Office of House Bill AnalysisH.B. 3316
By: Cuellar
Land & Resource Management


In recent years, there have been instances when a municipality or an
economic development corporation has wanted to make a donation of real
property to the University of Texas System (system), either to further
existing programs or to support the development of new programs. Current
law is unclear regarding the legality of such a transfer, and as a result,
the system has had to purchase land from a municipality, at market value,
that might otherwise have been contributed. 

H.B. 3316 amends the Local Government Code and Education Code to include
specific provisions authorizing certain entities to transfer real property
to an institution of higher education at less than fair market value. 


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. 


SECTION 1.  Amends Section 272.001, Local Government Code, by amending
Subsection (a) and adding Subsection (j), as follows: 

(a)  Makes a conforming change.

(j)  Authorizes a political subdivision to donate, exchange, convey, sell
or lease (transfer) land and improvements, or any other interest in real
property, to an institution of higher education (institution), as defined
by Section 61.003 (Definitions), Education Code, to promote a public
purpose related to higher education.  Authorizes a political subdivision to
transfer land for less than its fair market value and without complying
with the notice and bidding requirements of Subsection (a). 

SECTION 2. Amends Article 5190.6, V.T.C.S. (Development Corporation Act of
1979), by amending Subsection 2(10) and adding Subsection 2(15), as

(10)  Includes facilities for use by an institution under the definition of

(15)  Provides that "institution of higher education" has the  meaning
assigned by Section 61.003, Education Code. 

SECTION 3.  Amends Article 5190.6, V.T.C.S. (Development Corporation Act of
1979), by amending Section 3 to provide that the existence, development,
and expansion of higher education, in addition to business, commerce, and
industry, is essential to the economic growth of the state and to the full
employment, welfare, and prosperity of its citizens.  Provides that
assistance provided by an industrial development corporation (corporation)
in promoting higher education opportunities will encourage and foster the
development and diversification of the economy of the state and the
elimination of unemployment and underemployment in the state. Makes
conforming changes. 

SECTION 4.  Amends Article 5190.6, V.T.C.S. (Development Corporation Act of
1979), by amending Section 23(a), as follows: 

(a)  Authorizes a corporation to transfer land or any other interest in
real property or furnishings, fixtures or equipment, or personal property
to an institution for a legal purpose of the institution upon such terms
and conditions as the corporation's board of directors may deem advisable
that are not in conflict with the provisions of this article.  Makes
conforming changes. 

SECTION 5.  Amends Subchapter A, Chapter 130,  Education Code, by adding
Section 130.0021, as follows: 

Sec. 130.0021.  CONVEYANCE OF CERTAIN REAL PROPERTY.  Authorizes a public
junior college (college) or a public junior college district (district) to
transfer land, improvements, or any other interest in any real property for
less than the fair market value of the interest if the transfer is being
made to a university system and the governing board of the college or the
district also finds that the donation, conveyance, exchange, sale or lease
of the interest promotes a public purpose related to higher education
within the service area of the college or district. 

SECTION 6.  Emergency clause.
  Effective date: upon passage.