, or the Teacher
Retirement System of Texas. The agencies administering the real
property shall maintain those records.
(b) The Texas Department of Transportation, [or the Texas
National Research Laboratory Commission,] on the request of the
division, shall submit its real property inventory records to the
division. The real property inventory records of an institution of
higher education, the Employees Retirement System of Texas, and the
Teacher Retirement System of Texas, on the request of the division,
but not more than semiannually, shall be submitted to the division
for information purposes only. The division shall maintain the
inventory records of the former Texas National Research Laboratory
Commission, to the extent possible, and is responsible for the
disposal of any real property interests held by the former
commission as provided by Subchapter G.
(c) The division may [shall] review and verify the
department's records [or the commission's records] and make
recommendations regarding the department's real property [or the
commission's real property], and the commissioner shall prepare a
report involving the department's real property to the same extent
that the division and commissioner perform these functions with
regard to the records and real property of other state agencies.
(d) The duty under this subchapter of the division to review
and verify real property records and to make recommendations
regarding real property and of the commissioner to prepare a report
involving real property does not apply to:
(1) the real property of an institution of higher
education;
(2) the real property that is part of a fund created or
specifically authorized by the constitution of this state and that
is administered by or with the assistance of the land office;
(3) the real property of the Employees Retirement
System of Texas; and [or]
(4) the real property of the Teacher Retirement System
of Texas.
(e) The duties of the division to make recommendations
regarding real property and of the commissioner to prepare a report
involving real property under this subchapter do not apply to:
(1) the real property of the Texas Historical
Commission;
(2) the real property comprising the Alamo;
(3) the real property comprising the French Legation;
(4) the real property comprising the Governor's
Mansion;
(5) the real property comprising the Texas State
Cemetery, more specifically described as 17.376 acres located at
801 Comal, Lot 5, Division B, City of Austin, Travis County, Texas;
(6) the real property administered by the State
Preservation Board; and
(7) highway rights-of-way owned by the Texas
Department of Transportation.
Sec. 31.156. REAL PROPERTY REVIEW. (a) The division shall
review the real property inventory of each state agency not less
than every four years, and a review shall be made during the
calendar year before the agency is scheduled for abolition under
the Texas Sunset Act (Chapter 325, Government Code). The division
may verify the accuracy of inventory records provided by an agency.
(b) The division shall:
(1) identify real property owned or controlled by the
state that is not being used or is being substantially underused;
and[.
[(c) The division shall provide a list and an appraisal of
properties described by Subsection (b) to the Texas Department of
Housing and Community Affairs. Not later than the 60th day after the
date of receipt of the list and appraisal, the department shall make
recommendations to the division regarding the suitability of those
properties for affordable and accessible housing.
[(d) For each property identified as not being used or as
being substantially underused under Subsection (b), the division
shall]
(2) make recommendations to the commissioner
regarding the use of the real property or [regarding] a real estate
transaction involving the real property.
(c) [(e) If the Texas Department of Housing and Community
Affairs designates a property as suitable for affordable and
accessible housing, the division's recommendations must include a
recommendation that title to the property be transferred to an
appropriate political subdivision for use as affordable and
accessible housing.
[(f)] The division's recommendations must include an
analysis of the highest and best use to which the real property may
legally be placed and[. It] shall also include [recommendations
for] alternative uses of the real property addressing potential for
commercial or agricultural lease of the real property or any other
real estate transaction or use that the division may deem to be in
the best interest of the state[. The division shall solicit
proposals and shall accept any unsolicited proposals about real
estate transactions involving the property that would be of
significant benefit to the state].
(d) [(g)] The division shall[, on completion of a review,]
submit to the commissioner any information pertinent to the
evaluation of a real estate transaction involving the real
property, including the [current] market value of the real
property, current market conditions, and [including] an evaluation
of any proposals received from private parties that would be of
significant benefit to the state[. If the division submits an
evaluation of a sale of property, it must also submit an evaluation
of the lease potential of the property].
(e) [(h)] In any year that the division will evaluate real
property under the management and control of the adjutant general's
department or the Texas Military Facilities Commission, the
division [Texas National Guard Armory Board, the division] shall
notify the [adjutant general's] department and the commission
before the division begins the evaluation.
Sec. 31.157. EVALUATION REPORT. (a) The commissioner
shall prepare a draft evaluation report, which shall include [of a
proposed real estate transaction involving the real property
incorporating] the results and findings of the evaluation of the
real property owned by the state required under Section 31.156.
(b) The draft report shall be submitted to the Texas
Building and Procurement [State Purchasing and General Services]
Commission, which shall further evaluate the potential use of the
real property by another state agency [or department]. The land
office shall submit a draft report [shall also be submitted, at the
same time as it is furnished to the commission,] to each agency that
owns or holds in trust property that is the subject of the draft
report. The Texas Building and Procurement Commission [commission
may comment on any findings or recommendations made by the
commissioner and] may make additional recommendations regarding
the use of the real property. The state agency that owns or
controls real property named in the report may comment on any
findings or recommendations made by the commissioner. The Texas
Building and Procurement Commission and any state agency that owns
or controls real property named in the report [commission] shall
complete a [the] review of the draft report within 60 days of the
receipt of the report and forward all recommendations and [the]
comments to the commissioner.
(c) The commissioner shall prepare and issue a final
evaluation report that[:
[(1)] incorporates any recommendations of the Texas
Building and Procurement Commission regarding the potential use of
the real property by another state agency [division regarding the
transfer of title to the property to a political subdivision for use
as affordable and accessible housing;] and any comments from any
state agency that owns or controls property named in the report
[(2) incorporates any recommendations of the
commission regarding the use of the property and addresses any
comments received from the commission].
(d) If under the adjutant general's report submitted as
provided by Section 431.030, Government Code, the adjutant general
determines that real property under the management and control of
the adjutant general's department or the Texas Military Facilities
Commission [National Guard Armory Board] is used for military
purposes, the commissioner may not recommend a real estate
transaction involving that real property in the final report
submitted as provided by Subsection (e).
(e) The final report shall be submitted to the governor, the
presiding officers of both houses of the legislature, the
Legislative Budget Board, and the governor's budget office not
later than September 1 of each year.
(f) Properties reported as not being used or being
substantially underused under this section may not be annexed by a
political subdivision of the state without prior written approval
of the commissioner.
(g) A [If the report contains an evaluation of a sale of
property, it must also contain an evaluation of the lease potential
of the property.
[Sec. 31.1571. DISPOSAL OF UNUSED OR UNDERUSED PROPERTY.
(a) Notwithstanding any other law, after the division has reported
a property unused or underused and the commissioner has made a
recommendation to the governor for a real estate transaction
involving the property, the] state agency that owns or controls
real property identified in the evaluation report as not being used
or being substantially underused shall notify the land office 30
days before any planned development, acquisition, disposition,
lease, or exchange of the real property, including any planned
construction of new improvements or a major modification to an
existing improvement.
(h) Each state agency owning real property identified in the
evaluation report as unused or substantially underused shall
provide to the land office, within 30 days of the land office's
request, information on the status of those properties. The report
shall include a list of:
(1) the individual properties recommended for an
alternative use or a real estate transaction by the land office;
(2) the status of those individual properties; and
(3) any plans the agency owning the real property has
to convert the use of or dispose of each real property.
(i) The division may solicit proposals and shall accept
unsolicited proposals regarding real estate transactions involving
real property that would be of significant benefit to the state.
Sec. 31.1571. GOVERNOR'S REPORT. (a) At any time, the
commissioner may make a report to the governor recommending real
estate transactions or other actions involving any real property
included in the most recent evaluation report and identified as not
used or substantially underused.
(b) After the commissioner recommends a real estate
transaction to the governor under this section, the commissioner
shall notify the state agency that owns or controls the real
property and the Texas Department of Housing and Community Affairs.
Not later than the 60th day after the date the written
recommendation is received, the state agency and the Texas
Department of Housing and Community Affairs may file with the
governor their comments on or objections to the recommendation.
(c) If the commissioner recommends a real estate
transaction to the governor involving real property identified as
not used or substantially underused and the division's analysis of
the highest and best use for the real property is determined to be
residential, the Texas Department of Housing and Community Affairs
shall evaluate the property and identify any property suitable for
affordable housing. The Texas Department of Housing and Community
Affairs shall submit comments concerning any property suitable for
affordable housing and any documents supporting the comments to the
governor not later than the 60th day after the date it receives the
report prepared under this section.
(d) Notwithstanding any other law, real property that the
commissioner has reported as unused or substantially underused and
recommended for a real estate transaction may not be developed,
sold, or otherwise disposed of by the state agency that owns or
controls [the property may not develop, sell, or otherwise dispose
of] the real property before the earlier of:
(1) the date the governor rejects a recommended real
estate transaction involving the real property [pursuant to
Subchapter I]; or
(2) two years from the date the recommendation is
approved, unless extended by the governor [by operation of law
under Subchapter I].
(e) [(b)] If a state agency that owns or controls real
property [that the division has] reported as unused or
substantially underused intends to dispose of or change the use of
the real property prior to the time provided by Subsection (d), the
governor may require [(a), the state agency shall submit to the
governor] a general development plan for future use of the real
property or any other information. At any time, the governor may
request that the state agency provide its general development plan
or any other information to the land office for evaluation and may
consult with the commissioner. The plan shall be submitted no later
than 30 days prior to the time that the real estate transaction
would be approved by operation of law if not disapproved by the
governor [pursuant to Subchapter I]. The governor may take such
plan into consideration in determining whether to reject the
commissioner's recommendation.
(f) The commissioner may conduct the transaction unless the
governor gives the commissioner written notice disapproving the
recommendation. The governor must provide written notice of
disapproval under this subsection not later than the 90th day after
the date the governor receives the commissioner's written
recommendation.
SECTION 16. Subchapter E, Chapter 31, Natural Resources
Code, is amended by adding Sections 31.1572 and 31.1573 to read as
follows:
Sec. 31.1572. MINERAL CONVEYANCE REQUIRED FOR CERTAIN
SALES. If the Texas Parks and Wildlife Department enters into a
contract to sell real property it owns or is under its control to a
private entity, the Texas Parks and Wildlife Department shall
convey the mineral rights to the property by an appropriate
instrument of transfer to the permanent school fund before
transferring title to the property to the private entity.
Sec. 31.1573. REAL ESTATE TRANSACTIONS AUTHORIZED BY
GOVERNOR. (a) The land office shall take charge and control of
real property as necessary to conduct and close a real estate
transaction authorized by the governor.
(b) The expenses incurred by the land office in conducting a
real estate transaction, including the payment of reasonable
brokerage fees, may be deducted from the proceeds of the
transaction before the proceeds are deposited. The land office may
adopt rules relating to the payment of reasonable brokerage fees.
(c) Unless otherwise dedicated by the Texas Constitution,
the proceeds of the transaction shall be deposited:
(1) to the credit of the Texas capital trust fund if
the agency is eligible under Chapter 2201, Government Code, to
participate in that fund;
(2) in the state treasury to the credit of the affected
agency if the agency is not eligible under Chapter 2201, Government
Code, to participate in the Texas capital trust fund; or
(3) notwithstanding Subdivisions (1) and (2), as
otherwise directed under the procedures of Chapter 317, Government
Code.
(d) The grant of an interest in real property owned by the
state under this section must:
(1) comply with the requirements of Section 31.158 to
the extent the requirements do not conflict with a recommendation
in the governor's report under Section 31.1571; and
(2) be conveyed by an instrument signed by the
commissioner and, if the governor's approval is required, by the
governor.
SECTION 17. Subchapter E, Chapter 31, Natural Resources
Code, is amended by amending Section 31.158 and adding Section
31.1581 to read as follows:
Sec. 31.158. REAL ESTATE TRANSACTIONS [TRANSACTION]
AUTHORIZED BY LEGISLATURE. (a) If the legislature authorizes a
real estate transaction involving real property owned [or held in
trust] by the state, the division shall take possession and control
of the real property and shall negotiate and close such real estate
transaction on behalf of the state. In performing such duties, the
division shall act on behalf of the state agency which owns or
controls the subject state real property [land]. Proceeds from the
real estate transaction shall be deposited in the Texas capital
trust fund unless the proceeds are dedicated by the constitution of
this state to another fund or unless the enabling legislation
ordering the real estate transaction provides otherwise.
(b) The division may not take possession and control under
this section of real property administered by a state agency that,
under Chapter 2201, Government Code, is ineligible to benefit from
the Texas capital trust fund.
(c) Unless the enabling legislation or general law
authorizing the real estate transaction specifies a different
procedure, the division shall transact the sale or lease of state
real property [land] in the following manner:
(1) The sale or lease shall be by sealed bid, by [or]
public auction, or as provided by Subsection (d); provided,
however, [prior to the bid sale or auction,] the School Land Board
shall have the first option to purchase such real property pursuant
to Section 31.159 of this code. Subdivisions (2)-(7) apply only to
a sale or lease by sealed bid or public auction.
(2) Notice of the sale or lease shall be published at
least 30 days prior to the date of sale or lease in at least three
issues of four daily newspapers in the state. One of the papers
must be of general circulation in the county where the real property
[land] is located.
(3) The notice shall state that real property is to be
offered for sale or lease on a certain date and that lists
describing the real property and terms of sale or lease can be
obtained from the division.
(4) No bid [bids] may be accepted that does [do] not
meet the minimum value established by the commissioner, which shall
not be less than market value [for the real property by an appraisal
conducted by an appraiser employed by the General Land Office].
(5) The division may reject any and all bids, but if
the division elects not to reject any and all bids, it is required
to accept the best bid submitted.
(6) If the award of a bid does not result in a final
transaction with the bidder, the land office may solicit proposals,
negotiate, and sell, exchange, or lease the real property, provided
that the sales price may not be less than market value.
(7) If, after proper notice has been posted, no bids
meeting the minimum requirements are received at the appointed time
and place for the sale or lease, the division may solicit proposals
and negotiate the sale, exchange, or lease of the real property to
any person, provided that the sales price may not be less than the
market [appraised] value of the real property [land]. The governor
must approve any [the] sale or lease of [any] real property
negotiated under this section [through a negotiated transaction].
Failure of the governor to approve the sale or lease constitutes a
veto of the transaction.
(8) [(7)] Each grant of an interest in real property
made pursuant to this section shall be made by an instrument signed
by the commissioner [of the General Land Office] and, if the
governor's approval is required, by the governor.
(9) [(8)] The expenses incurred by the division in
conducting the sale, exchange, or lease, including the payment of
reasonable brokerage fees, may be deducted from the proceeds of the
sale prior to deposit in the Texas capital trust fund or other
appropriate depository account. The division may promulgate rules
relating to the payment of reasonable brokerage fees.
(10) [(9)] These procedures will not apply to sales or
leases of real property [land] that are possessed by an agency that
under Chapter 2201, Government Code, is ineligible to use the Texas
capital trust fund or real property [land] which belongs to the
permanent school fund.
(11) [(10)] Prior to the actual sale or lease, the
state representative and state senator in the district where the
subject real property is located shall be notified of all efforts to
sell or lease the real property and shall be provided with copies of
all brokerage contacts relating to the sale or lease.
(d) The division may contract for the services of a real
estate broker or a private brokerage or real estate firm in the
course of a real estate transaction under this section if the
commissioner determines contracting for those services is in the
best interest of the state.
Sec. 31.1581. TRANSFER OF REAL PROPERTY FOR USE AS
AFFORDABLE HOUSING. (a) If the legislature authorizes or the
governor approves the transfer of title to real property to an
entity [a political subdivision] for use as affordable [and
accessible] housing, the division shall take possession and control
of the real property and shall conduct the transaction as provided
by the policy adopted under Subsection (b) [(e)].
(b) [(e)] The division shall adopt a policy regarding the
method of transferring title to real property designated as
suitable for affordable [and accessible] housing to an entity [a
political subdivision] for use as affordable [and accessible]
housing. The policy must include monitoring and enforcement
provisions to ensure that the real property is used for affordable
[and accessible] housing.
SECTION 18. Subchapter E, Chapter 31, Natural Resources
Code, is amended by adding Section 31.1585 to read as follows:
Sec. 31.1585. CERTAIN PROCEEDS. Notwithstanding any other
law, proceeds from the sale of real property purchased with general
revenue funds that was recommended for sale by the division and not
disapproved for sale by the governor during the calendar years 1995
through 2002 shall be deposited in the unobligated portion of the
general revenue fund and may only be appropriated to the state
agency that possessed the property at the time of the sale for use
by the state agency in performing its duties.
SECTION 19. Section 31.159, Natural Resources Code, is
amended to read as follows:
Sec. 31.159. FIRST OPTION TO PURCHASE. (a) The School Land
Board has a first option to purchase real property authorized for
sale by the legislature or the governor. The board may exercise its
option by tendering cash for market value as mutually agreed on by
the board and the state agency that owns the real property, but the
purchase price may not be less than market value. For purposes of
this section, the division may request more than one appraisal to
determine market value. If the parties cannot agree on a value, the
board and the state agency that owns the real property shall follow
the procedures provided by Subsections (d) and (e). The board may
not pay more than market value.
(b) The division shall inform the School Land Board of the
proposed sale and its first option to purchase state agency real
property. If the board decides to exercise its option under this
section, the division shall appoint an appraiser not later than the
30th day after the date the board notifies the division of its
decision.
(c) The School Land Board must complete the cash purchase
not later than the 120th day after the date the board exercises its
first option to purchase. If the School Land Board fails to
complete the purchase within the time permitted, the division may
extend the time for completing the purchase or disposing of the real
property as authorized by the legislature or approved by the
governor.
(d) If the state agency that owns the real property disputes
the market value, the School Land Board shall request a second
appraisal. If the School Land Board fails to request a second
appraisal, the division shall appoint a second appraiser not later
than the 21st day after the date the state agency notifies the
School Land Board that it disputes the market value. On completion
of the second appraisal, the two appraisers shall meet promptly and
attempt to reach agreement on the market value. If the two
appraisers fail to reach agreement within 10 days of the meeting,
the land office shall request a third appraiser to reconcile the two
previous appraisals. The determination of value by the third
appraiser may not be less than the lower or more than the higher of
the first two appraisals. The market value determined by the third
appraiser is final and binding on all parties.
(e) The division may appoint an appraiser employed by the
land office for the performance of any one of the required
appraisals. Any other appraiser employed under this section must
be selected in accordance with Subchapter A, Chapter 2254,
Government Code. The party requesting the appraisal shall award
the appraisal services contract to the provider of professional
services after considering the factors identified in Chapter 2254,
Government Code. The division shall pay the expenses of appraisal.
[(a) If the real estate transaction authorized by the legislature
is a sale of real property, the School Land Board has a first option
to purchase the real property by cash purchase at current fair
market value as determined by an independent appraisal.
[(b) After the legislature authorizes the sale of real
property, the division must give to the School Land Board a written
notice of the proposed sale. To exercise the option, the School
Land Board, not later than the 30th day after the date the notice
can first be considered by the board at a regular meeting, must give
written notice to the division stating that the board has decided to
exercise the option. If the School Land Board decides to exercise
its option under this section, the division shall appoint an
appraiser after complying with Subdivision (2) of Subsection (d) of
this section. The School Land Board must complete the cash purchase
not later than the 120th day after the date the division receives
the notice from the board.
[(c) If the School Land Board fails to complete the purchase
within the time permitted, the division may extend the time for
completing the purchase or dispose of the real property as
authorized by the legislature.
[(d)(1) Current fair market value shall be determined in
accordance with the procedure prescribed by this subsection.
Within 21 days after the day the School Land Board receives the
notice given to the board under Subsection (b) of this section, the
School Land Board shall appoint a second appraiser. If the School
Land Board fails to appoint the second appraiser, the division
shall appoint a second appraiser within 21 days after the
expiration of said 21-day period in which the board could have
appointed an appraiser. The two appraisers shall meet promptly and
shall attempt to reach agreement on the current fair market value.
If the two appraisers so selected do not reach agreement within 10
days of such meeting, a third appraiser shall be appointed by the
division to reconcile the two previous appraisals. The
determination of value by the third appraiser may not be less than
the lower or more than the higher of the first two appraisals. The
value determined by the third appraisal shall be final and binding
on all parties.
[(2) Each appraiser shall be qualified and
disinterested and shall have M.A.I. or other comparable
professional designation. The division may appoint an appraiser
employed by the General Land Office for any one of the required
appraisals. The appointment of any other appraiser shall be made by
the appointing party following receipt of at least three
competitive bids, and if the cost of the appraisal is reasonably
expected to exceed $10,000, the appointing party shall utilize the
notification procedure set out in Subchapter B, Chapter 2254,
Government Code, and all time periods described in this Act shall be
extended for the number of days necessary to comply with said
notification procedure. The appointing party shall award the
appraisal services contract to the bidder submitting the lowest and
best bid, and in determining who has submitted the lowest and best
bid, the appointing party shall consider the factors set out in
Sections 2156.007(d)(1)-(9), Government Code. Expense of the
appraisal shall be paid by the division.]
SECTION 20. Section 31.161, Natural Resources Code, is
amended to read as follows:
Sec. 31.161. DEVELOPMENT PLAN. (a) If the state intends to
conduct a [legislature authorizes the] sale or lease for
nongovernmental purposes of real property [land] belonging to the
state, to the permanent school fund, or to any of the dedicated
funds of the state, other than the permanent university fund, or any
other real property [lands] subject to the administration and
control of the board of regents of The University of Texas System,
[the governing board or chief executive officer of the agency or
institution possessing the land may request] the [asset management]
division may [of the General Land Office to] promulgate a
development plan on the real property [land before it is offered for
sale or lease].
(b) The purpose of a development plan is to conserve and
enhance the value of real property [land] belonging to the state,
taking into consideration the preservation of the health, safety,
and general welfare of the communities in which the real property
[land] is situated.
(c) The plan shall address local land use planning
ordinances, which may include the following [such provisions as are
necessary to implement the purposes of this section, including
provisions for]:
(1) allocation and location of specific uses of the
real property [land], including residential, commercial,
industrial, recreational, or other appropriate uses;
(2) densities and intensities of designated land uses;
(3) the timing and rate of development;
(4) timely delivery of adequate facilities and
services, including water, wastewater collection and treatment
systems, parks and public recreational facilities, drainage
facilities, school sites, and roads and transportation facilities;
or [and]
(5) needed zoning and other land use regulations.
(d) The plan shall comply with existing rules, regulations,
orders, or ordinances for real property [land] development to the
extent such rules, regulations, orders, or ordinances are not
detrimental to the interests of the state as determined by the
special board of review.
SECTION 21. Sections 31.1611(a), (b), and (d), Natural
Resources Code, are amended to read as follows:
(a) If the division is requested to prepare a development
plan under Section 31.161, the division shall notify the local
government to which the plan will be submitted under Section 31.162
of the division's intent to prepare a development plan. The
division shall provide the local government with information
relating to:
(1) the location of the real property to be offered for
sale or lease;
(2) the highest and best use of [to which] the real
property [may legally be placed] as provided in the division's
report under Section 31.157; and
(3) the process for preparing the development plan
under Section 31.161 and the process provided under Sections 31.165
and 31.166 for the special board of review.
(b) Not later than the 30th day after the date the local
government receives the notice provided under Subsection (a), the
local government may request the division to hold a public hearing
to solicit public comment. If requested by the local government,
the division shall hold a public hearing. The local government
shall provide notice of the hearing to real property owners in at
least the same manner that notice is provided for adopting zoning
regulations or subdivision requirements in the local government's
jurisdiction. The division shall set the agenda for the hearing,
which must be completed no [and must complete the hearing not] later
than the 120th day after the date [the] notice is provided under
Subsection (a).
(d) A public hearing under this section may include:
(1) a presentation by the division relating to the
division's classification of the real property as unused or
substantially underused [or unused] and the division's
recommendation of the highest and best use to which the real
property may legally be placed;
(2) a presentation by the local government relating to
relevant local plans, development principles, and ordinances that
may affect the development of the real property; and
(3) oral comments and presentations of information by
and written comments received from other persons relating to the
development of the real property.
SECTION 22. Sections 31.162(a), (b), (e), and (f), Natural
Resources Code, are amended to read as follows:
(a) The plan shall be submitted to any local government
having jurisdiction over the real property [land] in question for
consideration.
(b) The local government shall evaluate the plan and either
accept or reject the plan no later than the 120th day [six months]
after the date [the submission of the plan by] the [asset
management] division submits the plan.
(e) If the plan is rejected by the affected local
government, the [asset management] division may modify the plan to
conform to the ordinances specifically identified by the local
government and resubmit the plan for approval, or the commissioner
[it] may apply for necessary rezoning or variances from the local
ordinances.
(f) Failure by the local government to act within the
120-day period prescribed by Subsection (b) [six months] will be
deemed an acceptance by the local government of the plan.
SECTION 23. Section 31.163, Natural Resources Code, is
amended to read as follows:
Sec. 31.163. REZONING. (a) If the plan would require
zoning inconsistent with any existing zoning or other land use
regulation, the [asset management] division or its designated
representative may at any time submit a request for rezoning to the
local government with jurisdiction over the real property [lands]
in question.
(b) The rezoning or variance request shall be submitted in
the same manner as any such request is submitted to the affected
local government; provided, however, the local government must take
final action on the request no later than the 120th day [six months]
after the date the request for rezoning or variance is submitted.
(c) Failure by the local government to act within the
120-day [six-month] period prescribed by Subsection (b) will be
deemed an approval of the rezoning request by the local government.
SECTION 24. Section 31.165, Natural Resources Code, is
amended to read as follows:
Sec. 31.165. SPECIAL BOARD OF REVIEW. (a) If the local
government denies the rezoning request, the matter may be appealed
to a special board of review consisting of the following members:
(1) the members of the School Land Board;
(2) the chairman of the governing board of the agency
or institution possessing the real property or his or her
designated representative; [and]
(3) the mayor of the city or town within whose
corporate boundaries or extraterritorial jurisdiction the real
property [land] is located; and
(4) the county judge of the county within which the
real property [land] is located.
(b) The commissioner [Commissioner of the General Land
Office] shall serve as chairman of the special board of review.
(c) If the plan involves real property [land] belonging to
the permanent school fund, the special board of review shall
consist of the members of the School Land Board and the local
officials, with the commissioner [Commissioner of the General Land
Office] serving as chairman.
(d) If the real property [land] is not located within the
corporate boundaries or the extraterritorial jurisdiction of a city
or town, the board shall consist of the members of the School Land
Board, the agency chairman, and the county judge, with the
commissioner serving as chairman.
SECTION 25. Sections 31.166(b), (c), (d), (e), (f), and
(g), Natural Resources Code, are amended to read as follows:
(b) Hearings shall be conducted in accordance with rules
promulgated by the land office [General Land Office] for conduct of
such special review.
(c) If real property [land] is located in more than one city
or town, the hearings on any single tract of real property [land]
may be combined.
(d) Any political subdivision in which the tract in question
is located and the appropriate central appraisal district shall
receive written notice of board hearings at least 14 days prior to
the hearing.
(e) At least one hearing shall be conducted in the county
where the real property [land] is located.
(f) If after the hearings, the special board of review
determines that local zoning requirements are detrimental to the
best interest of the state, it shall issue an order establishing a
development plan to govern the use of the real property [land] as
provided in this section.
(g) Development of the real property [land] shall be in
accordance with the plan and must comply with all local rules,
regulations, orders, or ordinances except as specifically
identified in an order of the special board of review issued
pursuant to Subsection (f) of this section. In the event that
substantial progress is not made toward development of the tract
within five years of the date of adoption by the special board of
review, local development policies and procedures shall become
applicable to development of the tract, unless the special board of
review promulgates a new plan.
SECTION 26. Sections 31.167(a) and (c), Natural Resources
Code, are amended to read as follows:
(a) Except as provided by this subsection, a development
plan promulgated by the special board of review and any plan
accepted by a local government shall be final and binding on the
state, its lessees, successors in interest and assigns, and
affected local governments or political subdivisions unless
revised by the special board of review. If the division does not
receive a bid or auction solicitation for the real property subject
to the development plan, the division, at the direction of the
commissioner, may revise the development plan to conserve and
enhance the value and marketability of the real property.
(c) The special board of review must file a copy of the
development plan in the deed records of the county in which the real
property [land] is located.
SECTION 27. Section 31.307, Natural Resources Code, is
amended to read as follows:
Sec. 31.307. DEDICATION OF ROADS. The commissioner may
dedicate roads located on the real property [land] used as the site
for the superconducting super collider research facility to the
county in which the roads are located if the commissioner believes
that the dedication will enhance the value of remaining state real
property [land].
SECTION 28. Sections 31.308(b) and (c), Natural Resources
Code, are amended to read as follows:
(b) The commissioner shall convey the state's interest in
the subsurface estate underlying the surface estate of real
property [land] used as the site for the superconducting super
collider research facility if the owner of the surface estate pays a
sum equal to the [fair] market value of the subsurface estate as
determined by the commissioner. After the state conveys its
interest in the subsurface estate as provided by this subsection,
title to the subsurface estate is reunited with the title to the
surface estate.
(c) Unless the instrument of conveyance provides otherwise,
a conveyance of the surface estate of real property [land] by the
state under this subchapter includes the conveyance of the
subsurface estate to the extent of the state's interest in the
subsurface estate.
SECTION 29. Section 31.309, Natural Resources Code, is
amended to read as follows:
Sec. 31.309. PREFERENCE RIGHT TO PURCHASE CERTAIN REAL
PROPERTY [LAND]. (a) A person or the person's heirs who conveyed
real property [land] to the state for use by the superconducting
super collider research facility has a preference right to purchase
the same tract of real property [land] previously conveyed before
the tract is offered for sale by the state to any other person.
(b) A person who has a preference right under this section
must pay at least the [fair] market value for the real property
[land] as determined by an appraisal conducted by the land office.
(c) This section does not apply to a subsurface estate as
defined by Section 31.308.
(d) The commissioner may adopt rules necessary to implement
this section.
SECTION 30. Subchapter B, Chapter 11, Natural Resources
Code, is amended by adding Section 11.0111 to read as follows:
Sec. 11.0111. LOCATION OF COASTAL BOUNDARIES. (a) The
commissioner shall:
(1) have the area between the coastline of the Gulf of
Mexico and the Three Marine League line compiled and platted; and
(2) locate and set the boundary lines between the
coastal counties from the coastline to the Three Marine League
line.
(b) The commissioner shall locate and set the boundary lines
between the counties from the coastline to the Three Marine League
line in accordance with established engineering practice.
(c) The legal description of the boundary lines set between
the counties from the coastline to the continental shelf shall be
filed and recorded in the office of the county clerk of the affected
county.
SECTION 31. Chapter 51, Natural Resources Code, is amended
by adding Subchapter J to read as follows:
SUBCHAPTER J. GRANTS
Sec. 51.501. APPLICATION FOR GRANT. A lessee of real
property owned by the permanent school fund and used for grazing or
agricultural purposes may apply to the commissioner for a grant to
construct a permanent improvement on the leased property.
Sec. 51.502. SOURCE OF GRANT MONEY. A grant under this
subchapter shall be made from money collected for surface damages
under Sections 52.297 and 53.155.
Sec. 51.503. APPRAISAL REQUIRED. (a) Before a grant is
made under Section 51.501, an appraiser employed by the land office
must appraise the effect of the improvement for which a grant is
sought on the value of the permanent school fund property.
(b) If the appraiser finds that the improvement will
increase the value of the real property in an amount at least equal
to the amount the improvement will cost, the commissioner may
authorize the disbursement of money to construct the improvement.
Sec. 51.504. EVIDENCE OF EXPENDITURE REQUIRED. The
commissioner shall require each lessee who receives a grant to
provide copies of receipts, vouchers, or other evidence of
expenditures for the improvement.
Sec. 51.505. IMPROVEMENTS: REAL PROPERTY OF PERMANENT
SCHOOL FUND. Any improvement constructed with money disbursed
under this subchapter is the real property of the permanent school
fund.
Sec. 51.506. MAINTENANCE. As a condition for a grant under
this subchapter, the commissioner shall require the grantee to
agree in writing to maintain the improvement in a manner that will
protect the best interest of the permanent school fund.
Sec. 51.507. RULES. The commissioner shall adopt rules as
necessary to administer this subchapter, including rules
establishing a procedure for applying for a grant under Section
51.501 and for monitoring the maintenance of the improvement.
SECTION 32. Subchapter F, Chapter 53, Natural Resources
Code, is amended by adding Section 53.1631 to read as follows:
Sec. 53.1631. GROUNDWATER. Unless otherwise expressly
provided by statute, deed, patent, or other grant from the State of
Texas, groundwater shall not be considered a mineral in any past or
future reservation of title or rights to minerals by the State of
Texas.
SECTION 33. The following laws are repealed:
(1) Sections 31.061, 31.062, 31.063, 31.151, 31.152,
31.160, 31.301, 31.302, 31.303, 31.304, 31.305, and 31.306, Natural
Resources Code;
(2) Subchapter F, Chapter 31, Natural Resources Code;
and
(3) Subchapter I, Chapter 31, Natural Resources Code.
SECTION 34. 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.
* * * * *