| 1 | 1 | | 86R2032 SLB-D |
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| 2 | 2 | | By: Middleton H.B. No. 1776 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to property owned by navigation districts. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter A, Chapter 5007, Special District |
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| 10 | 10 | | Local Laws Code, is amended by adding Sections 5007.011 and |
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| 11 | 11 | | 5007.012 to read as follows: |
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| 12 | 12 | | Sec. 5007.011. SALE OF CERTAIN REAL PROPERTY. (a) In this |
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| 13 | 13 | | section, "taxing unit" has the meaning assigned by Section 1.04, |
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| 14 | 14 | | Tax Code. |
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| 15 | 15 | | (b) The authority may not sell real property to a person if |
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| 16 | 16 | | the ownership and use of the property under the new owner would |
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| 17 | 17 | | render the property not subject to ad valorem taxation, unless the |
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| 18 | 18 | | sale is approved by a resolution adopted by each taxing unit, other |
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| 19 | 19 | | than the authority, in which the property is located. |
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| 20 | 20 | | Sec. 5007.012. SALE OR DEVELOPMENT OF REAL DISTRICT |
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| 21 | 21 | | PROPERTY. (a) This section applies only to real property owned by |
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| 22 | 22 | | the authority on Pelican Island. |
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| 23 | 23 | | (b) Not later than September 1, 2022, the authority shall: |
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| 24 | 24 | | (1) substantially develop the property; or |
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| 25 | 25 | | (2) sell the property at an auction open only to |
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| 26 | 26 | | bidders other than entities approved by the Internal Revenue |
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| 27 | 27 | | Service as tax exempt under Section 501(c)(3), Internal Revenue |
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| 28 | 28 | | Code of 1986. |
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| 29 | 29 | | SECTION 2. Subchapter A, Chapter 60, Water Code, is amended |
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| 30 | 30 | | by adding Section 60.006 to read as follows: |
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| 31 | 31 | | Sec. 60.006. DISTRICT PROPERTY. Notwithstanding any other |
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| 32 | 32 | | law, a district may not own real property outside the district, |
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| 33 | 33 | | other than an easement or right-of-way necessary to gain access to |
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| 34 | 34 | | district property or perform district functions. |
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| 35 | 35 | | SECTION 3. The following sections of the Water Code are |
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| 36 | 36 | | repealed: |
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| 37 | 37 | | (1) Section 62.1071; |
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| 38 | 38 | | (2) Section 62.1072; and |
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| 39 | 39 | | (3) Section 62.209. |
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| 40 | 40 | | SECTION 4. A navigation district in violation of Section |
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| 41 | 41 | | 60.006, Water Code, as added by this Act, on the effective date of |
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| 42 | 42 | | this Act, is not subject to penalty or suit related to that |
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| 43 | 43 | | violation if the navigation district completes a sale or transfer |
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| 44 | 44 | | of the property the ownership of which results in the violation not |
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| 45 | 45 | | later than September 1, 2022. |
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| 46 | 46 | | SECTION 5. This Act takes effect September 1, 2019. |
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