TX NATURAL RESOURCES CODE

SUBTITLE B. SURVEYS AND SURVEYORS

CHAPTER 31. GENERAL LAND OFFICE

SUBCHAPTER E. REAL PROPERTY ACCOUNTING AND MANAGEMENT


§ 31.153. REAL PROPERTY ACCOUNTING AND RECORDS.
     (a) All real property owned by the state shall be accounted for by the state agency that possesses the real property.
     (b) Each state agency shall maintain a record of each item of real property it possesses. The record must include the following information and shall be furnished to the division:
          (1) a description of each item of real property by reference to a volume number, and page or image number or numbers of the official public records of real property in a particular county, or if not applicable, by a legal description;
          (2) the date of purchase of the real property, if applicable;
          (3) the purchase price of the real property, if applicable;
          (4) the name of the state agency holding title to the real property for the state;
          (5) a description of the current uses of the real property and of the projected future uses of the real property; and
          (6) a description of each building or other improvement located on the real property.
     (c) If the description of real property required under this section is excessively voluminous, the division may direct the agency in possession of the real property to furnish the description only in summary form, as agreed to by the division and the state agency involved.
     (d) Each state agency, annually at the time set by the division, shall furnish the Texas Historical Commission with a photograph and information that specifies and identifies the age of each building:
          (1) that was acquired by the agency after the date of the preceding annual submission and that is at least 45 years old on the date of the current submission; or
          (2) that is possessed by the agency and has become 45 years old since the date the information was previously submitted.
     (e) On request, each state agency shall provide the division with any photographs and information furnished to the Texas Historical Commission under this section.

Added by Acts 1985, 69th Leg., ch. 102, § 2, eff. May 15, 1985. Amended by Acts 2003, 78th Leg., ch. 1091, § 15, eff. June 20, 2003.

§ 31.154. REAL PROPERTY INVENTORY.
     The division shall review and keep inventory records of all real property owned by the state. The division shall compile the inventory records from the information submitted under Sections 31.153 and 31.155 of this subchapter.

Added by Acts 1985, 69th Leg., ch. 102, § 2, eff. May 15, 1985. Amended by Acts 2003, 78th Leg., ch. 1091, § 15, eff. June 20, 2003.

§ 31.155. SPECIAL STATUS OF CERTAIN AGENCIES.
     (a) The division is not responsible for maintaining the inventory records, as provided by Section 31.154, of the real property administered by the Texas Department of Transportation, an institution of higher education, the Employees Retirement System of Texas, or the Teacher Retirement System of Texas. The agencies administering the real property shall maintain those records.
     (b) The Texas Department of Transportation, on the request of the division, shall submit its real property inventory records to the division. The real property inventory records of an institution of higher education, the Employees Retirement System of Texas, and the Teacher Retirement System of Texas, on the request of the division, but not more than semiannually, shall be submitted to the division for information purposes only. The division shall maintain the inventory records of the former Texas National Research Laboratory Commission, to the extent possible, and is responsible for the disposal of any real property interests held by the former commission as provided by Subchapter G.
     (c) The division may review and verify the department's records and make recommendations regarding the department's real property, and the commissioner shall prepare a report involving the department's real property to the same extent that the division and commissioner perform these functions with regard to the records and real property of other state agencies.
     (d) The duty under this subchapter of the division to review and verify real property records and to make recommendations regarding real property and of the commissioner to prepare a report involving real property does not apply to:
          (1) the real property of an institution of higher education;
          (2) the real property that is part of a fund created or specifically authorized by the constitution of this state and that is administered by or with the assistance of the land office;
          (3) the real property of the Employees Retirement System of Texas; and
          (4) the real property of the Teacher Retirement System of Texas.
     (e) The duties of the division to make recommendations regarding real property and of the commissioner to prepare a report involving real property under this subchapter do not apply to:
          (1) the real property of the Texas Historical Commission;
          (2) the real property comprising the Alamo;
          (3) the real property comprising the French Legation;
          (4) the real property comprising the Governor's Mansion;
          (5) the real property comprising the Texas State Cemetery, more specifically described as 17.376 acres located at 801 Comal, Lot 5, Division B, City of Austin, Travis County, Texas;
          (6) the real property administered by the State Preservation Board; and
          (7) highway rights-of-way owned by the Texas Department of Transportation.

Added by Acts 1985, 69th Leg., ch. 102, § 2, eff. May 15, 1985. Amended by Acts 1991, 72nd Leg., ch. 582, § 15, eff. Sept. 1, 1991; Acts 1991, 72nd Leg., ch. 633, § 6, eff. Aug. 26, 1991;

Acts 1995, 74th Leg., ch. 165, § 22(49), eff. Sept. 1, 1995;

Acts 1995, 74th Leg., ch. 823, § 12, eff. Aug. 28, 1995; Acts 2003, 78th Leg., ch. 1091, § 15, eff. June 20, 2003.

§ 31.156. REAL PROPERTY REVIEW.
     (a) The division shall review the real property inventory of each state agency not less than every four years, and a review shall be made during the calendar year before the agency is scheduled for abolition under the Texas Sunset Act (Chapter 325, Government Code). The division may verify the accuracy of inventory records provided by an agency.
     (b) The division shall:
          (1) identify real property owned or controlled by the state that is not being used or is being substantially underused; and
          (2) make recommendations to the commissioner regarding the use of the real property or a real estate transaction involving the real property.
     (c) The division's recommendations must include an analysis of the highest and best use to which the real property may legally be placed and shall also include alternative uses of the real property addressing potential for commercial or agricultural lease of the real property or any other real estate transaction or use that the division may deem to be in the best interest of the state.
     (d) The division shall submit to the commissioner information pertinent to the evaluation of a real estate transaction involving the real property, including an evaluation of any proposals received from private parties that would be of significant benefit to the state and:
          (1) if the division recommends a real estate transaction involving the real property, the market value of the real property and the current market conditions; or
          (2) if the division does not recommend a real estate transaction involving the real property, evidence of the real property's value in a form determined to be appropriate by the commissioner.
     (e) In any year that the division will evaluate real property under the management and control of the adjutant general's department or the Texas Military Facilities Commission, the division shall notify the department and the commission before the division begins the evaluation.

Added by Acts 1985, 69th Leg., ch. 102, § 2, eff. May 15, 1985. Amended by Acts 1987, 70th Leg., ch. 167, § 2.20(39), eff. Sept. 1, 1987; Acts 1997, 75th Leg., ch. 907, § 2, eff. Sept. 1, 1997;

Acts 1997, 75th Leg., ch. 1021, § 15, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1416, § 1, eff. Aug. 30, 1999; Acts 2001, 77th Leg., ch. 685, § 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1091, § 15, eff. June 20, 2003; Acts 2005, 79th Leg., ch. 194, § 1, eff. May 27, 2005.

§ 31.157. EVALUATION REPORT.
     (a) The commissioner shall prepare a draft evaluation report, which shall include the results and findings of the evaluation of the real property owned by the state required under Section 31.156.
     (b) The draft report shall be submitted to the Texas Building and Procurement Commission, which shall further evaluate the potential use of the real property by another state agency. The land office shall submit a draft report to each agency that owns or holds in trust property that is the subject of the draft report. The Texas Building and Procurement Commission may make additional recommendations regarding the use of the real property. The state agency that owns or controls real property named in the report may comment on any findings or recommendations made by the commissioner. The Texas Building and Procurement Commission and any state agency that owns or controls real property named in the report shall complete a review of the draft report within 60 days of the receipt of the report and forward all recommendations and comments to the commissioner.
     (c) The commissioner shall prepare and issue a final evaluation report that incorporates any recommendations of the Texas Building and Procurement Commission regarding the potential use of the real property by another state agency and any comments from any state agency that owns or controls property named in the report.
     (d) If under the adjutant general's report submitted as provided by Section 431.030, Government Code, the adjutant general determines that real property under the management and control of the adjutant general's department or the Texas Military Facilities Commission is used for military purposes, the commissioner may not recommend a real estate transaction involving that real property in the final report submitted as provided by Subsection (e).
     (e) The final report shall be submitted to the governor, the presiding officers of both houses of the legislature, the Legislative Budget Board, and the governor's budget office not later than September 1 of each year.
     (f) Properties reported as not being used or being substantially underused under this section may not be annexed by a political subdivision of the state without prior written approval of the commissioner.
     (g) A state agency that owns or controls real property identified in the evaluation report as not being used or being substantially underused shall notify the land office 30 days before any planned development, acquisition, disposition, lease, or exchange of the real property, including any planned construction of new improvements or a major modification to an existing improvement.
     (h) Each state agency owning real property identified in the evaluation report as unused or substantially underused shall provide to the land office, within 30 days of the land office's request, information on the status of those properties. The report shall include a list of:
          (1) the individual properties recommended for an alternative use or a real estate transaction by the land office;
          (2) the status of those individual properties; and
          (3) any plans the agency owning the real property has to convert the use of or dispose of each real property.
     (i) The division may solicit proposals and shall accept unsolicited proposals regarding real estate transactions involving real property that would be of significant benefit to the state.

Added by Acts 1985, 69th Leg., ch. 102, § 2, eff. May 15, 1985. Amended by Acts 1995, 74th Leg., ch. 484, § 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 907, § 3, eff. Sept. 1, 1997;

Acts 1997, 75th Leg., ch. 1021, § 16, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1416, § 2, eff. Aug. 30, 1999; Acts 2001, 77th Leg., ch. 685, § 2, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1091, § 15, eff. June 20, 2003.

§ 31.1571. GOVERNOR'S REPORT.
     (a) At any time, the commissioner may make a report to the governor recommending real estate transactions or other actions involving any real property included in the most recent evaluation report and identified as not used or substantially underused.
     (b) After the commissioner recommends a real estate transaction to the governor under this section, the commissioner shall notify the state agency that owns or controls the real property and the Texas Department of Housing and Community Affairs. Not later than the 60th day after the date the written recommendation is received, the state agency and the Texas Department of Housing and Community Affairs may file with the governor their comments on or objections to the recommendation.
     (c) If the commissioner recommends a real estate transaction to the governor involving real property identified as not used or substantially underused and the division's analysis of the highest and best use for the real property is determined to be residential, the Texas Department of Housing and Community Affairs shall evaluate the property and identify any property suitable for affordable housing. The Texas Department of Housing and Community Affairs shall submit comments concerning any property suitable for affordable housing and any documents supporting the comments to the governor not later than the 60th day after the date it receives the report prepared under this section.
     (d) Any unused or underused state property may be sold or leased, or an easement over the property may be granted, to the United States for the use and benefit of the United States armed forces if the commissioner or the commissioner's designee, after consultation with appropriate military authorities, determines that the sale, lease, or easement would materially assist the military in accomplishing its mission. A sale, lease, or easement under this subsection must be at market value. The state shall retain all minerals it owns with respect to the land, but it may relinquish the right to use the surface to extract them.
     (e) Notwithstanding any other law, real property that the commissioner has reported as unused or substantially underused and recommended for a real estate transaction may not be developed, sold, or otherwise disposed of by the state agency that owns or controls the real property before the earlier of:
          (1) the date the governor rejects a recommended real estate transaction involving the real property; or
          (2) two years from the date the recommendation is approved, unless extended by the governor.
     (f) If a state agency that owns or controls real property reported as unused or substantially underused intends to dispose of or change the use of the real property prior to the time provided by Subsection (e), the governor may require a general development plan for future use of the real property or any other information. At any time, the governor may request that the state agency provide its general development plan or any other information to the land office for evaluation and may consult with the commissioner. The plan shall be submitted no later than 30 days prior to the time that the real estate transaction would be approved by operation of law if not disapproved by the governor. The governor may take such plan into consideration in determining whether to reject the commissioner's recommendation.
     (g) The commissioner may conduct the transaction unless the governor gives the commissioner written notice disapproving the recommendation. The governor must provide written notice of disapproval under this subsection not later than the 90th day after the date the governor receives the commissioner's written recommendation.

Added by Acts 1995, 74th Leg., ch. 484, § 2, eff. Sept. 1, 1995. Amended by Acts 1999, 76th Leg., ch. 62, § 14.01(a), eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 149, § 10, eff. May 27, 2003;

Acts 2003, 78th Leg., ch. 1091, § 15, eff. June 20, 2003; Acts 2005, 79th Leg., ch. 728, § 14.004, eff. Sept. 1, 2005.

§ 31.1572. REAL ESTATE TRANSACTIONS BY PARKS AND WILDLIFE DEPARTMENT PROHIBITED IN CERTAIN AREAS.
     (a) The Parks and Wildlife
      Department may not offer for sale real property it owns or controls if the real property is located in a county:
          (1) with a population of one million or more; and
          (2) in which at least two municipalities with a population of 300,000 or more are located.
     (b) This section expires September 1, 2004.

Added by Acts 2003, 78th Leg., ch. 1091, § 16, eff. June 20, 2003.

§ 31.1573. REAL ESTATE TRANSACTIONS AUTHORIZED BY GOVERNOR.
     (a) The land office shall take charge and control of
      real property as necessary to conduct and close a real estate transaction authorized by the governor.
     (b) The expenses incurred by the land office in conducting a real estate transaction, including the payment of reasonable brokerage fees, may be deducted from the proceeds of the transaction before the proceeds are deposited. The land office may adopt rules relating to the payment of reasonable brokerage fees.
     (c) Unless otherwise dedicated by the Texas Constitution, the proceeds of the transaction shall be deposited:
          (1) to the credit of the Texas capital trust fund if the agency is eligible under Chapter 2201, Government Code, to participate in that fund;
          (2) in the state treasury to the credit of the affected agency if the agency is not eligible under Chapter 2201, Government Code, to participate in the Texas capital trust fund; or
          (3) notwithstanding Subdivisions (1) and (2), as otherwise directed under the procedures of Chapter 317, Government Code.
     (d) The grant of an interest in real property owned by the state under this section must:
          (1) comply with the requirements of Section 31.158 to the extent the requirements do not conflict with a recommendation in the governor's report under Section 31.1571; and
          (2) be conveyed by an instrument signed by the commissioner and, if the governor's approval is required, by the governor.

Added by Acts 2003, 78th Leg., ch. 1091, § 16, eff. June 20, 2003.

§ 31.158. REAL ESTATE TRANSACTIONS AUTHORIZED BY LEGISLATURE.
     (a) If the legislature authorizes a real estate
      transaction involving real property owned by the state, the division shall take possession and control of the real property and shall negotiate and close such real estate transaction on behalf of the state. In performing such duties, the division shall act on behalf of the state agency which owns or controls the subject state real property. Proceeds from the real estate transaction shall be deposited in the Texas capital trust fund unless the proceeds are dedicated by the constitution of this state to another fund or unless the enabling legislation ordering the real estate transaction provides otherwise.
     (b) The division may not take possession and control under this section of real property administered by a state agency that, under Chapter 2201, Government Code, is ineligible to benefit from the Texas capital trust fund.
     (c) Unless the enabling legislation or general law authorizing the real estate transaction specifies a different procedure, the division shall transact the sale or lease of state real property in the following manner:
          (1) The sale or lease shall be by sealed bid, by public auction, or as provided by Subsection (d); provided, however, the School Land Board shall have the first option to purchase such real property pursuant to Section 31.159 of this code. Subdivisions (2)-(7) apply only to a sale or lease by sealed bid or public auction.
          (2) Notice of the sale or lease shall be published at least 30 days prior to the date of sale or lease in at least three issues of four daily newspapers in the state. One of the papers must be of general circulation in the county where the real property is located.
          (3) The notice shall state that real property is to be offered for sale or lease on a certain date and that lists describing the real property and terms of sale or lease can be obtained from the division.
          (4) No bid may be accepted that does not meet the minimum value established by the commissioner, which shall not be less than market value.
          (5) The division may reject any and all bids, but if the division elects not to reject any and all bids, it is required to accept the best bid submitted.
          (6) If the award of a bid does not result in a final transaction with the bidder, the land office may solicit proposals, negotiate, and sell, exchange, or lease the real property, provided that the sales price may not be less than market value.
          (7) If, after proper notice has been posted, no bids meeting the minimum requirements are received at the appointed time and place for the sale or lease, the division may solicit proposals and negotiate the sale, exchange, or lease of the real property to any person, provided that the sales price may not be less than the market value of the real property. The governor must approve any sale or lease of real property negotiated under this section. Failure of the governor to approve the sale or lease constitutes a veto of the transaction.
          (8) Each grant of an interest in real property made pursuant to this section shall be made by an instrument signed by the commissioner and, if the governor's approval is required, by the governor.
          (9) The expenses incurred by the division in conducting the sale, exchange, or lease, including the payment of reasonable brokerage fees, may be deducted from the proceeds of the sale prior to deposit in the Texas capital trust fund or other appropriate depository account. The division may promulgate rules relating to the payment of reasonable brokerage fees.
          (10) These procedures will not apply to sales or leases of real property that are possessed by an agency that under Chapter 2201, Government Code, is ineligible to use the Texas capital trust fund or real property which belongs to the permanent school fund.
          (11) Prior to the actual sale or lease, the state representative and state senator in the district where the subject real property is located shall be notified of all efforts to sell or lease the real property and shall be provided with copies of all brokerage contacts relating to the sale or lease.
     (d) The division may contract for the services of a real estate broker or a private brokerage or real estate firm in the course of a real estate transaction under this section if the commissioner determines contracting for those services is in the best interest of the state.

Added by Acts 1985, 69th Leg., ch. 102, § 2, eff. May 15, 1985. Amended by Acts 1989, 71st Leg., ch. 839, § 1, eff. Aug. 28, 1989; Acts 1991, 72nd Leg., ch. 633, § 2, eff. Aug. 26, 1991;

Acts 1995, 74th Leg., ch. 76, § 5.95(5), 12.01(a), eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 685, § 3, eff. Sept. 1, 2001;

Acts 2003, 78th Leg., ch. 1091, § 17, eff. June 20, 2003.

§ 31.1581. TRANSFER OF REAL PROPERTY FOR USE AS AFFORDABLE HOUSING.
     (a) If the legislature authorizes or the governor
      approves the transfer of title to real property to an entity for use as affordable housing, the division shall take possession and control of the real property and shall conduct the transaction as provided by the policy adopted under Subsection (b).
     (b) The division shall adopt a policy regarding the method of transferring title to real property designated as suitable for affordable housing to an entity for use as affordable housing. The policy must include monitoring and enforcement provisions to ensure that the real property is used for affordable housing.

Added by Acts 2001, 77th Leg., ch. 685, § 3, eff. Sept. 1, 2001. Redesignated from V.T.C.A., Natural Resources Code § 31.158(d), (e) and amended by Acts 2003, 78th Leg., ch. 1091, § 17, eff. June 20, 2003.

§ 31.1585. CERTAIN PROCEEDS.
     Notwithstanding any other law, proceeds from the sale of real property purchased with general revenue funds that was recommended for sale by the division and not disapproved for sale by the governor during the calendar years 1995 through 2002 shall be deposited in the unobligated portion of the general revenue fund and may only be appropriated to the state agency that possessed the property at the time of the sale for use by the state agency in performing its duties.

Added by Acts 2003, 78th Leg., ch. 1091, § 18, eff. June 20, 2003.

§ 31.159. FIRST OPTION TO PURCHASE.
     (a) The School Land Board has a first option to purchase real property authorized for sale by the legislature or the governor. The board may exercise its option by tendering cash for market value as mutually agreed on by the board and the state agency that owns the real property, but the purchase price may not be less than market value. For purposes of this section, the division may request more than one appraisal to determine market value. If the parties cannot agree on a value, the board and the state agency that owns the real property shall follow the procedures provided by Subsections (d) and (e). The board may not pay more than market value.
     (b) The division shall inform the School Land Board of the proposed sale and its first option to purchase state agency real property. If the board decides to exercise its option under this section, the division shall appoint an appraiser not later than the 30th day after the date the board notifies the division of its decision.
     (c) The School Land Board must complete the cash purchase not later than the 120th day after the date the board exercises its first option to purchase. If the School Land Board fails to complete the purchase within the time permitted, the division may extend the time for completing the purchase or disposing of the real property as authorized by the legislature or approved by the governor.
     (d) If the state agency that owns the real property disputes the market value, the School Land Board shall request a second appraisal. If the School Land Board fails to request a second appraisal, the division shall appoint a second appraiser not later than the 21st day after the date the state agency notifies the School Land Board that it disputes the market value. On completion of the second appraisal, the two appraisers shall meet promptly and attempt to reach agreement on the market value. If the two appraisers fail to reach agreement within 10 days of the meeting, the land office shall request a third appraiser to reconcile the two previous appraisals. The determination of value by the third appraiser may not be less than the lower or more than the higher of the first two appraisals. The market value determined by the third appraiser is final and binding on all parties.
     (e) The division may appoint an appraiser employed by the land office for the performance of any one of the required appraisals. Any other appraiser employed under this section must be selected in accordance with Subchapter A, Chapter 2254, Government Code. The party requesting the appraisal shall award the appraisal services contract to the provider of professional services after considering the factors identified in Chapter 2254, Government Code. The division shall pay the expenses of appraisal.

Added by Acts 1985, 69th Leg., ch. 102, § 2, eff. May 15, 1985. Amended by Acts 1985, 69th Leg., ch. 270, § 5, eff. June 5, 1985;

Acts 1987, 70th Leg., ch. 208, § 11, eff. Aug. 31, 1987; Acts 1995, 74th Leg., ch. 76, § 5.95(47), eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 165, § 17.19(18), eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1091, § 19, eff. June 20, 2003.

§ 31.161. DEVELOPMENT PLAN.
     (a) If the state intends to conduct a sale or lease for nongovernmental purposes of real property belonging to the state, to the permanent school fund, or to any of the dedicated funds of the state, other than the permanent university fund, or any other real property subject to the administration and control of the board of regents of The University of Texas System, the division may promulgate a development plan on the real property.
     (b) The purpose of a development plan is to conserve and enhance the value of real property belonging to the state, taking into consideration the preservation of the health, safety, and general welfare of the communities in which the real property is situated.
     (c) The plan shall address local land use planning ordinances, which may include the following:
          (1) allocation and location of specific uses of the real property, including residential, commercial, industrial, recreational, or other appropriate uses;
          (2) densities and intensities of designated land uses;
          (3) the timing and rate of development;
          (4) timely delivery of adequate facilities and services, including water, wastewater collection and treatment systems, parks and public recreational facilities, drainage facilities, school sites, and roads and transportation facilities; or
          (5) needed zoning and other land use regulations.
     (d) The plan shall comply with existing rules, regulations, orders, or ordinances for real property development to the extent such rules, regulations, orders, or ordinances are not detrimental to the interests of the state as determined by the special board of review.

Added by Acts 1987, 70th Leg., ch. 208, § 13, eff. Aug. 31, 1987. Amended by Acts 2003, 78th Leg., ch. 1091, § 20, eff. June 20, 2003.

§ 31.1611. PUBLIC HEARING BEFORE PREPARATION OF DEVELOPMENT PLAN.
     (a) If the division is requested to prepare a
      development plan under Section 31.161, the division shall notify the local government to which the plan will be submitted under Section 31.162 of the division's intent to prepare a development plan. The division shall provide the local government with information relating to:
          (1) the location of the real property to be offered for sale or lease;
          (2) the highest and best use of the real property as provided in the division's report under Section 31.157; and
          (3) the process for preparing the development plan under Section 31.161 and the process provided under Sections 31.165 and 31.166 for the special board of review.
     (b) Not later than the 30th day after the date the local government receives the notice provided under Subsection (a), the local government may request the division to hold a public hearing to solicit public comment. If requested by the local government, the division shall hold a public hearing. The local government shall provide notice of the hearing to real property owners in at least the same manner that notice is provided for adopting zoning regulations or subdivision requirements in the local government's jurisdiction. The division shall set the agenda for the hearing, which must be completed no later than the 120th day after the date notice is provided under Subsection (a).
     (c) If the local government does not request a public hearing under Subsection (b), the commissioner may hold a hearing to solicit public comment. The division shall provide notice of the hearing in the same manner that a local government is required to provide notice under Subsection (b). The commissioner shall set the agenda for the hearing and must complete the hearing not later than the 120th day after the date the notice is provided under Subsection (a).
     (d) A public hearing under this section may include:
          (1) a presentation by the division relating to the division's classification of the real property as unused or substantially underused and the division's recommendation of the highest and best use to which the real property may legally be placed;
          (2) a presentation by the local government relating to relevant local plans, development principles, and ordinances that may affect the development of the real property; and
          (3) oral comments and presentations of information by and written comments received from other persons relating to the development of the real property.
     (e) The division shall prepare a summary of the information and testimony presented at a hearing conducted under this section and may develop recommendations based on the information and testimony. The division shall prepare and deliver a report to the commissioner summarizing the information and testimony presented at the hearing and the views presented by the state, the affected local governments, and other persons who participated in the hearing process. The commissioner shall review the division's report and may instruct the division to incorporate information based on the report in preparing the development plan under Section 31.161.
     (f) The commissioner may adopt rules to implement this section. The division shall administer the process provided by this section.

Added by Acts 1999, 76th Leg., ch. 903, § 1, eff. June 18, 1999. Amended by Acts 2003, 78th Leg., ch. 1091, § 21, eff. June 20, 2003.

§ 31.162. SUBMISSION OF THE PLAN TO AFFECTED LOCAL GOVERNMENT.
     (a) The plan shall be submitted to any local
      government having jurisdiction over the real property in question for consideration.
     (b) The local government shall evaluate the plan and either accept or reject the plan no later than the 120th day after the date the division submits the plan.
     (c) The plan may be rejected by the local government only on grounds that it does not comply with local ordinances and land use regulations, including but not limited to zoning and subdivision ordinances.
     (d) If the plan is rejected, the local government shall specifically identify any ordinance with which the plan conflicts and propose specific modifications to the plan that will bring it into compliance with the local ordinance.
     (e) If the plan is rejected by the affected local government, the division may modify the plan to conform to the ordinances specifically identified by the local government and resubmit the plan for approval, or the commissioner may apply for necessary rezoning or variances from the local ordinances.
     (f) Failure by the local government to act within the 120-day period prescribed by Subsection (b) will be deemed an acceptance by the local government of the plan.

Added by Acts 1987, 70th Leg., ch. 208, § 13, eff. Aug. 31, 1987. Amended by Acts 2003, 78th Leg., ch. 1091, § 22, eff. June 20, 2003.

§ 31.163. REZONING.
     (a) If the plan would require zoning inconsistent with any existing zoning or other land use regulation, the division or its designated representative may at any time submit a request for rezoning to the local government with jurisdiction over the real property in question.
     (b) The rezoning or variance request shall be submitted in the same manner as any such request is submitted to the affected local government; provided, however, the local government must take final action on the request no later than the 120th day after the date the request for rezoning or variance is submitted.
     (c) Failure by the local government to act within the 120-day period prescribed by Subsection (b) will be deemed an approval of the rezoning request by the local government.

Added by Acts 1987, 70th Leg., ch. 208, § 13, eff. Aug. 31, 1987. Amended by Acts 2003, 78th Leg., ch. 1091, § 23, eff. June 20, 2003.

§ 31.164. FEES AND ASSESSMENTS.
     (a) The local government may impose no application, filing, or other fees or assessments on the state for consideration of the plan or the application for rezoning or variance submitted by the state.
     (b) The local government may not require the submission of architectural, engineering, or impact studies to be completed at state expense before considering the plan or application for rezoning or variance.

Added by Acts 1987, 70th Leg., ch. 208, § 13, eff. Aug. 31, 1987.

§ 31.165. SPECIAL BOARD OF REVIEW.
     (a) If the local government denies the rezoning request, the matter may be appealed to a special board of review consisting of the following members:
          (1) the members of the School Land Board;
          (2) the chairman of the governing board of the agency or institution possessing the real property or his or her designated representative;
          (3) the mayor of the city or town within whose corporate boundaries or extraterritorial jurisdiction the real property is located; and
          (4) the county judge of the county within which the real property is located.
     (b) The commissioner shall serve as chairman of the special board of review.
     (c) If the plan involves real property belonging to the permanent school fund, the special board of review shall consist of the members of the School Land Board and the local officials, with the commissioner serving as chairman.
     (d) If the real property is not located within the corporate boundaries or the extraterritorial jurisdiction of a city or town, the board shall consist of the members of the School Land Board, the agency chairman, and the county judge, with the commissioner serving as chairman.

Added by Acts 1987, 70th Leg., ch. 208, § 13, eff. Aug. 31, 1987. Amended by Acts 2003, 78th Leg., ch. 1091, § 24, eff. June 20, 2003.

§ 31.166. HEARING.
     (a) The special board of review shall conduct one or more public hearings to consider the proposed development plan.
     (b) Hearings shall be conducted in accordance with rules promulgated by the land office for conduct of such special review.
     (c) If real property is located in more than one city or town, the hearings on any single tract of real property may be combined.
     (d) Any political subdivision in which the tract in question is located and the appropriate central appraisal district shall receive written notice of board hearings at least 14 days prior to the hearing.
     (e) At least one hearing shall be conducted in the county where the real property is located.
     (f) If after the hearings, the special board of review determines that local zoning requirements are detrimental to the best interest of the state, it shall issue an order establishing a development plan to govern the use of the real property as provided in this section.
     (g) Development of the real property shall be in accordance with the plan and must comply with all local rules, regulations, orders, or ordinances except as specifically identified in an order of the special board of review issued pursuant to Subsection (f) of this section. In the event that substantial progress is not made toward development of the tract within five years of the date of adoption by the special board of review, local development policies and procedures shall become applicable to development of the tract, unless the special board of review promulgates a new plan.
     (h) The hearing shall not be considered a contested case proceeding under Chapter 2001, Government Code and shall not be subject to appeal thereunder.

Added by Acts 1987, 70th Leg., ch. 208, § 13, eff. Aug. 31, 1987. Amended by Acts 1995, 74th Leg., ch. 76, § 5.95(49), eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 1091, § 25, eff. June 20, 2003.

§ 31.167. BINDING EFFECT OF DEVELOPMENT PLAN.
     (a) Except as provided by this subsection, a development plan promulgated by the special board of review and any plan accepted by a local government shall be final and binding on the state, its lessees, successors in interest and assigns, and affected local governments or political subdivisions unless revised by the special board of review. If the division does not receive a bid or auction solicitation for the real property subject to the development plan, the division, at the direction of the commissioner, may revise the development plan to conserve and enhance the value and marketability of the real property.
     (b) A local government, political subdivision, owner, builder, developer, or any other person may not modify the development plan without specific approval by the special board of review.
     (c) The special board of review must file a copy of the development plan in the deed records of the county in which the real property is located.

Added by Acts 1987, 70th Leg., ch. 208, § 13, eff. Aug. 31, 1987. Amended by Acts 1999, 76th Leg., ch. 903, § 2, eff. June 18, 1999; Acts 2003, 78th Leg., ch. 1091, § 26, eff. June 20, 2003.