By: Davis of Dallas (Senate Sponsor - Wentworth) H.B. No. 782
(In the Senate - Received from the House April 27, 2011;
May 2, 2011, read first time and referred to Committee on
Intergovernmental Relations; May 19, 2011, reported favorably by
the following vote: Yeas 5, Nays 0; May 19, 2011, sent to
printer.)
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 C, Chapter 252, Local Government
Code, is amended by adding Section 252.051 to read as follows:
Sec. 252.051. APPRAISAL REQUIRED BEFORE PURCHASE OF
PROPERTY WITH BOND PROCEEDS. A municipality may not purchase
property wholly or partly with bond proceeds 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 PURCHASE OF
PROPERTY WITH BOND PROCEEDS. A Type B corporation may not purchase
property for a project wholly or partly with bond proceeds until the
corporation obtains an independent appraisal of the property's
market value.
SECTION 3. The changes in law made by Sections 252.051 and
505.1041, Local Government Code, as added by this Act, apply only to
the purchase of property on or after the effective date of this Act.
The purchase of property before the effective date of this Act is
governed by the law in effect when the property was purchased, and
the former law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2011.
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