S.B. No. 543
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 TO CERTAIN ENTITIES 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 and except as provided by Subsection (d), a municipality 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 a municipality may transfer real property or an
interest in real property under an agreement as provided by this
section, the municipality must provide notice to the 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 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 not transfer real property for
consideration described by this section if the property 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.
(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, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 543 passed the Senate on
April 24, 2023, by the following vote: Yeas 27, Nays 3.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 543 passed the House on
May 12, 2023, by the following vote: Yeas 106, Nays 37, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor