86R2032 SLB-D
 
  By: Middleton H.B. No. 1776
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to property owned by navigation districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 5007, Special District
  Local Laws Code, is amended by adding Sections 5007.011 and
  5007.012 to read as follows:
         Sec. 5007.011.  SALE OF CERTAIN REAL PROPERTY. (a) In this
  section, "taxing unit" has the meaning assigned by Section 1.04,
  Tax Code.
         (b)  The authority may not sell real property to a person if
  the ownership and use of the property under the new owner would
  render the property not subject to ad valorem taxation, unless the
  sale is approved by a resolution adopted by each taxing unit, other
  than the authority, in which the property is located.
         Sec. 5007.012.  SALE OR DEVELOPMENT OF REAL DISTRICT
  PROPERTY. (a) This section applies only to real property owned by
  the authority on Pelican Island.
         (b)  Not later than September 1, 2022, the authority shall:
               (1)  substantially develop the property; or
               (2)  sell the property at an auction open only to
  bidders other than entities approved by the Internal Revenue
  Service as tax exempt under Section 501(c)(3), Internal Revenue
  Code of 1986.
         SECTION 2.  Subchapter A, Chapter 60, Water Code, is amended
  by adding Section 60.006 to read as follows:
         Sec. 60.006.  DISTRICT PROPERTY. Notwithstanding any other
  law, a district may not own real property outside the district,
  other than an easement or right-of-way necessary to gain access to
  district property or perform district functions.
         SECTION 3.  The following sections of the Water Code are
  repealed:
               (1)  Section 62.1071;
               (2)  Section 62.1072; and
               (3)  Section 62.209.
         SECTION 4.  A navigation district in violation of Section
  60.006, Water Code, as added by this Act, on the effective date of
  this Act, is not subject to penalty or suit related to that
  violation if the navigation district completes a sale or transfer
  of the property the ownership of which results in the violation not
  later than September 1, 2022.
         SECTION 5.  This Act takes effect September 1, 2019.