82R675 ATP-D
 
  By: Davis of Dallas H.B. No. 782
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a requirement that certain bond issuers obtain an
  appraisal of property that is to be purchased with bond proceeds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 1331, Government Code, is
  amended by adding Section 1331.003 to read as follows:
         Sec. 1331.003.  APPRAISAL REQUIRED BEFORE ISSUANCE OF BONDS
  TO FINANCE PURCHASE OF PROPERTY. A municipality may not issue bonds
  the proceeds of which are intended to be used wholly or partly to
  purchase property until the municipality obtains an independent
  appraisal of the property's market value.
         SECTION 2.  Subchapter C, Chapter 505, Local Government
  Code, is amended by adding Section 505.1041 to read as follows:
         Sec. 505.1041.  APPRAISAL REQUIRED BEFORE ISSUANCE OF BONDS
  TO FINANCE PURCHASE OF PROPERTY. A Type B corporation may not issue
  bonds the proceeds of which are intended to be used wholly or partly
  to purchase property for a project until the corporation obtains an
  independent appraisal of the property's market value.
         SECTION 3.  The changes in law made by Section 1331.003,
  Government Code, and Section 505.1041, Local Government Code, as
  added by this Act, apply only to bonds issued on or after the
  effective date of this Act. Bonds issued before the effective date
  of this Act are governed by the law in effect when the bonds were
  issued, and the former law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2011.