HBA-SEP, CBW H.B. 122 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 122 By: West, George "Buddy" Land and Resource Management 2/15/2001 Introduced BACKGROUND AND PURPOSE Current law provides that before land owned by a political subdivision of the state may be sold or exchanged for other land notice to the general public of the offer of land for sale or exchange must be published. In many cases, nonprofit entities have difficulty acquiring the property because they are outbid by other public or private entities. House Bill 122 permits a municipality to transfer property to a nonprofit organization without complying with existing notice and bidding requirements. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 122 amends the Local Government Code to authorize a municipality to transfer real property or an interest in real property to a nonprofit organization without complying with existing notice and bidding requirements for a political subdivision of the state or other law. The bill requires that consideration for the transfer be in the form of an agreement between the parties that requires the nonprofit organization to use the property in a manner that primarily promotes a public purpose of the municipality. The bill requires that the municipality transfer the property by an appropriate instrument of transfer. The bill provides that the instrument of transfer must include a provision that requires the nonprofit organization to use the property in a manner that primarily promotes a public purpose of the municipality and indicates that failure to use the property in such a manner at any time will result in the property automatically reverting to the municipality. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.