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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB2139

Regular Session

Relating to the authority of the Texas Military Department to negotiate the release of a reversionary interest and certain other interests of the state in certain property in Palo Pinto County owned by the Palo Pinto County Livestock Association.

Government Affairs & Regulatory Compliance Analysis

SB2139: Government Affairs Overview

SB2139 mandates the Texas Military Department (TMD) to negotiate the release of the state's reversionary interest in real property currently occupied by the Palo Pinto County Livestock Association (PPCLA). This legislation provides a statutory mechanism to convert the Association's current conditional land title into fee simple ownership, contingent upon a valuation process that weighs historical public service against the property's 1953 market value.

Phil King·Senate Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Enforcing Agencies

Texas Military Department

Business Impact

Who SB2139 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

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Real Estate

Affected business types:

  • Property developers
  • Commercial landlords
  • Property managers
  • Real estate investors
View all real estate legislation

Key Operational Considerations

  • 1Settlement Agreement: The Association must execute a binding agreement with TMD detailing the transfer terms.
  • 2Release Instrument: A formal legal instrument releasing the state’s reversionary interest must be drafted, signed, and filed with the Palo Pinto County Clerk to perfect the title.
  • 3Negotiation Lead: The Association must designate a specific officer or legal counsel to interface with the TMD Real Property division.
  • 4Appraisal Oversight: Personnel must be prepared to audit government appraisals. No new general staff training is required.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB2139
Low
Relating to the authority of the Texas Military Department to negotiate the release of a reversionary interest and certain other interests of the stat...
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Texas Military Department
Primary Author: Phil King
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025 (Standard effective date applies).
  • Compliance Deadline: There is no statutory deadline to close the transaction; however, the Association must initiate the valuation process immediately upon the effective date to secure title clearance before the next fiscal cycle.
  • Agency Rulemaking: No formal rulemaking is required. The TMD has discretion to determine valuation methods without a public comment period, creating a "regulatory gray zone" regarding the final purchase price.

Immediate Action Plan

  • Immediately: Locate and secure certified copies of the 1953 land transfer records and deeds.
  • Q3 2025: Conduct an internal audit of all structures on the property to prove which assets were funded by the Association, ensuring they are excluded from the state's valuation.
  • September 1, 2025: Formally request the TMD Real Property division to initiate the valuation process pursuant to SB2139.
  • Q4 2025: Submit a "Statement of Public Value" to TMD, quantifying the economic impact of the Association's activities to offset potential land costs.

Operational Changes Required

Contracts

  • Settlement Agreement: The Association must execute a binding agreement with TMD detailing the transfer terms.
  • Release Instrument: A formal legal instrument releasing the state’s reversionary interest must be drafted, signed, and filed with the Palo Pinto County Clerk to perfect the title.

Hiring/Training

  • Negotiation Lead: The Association must designate a specific officer or legal counsel to interface with the TMD Real Property division.
  • Appraisal Oversight: Personnel must be prepared to audit government appraisals. No new general staff training is required.

Reporting & Record-Keeping

  • Historical Deed Retrieval: You must produce the original transfer documents related to Senate Bill 197 (53rd Legislature, 1953).
  • Public Purpose Documentation: The law allows a credit against the purchase price for "public service." You must compile a comprehensive dossier of all fairs, livestock shows, and rodeos held on the property since 1953 to prove continuous use.
  • Asset Inventory: Create a strict inventory separating state-constructed improvements (which the state owns) from Association-funded improvements (which are excluded from the state's valuation).

Fees & Costs

  • Purchase Consideration: The Association may be required to pay monetary consideration. The cost formula is: *(1953 Land FMV + Current State-Owned Structure FMV) - (Value of Historical Public Service).*
  • Legal & Title Fees: Budget for title insurance and filing fees immediately upon closing.

Strategic Ambiguities & Considerations

1. Valuation of "Public Service"

Section 1(c) allows the TMD to offset the cost of the land based on the value the state received from the Association's operations (fairs/rodeos). The statute provides no formula for calculating this economic value. The Association risks TMD undervaluing 70 years of community service. You must present a robust economic impact study to maximize this credit.

2. "Reasonable Means" of Valuation

The law states that if an appraisal is not feasible, TMD may determine value by "other means determined reasonable." This grants the agency broad discretion to set the price without a standard third-party appraisal. The Association must demand transparency on the valuation methodology used.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 10, 2025
Passed Senate
May 1, 2025
Passed House
May 23, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsPalo Pinto CountyAgricultureProperty InterestsProperty Interests--real PropertyPublic Lands, Buildings & ResourcesMilitary Department, Texas
03

House Sponsors

Rep. Phil KingRepublican · Primary Sponsor
Joint Sponsors

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Phil King

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Related by Topic

View more Palo Pinto County legislation
Quick Reference

Frequently Asked Questions

Common questions about SB2139

Q

What does Texas SB2139 do?

SB2139 mandates the Texas Military Department (TMD) to negotiate the release of the state's reversionary interest in real property currently occupied by the Palo Pinto County Livestock Association (PPCLA). This legislation provides a statutory mechanism to convert the Association's current conditional land title into fee simple ownership, contingent upon a valuation process that weighs historical public service against the property's 1953 market value.

Q

Who authored SB2139?

SB2139 was authored by Texas Senator Phil King during the Regular Session.

Q

When was SB2139 signed into law?

SB2139 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB2139?

SB2139 is enforced by Texas Military Department.

Q

How significant are the changes in SB2139?

The regulatory priority for SB2139 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB2139?

The cost impact of SB2139 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB2139 address?

SB2139 addresses topics including palo pinto county, agriculture, property interests, property interests--real property and public lands, buildings & resources.

Q

What are the key dates for SB2139?

Key dates for SB2139: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SB2139?

SB2139 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026