BILL ANALYSIS

H.B. 3469

By: Sherman, Sr.

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

A matter was raised by local leaders in House District 109, specifically by representatives of Dallas and Kaufman Counties, regarding after-discovered property of the dissolved Bois D'Arc Island Levee Improvement District of Dallas and Kaufman Counties. A six-acre tract of land was found to have belonged to the district and needs to be disposed. H.B. 3469 seeks to resolve this issue by requiring the commissioners courts of the counties to issue a joint order appointing a trustee or receiver to dispose of applicable after-discovered property.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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.

ANALYSIS

H.B. 3469 requires the commissioners courts of Dallas County and Kaufman County to issue a joint order appointing a trustee or receiver to dispose of after-discovered property, defined by the bill as property or assets of the former Bois D'Arc Island Levee Improvement District of Dallas and Kaufman Counties that were not sold, transferred, or disposed of under provisions providing for the district's dissolution by the commissioners courts or were assigned to the district after the dissolution. The bill authorizes the commissioners courts to appoint the trustee or receiver with or without a bond or payment. The bill requires the trustee or receiver to do the following:

· dispose of any after-discovered property in accordance with state law that provides for the disposition or disposal of property by a county; and

· receive approval from the commissioners courts before disposing of any property.

H.B. 3469 requires money made from the sale or disposition of after-discovered property to be used to pay any liability, debt, contract, or other obligation of the district, including any liability, debt, contract, or other obligation incurred in the appointment of the trustee or receiver or the execution of the duties of the trustee or receiver. Any remaining money must be distributed equally between Dallas County and Kaufman County. The bill prohibits the assets of Dallas County and Kaufman County, including tax revenue funds, from being used by the district to pay any liability, debt, contract, or other obligation of the district and establishes that those assets are not subject to any such district obligation. The bill prohibits its provisions from being construed to constitute a waiver of the immunity or defenses of Dallas County, Kaufman County, or the officials, officers, employees, and agents of the counties regarding a suit or liability concerning the after-discovered property.

H.B. 3469 requires the Texas Commission on Environmental Quality to note in its records that the district has been dissolved.

H.B. 3469, effective January 1, 2026, repeals Chapter 7801, Special District Local Laws Code, relating to the district.

EFFECTIVE DATE

Except as otherwise provided, September 1, 2023.