JBM H.B. 1254 75(R)BILL ANALYSIS NATURAL RESOURCES H.B. 1254 By: Jackson 3-12-97 Committee Report (Amended) BACKGROUND During the 74th Legislative Session, HB 2177, which validated acts of navigation districts in an attempt to avoid frivolous law suits, was passed. Basically, this legislation prevented navigation districts from instituting numerous contracts and sales of surplus property, which sometimes resulted in frivolous law suits. Often times, the core of lawsuits such as these were small technicalities that allow second-guessing over formalities. Unfortunately, HB 2177 left out public port authorities, and this bill is designed to include those port authorities that were excluded. HB 1254 will not affect current litigation, but it will provide better protection for the investments of citizens in the future. PURPOSE To add port authorities that were not created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, to the navigation act passed during the 74th Legislative session. The navigation bill validated acts of navigation districts in an attempt to avoid frivolous law suits. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Defines "district" as a navigation district created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, or other public port authority. SECTION 2. Validates and confirms the following: (1) all acts and governmental proceedings of a district taken before the effective date of this Act; (2) all commissioners or other officials of a district, whether elected or appointed, who took office before the effective date of this Act; and (3) all bonds and other obligations of a district authorized before the effective date of this Act, including all proceedings taken before the effective date of this Act that are related to those bonds or other obligations, whether the bonds or obligations are: (A) payable from tax revenue or otherwise; or (B) issued on or before the effective date of this Act. SECTION 3. States that Section 2 of this Act does not include an act, proceeding, commissioner or official, bond, or obligation that is the subject of litigation that is pending on the effective date of this Act. SECTION 4. Emergency clause. EXPLANATION OF AMENDMENTS Committee Amendment No. 1: Strikes the existing Section 3 and substitutes a new section. The new section restates that this Act does not apply to certain litigation that is pending on the effective date of this Act. It also adds language providing that this Act does not apply to an act or proceeding relating to the conveyance by a district of any interest in real property that had originally been patented or otherwise conveyed to the district by the state if such act or proceeding violated any restriction or condition of the patent or other conveyance from the state. Finally, the amendment states that this Act does not apply to an act or proceeding that violated Section 61.117 of the Water Code.