By Luna                                               H.B. No. 2100
         76R4288 MI-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the acquisition of certain property by navigation
 1-3     districts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 60.101, Water Code, is amended by adding
 1-6     a new Subsection (b) and relettering existing Subsection (b) as
 1-7     Subsection (c) to read as follows:
 1-8           (b)  Under the authority of Subsection (a), a district may
 1-9     acquire property to be held for future use as an aid or facility
1-10     incidental to or useful in the operation or development of a port
1-11     or waterway or in aid of navigation-related commerce.  Property
1-12     owned and held by a district for future use may be rented or leased
1-13     for compensation to a private enterprise for use by the private
1-14     enterprise for a purpose not related to the duties and functions of
1-15     the district.
1-16           (c)  To the extent that the district incurs indebtedness
1-17     (bonded or otherwise) for purposes of financing the above
1-18     facilities which in turn are sold by installment sale or otherwise,
1-19     said indebtedness, principal and interest, may be paid only from
1-20     the loan (or bond sale) proceeds and from revenues generated from
1-21     the project financed by the indebtedness, and security for payment
1-22     of the principal of and interest on said indebtedness shall be
1-23     limited to a pledge of the project's revenues and the project's
1-24     facilities including enlargements and additions thereafter made.
 2-1           SECTION 2.  Section 11.11, Tax Code, is amended by adding
 2-2     Subsection (i) to read as follows:
 2-3           (i)  Notwithstanding Subsection (d), real property owned and
 2-4     held by a navigation district for future use for a purpose related
 2-5     to the duties and functions of the district and rented or leased to
 2-6     a private person for compensation for a use not related to the
 2-7     district's duties and functions, as authorized by Section
 2-8     60.101(b), Water Code, is considered used for public purposes and
 2-9     is exempt from taxation under Subsection (a).  A leasehold or other
2-10     possessory interest in the real property owned by the district that
2-11     is held by the private person for compensation is subject to
2-12     Sections 23.13 and 25.07.
2-13           SECTION 3.  This Act takes effect January 1, 2000.
2-14           SECTION 4.  The importance of this legislation and the
2-15     crowded condition of the calendars in both houses create an
2-16     emergency and an imperative public necessity that the
2-17     constitutional rule requiring bills to be read on three several
2-18     days in each house be suspended, and this rule is hereby suspended.