87R1800 NC-D
By: Moody H.B. No. 3229
A BILL TO BE ENTITLED
AN ACT
relating to the conveyance of property by a municipality for the
public purpose of economic development.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 253, Local Government Code, is amended
by adding Section 253.0125 to read as follows:
Sec. 253.0125. CONVEYANCE OF PROPERTY FOR ECONOMIC
DEVELOPMENT PURPOSES. (a) This section applies only to an entity
and a municipality that have entered into an economic development
agreement authorized by Chapter 380.
(b) Notwithstanding Section 253.008 or 272.001(a) or other
law, a municipality, except as provided by Subsection (d) of this
section, may transfer to an entity real property or an interest in
real property for consideration described by this section.
(c) 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. The agreement must 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) A municipality may not transfer for consideration
authorized by this section real property or an interest in real
property the municipality owns, holds, or claims as a public square
or park.
(e) Before making a transfer under an agreement as provided
by this section, the municipality shall 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, by any means for the municipality to provide public
notice authorized by statute or by ordinance of the municipality.
The notice must:
(1) include a description of the real property,
including its location;
(2) be provided within 10 days before the date the
property or an interest in the property is transferred; and
(3) be published for two separate days within the
period prescribed by Subdivision (2), if the notice is published in
a newspaper.
(f) A municipality may transfer under this section real
property that was acquired by the municipality from the previous
owner by the exercise of eminent domain authority or the threat of
the exercise of eminent domain authority only if:
(1) the municipality offers the previous owner an
opportunity to repurchase the real property at the current market
value and the previous owner declines the offer; or
(2) the municipality cannot locate the previous owner
with reasonable effort.
(g) This section does not constitute a grant or expansion of
eminent domain authority.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.