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.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Military Department

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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Legislative Timeline

This bill's path through the Texas Legislature

TopicsPalo Pinto County Agriculture Property Interests Property Interests--real Property Public Lands, Buildings & Resources Military Department, Texas

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 2139
89R851 PRL-D	By: King
	Business & Commerce
	4/16/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In 1953, the State of Texas entered a contract with the city of Mineral Wells to transfer a parcel of property under the agreement that the land be used only for fairs, livestock shows, or rodeos. The deed contains a reversionary clause that mandates the transfer of land back to the state if the property is used for any other purpose. For the last seventy years, the land has been used only for its deeded purpose and has been under the jurisdiction of the Palo Pinto Livestock Association.

In recent years, due to rapid growth in the surrounding area, Palo Pinto County residents have expressed increased interest in using the land for purposes that would violate the reversionary clause.

Because the property was formerly a part of Camp Wolters, S.B. 2139 requires the Texas Military Department to determine the fair market value of the property, including buildings and structures the state has an interest in, and to negotiate and close a transaction with the Palo Pinto County Livestock Association for the release of the state's reversionary interest in the property.

As proposed, S.B. 2139 amends current law 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.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. (a) Requires the Texas Military Department (TMD) to determine the fair market value of the property described in Section 2 of this Act on the date the property was transferred by the state to the City of Mineral Wells as provided by Senate Bill 197, Acts of the 53rd Legislature, Regular Session, 1953. Requires TMD to also determine the present fair market value of interests retained by the state in buildings, structures, and other property located or installed on the transferred property as required by that Act. Authorizes the fair market value of the transferred property and other property interests to be established by an independent appraisal obtained by TMD or by another means determined reasonable by TMD if an independent appraisal of that value is not feasible.

(b) Requires TMD, upon determining the fair market value of the property described in Section 2 of this Act and any buildings, structures, or other property located or installed on that property, as provided by Subsection (a) of this section, to negotiate and close a transaction with the Palo Pinto County Livestock Association for the release of the state's reversionary interest in the property described by Section 2 of this Act and any other interest of the state in buildings, structures, or other property located or installed on that property.

(c) Requires TMD, in negotiating and closing the transaction under Subsection (b) of this section, to determine whether the state has received as consideration for the state's transfer of the property described by Section 2 of this Act the fair market value of the property, as determined under Subsection (a) of this section, through the property's use since its transfer for a fair, livestock show, and rodeo ground in furtherance of a public purpose of this state, as provided by covenants imposed in consideration of the transfer. Requires TMD to also consider whether the state has received sufficient additional consideration through that use to equal the present fair market value of buildings, structures, or other property located or installed on the property described by Section 2 of this Act to which the state retains title.

(d) Requires TMD, if TMD determines that the state has received the fair market value of the property described by Section 2 of this Act and any buildings, structures, or other property located or installed on that property, as determined under Subsection (a) of this section, by appropriate instrument to release the state's reversionary interest in the property described by Section 2 of this Act and the state's interest in any buildings, structures, or other property located or installed on that property. Authorizes TMD, otherwise, to release those interests in exchange for sufficient monetary consideration, as determined by TMD, to provide the remaining value owed to the state for the state's transfer of the property described by Section 2 of this Act and for any buildings, structures, or other property installed on that property.

SECTION 2. Provides that the real property to which Section 1 of this Act applies is situated in Palo Pinto County, Texas, and is described more particularly in a certain manner.

SECTION 3. Effective date: upon passage or September 1, 2025.

House Sponsors

Rep. Phil KingRepublican · Primary Sponsor

Joint Sponsors

Mike Olcott (R)

Bill Text(with markup)

S.B. No. 2139

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	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.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. (a) The Texas Military Department shall
	determine the fair market value of the property described in
	Section 2 of this Act on the date the property was transferred by
	the state to the City of Mineral Wells as provided by Senate Bill
	197, Acts of the 53rd Legislature, Regular Session, 1953. The Texas
	Military Department shall also determine the present fair market
	value of interests retained by the state in buildings, structures,
	and other property located or installed on the transferred property
	as required by that Act. The fair market value of the transferred
	property and other property interests may be established by an
	independent appraisal obtained by the Texas Military Department or
	by another means determined reasonable by the department if an
	independent appraisal of that value is not feasible.
	(b) Upon determining the fair market value of the property
	described in Section 2 of this Act and any buildings, structures, or
	other property located or installed on that property, as provided
	by Subsection (a) of this section, the Texas Military Department
	shall negotiate and close a transaction with the Palo Pinto County
	Livestock Association for the release of the state's reversionary
	interest in the property described by Section 2 of this Act and any
	other interest of the state in buildings, structures, or other
	property located or installed on that property.
	(c) In negotiating and closing the transaction under
	Subsection (b) of this section, the Texas Military Department shall
	determine whether the state has received as consideration for the
	state's transfer of the property described by Section 2 of this Act
	the fair market value of the property, as determined under
	Subsection (a) of this section, through the property's use since
	its transfer for a fair, livestock show, and rodeo ground in
	furtherance of a public purpose of this state, as provided by
	covenants imposed in consideration of the transfer. The Texas
	Military Department shall also consider whether the state has
	received sufficient additional consideration through that use to
	equal the present fair market value of buildings, structures, or
	other property located or installed on the property described by
	Section 2 of this Act to which the state retains title.
	(d) If the Texas Military Department determines that the
	state has received the fair market value of the property described
	by Section 2 of this Act and any buildings, structures, or other
	property located or installed on that property, as determined under
	Subsection (a) of this section, the department shall by appropriate
	instrument release the state's reversionary interest in the
	property described by Section 2 of this Act and the state's interest
	in any buildings, structures, or other property located or
	installed on that property. Otherwise, the department may release
	those interests in exchange for sufficient monetary consideration,
	as determined by the Texas Military Department, to provide the
	remaining value owed to the state for the state's transfer of the
	property described by Section 2 of this Act and for any buildings,
	structures, or other property installed on that property.
	SECTION 2. The real property to which Section 1 of this Act
	applies is situated in Palo Pinto County, Texas, and is described
	more particularly as follows:
	A part of Section 13, Abstract 701, T. & P. R. R. Co. Surveys
	East of the Brazos in Palo Pinto County, Texas, and described by
	metes and bounds as follows:
	BEGINNING at a point on the West line of said Section 13, 1044
	feet North of the Southwest corner of said section, said beginning
	point being on the West line of a tract of 86.5 acres described as
	"First Tract" in a deed dated June 18, 1937, from A. L. Howard and
	wife, Virginia Howard, to the State of Texas;
	THENCE North with the West line of said section, following
	the West line of said 86.5 acre tract and the West line of a 45 acre
	tract described as "Third Tract" in the above mentioned deed, a
	total distance of 2586 feet to the Northwest corner of said 45
	acres;
	THENCE East with the North line of said 45 acres 625.8 feet to
	corner;
	THENCE South 2586 feet to corner;
	THENCE West 625.8 feet to place of beginning.
	SECTION 3. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 21, 2025

TO:	Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB2139 by King (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.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

401 Military Department

LBB Staff:

JMc, RStu, CSh, HE

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Frequently Asked Questions

Common questions about SB2139

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. Implementation Timeline Effective Date: September 1, 2025 (Standard effective date applies).

Who authored SB2139?

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

When was SB2139 signed into law?

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

Which agencies enforce SB2139?

SB2139 is enforced by Texas Military Department.

How urgent is compliance with SB2139?

The compliance urgency for SB2139 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

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.

What topics does SB2139 address?

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

Legislative data provided by LegiScanLast updated: November 25, 2025

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