Bill Text: TX SB1864 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to the administration of the Port of Houston Authority.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2017-06-12 - Effective immediately [SB1864 Detail]
Download: Texas-2017-SB1864-Enrolled.html
S.B. No. 1864 |
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relating to the administration of the Port of Houston Authority. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 5007.002(a), Special District Local Laws | ||
Code, is amended to read as follows: | ||
(a) That, effective June 6, 1927, the Harris County Houston | ||
Ship Channel Navigation District of Harris County, Texas, in Harris | ||
County, as hereinafter described by metes and bounds, is hereby | ||
created and established under authority of Article 3, Section 52, | ||
of the Constitution of the State of Texas, for the purpose of the | ||
development of deep water navigation and the improvement of rivers, | ||
bays, creeks, streams, and canals within or adjacent to the | ||
authority, including the Houston Ship Channel and dredge material | ||
management areas, and to construct and maintain canals or waterways | ||
to permit navigation or in aid thereof and for the purpose of and | ||
authority to acquire, purchase, undertake, construct, maintain, | ||
operate, develop, and regulate wharves, docks, warehouses, grain | ||
elevators, bunkering facilities, belt railroads, floating plants, | ||
lighterage, lands, dredge material management areas, towing | ||
facilities, and all other facilities or aids incident to or | ||
necessary to the operation or development of ports or waterways | ||
within the authority, including the Houston Ship Channel and dredge | ||
material management areas [ |
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provided in Chapter 9 of the Revised Statutes of 1925; and all | ||
orders of the Commissioners' Court of Harris County, Texas, and of | ||
the Navigation Commissioners, heretofore made in respect to the | ||
creation of such authority and the authorization and issuance of | ||
the bonds of said authority are hereby in all things ratified, | ||
confirmed, and validated. | ||
SECTION 2. Sections 5007.004(b) and (c), Special District | ||
Local Laws Code, are amended to read as follows: | ||
(b) The authority, or its successors, is hereby granted the | ||
right, power and authority to authorize, establish, construct, | ||
purchase, own, maintain, equip, regulate, operate and lease | ||
wharves, piers, docks, dry docks, marine ways and all other | ||
structures and appliances for facilitating or accommodating | ||
commerce or navigation, and to dredge out channels, slips and | ||
turning basins, and to fill in space between the main land and | ||
islands and to fill areas for wharves, piers, docks, dry docks, | ||
marine ways and for all other structures and appliances for | ||
facilitating and accommodating commerce and navigation, having | ||
first secured a permit from the Government of the United States of | ||
America as required by Federal law [ |
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cause or authorize to be constructed on said wharves, piers, docks, | ||
dry docks, marine ways and other structures and appliances for | ||
facilitating and accommodating commerce and navigation, or on lands | ||
so filled in, any and all elevators, warehouses, bunkers, railway | ||
terminals and sidetracks, or any other facilities or aids | ||
whatsoever to navigation or commerce. Said lands shall be used by | ||
the authority, or its successors, solely for the establishment, | ||
improvement and conduct of a [ |
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the construction, maintenance and operation [ |
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facilities or aids whatsoever related to the same, and the | ||
authority, or its successors, shall not at any time, grant, convey, | ||
give or alien said lands or any part thereof, to any individual, | ||
firm or corporation for any purpose whatsoever; provided, that the | ||
authority, or its successors, may grant franchises thereon for | ||
limited periods of time for wharves, and other public uses and | ||
purposes, and may lease said lands and facilities or any part | ||
thereof for limited periods for purposes consistent with this | ||
chapter, but no wharves, piers or structures of any kind shall be | ||
constructed on said lands by anyone save the authority, except | ||
under a franchise or lease granted by the authority and in a manner | ||
first prescribed by and approved of by the authority or its | ||
successors. | ||
(c) For the purpose of carrying out the provisions of this | ||
section, the authority, or its successors, is hereby granted the | ||
right, power and authority to abate and remove any and all | ||
encroachments or structures of any kind now or hereafter existing | ||
on said property, save such as may have been constructed under | ||
permit from the [ |
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Federal authority, and shall have the right to bring such suit or | ||
suits as may be necessary to carry out the provisions of this | ||
section to the same extent and as fully and completely as the right | ||
to bring such a suit or suits existed in the State prior to the | ||
passage hereof. | ||
SECTION 3. The heading to Section 5007.006, Special | ||
District Local Laws Code, is amended to read as follows: | ||
Sec. 5007.006. REVENUE OBLIGATIONS; CERTAIN POWERS; FEES | ||
AND CHARGES; FACILITIES [ |
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REFUNDING BONDS; CERTAIN BOND PROVISIONS. | ||
SECTION 4. Sections 5007.006(d), (e), (g), (j), (m), and | ||
(r), Special District Local Laws Code, are amended to read as | ||
follows: | ||
(d) Such obligations shall not constitute an indebtedness | ||
or pledge of the credit of the authority, and the holders thereof | ||
shall never have the right to demand payment thereof out of any | ||
funds raised or to be raised by taxation, and such obligations shall | ||
contain a recital to that effect. All obligations issued hereunder | ||
shall be in registered or coupon form, and if in coupon form may be | ||
registerable as to principal only, or as to both principal and | ||
interest, shall bear interest at a rate not to exceed the amount | ||
allowed by law, payable annually or semiannually, and shall be in | ||
such denominations and shall mature serially or at one time not more | ||
than forty (40) years from their date in such manner as may be | ||
provided by the port commission. Principal of and interest on such | ||
obligations shall be made payable at any place or places within or | ||
without the State of Texas, and in the discretion of the port | ||
commission such obligations may be made callable and/or refundable | ||
at the option of the port commission prior to maturity at such | ||
premium or premiums as the port commission shall determine. Such | ||
obligations shall be signed by the manual or facsimile signatures | ||
of the chair of the port commission [ |
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director [ |
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proceedings authorizing said obligations, and the interest coupons | ||
attached thereto may also be executed by the facsimile signatures | ||
of such officers. Such obligations shall be sold in such manner and | ||
at such times as the port commission shall determine to be expedient | ||
and necessary to the interests of the authority, provided, that in | ||
no event shall such obligations be sold for a price which will | ||
result in an interest yield therefrom of more than the amount | ||
allowed by law computed to maturity according to standard bond | ||
tables in general use by banks and insurance companies. Any premium | ||
or premiums provided for the call or refunding of any bonds issued | ||
pursuant to this Section shall not be included in the computation of | ||
the maximum interest yield on such bonds. In the event of the | ||
officers whose signatures are on such obligations or coupons shall | ||
cease to be such officers before the delivery of such obligations to | ||
the purchaser, such signature or signatures, nevertheless, shall be | ||
valid and sufficient for all purposes. All obligations issued | ||
hereunder shall constitute negotiable instruments under Chapter 3, | ||
Business & Commerce Code. | ||
(e) Any obligations issued hereunder may be issued payable | ||
from and secured by the pledge of all the revenues derived from the | ||
operation of the improvements and facilities of the authority, | ||
exclusive of any revenues derived from taxation or assessments, or | ||
may be payable from and secured by the pledge of only such revenues | ||
as may be derived from the operation of the improvements and | ||
facilities acquired or improved with the proceeds of the sale of | ||
such obligations, or may be payable from and secured by the pledge | ||
of a specified part of the revenues derived from the operation of | ||
the improvements and facilities of the authority, all as may be | ||
provided in the proceedings authorizing the issuance of such | ||
obligations. | ||
(g) The authority may adopt plans for the construction or | ||
refinancing of a facility [ |
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for by the issuance and sale of obligations payable from and secured | ||
by a pledge of revenues to be derived from the operation of the | ||
facility [ |
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indenture, or by a deed of trust on the physical properties of such | ||
improvement; and during the time any such improvement is encumbered | ||
by the pledge of such revenues and the lien upon its physical | ||
properties, in the proceedings authorizing the bonds or the | ||
indenture, may vest its management and control in a Board of | ||
Trustees, to be named in such resolution or indenture, consisting | ||
of not less than five (5) nor more than nine (9) members. The | ||
compensation of the members of such Board of Trustees shall be fixed | ||
by such resolution or indenture, but shall never exceed one percent | ||
(1%) of the gross receipts of such improvement in any one (1) year. | ||
The terms of office of the members of such Board of Trustees, their | ||
powers and duties, including the power to fix fees and charges for | ||
the use of such improvements, and the manner of exercising same, the | ||
manner of the selection of their successors, and all matters | ||
pertaining to their duties and the organization of such Board of | ||
Trustees shall be specified in such resolution or indenture. Any | ||
such Board of Trustees may adopt bylaws regulating the procedure of | ||
the Board and fixing the duties of its officers, but the bylaws | ||
shall not contain any provision in conflict with the covenants and | ||
provisions contained in the resolution authorizing the bonds or the | ||
indenture. In all matters wherein the resolution or indenture are | ||
silent as to the powers, duties, obligations and procedure of the | ||
Board, the laws and rules governing the port commission shall | ||
control the Board of Trustees in so far as applicable. The Board | ||
may be created by the resolution or indenture, and in that event | ||
shall have all or any of the powers and authority which could be | ||
exercised by the port commission in so far as the management and | ||
operation of any such improvement is concerned. By the terms of any | ||
such resolution or indenture the port commission may make provision | ||
for later supplementing such resolution or indenture so as to vest | ||
the management and control of the facility [ |
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a Board of Trustees having the powers, rights and duties herein | ||
conferred or imposed. | ||
(j) As additional security for the payment of any | ||
obligations issued hereunder, the port commission may in its | ||
discretion have executed in favor of the holders of such | ||
obligations an indenture or deed of trust mortgaging and | ||
encumbering all or any part of the physical properties comprising | ||
the improvements and facilities the net revenues of which are | ||
pledged to the payment of such obligations, including the lands | ||
upon which said improvements and facilities are located, and may | ||
provide in such mortgage or encumbrance for a grant to any purchaser | ||
or purchasers at foreclosure sale thereunder of a franchise or | ||
lease to operate such improvements, facilities and properties for a | ||
term of not over fifty (50) years from the date of such purchase, | ||
subject to all laws regulating same then in force. Any such | ||
indenture or deed of trust may contain such terms and provisions as | ||
the port commission shall deem proper and shall be enforceable in | ||
the manner provided by the laws of Texas for the enforcement of | ||
other mortgages and encumbrances. Under any such sale ordered | ||
pursuant to the provisions of such mortgage or encumbrance, the | ||
purchaser or purchasers at such sale, and the purchaser's or | ||
purchasers' [ |
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with a permit or franchise conforming to the provisions stipulated | ||
in the indenture or deed of trust to maintain and operate the | ||
improvements, facilities and properties purchased at such sale with | ||
like powers and privileges as may theretofore have been enjoyed by | ||
the authority in the operation of said improvements, facilities and | ||
properties. The purchaser or purchasers of such improvements, | ||
facilities and properties at any such sale, and the purchaser's | ||
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improvements, facilities and properties as provided in the last | ||
above sentence or may at their option remove all or any part or | ||
parts of said improvements, facilities and properties for diversion | ||
to other purposes. The provisions of [ |
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chapter that relates [ |
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or execution of mortgages and encumbrances or the granting of | ||
franchises or leases shall not be applicable to the authorization | ||
or execution of any mortgage or encumbrance entered into pursuant | ||
to the provisions of this chapter, nor to the granting of any | ||
franchise or lease hereunder. Any obligations issued pursuant to | ||
the provisions of this chapter and additionally secured by an | ||
indenture or deed of trust as provided by this subsection, whether | ||
such obligations are notes or certificates of indebtedness or | ||
otherwise, and the record relating to their issuance, may, at the | ||
option of the port commission, be submitted to the Attorney General | ||
of Texas for the attorney general's [ |
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as in the case of bonds, and after the Attorney General has approved | ||
the same, such obligations shall be registered by the Comptroller | ||
of Public Accounts of Texas; and after such obligations have been | ||
approved by the Attorney General and registered by the Comptroller, | ||
they shall thereafter be incontestable for any cause except for | ||
forgery or fraud. | ||
(m) The authority, in addition to the other powers | ||
hereinabove set out, shall have general power and authority to make | ||
and enter into all contracts, leases and agreements necessary or | ||
convenient to the carrying out of any of the powers granted in this | ||
chapter, which contracts, leases or agreements may be entered into | ||
with any person, real or artificial, any corporation, municipal, | ||
public or private, and the government or governmental agency, | ||
including those of the United States and the State of Texas. Except | ||
as provided by Chapter 60, Water Code, any [ |
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leases or agreements entered into pursuant hereto shall be approved | ||
by action [ |
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executed by the chair of the port commission [ |
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attested by the executive director [ |
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(r) This Section, without reference to other Statutes of the | ||
State of Texas, shall constitute full authority for the | ||
authorization and issuance of obligations hereunder and for the | ||
accomplishment of all things herein authorized to be done, and no | ||
proceedings relating to the authorization or issuance of such | ||
obligations or the doing of such things shall be necessary except | ||
such as are herein required, and no [ |
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Texas[ |
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the operation and maintenance of ports, canals and waterways, the | ||
granting of franchise, permits, or leases, the right to elections | ||
or referendum petitions, shall in anywise impede or restrict the | ||
carrying out of the acts authorized to be done hereunder or acts | ||
done pursuant hereto. | ||
SECTION 5. Sections 5007.007(a-1), (n), (o), (p), and (q), | ||
Special District Local Laws Code, are amended to read as follows: | ||
(a-1) The authority is empowered and authorized to | ||
exercise, in addition to all powers conferred by this section, all | ||
powers conferred upon the authority by the law or laws under which | ||
it was organized, and, in addition, shall have all of the powers and | ||
jurisdiction conferred upon Districts originally organized under | ||
Article XVI, Section 59, of the Constitution of the State of Texas, | ||
including [ |
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Water Code, and Sections 60.034 through 60.042, 61.075, 61.076, | ||
61.082, 61.112, 61.115 through 61.117, 61.151 through 61.168, | ||
61.172 through 61.174, and 61.176, Water Code, as amended, and | ||
Articles 8248, 8249, 8250, 8251, 8252, 8253, 8254, 8255, 8256, | ||
8257, and 8258, Revised Civil Statutes of Texas, 1925, as amended, | ||
as well as Chapter 6, Acts, 1941, Forty-seventh Legislature, Page | ||
8, as amended; Chapter 176, Acts, 1955, Fifty-fourth Legislature, | ||
Page 554; Chapter 217, Acts, 1949, Fifty-first Legislature, Page | ||
407; provided, that if there is any conflict or inconsistency | ||
between said laws or any of them, and this chapter, then to the | ||
extent of conflict or inconsistency, the provisions of this chapter | ||
shall govern. | ||
(n) The port commission shall provide all necessary | ||
additional books for the use of the tax assessor-collector | ||
[ |
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Commissioners Court of Harris County, Texas. The tax | ||
assessor-collector [ |
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charged with the assessment of all property for taxation within the | ||
authority and when ordered to do so by the Commissioners Court of | ||
Harris County shall assess all property within the authority and | ||
list the same for taxation in the books or rolls furnished the tax | ||
assessor-collector [ |
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or rolls at the same time when the tax assessor-collector [ |
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returns the other books or rolls of the State and County Taxes for | ||
correction and approval to the Commissioners Court of said County, | ||
and if said Court shall find said books or rolls correct they shall | ||
approve the same, and in all matters pertaining to the assessment of | ||
property for taxation in the authority, the tax assessor-collector | ||
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of said County shall be authorized to act and shall be governed by | ||
the laws of Texas for assessing and equalizing property for State | ||
and County Taxes, except as herein provided. All taxes authorized | ||
to be levied by this chapter shall be a lien upon the property upon | ||
which said taxes are assessed, and said taxes may be paid and shall | ||
mature and be paid at the time provided by the laws of this State for | ||
the payment of State and County Taxes; and all the penalties | ||
provided by the laws of this State for the nonpayment of State and | ||
County Taxes shall apply to all taxes authorized to be levied by | ||
this chapter. The tax assessor-collector [ |
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County shall be charged with the assessment rolls of the authority, | ||
and is required to make collection of all taxes levied and assessed | ||
against the property in said County and promptly pay over the same | ||
to the Treasurer of the authority. The tax assessor-collector [ |
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provided by law [ |
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bond of the tax assessor-collector [ |
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stand as security for the proper performance of the [ |
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the tax assessor-collector [ |
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authority; or, if in the judgment of the port commission it be | ||
necessary, an additional bond payable to the authority may be | ||
required, and in all matters pertaining to the collection of taxes | ||
levied under the provisions of this chapter, the tax | ||
assessor-collector [ |
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shall be governed by the laws of the State of Texas for the | ||
collection of State and County Taxes, except as herein provided; | ||
and suits may be brought for the collection of said taxes and the | ||
enforcement of the tax liens created by this chapter. It shall be | ||
the duty of the tax assessor-collector [ |
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certified list of all delinquent property upon which the navigation | ||
tax has not been paid, and return the same to the County | ||
Commissioners Court, which shall proceed to have the same collected | ||
by the sale of such delinquent property in the same manner, both by | ||
suit and otherwise, as now or may be provided for the sale of | ||
property for the collection of State and County Taxes; and, at the | ||
sale of any property for any delinquent tax, the port commission may | ||
become the purchasers of the same for the benefit of the authority. | ||
Should the tax assessor-collector [ |
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fail or refuse to comply with the order of said Commissioners Court | ||
requiring the tax assessor-collector [ |
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taxation all the property in the authority, or fail or refuse to | ||
give such additional bond or security as herein provided, the tax | ||
assessor-collector [ |
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of the tax assessor-collector's [ |
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Court of said County, and the tax assessor-collector [ |
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removed from office in the mode prescribed by law for the removal of | ||
county officers. | ||
(o) The County Treasurer of Harris County shall be treasurer | ||
of the authority, and [ |
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all moneys received by the treasurer [ |
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authority and all amounts paid out by the treasurer [ |
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treasurer [ |
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depository or depositories as may be designated by the port | ||
commission in the manner provided by law [ |
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commission fail or refuse to select a depository such depository | ||
shall be selected in like manner by the Commissioners Court. The | ||
treasurer [ |
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money except upon the conditions provided for in this chapter and | ||
under other law[ |
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orders for the payment of money; and, as often as required by the | ||
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them of all matters pertaining to the financial condition of the | ||
authority. The treasurer [ |
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and sufficient bond, payable to the [ |
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amount to be fixed by the port commission, such bond to be | ||
conditioned for the faithful performance of the [ |
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commission; provided whenever any bonds are issued by the | ||
authority, [ |
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sale thereof the treasurer shall execute additional good and | ||
sufficient bond payable to the port commission in an amount to be | ||
fixed by the port commission, which bond shall likewise be | ||
conditioned and approved as aforesaid, but such additional bond | ||
shall not be required after such Treasurer shall have properly | ||
disbursed the proceeds of such bond issue; and the treasurer | ||
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services performed as treasurer of the authority as may be | ||
determined by the port commission[ |
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(p) The authority shall acquire, purchase, lease, maintain, | ||
repair and operate facilities and equipment for preventing, | ||
detecting, controlling, responding to, and fighting fires, | ||
explosions, and hazardous material incidents on or adjacent to the | ||
waterways, channels and turning basins within its jurisdiction, | ||
including the Houston Ship Channel, and for the protection of life | ||
and property from damage by fire, [ |
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material incidents. The authority shall promulgate and enforce | ||
ordinances, rules and regulations for the promotion of the safety | ||
of life and property on or adjacent to the waterways, channels and | ||
turning basins within its jurisdiction, including the Houston Ship | ||
Channel, from damages by fire, explosion, and hazardous material | ||
incidents [ |
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Subchapter D, Chapter 60, Water Code. The powers and functions | ||
herein authorized may be exercised both within and without the | ||
corporate limits of any city, town or village situated within the | ||
boundaries of the authority. This chapter shall be cumulative of | ||
all other laws on the subject but in the event of conflict between | ||
this chapter and any law of this state or any charter provision or | ||
ordinance of any such city, town or village relating to the subject | ||
matter of this chapter, the provisions of this chapter shall | ||
control. | ||
(q) The authority is authorized to acquire, purchase, | ||
construct, enlarge, extend, repair, maintain, operate, or develop | ||
traffic control facilities and everything appurtenant thereto, | ||
together with all other facilities or aids incident to or useful in | ||
the operation or development of the [ |
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waterways within the authority's jurisdiction, including the | ||
Houston Ship Channel, or in aid of navigation and commerce thereon. | ||
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SECTION 6. Section 5007.010, Special District Local Laws | ||
Code, is amended to read as follows: | ||
Sec. 5007.010. NAME AND TITLE CHANGES. (a) Effective | ||
August 30, 1971, the [ |
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Channel Navigation District of Harris County, Texas, is changed to | ||
the Port of Houston Authority of Harris County, Texas. | ||
(b) Effective August 30, 1971, the [ |
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of Navigation and the Canal Commissioners of the authority is | ||
changed to the port commission, and the title of each member is port | ||
commissioner. | ||
(c) Effective August 30, 1971, the [ |
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manager of the authority is changed to executive director. | ||
SECTION 7. Subchapter B, Chapter 5007, Special District | ||
Local Laws Code, is amended by adding Section 5007.2065 to read as | ||
follows: | ||
Sec. 5007.2065. SERVICE ON FREIGHT RAIL DISTRICT BOARD. | ||
The chair of the port commission may designate an officer or | ||
employee of the authority to serve on behalf of the chair as a | ||
director of a freight rail district created under Section 171.052, | ||
Transportation Code. | ||
SECTION 8. Section 5007.218, Special District Local Laws | ||
Code, is amended to read as follows: | ||
Sec. 5007.218. EXPENSE POLICY. The port commission shall | ||
adopt an expense policy that includes: | ||
(1) spending guidelines for meals, lodging, and | ||
entertainment, including a process for handling and documenting | ||
exceptions to the guidelines if business needs require an | ||
exception; | ||
(2) clear expense report protocols, including: | ||
(A) the use of cash advances; | ||
(B) the separation of reports from port | ||
commissioners and authority employees; and | ||
(C) clear lines of accountability for the | ||
submission of reports; and | ||
(3) a prohibition on the use of authority funds for a | ||
meal for a port commissioner or an authority employee that is not | ||
part of: | ||
(A) approved travel for authority business; | ||
(B) [ |
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function with outside parties; | ||
(C) an employee training program; or | ||
(D) an event with the purpose of employee | ||
recognition, seasonal celebration, or building morale. | ||
SECTION 9. 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, 2017. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1864 passed the Senate on | ||
May 4, 2017, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1864 passed the House on | ||
May 19, 2017, by the following vote: Yeas 144, Nays 0, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |