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A BILL TO BE ENTITLED
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AN ACT
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relating to the transfer of municipal property to economic |
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development corporations by certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 253, Local Government Code, is amended |
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by adding Section 253.012 to read as follows: |
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Sec. 253.012. CONVEYANCE TO ECONOMIC DEVELOPMENT |
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CORPORATION BY CERTAIN MUNICIPALITIES. (a) In this section, |
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"economic development corporation" means a Type A corporation |
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governed by Chapter 504 or a Type B corporation governed by Chapter |
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505. |
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(b) This section applies only to a municipality with a |
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population of 20,000 or less. |
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(c) A municipality may transfer to an economic development |
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corporation, for consideration described by this section, real |
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property or an interest in real property without complying with the |
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notice and bidding requirements of Section 272.001(a) or other law. |
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(d) Consideration for a transfer authorized by this section |
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is in the form of an agreement between the parties that requires the |
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economic development corporation to use the property in a manner |
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that primarily promotes a public purpose of the municipality. If |
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the economic development corporation at any time fails to use the |
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property in that manner, ownership of the property automatically |
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reverts to the municipality. |
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(e) The municipality shall transfer the property by an |
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appropriate instrument of transfer. The instrument must include a |
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provision that: |
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(1) requires the economic development corporation to |
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use the property in a manner that primarily promotes a public |
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purpose of the municipality; and |
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(2) indicates that ownership of the property |
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automatically reverts to the municipality if the nonprofit |
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organization at any time fails to use the property in that manner. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |