| 1 | 1 | | 88R3232 KBB-D |
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| 2 | 2 | | By: Ordaz H.B. No. 1492 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the conveyance of property by a municipality for the |
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| 8 | 8 | | public purpose of economic development. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 253, Local Government Code, is amended |
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| 11 | 11 | | by adding Section 253.0125 to read as follows: |
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| 12 | 12 | | Sec. 253.0125. CONVEYANCE TO CERTAIN ENTITIES FOR ECONOMIC |
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| 13 | 13 | | DEVELOPMENT PURPOSES. (a) This section applies only to an entity |
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| 14 | 14 | | and a municipality that have entered into an economic development |
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| 15 | 15 | | agreement authorized by Chapter 380. |
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| 16 | 16 | | (b) Notwithstanding Section 253.008 or 272.001(a) or other |
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| 17 | 17 | | law and except as provided by Subsection (d), a municipality may |
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| 18 | 18 | | transfer to an entity real property or an interest in real property |
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| 19 | 19 | | for consideration described by this section. |
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| 20 | 20 | | (c) Consideration for a transfer authorized by this section |
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| 21 | 21 | | is in the form of an agreement between the parties that requires the |
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| 22 | 22 | | entity to use the property in a manner that primarily promotes a |
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| 23 | 23 | | public purpose of the municipality relating to economic |
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| 24 | 24 | | development. The agreement must include provisions under which the |
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| 25 | 25 | | municipality is granted sufficient control to ensure that the |
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| 26 | 26 | | public purpose is accomplished and the municipality receives the |
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| 27 | 27 | | return benefit. |
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| 28 | 28 | | (d) A municipality may not transfer for consideration |
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| 29 | 29 | | authorized by this section real property or an interest in real |
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| 30 | 30 | | property the municipality owns, holds, or claims as a public square |
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| 31 | 31 | | or park. |
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| 32 | 32 | | (e) Before a municipality may transfer real property or an |
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| 33 | 33 | | interest in real property under an agreement as provided by this |
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| 34 | 34 | | section, the municipality must provide notice to the public |
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| 35 | 35 | | published in a newspaper of general circulation in the county in |
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| 36 | 36 | | which the property is located or, if there is no such newspaper, by |
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| 37 | 37 | | any means for the municipality to provide public notice authorized |
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| 38 | 38 | | by statute or by ordinance of the municipality. The notice must: |
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| 39 | 39 | | (1) include a description of the property, including |
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| 40 | 40 | | its location; |
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| 41 | 41 | | (2) be provided within 10 days before the date the |
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| 42 | 42 | | property or an interest in the property is transferred; and |
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| 43 | 43 | | (3) be published for two separate days within the |
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| 44 | 44 | | period prescribed by Subdivision (2), if the notice is published in |
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| 45 | 45 | | a newspaper. |
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| 46 | 46 | | (f) A municipality may not transfer real property for |
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| 47 | 47 | | consideration described by this section if the property was |
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| 48 | 48 | | acquired by the municipality from the previous owner by the |
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| 49 | 49 | | exercise of eminent domain authority or the threat of the exercise |
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| 50 | 50 | | of eminent domain authority. The prohibition provided by this |
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| 51 | 51 | | subsection does not apply if: |
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| 52 | 52 | | (1) the municipality offers the previous owner an |
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| 53 | 53 | | opportunity to repurchase the property at the current market value |
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| 54 | 54 | | and the previous owner declines the offer; or |
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| 55 | 55 | | (2) the municipality cannot locate the previous owner |
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| 56 | 56 | | with reasonable effort. |
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| 57 | 57 | | (g) This section does not constitute a grant or expansion of |
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| 58 | 58 | | eminent domain authority. |
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| 59 | 59 | | SECTION 2. This Act takes effect immediately if it receives |
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| 60 | 60 | | a vote of two-thirds of all the members elected to each house, as |
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| 61 | 61 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 62 | 62 | | Act does not receive the vote necessary for immediate effect, this |
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| 63 | 63 | | Act takes effect September 1, 2023. |
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