Bill Text: TX HB5669 | 2025-2026 | 89th Legislature | Engrossed

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Bill Title: Relating to the name and powers of the Sabine Pass Port Authority; altering the terms of the authority's port commission; altering the authority to issue bonds.

Sponsorship: Partisan Bill (Republican 1)

Status: (Engrossed - Dead) 2025-05-22 - Received from the House [HB5669 Detail]

Download: Texas-2025-HB5669-Engrossed.html

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89R7880 SCF-F
By: Phelan H.B. No. 5669

A BILL TO BE ENTITLED
AN ACT
relating to the name and powers of the Sabine Pass Port Authority;
altering the terms of the authority's port commission; altering the
authority to issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 5012, Special District
Local Laws Code, is amended to read as follows:
CHAPTER 5012. PORT OF SABINE PASS [PORT AUTHORITY]
SECTION 2. Sections 5012.0001, 5012.0002, and 5012.0003,
Special District Local Laws Code, are amended to read as follows:
Sec. 5012.0001. DEFINITIONS. In this chapter:
(1) ["Authority" means the Sabine Pass Port Authority.
[(2)] "Commission" means the port's [authority's] port
commission.
(2) [(3)] "Commissioner" means a commission member.
(3) "Port" means the Port of Sabine Pass.
Sec. 5012.0002. LEGISLATIVE FINDINGS OF PURPOSE AND
BENEFIT. (a) The port [authority] is [a port district] essential
to accomplish the purposes of Section 52-a, Article III, and
Section 59, Article XVI, Texas Constitution, and other public
purposes stated in this chapter. By granting the port powers under
this chapter, the legislature has established a program to
accomplish the public purposes set out in Section 52-a, Article
III, Texas Constitution.
(b) The port serves a public use and benefit.
(c) All land and other property included [territory] in the
port will benefit [authority benefits] from the [authority's]
improvements and services to be provided by the port under powers
conferred by Section 52-a, Article III, and Section 59, Article
XVI, Texas Constitution, and other powers granted under this
chapter [, works, and facilities].
Sec. 5012.0003. PORT [AUTHORITY] TERRITORY. The port
[authority] is composed of the territory in Jefferson County
described by Section 1, Chapter 379, Acts of the 63rd Legislature,
Regular Session, 1973, as that territory may have been modified
under:
(1) Subchapter H, Chapter 62, Water Code; or
(2) other law.
SECTION 3. The heading to Subchapter B, Chapter 5012,
Special District Local Laws Code, is amended to read as follows:
SUBCHAPTER B. PORT [AUTHORITY] ADMINISTRATION
SECTION 4. Sections 5012.0051, 5012.0052, 5012.0053, and
5012.0054, Special District Local Laws Code, are amended to read as
follows:
Sec. 5012.0051. COMMISSION; TERMS; ELECTION. (a) The port
[authority] is governed by a commission composed of five elected
commissioners.
(b) Commissioners serve staggered four-year [two-year]
terms, with the appropriate number of [two] commissioners elected
in each even-numbered year on the uniform election date in May [and
three commissioners elected in each odd-numbered year].
(c) The commission:
(1) is the port's [authority's] governing body; and
(2) has the powers conferred on navigation and canal
commissioners of navigation districts and the commissioners court
by the Water Code.
Sec. 5012.0052. QUALIFICATIONS FOR OFFICE. Each
commissioner must:
(1) be a resident of the port [authority];
(2) own taxable property in the port [authority]; and
(3) be a qualified voter.
Sec. 5012.0053. NOTICE OF COMMISSIONERS' ELECTION. Notice
of a commissioner's election shall be:
(1) signed by the commission's presiding officer or
secretary; and
(2) posted in accordance with Section 4.003(b),
Election Code [given by publishing notice once each week for two
consecutive weeks in a newspaper with general circulation in the
authority, with the first publication being made not earlier than
the 60th day before the date of the election, and not later than the
21st day before the date of the election].
Sec. 5012.0054. ELECTION RESULTS. As soon as practicable
after each election held by the port [authority], the commission
shall declare the results of the election.
SECTION 5. Section 5012.0055(a), Special District Local
Laws Code, is amended to read as follows:
(a) Each commissioner shall:
(1) take an oath of office that contains the
applicable provisions provided by law for members of the
commissioners court; and
(2) execute a bond for $10,000 payable to the port
[authority], conditioned on the faithful performance of the
commissioner's duties as a commissioner.
SECTION 6. Section 5012.0056, Special District Local Laws
Code, is amended to read as follows:
Sec. 5012.0056. VOTING REQUIREMENT. The concurrence of a
majority of the commissioners present at a meeting where a quorum is
present is sufficient in any matter relating to port [authority]
business.
SECTION 7. Section 5012.0057(c), Special District Local
Laws Code, is amended to read as follows:
(c) The secretary shall be responsible for maintaining and
preserving the minutes, records, and other documents of the port
[authority].
SECTION 8. Sections 5012.0058, 5012.0101, 5012.0102,
5012.0103, and 5012.0104, Special District Local Laws Code, are
amended to read as follows:
Sec. 5012.0058. COMPENSATION OF COMMISSIONERS; EXPENSES.
(a) Each [Unless otherwise provided, each] commissioner is
entitled to receive $600 per month for the commissioner's services
[a fee of not more than $50 a day for each day of service necessary
to discharge the duties of a commissioner].
(b) Each commissioner is entitled to reimbursement for
actual expenses incurred on behalf of the port [authority] and
approved by the commission.
Sec. 5012.0101. GENERAL POWERS. The port [authority] may
exercise:
(1) the rights, privileges, and functions provided by
this chapter; and
(2) all powers, rights, privileges, and functions
conferred by Chapters 60 and 62, Water Code.
Sec. 5012.0102. POWERS REGARDING PORTS, WATERWAYS, AND
FACILITIES. The port [authority] may:
(1) acquire, take over, construct, maintain, repair,
operate, develop, and regulate wharves, docks, warehouses, grain
elevators, ship repair facilities, belt railways, lands, and all
other facilities or aids consistent with or necessary for the
operation or development of ports, waterways, or maritime commerce
inside or outside the port's [authority's] boundaries; and
(2) construct, extend, improve, repair, maintain,
reconstruct, own, use, and operate any facility necessary or
convenient to the exercise of such powers, rights, privileges, and
functions granted by this chapter.
Sec. 5012.0103. BYLAWS AND RULES. The port [authority] may
adopt bylaws and rules for the management and regulation of its
affairs.
Sec. 5012.0104. GIFT OR PURCHASE OF PROPERTY. The port
[authority] by gift or purchase may acquire any property or any
interest in property that is:
(1) inside or outside the port's [authority's]
boundaries; and
(2) necessary or convenient to exercising a power,
right, privilege, or function conferred on the port [authority] by
this chapter.
SECTION 9. Subchapter C, Chapter 5012, Special District
Local Laws Code, is amended by adding Section 5012.01045 to read as
follows:
Sec. 5012.01045. USE OF PORT PROPERTY. (a) The port may
use port property for:
(1) job creation and retention;
(2) economic development;
(3) industry;
(4) commerce;
(5) manufacturing;
(6) housing;
(7) recreation;
(8) infrastructure installation on port property; or
(9) any other activity essential to accomplish the
purposes of Section 52-a, Article III, Texas Constitution.
(b) For the purposes described by Subsection (a), the port
may:
(1) develop, construct, improve, maintain, equip, and
furnish buildings, equipment, facilities, or improvements on or to
port property; and
(2) lease port property on terms the commission
considers advisable to allow for the development, construction,
improvement, maintenance, equipping, and furnishing of buildings,
equipment, or facilities on or improvements to the property.
(c) The port may enter into a contract with another person
to accomplish the purposes of this section on terms the commission
considers appropriate, desirable, and in the port's best interests.
(d) The port may not issue bonds or other obligations
payable from ad valorem taxes to finance a project authorized under
this section.
SECTION 10. Sections 5012.0105, 5012.0106, 5012.0107, and
5012.0108, Special District Local Laws Code, are amended to read as
follows:
Sec. 5012.0105. EMINENT DOMAIN. (a) To exercise a power
provided by law, the port [authority] may exercise the power of
eminent domain to acquire any property and any interest in property
inside the port's [authority's] boundaries. The port [authority]
must exercise the power of eminent domain in the manner provided by
Chapter 21, Property Code.
(b) The port [authority] is a municipal corporation for the
purposes of Section 21.021, Property Code.
(c) The port [authority] is not required to give bond for
appeal or bond for costs in any judicial proceeding related to the
port's [authority's] exercise of eminent domain.
(d) The port's [authority's] authority to exercise the power
of eminent domain expired on September 1, 2013, unless the port
[authority] submitted a letter to the comptroller in accordance
with Section 2206.101(b), Government Code, not later than December
31, 2012.
Sec. 5012.0106. LEASE OF PORT [AUTHORITY] FACILITIES. A
lease under Section 60.101, Water Code, may contain any provision
the commission determines is advantageous to the port [authority],
including a provision for:
(1) the sale of a leased property at the termination of
the lease; and
(2) the management and operation of a leased property
by the port or lessee.
Sec. 5012.0107. SALE OF SURPLUS PROPERTY. The commission
may order port [authority] property sold as provided in Section
60.101, Water Code, if the property is not considered reasonably
required to carry out the port's [authority's] plans.
Sec. 5012.0108. GENERAL AUTHORITY TO MAKE CONTRACTS AND
EXECUTE INSTRUMENTS. The port [authority] may make a contract or
execute an instrument necessary or convenient to exercising a
power, right, privilege, or function conferred on the port
[authority] by this chapter.
SECTION 11. The heading to Section 5012.0109, Special
District Local Laws Code, is amended to read as follows:
Sec. 5012.0109. PURCHASES AND [COMPETITIVE BIDDING FOR
CERTAIN] CONTRACTS.
SECTION 12. Section 5012.0109(a), Special District Local
Laws Code, is amended to read as follows:
(a) The commission may make purchases and contracts as
provided by Subchapters N and O, Chapter 60, Water Code [Before the
commission enters into a contract for the expenditure of an amount
of $25,000 or more, the authority shall submit the proposed
contract for competitive bids as provided by this section].
SECTION 13. Sections 5012.0110, 5012.0111, 5012.0112, and
5012.0151, Special District Local Laws Code, are amended to read as
follows:
Sec. 5012.0110. OFFICERS, AGENTS, AND EMPLOYEES. The port
[authority] may employ, prescribe the duties of, and set the
compensation of officers, agents, and employees.
Sec. 5012.0111. SEAL. The port [authority] may adopt and
use a corporate seal.
Sec. 5012.0112. AUTHORITY TO SUE AND BE SUED. The port
[authority] may sue and be sued in its corporate name.
Sec. 5012.0151. MAINTENANCE AND OPERATIONS TAX. The
commission may impose an annual tax for the maintenance and
operation of the port [authority] and the port's [authority's]
improvements at a rate not to exceed 20 cents for each $100
valuation of taxable property in the port [authority].
SECTION 14. Section 5012.0152(b), Special District Local
Laws Code, is amended to read as follows:
(b) The tax assessor and collector shall execute a bond in
an amount set by the commission that is:
(1) at least twice the average daily balance of the
port [authority] in its depository for the preceding year; and
(2) not more than the estimated amount of revenues of
the port [authority] for any year.
SECTION 15. Section 5012.0153, Special District Local Laws
Code, is amended to read as follows:
Sec. 5012.0153. AUTHORITY TO BORROW MONEY, ACCEPT GRANTS,
AND ISSUE ASSOCIATED REVENUE BONDS. The port [authority] may:
(1) borrow money for the port's [authority's]
corporate purposes consistent with the constitution, this chapter,
and Chapters 60-63, Water Code;
(2) borrow money or accept a grant from the United
States or from a corporation or agency created or designated by the
United States and, in connection with the loan or grant, enter into
any agreement the United States or the corporation or agency may
require; and
(3) make and issue bonds for money borrowed, in the
manner provided by this chapter.
SECTION 16. Section 5012.0154(a), Special District Local
Laws Code, is amended to read as follows:
(a) The port [authority] may:
(1) borrow money for current expenses; and
(2) evidence the borrowed money by warrants.
SECTION 17. Sections 5012.0201, 5012.0202, 5012.0203,
5012.0204, and 5012.0205, Special District Local Laws Code, are
amended to read as follows:
Sec. 5012.0201. AUTHORITY TO ISSUE BONDS; ELECTION. (a)
The port [authority] may issue bonds for any corporate purpose.
(b) The port [authority] may issue bonds for a purpose
described by Section 5012.0102(1) or to acquire necessary or proper
lands, rights of way, extension or improvements of belt railway
lines, or construction or improvements of wharves, docks, ship
repair facilities, or other facilities or aids to navigation.
(c) The port [authority] may secure bonds issued under
Subsection (b) by liens on properties acquired, constructed, or
improved and pledge available revenues as additional security.
(d) An election to approve the issuance of bonds payable
from taxes must be held in the manner provided for bond elections
under Chapter 1251 [54], Government [Water] Code.
Sec. 5012.0202. FORM OF BONDS. Port [Authority] bonds must
be:
(1) issued in the port's [authority's] name; and
(2) signed by the commission's presiding officer.
Sec. 5012.0203. TERMS OF ISSUANCE. Port [Authority] bonds
may be:
(1) sold for cash;
(2) issued on terms the commission determines in
exchange for any property, or any interest in property, that the
commission considers necessary or convenient for the corporate
purpose for which the bonds are issued; or
(3) issued in exchange for like principal amounts of
other obligations of the port [authority], whether matured or
unmatured.
Sec. 5012.0204. DEPOSIT OF PROCEEDS. The proceeds of sale
of port [authority] bonds shall be deposited in one or more banks or
trust companies, and shall be paid out according to the terms on
which the port [authority] and the purchasers of the bonds agree.
Sec. 5012.0205. RESOLUTION PROVISIONS. (a) A resolution
authorizing bonds may contain provisions approved by the commission
that are not inconsistent with this chapter, including provisions:
(1) reserving the right to redeem the bonds or
requiring the redemption of the bonds, at a time, in an amount, and
at a price, not to exceed 105 percent of the principal amount of the
bonds, plus accrued interest;
(2) providing for the setting aside of sinking funds
or reserve funds and the regulation and disposition of those funds;
(3) securing the payment of the principal of and
interest on the bonds and of the sinking fund or reserve fund
payments associated with the bonds by pledging:
(A) all or any part of the gross or net revenue
subsequently received by the port [authority] with respect to the
property to be acquired or constructed with the bonds or the
proceeds of the bonds; [or]
(B) all or any part of the gross or net revenue
subsequently received by the port [authority] from any source; or
(C) all or any part of any contract payments
received by the port, including payments received in lieu of taxes
under a tax abatement agreement entered into under Chapter 312, Tax
Code;
(4) securing the payment of the principal of and
interest on the bonds by pledging taxes;
(5) prescribing the purposes to which the bonds or any
bonds subsequently issued, or the proceeds of the bonds, may be
applied;
(6) agreeing to set and collect rates and charges
sufficient to produce revenue adequate to:
(A) pay all expenses necessary to the operation,
maintenance, and replacement of and additions to the port's
[authority's] property;
(B) pay the principal of, and the interest and
premium, if any, on bonds issued under this chapter when the bonds
become due and payable;
(C) pay all sinking fund or reserve fund payments
for those bonds out of those revenues as and when they become due
and payable;
(D) fulfill the terms of any agreements made with
the holders of the bonds or with any person on their behalf; and
(E) discharge all other lawful obligations of the
port [authority] as and when the obligations become due;
(7) prescribing limitations on the issuance of
additional bonds and subordinate lien bonds and on the agreements
that may be made with the purchasers and successive holders of those
bonds;
(8) regarding the construction, extension,
improvement, reconstruction, operation, maintenance, and repair of
the port's [authority's] properties and the carrying of insurance
on all or any part of those properties covering loss, damage, or
loss of use and occupancy resulting from specified risks;
(9) setting the procedure by which the port
[authority] may change the terms of a contract with the
bondholders, the amount of bonds the holders of which must consent
to that change, and the manner in which the consent may be given;
and
(10) providing for the execution and delivery by the
port [authority] to a bank or trust company authorized by law to
accept trusts, or to the United States or any officer of the United
States, of indentures and agreements for the benefit of the
bondholders setting forth any of the agreements authorized by this
chapter to be made with or for the benefit of the bondholders and
any other provisions that are customary in such indentures or
agreements.
(b) A provision authorized by this section that is contained
in a bond resolution is part of the contract between the port
[authority] and the bondholders.
SECTION 18. Sections 5012.0206(a) and (c), Special District
Local Laws Code, are amended to read as follows:
(a) The commission may declare an emergency because money is
not available to meet any of the port's [authority's] needs,
including to pay the principal of and interest on port [authority]
bonds.
(c) Bond anticipation notes issued by the port [authority]
must be taken up with the proceeds of the bonds, or the bonds may be
issued and delivered in exchange for the bond anticipation notes.
SECTION 19. Section 5012.0207, Special District Local Laws
Code, is amended to read as follows:
Sec. 5012.0207. REFUNDING BONDS. (a) The port [authority]
may make and issue bonds for the purpose of refunding or refinancing
outstanding bonds authorized and issued by the port [authority]
under this chapter or other law and the interest and any premium on
the bonds to maturity or on any earlier redemption date specified in
the resolution authorizing the issuance of the refunding bonds.
(b) Refunding bonds issued by the port [authority] may:
(1) be issued to refund more than one series of
outstanding bonds;
(2) combine the pledges of the outstanding bonds for
the security of the refunding bonds; or
(3) be secured by other or additional revenue.
(c) The provisions of this chapter regarding the issuance of
bonds, the terms and provisions of bonds, and the remedies of the
bondholders apply to refunding bonds issued by the port
[authority].
(d) The comptroller shall register the refunding bonds
issued by the port [authority] on the surrender and cancellation of
the bonds to be refunded.
(e) Instead of issuing bonds to be registered on the
surrender and cancellation of the bonds to be refunded, the port
[authority], in the resolution authorizing the issuance of
refunding bonds, may provide for the sale of the refunding bonds and
the deposit of the proceeds at the places at which the bonds to be
refunded are payable. In that case, the refunding bonds may be
issued in an amount sufficient to pay the interest and premium, if
any, on the bonds to be refunded to the bonds' maturity date or
specified earlier redemption date, and the comptroller shall
register the refunding bonds without the concurrent surrender and
cancellation of the bonds to be refunded.
(f) The port [authority] may also refund outstanding bonds
in the manner provided by Chapters 60-63, Water Code.
SECTION 20. Sections 5012.0109(b), (c), and (d), Special
District Local Laws Code, are repealed.
SECTION 21. (a) The Port of Sabine Pass shall hold an
election to elect five commissioners as described by Section
5012.0051, Special District Local Laws Code, as amended by this
Act, on the uniform election date in May 2026.
(b) The terms of the commissioners serving on the commission
of the Port of Sabine Pass on the effective date of this Act expire
on the date the commissioners elected under Subsection (a) of this
section have qualified.
(c) At the first meeting of the commissioners of the Port of
Sabine Pass that follows the election held under Subsection (a) of
this section, the five commissioners elected shall draw lots to
determine which three commissioners serve an initial term of two
years, and which two commissioners serve a term of four years.
SECTION 22. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act are fulfilled
and accomplished.
SECTION 23. This Act takes effect September 1, 2025.