Texas House Bill HB782

Texas 2011 - 82nd Regular

• Out of House Committee: 4/6/11
• Introduced: 1/21/11
• Voted on by House: 4/27/11
• Out of Senate Committee: 5/19/11
• Voted on by Senate: 5/25/11
• Governor Action: 6/17/11
• Refer: 5/2/11
• Enrolled: 5/26/11
• Passed: 6/17/11

Caption

Relating to a requirement that certain bond issuers obtain an appraisal of property that is to be purchased with bond proceeds.

Impact

The implications of HB 782 are significant for state laws regarding municipal finance and property acquisition. By mandating appraisals prior to the purchase of property using bond funds, the legislation seeks to protect public interest and strengthen oversight. This measure will require municipalities to engage with appraisers as part of their purchasing procedures and may lead to a more careful assessment of property values. The change is intended to foster accountability and mitigate the risk of financial mismanagement in public real estate transactions.

Summary

House Bill 782 establishes a requirement for municipalities and Type B corporations to obtain an independent appraisal before purchasing property with bond proceeds. This new law applies specifically to any purchases made with funds derived from bonds, ensuring that local governments evaluate the market value of properties to prevent any potential overreach or misuse of public funds. The bill aims to enhance fiscal responsibility and transparency in the procurement process of local governments, reinforcing the need for due diligence when investing taxpayer dollars.

Contention

While HB 782 is aimed at improving financial scrutiny, there may be contention surrounding the operational impacts on municipalities. Some local governments may argue that this requirement adds an additional layer of bureaucracy and could delay property acquisitions necessary for local development projects. Proponents of the bill argue that the potential reduction in financial risk justifies these new procedures, while opponents may raise concerns about the efficiency and effectiveness of local governance processes. Overall, the bill illustrates a balancing act between accountability and operational efficiency in public financial management.