S.B. No. 1774
AN ACT
relating to the conveyance of certain real property by certain
navigation districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 60, Water Code, is amended
by adding Section 60.0381 to read as follows:
Sec. 60.0381. CONVEYANCE OF LAND BY CERTAIN NAVIGATION
DISTRICTS. (a) This section applies only to:
(1) a district that controls a ship channel or
waterway that is the subject of a project that has been authorized
or modified by the United States Congress in the Water Resources
Development Act of 2016 (Pub. L. No. 114-322, Title I, 130 Stat.
1632) or the Water Resources Development Act of 2020 (Pub. L. No.
116-260, Div. AA, 134 Stat. 2615); and
(2) a lease entered into before the effective date of
the Act enacting this section.
(b) Notwithstanding any other provision of law, including
Section 5007.004, Special District Local Laws Code, to the extent
that a district has entered into a surface lease with an original
term of at least 20 years, the district may sell the land,
improvements, easements, and any other interests in the real
property or any part of the real property to the surface lease
counterparty according to this section. The land, improvements,
easements, and any other interests in real property may be conveyed
by the district to the surface lease counterparty, without
complying with the notice and bidding or other requirements of
Sections 60.040-60.042. The sale must be:
(1) approved by the port commission;
(2) executed by the chair of the port commission;
(3) attested by the executive director of the
district; and
(4) made for an amount that is not less than the
reasonable market value of the land, improvements paid for by the
district, easements, or other interest in real property, as
applicable, at the time of contracting for the sale.
(c) Money received from the sale of real property as
described by this section in excess of the sum of the reasonable
market value of the property and the amount of rent due for the
unexpired term of the surface lease may be used only for the purpose
of a project that has been authorized or modified by the United
States Congress in the Water Resources Development Act of 2016
(Pub. L. No. 114-322, Title I, 130 Stat. 1632) or the Water
Resources Development Act of 2020 (Pub. L. No. 116-260, Div. AA, 134
Stat. 2615).
(d) A district may not sell land under this section to an
entity that presents an undue security or safety risk to this state
because of potential sabotage to or subversion of the integrity,
operation, or maintenance of a ship channel or waterway of this
state.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1774 passed the Senate on
April 19, 2021, by the following vote: Yeas 30, Nays 1; and that
the Senate concurred in House amendment on May 13, 2021, by the
following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1774 passed the House, with
amendment, on May 6, 2021, by the following vote: Yeas 142, Nays 0,
two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor