1-1     By:  Gallegos                                         S.B. No. 1905
 1-2           (In the Senate - Filed May 4, 1999; May 5, 1999, read first
 1-3     time and referred to Committee on Natural Resources; May 14, 1999,
 1-4     reported favorably by the following vote:  Yeas 6, Nays 0;
 1-5     May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the acquisition of certain property by navigation
 1-9     districts.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 60.101, Water Code, is amended by adding
1-12     a new Subsection (b) and relettering existing Subsection (b) as
1-13     Subsection (c) to read as follows:
1-14           (b)  Under the authority of Subsection (a), a district may
1-15     acquire property to be held for future use as an aid or facility
1-16     incidental to or useful in the operation or development of a port
1-17     or waterway or in aid of navigation-related commerce.  Property
1-18     owned and held by a district for future use may be rented or leased
1-19     for compensation to a private enterprise for use by the private
1-20     enterprise for a purpose not related to the duties and functions of
1-21     the district.
1-22           (c)  To the extent that the district incurs indebtedness
1-23     (bonded or otherwise) for purposes of financing the above
1-24     facilities which in turn are sold by installment sale or otherwise,
1-25     said indebtedness, principal and interest, may be paid only from
1-26     the loan (or bond sale) proceeds and from revenues generated from
1-27     the project financed by the indebtedness, and security for payment
1-28     of the principal of and interest on said indebtedness shall be
1-29     limited to a pledge of the project's revenues and the project's
1-30     facilities including enlargements and additions thereafter made.
1-31           SECTION 2.  Section 11.11, Tax Code, is amended by adding
1-32     Subsection (i) to read as follows:
1-33           (i)  Notwithstanding Subsection (d), real property owned and
1-34     held by a navigation district for future use for a purpose related
1-35     to the duties and functions of the district and rented or leased to
1-36     a private person for compensation for a use not related to the
1-37     district's duties and functions, as authorized by Section
1-38     60.101(b), Water Code, is considered used for public purposes and
1-39     is exempt from taxation under Subsection (a).
1-40           SECTION 3.  This Act takes effect January 1, 2000.
1-41           SECTION 4.  The importance of this legislation and the
1-42     crowded condition of the calendars in both houses create an
1-43     emergency and an imperative public necessity that the
1-44     constitutional rule requiring bills to be read on three several
1-45     days in each house be suspended, and this rule is hereby suspended.
1-46                                  * * * * *