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A BILL TO BE ENTITLED
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AN ACT
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relating to the conveyance of property by a municipality for the |
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public purpose of economic development. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 253, Local Government Code, is amended |
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by adding Section 253.0125 to read as follows: |
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Sec. 253.0125. CONVEYANCE TO CERTAIN ENTITIES FOR ECONOMIC |
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DEVELOPMENT PURPOSES. (a) This section applies only to an entity |
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and a municipality that have entered into an economic development |
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agreement authorized by Chapter 380. |
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(b) Notwithstanding Section 253.008 or 272.001(a) or other |
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law and except as provided by Subsection (d), a municipality may |
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transfer to an entity real property or an interest in real property |
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for consideration described by this section. |
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(c) Consideration for a transfer authorized by this section |
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is in the form of an agreement between the parties that requires the |
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entity to use the property in a manner that primarily promotes a |
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public purpose of the municipality relating to economic |
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development. The agreement must include provisions under which the |
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municipality is granted sufficient control to ensure that the |
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public purpose is accomplished and the municipality receives the |
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return benefit. |
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(d) A municipality may not transfer for consideration |
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authorized by this section real property or an interest in real |
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property the municipality owns, holds, or claims as a public square |
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or park. |
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(e) Before a municipality may transfer real property or an |
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interest in real property under an agreement as provided by this |
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section, the municipality must provide notice to the public |
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published in a newspaper of general circulation in the county in |
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which the property is located or, if there is no such newspaper, by |
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any means for the municipality to provide public notice authorized |
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by statute or by ordinance of the municipality. The notice must: |
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(1) include a description of the property, including |
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its location; |
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(2) be provided within 10 days before the date the |
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property or an interest in the property is transferred; and |
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(3) be published for two separate days within the |
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period prescribed by Subdivision (2), if the notice is published in |
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a newspaper. |
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(f) A municipality may not transfer real property for |
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consideration described by this section if the property was |
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acquired by the municipality from the previous owner by the |
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exercise of eminent domain authority or the threat of the exercise |
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of eminent domain authority. The prohibition provided by this |
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subsection does not apply if: |
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(1) the municipality offers the previous owner an |
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opportunity to repurchase the property at the current market value |
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and the previous owner declines the offer; or |
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(2) the municipality cannot locate the previous owner |
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with reasonable effort. |
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(g) This section does not constitute a grant or expansion of |
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eminent domain authority. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |