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F I S C A L I M P A C T R E P O R T

SPONSOR MP Garcia

DATE TYPED 3/10/05

HB 332/aHTRC/aSJC

SHORT TITLE Land Grant Purchase of State Lands

SB

ANALYST Wilson

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

See Narrative

SOURCES OF INFORMATION

LFC Files

No Responses From

Taxation & Revenue (TRD)

Attorney General’s Office (AGO)

SUMMARY

Synopsis of SJC Amendment

The Senate Judiciary Committee amendment removes the HTRC amendment. This amendment

allows the board of trustees of a community land grant-merced to match the highest bid at a pub-

lic auction, which shall entitle the board of trustees to purchase the property for the amount bid if

the property is situated

the property is situated within the boundaries of that land grant-merced as

shown in the United States patent to the grant. The amendment changes the requirement that the

land be vacant.

Synopsis of HTRC Amendment

The House Taxation & Revenue Committee amendment to House Bill 332 allows the board of

trustees of a community land grant-merced shall be allowed to match the highest bid at a public

auction, which shall entitle the board of trustees to purchase the property for the amount bid if:

the property is situated within the boundaries of that land grant-merced as shown in the United

States patent to the grant. The original bill only required the board of trustees to meet certain re-

quirements, but the bid could have been the lowest one received..

House Bill 332/aHTRC/aSJC -- Page 2

Synopsis of Original Bill

House Bill 332 will consider any bid made at a public auction by the board of trustees of a com-

munity land grant-merced to be the highest bid at that public auction and shall entitle the board

of trustees to purchase the property for the amount bid if the following conditions are met:

The property is vacant land and is situated within the boundaries of that

land grant-merced as shown in the United States patent to the grant;

The bid covers all past taxes, penalties, interest and costs due on the prop-

erty; and

The land becomes part of the common lands of the land grant-merced.

Significant Issues

The purpose of this bill appears to be an effort to restore historical land grant properties to the

rightful heirs of the land grant-merced.

FISCAL IMPLICATIONS

The State might not receive as high a payment for the tax delinquent property as they would in a

more competitive situation.

DW/sb:yr