HBA-KDB C.S.S.B. 673 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 673 By: Jackson Land & Resource Management 3/30/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE When the Texas Legislature granted the City of Galveston the right to use certain state-owned tidelands, the city issued and sold bonds to James Lyons, a Houston banker, to contract and open the Flagship Hotel on state property in 1965. Because the time period of the lease and the right to use the hotel's property has not been extended, developers may be reluctant to purchase the Flagship Hotel from the City of Galveston. C.S.S.B. 673 decreases the minimum population a gulf coast municipality must have to be eligible to use and occupy gulf tidelands for park purposes, allows such a municipality to sell certain property, and extends the right to use the property. 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 C.S.S.B. 673 amends the Local Government Code to decrease from 60,000 to 50,000 the minimum population for a municipality that borders on the Gulf of Mexico to be eligible to use and occupy for park purposes gulf tidelands and adjacent water. The bill authorizes such a gulf coast municipality to sell certain property if no bonded indebtedness remains outstanding on the property. If a municipality sells the property, the bill authorizes the General Land Office to grant to the purchaser a lease, for not more than 99 years after the purchase, to use and occupy the state-owned tideland, water, and bed beneath the property. The bill also extends, from 75 to 99 years, the period for which a municipality is authorized to grant a franchise to operate these properties. The bill establishes that the right and use of the property reverts back to the municipality when the 99 year period expires or when the property is no longer used for the specific purpose. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 673 differs from the original bill by decreasing from 60,000 to 50,000 the minimum population for a municipality that borders the Gulf of Mexico to be eligible to use and occupy for park purposes gulf tidelands and adjacent water.