BILL ANALYSIS
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Senate Research Center |
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AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Interested parties contend that current law is unclear as to whether a city in Texas can offer municipally owned land to a prospective business. These parties assert that cities need the authority to contribute land to a project quickly in order to make business incentive packages competitive for recruiting new companies to the area. H.B. 1754 seeks to enhance current economic development incentives intended to lure businesses to cities in Texas.
H.B. 1754 amends current law relating to the conveyance of property by a municipality for the public purpose of economic development.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Chapter 253, Local Government Code, by adding Section 253.0125, as follows:
Sec. 253.0125. CONVEYANCE OF PROPERTY FOR ECONOMIC DEVELOPMENT PURPOSES. (a) Provides that this section applies only to an entity and a municipality that have entered into an economic development agreement authorized by Chapter 380 (Miscellaneous Provisions Relating to Municipal Planning and Development).
(b) Authorizes a municipality, notwithstanding Section 272.001(a) (relating to notice required to be provided before land owned by a political subdivision is sold) or other law, to transfer to an entity real property or an interest in real property for consideration described by this section.
(c) Provides that consideration for a transfer authorized by this section is in the form of an agreement between the parties that requires the entity to use the property in a manner that primarily promotes a public purpose of the municipality relating to economic development. Requires that the agreement include provisions under which the municipality is granted sufficient control to ensure that the public purpose is accomplished and the municipality receives the return benefit.
(d) Requires the municipality, before making a transfer under an agreement as provided by this section, to provide notice to the general public published in a newspaper of general circulation in the county in which the property is located or, if there is no such newspaper, in an adjoining county. Requires that the notice:
(1) include a description of the real property, including its location; and
(2) be published on two separate days within 10 days before the date the property is transferred.
SECTION 2. Effective date: upon passage or September 1, 2015.