Bill Text: TX SB1864 | 2017-2018 | 85th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Comm_Sub.html

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By: Taylor of Galveston S.B. No. 1864
(In the Senate - Filed March 10, 2017; March 23, 2017, read
first time and referred to Committee on Transportation;
April 24, 2017, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 24, 2017,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1864 By: Rodríguez

A BILL TO BE ENTITLED
AN ACT
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 [and extending to the Gulf of Mexico], as
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 [therefor], and to construct, or
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 [an] harbor and ship channel and for
the construction, maintenance and operation [thereon] of any
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 [United States War Department, or other] proper
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 [GRAIN ELEVATORS]; TAXATION EXEMPTION;
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 [Chairman] and the executive
director [of the port commission] as may be provided in the
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 [grain elevator or elevators], to be paid
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 [said grain elevator] and further secured by a trust
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 [such grain elevator] in
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' [his or their] successors or assigns, shall be vested
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
[his or their] successors and assigns, may operate said
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 [Sections 61.164, 61.165, and
61.168, Water Code, and Chapter 134, Acts 1935, 44th Legislature,
Regular Session, as amended, and] any statute not included in this
chapter that relates [other Statutes relating] to the authorization
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 [his] examination and approval,
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 [Any and all] contracts,
leases or agreements entered into pursuant hereto shall be approved
by action [resolution or order] of the port commission, and shall be
executed by the chair of the port commission [Chairman] and
attested by the executive director [thereof].
(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 [neither the Bond and Warrant
Law of 1931 or any other] provisions of the Laws of the State of
Texas[,] pertinent to the authorization or issuance of obligations,
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 [and particularly] Subchapters B, H, and K, Chapter 60,
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
[Assessor and Collector of taxes] and the Clerk of the
Commissioners Court of Harris County, Texas. The tax
assessor-collector [Tax Assessor] of [said] Harris County shall be
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 [him] for said purposes, and return said books
or rolls at the same time when the tax assessor-collector [he]
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
[Tax Assessor] and appraisal review board [Board of Equalization]
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 [Tax Collector] of Harris
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 [Tax
Assessor-Collector] shall receive compensation for [such] services
[such compensation as the port commission and said Commissioners
Court shall agree upon;] and such compensation shall be paid as
provided by law [to the Officers' Salary Fund of the County]. The
bond of the tax assessor-collector [such Assessor-Collector] shall
stand as security for the proper performance of the [his] duties of
the tax assessor-collector [as Tax Assessor-Collector] of the
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 [Tax Collector] shall be authorized to act and
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 [Tax Collector] to make a
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 [said Tax Assessor and Collector]
fail or refuse to comply with the order of said Commissioners Court
requiring the tax assessor-collector [him] to assess and list for
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 [he] shall be suspended from further discharge
of the tax assessor-collector's [his] duties by the Commissioners
Court of said County, and the tax assessor-collector [he] shall be
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 [it] shall [be his duty to] open an account of
all moneys received by the treasurer [him] belonging to the
authority and all amounts paid out by the treasurer [him]. The
treasurer [He] shall deposit the funds of the authority in such
depository or depositories as may be designated by the port
commission in the manner provided by law [for the selection of a
county depository, and such depository so selected shall be the
depository of the authority for a period of two (2) years and until
its successor is selected and qualified]. Should the port
commission fail or refuse to select a depository such depository
shall be selected in like manner by the Commissioners Court. The
treasurer [The depository of the authority on April 29, 1957, shall
continue to be the depository of the authority until its successor
is selected and qualified as herein provided. He] shall pay out no
money except upon the conditions provided for in this chapter and
under other law[,] and [he] shall carefully preserve on file all
orders for the payment of money; and, as often as required by the
[said] Commissioners Court, [he] shall render a correct account to
them of all matters pertaining to the financial condition of the
authority. The treasurer [County Treasurer] shall execute a good
and sufficient bond, payable to the [port commissioners and to
their successors in office for the benefit of the] authority in an
amount to be fixed by the port commission, such bond to be
conditioned for the faithful performance of the [his] duties of the
[as] treasurer of the authority and to be approved by the port
commission; provided whenever any bonds are issued by the
authority, [the County Treasurer] before receiving the proceeds of
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
[County Treasurer] shall be allowed such compensation for [his]
services performed as treasurer of the authority as may be
determined by the port commission[, and such compensation shall be
paid to the Officers' Salary Fund of the County].
(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, [and] explosion, and hazardous
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 [and explosion thereon] in the manner provided by
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 [authority's] ports and
waterways within the authority's jurisdiction, including the
Houston Ship Channel, or in aid of navigation and commerce thereon.
[The traffic control facilities shall be financed out of available
revenue and shall not utilize bond revenue funds.]
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 [The] name of the Harris County Houston Ship
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 [The] name of the Board
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 [The] title of general
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) [or part of] a ceremonial or business-related
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.
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