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