Honorable Chris Harris, Chair, Senate Committee on Economic Development
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB3072 by Geren (Relating to the transfer of municipal property to economic development corporations by certain municipalities.), Committee Report 2nd House, Substituted
No fiscal implication to the State is anticipated.
The bill would amend the Local Government Code to authorize a municipality with a population of 20,000 or less to transfer real property or an interest in real property to an economic development corporation without complying with notice and bidding requirements. However, the corporation must use the property in a manner that primarily promotes a public purpose of the municipality. If the corporation fails to use the property in that manner, it would automatically revert back to the municipality. A municipality would be prohibited from transferring property to an economic development corporation under the new section of statute if the property was acquired through eminent domain.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.