83R16190 SLB-F
By: Bonnen of Brazoria H.B. No. 1642
Substitute the following for H.B. No. 1642:
By: Clardy C.S.H.B. No. 1642
A BILL TO BE ENTITLED
AN ACT
relating to the Port of Houston Authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 5, Special District Local Laws
Code, is amended by adding Chapter 5007 to read as follows:
CHAPTER 5007. PORT OF HOUSTON AUTHORITY OF HARRIS COUNTY, TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 5007.001. DEFINITIONS. In this chapter:
(1) "Authority" means the Port of Houston Authority of
Harris County, Texas.
(2) "Executive director" means the executive director
of the authority.
(3) "Port commission" means the navigation and canal
commission of the authority.
(4) "Port commissioner" means a member of the port
commission.
SECTION 2. Sections 1 and 7, Chapter 97, Acts of the 40th
Legislature, 1st Called Session, 1927, are transferred to
Subchapter A, Chapter 5007, Special District Local Laws Code, as
added by this Act, redesignated as Sections 5007.002 and 5007.003,
Special District Local Laws Code, and amended to read as follows:
Sec. 5007.002 [1]. CREATION OF DISTRICT; VALIDATION;
TERRITORY. (a) That 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 [such District], and to construct and maintain canals or
waterways to permit [of] navigation or in aid thereof and for the
purpose of and authority to acquire, purchase, undertake, construct
[contruct], maintain, operate, develop, and regulate wharves,
docks, warehouses, grain elevators, bunkering facilities, belt
railroads, floating plants, lighterage, lands, towing facilities,
and all other facilities or aids incident to or necessary to the
operation or development of ports or waterways within the authority
[said District] and extending to the Gulf of Mexico, as provided in
Subchapters E, F, and G, Chapter 61, Water Code [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 District and the
authorization and issuance of the bonds of said District and
particularly an issue of One Million Five Hundred Thousand
($1,500,000.00) Dollars of bonds voted at an election under date of
December 4, 1926, be and the same are hereby in all things ratified,
confirmed, and validated].
(b) The authority [said Harris County Houston Ship Channel
Navigation District of Harris County, Texas,] herenow created and
established after consideration of the benefits to the property
therein located, is described by metes and bounds as follows,
to-wit:-
Beginning at the entrance to Clear Creek into Galveston Bay;
thence running up said creek with the line of Galveston and Brazoria
Counties to a point on S. G. Haynie's survey 372 varas S. 62 degrees
32 minutes E. from its west line; thence N. 62 degrees 32 minutes W.
12 miles 318 varas to the head of Brays Bayou; thence N. 56 degrees
30 minutes W. 15 miles 1455 1/2 varas to the old crossing of Buffalo
Bayou; thence with the line of Waller County in a straight line to
the head of creek; thence down the same with its meanders to the San
Jacinto River; thence N. 50 degrees east to the western line of
Liberty County; thence with said line to the head of Cedar Bayou;
thence down said bayou to its mouth; thence following the boundary
line of Harris County to the mouth of Clear Creek, the place of
beginning.
Sec. 5007.003 [7]. AUTHORITY TO ISSUE BONDS. The authority
[Harris County Houston Ship Channel Navigation District of Harris
County, Texas,] is authorized and empowered to issue in direct
conformity with the Constitution and the laws of this State as and
when necessary such bonds as may be voted from time to time by the
[requisite two-thirds majority of the resident property tax paying]
voters voting at any election when called and conducted in direct
conformity with the Constitution and laws of Texas and to issue and
sell the same subject to such provisions of the Constitution and
laws of this State as may be in effect at the time, and subject to
the approval of the Attorney General.
SECTION 3. Sections 1 through 8, Chapter 292, Acts of the
40th Legislature, Regular Session, 1927, are transferred to
Subchapter A, Chapter 5007, Special District Local Laws Code, as
added by this Act, redesignated as Sections 5007.004 and 5007.005,
Special District Local Laws Code, and amended to read as follows:
Sec. 5007.004 [1]. GRANT OF TITLE TO CERTAIN ISLANDS AND
OTHER LAND; RELATED POWERS AND DUTIES; RIPARIAN LANDOWNERS;
RESERVATION OF CERTAIN STATE RIGHTS AND POWERS. (a) That all
right, title and interest of the State of Texas, to all lands
hereinafter in this section described, to wit:
All islands and lands owned by the State of Texas, many of
which are subject to overflow, known as Barnes Island, Alexander
Island, Goat Island, Diamond Island and Hog Island in San Jacinto
River above Lynchburg [Lunchburg], and certain accretions formed by
dredged material excavated from the channel and forming land
attached to or near said Alexander Island, Hog Island between Goose
Creek and Morgan Point, Atkinson Island, and all the submerged
lands lying and being situated under the waters of Buffalo Bayou,
San Jacinto River, White Oak Bayou, Bray's Bayou, Simms Bayou,
Vinces Bayou, Hunting Bayou, Greens Bayou, Carpenters Bayou, Old
River, Lost River, Goose Creek and Cedar Bayou, and all other
streams within the authority [Harris County Navigation District]
tributary to the Houston Ship Channel, so far up said streams as the
State may own same, together with all lands lying and being situated
under the waters of Old River, Burnett's Bay, Crystal Lake, Scott's
Bay, Peggy's Lake, Black Duck Bay, Tabbs Bay and San Jacinto Bay,
and all other tidal flats or overflow land adjacent to or
appurtenant to the above mentioned streams within the limits above
mentioned except Mitchell's Bay and any area between said bay and
the Houston Ship Channel, as now or hereafter located, is hereby
granted to the authority [Harris County Houston Ship Channel
Navigation District], or its successors, for public purposes and
for the development of commerce only, in accordance with the
following provisions and stipulations herein contained; provided
that inasmuch as it is the purpose of this section [Act] to grant
said lands to the public agency which is developing the Port of
Houston, upon the creation by legislation of other public agency
which shall supersede the authority [said navigation district] as
the public agency developing the Port of Houston, the title to said
lands shall be transferred from the authority [navigation district]
to such public agency, either municipal or State, so provided, such
public agency being referred to herein as the successors
[sucessors] of the authority [navigation district].
(b) [Sec. 2.] The authority [navigation district], 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 [accomodating] 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
[accomodating] commerce and navigation, having first secured a
permit from the Government of the United States of America
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
[accomodating] 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
[navigation district], or its successors, solely for the
establishment, improvement and conduct of an harbor and for the
construction, maintenance and operation thereon of any facilities
or aids whatsoever to the same, and the authority [said navigation
district], 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 [said navigation district], 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 or any part
thereof for limited periods for purposes consistent with this
chapter [Act], but no wharves, piers or structures of any kind shall
be constructed on said lands by anyone save the authority
[navigation district], except under a franchise granted by the
authority [said navigation district] and in a manner first
prescribed by and approved of by the authority [said navigation
district] or its successors.
(c) [Sec. 3.] For the purpose of carrying out the
provisions of this section [Act], the authority [navigation
district], 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 [Act] 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.
(d) [Sec. 4.] The purposes and provisions of this section
[Act], and the grants, rights and privileges, thereunder to the
authority [Harris County Houston Ship Channel Navigation
District], shall not affect, curtail or abridge the rights or
privileges of riparian owners of lands abutting upon the islands
and lands subject to overflow, and lands lying under the streams,
bays and lakes herein described or referred to, as the same existed
under the Common Law or the Constitution or Statutes of Texas as of
June 14, 1927 [at the time this Act shall become in force and
effect], or to deprive riparian land owners of access to such
streams, channels or waters.
(e) [Sec. 5.] The State of Texas, may at any time, place the
operation of the [said] facilities under Subsection (b) under the
supervision of the Railroad Commission of Texas, to insure
reasonable wharfage and storage charges.
(f) [Sec. 6.] The right is hereby expressly reserved by the
State of Texas to erect on the lands herein conveyed such wharves,
piers and buildings for State purposes as may hereafter be
authorized by law.
(g) [Sec. 7.] All mines and mineral rights, including oil
and gas in and under said lands, together with the right to enter
there on for the purpose of development, and the granting of permits
to excavate sand, shell or marl and to collect the tax on same, are
hereby expressly reserved to the State of Texas; provided necessary
or proper access to the lands hereby ceded, together with all
improvements heretofore made, or to be made, under any mineral
leases issued by the State in connection with mineral rights herein
reserved are made a condition of this grant, and are covenants
running with the ceded lands; provided further, that leases
hereafter made by the State, or operations thereunder in connection
with reserved mineral rights shall not interfere with the
improvements made, or to be made in the development of the ship
channel by the authority [said navigation district], or franchise
holders thereunder.
Sec. 5007.005 [8]. RIGHTS OF WAY; EASEMENTS. Nothing in
this chapter [Act] shall prohibit the authority [Navigation
District] or its successors from granting to the United States of
America such rights-of-way or easements as may be required by it for
the construction of channels, basins, dumping grounds, or other
allied purposes in connection with any work voluntarily undertaken
by the Federal Government, or at the request of the authority
[navigation district] or its successors.
SECTION 4. Sections 1, 2, 3, 4, and 5A, Chapter 117, Acts of
the 55th Legislature, Regular Session, 1957, are transferred to
Subchapter A, Chapter 5007, Special District Local Laws Code, as
added by this Act, redesignated as Sections 5007.006, 5007.007,
5007.008, 5007.009, and 5007.010, Special District Local Laws Code,
and amended to read as follows:
Sec. 5007.006 [1]. REVENUE OBLIGATIONS; CERTAIN POWERS;
FEES AND CHARGES; GRAIN ELEVATORS; TAXATION EXEMPTION; REFUNDING
BONDS; CERTAIN BOND PROVISIONS. (a) The authority [Harris County
Houston Ship Channel Navigation District of Harris County, Texas],
in addition to all other powers conferred by law, is hereby given
authority and shall hereafter have power in the manner hereinafter
provided to acquire, purchase, construct, enlarge, extend, repair,
maintain, operate, or develop channels and turning basins, wharves,
docks, warehouses, grain elevators, bunkering facilities,
railroads, floating plants[,] and facilities, lightering
facilities and towing facilities, bulk handling 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 [District's] ports and waterways or in aid of
navigation and commerce thereon.
(b) The port commission [Board of Navigation and Canal
Commissioners of said District] may covenant to and shall prescribe
fees and charges to be collected for the use of those improvements
and facilities of the authority [District] (the net revenues of
which improvements and facilities are pledged, as hereinafter
provided), which fees and charges shall be reasonable and equitable
and fully sufficient to produce revenues adequate to pay, and said
port commission [Board of Navigation and Canal Commissioners] shall
cause to be paid:
(1) All expenses necessary to the operation,
replacement and maintenance of said improvements and facilities.
Such operating and maintenance expenses payable from current
revenues shall include the cost of the acquisitions of properties
and materials necessary to repair, replace and maintain said
improvements and facilities in good condition and operate them
efficiently, wages and salaries paid to the employees of the
authority [District] in that connection, and such other expenses as
may be necessary to the efficient operation of said improvements
and facilities.
(2) The annual or semiannual interest upon any
obligations issued hereunder and payable out of the revenues of
said improvements and facilities.
(3) The amount required to be paid annually into the
sinking fund for the payment of any obligations issued hereunder
and payable out of the revenues of said improvements and
facilities.
(4) The amount or amounts required to be paid in
reserve funds or other funds as may be provided for in the
proceedings authorizing such obligations, to secure the payment of
the obligations issued pursuant to the provisions hereof.
(b-1) Revenues which may be received in excess of those
required for the purposes listed in the above Subsection (b)
[subparagraphs (1), (2), (3), and (4),] may be used by the port
commission [Board of Navigation and Canal Commissioners] to pay the
cost of any other authority [District] improvements or for any
other lawful purpose.
(c) The port commission [Board of Navigation and Canal
Commissioners of said District] may borrow money from any
department or agency of the United States, or from any other source,
and in evidence thereof issue the notes, warrants, certificates of
indebtedness, negotiable bonds, or other forms of obligation of the
authority [such District] (heretofore and hereafter referred to as
"obligations") payable solely out of the revenues to be derived
from said improvements and facilities for any or all of the purposes
set forth in Subsection (a) [Section 1(a) of this Act].
(d) Such obligations shall not constitute an indebtedness
or pledge of the credit of the authority [such District], 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 [six per cent (6%) per annum],
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 [Board of Navigation and Canal
Commissioners]. 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 [Board
of Navigation and Canal Commissioners] such obligations may be made
callable and/or refundable at the option of the port commission
[said Board] prior to maturity at such premium or premiums as the
port commission [Board] shall determine. Such obligations shall be
signed by the manual or facsimile signatures of the Chairman and
executive director [Secretary] of the port commission [Board of
Navigation and Canal Commissioners] 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 [Board of Navigation and Canal
Commissioners] shall determine to be expedient and necessary to the
interests of the authority [District], 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 [six
percent (6%)] 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 [1] 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 [within the
meaning of the Negotiable Instruments Law of the State of Texas].
(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
[District], 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 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
[District], all as may be provided in the proceedings authorizing
the issuance of such obligations.
(f) In the resolution or order adopted by the port
commission [Board of Navigation and Canal Commissioners]
authorizing the issuance of any obligations hereunder, the port
commission [said Board] may provide for the flow of funds, the
establishment and maintenance of the interest and sinking fund,
reserve, and other funds, and may provide for such additional
covenants with respect to the obligations and the pledged revenues
and the operation, maintenance, and upkeep of those improvements
and facilities (the income of which is pledged), including
provision for the leasing of all or part of said improvements and
facilities and the use or pledge of moneys derived from leases
thereon, as it may deem appropriate. Said resolution or order may
also prohibit the further issuance of obligations payable from the
pledged net revenues, or may reserve the right to issue additional
bonds to be secured by a pledge of and payable from said net
revenues on a parity with, or subordinate to, the lien and pledge in
support of the obligations being issued, subject to such conditions
as are set forth in said resolution or order. Such resolution may
contain a provision appropriating out of the bond proceeds an
amount sufficient to pay the interest which will accrue on such
obligations during the period of construction of the improvements
and facilities covered by such obligations. Such resolution or
order may contain other provisions and covenants, as in the opinion
of the port commission [said Board] may be necessary or desirable to
insure marketability of the obligations, provided that such
provisions and covenants are not prohibited by the Constitution of
Texas or by this chapter [Act]; and the port commission [Board] may
adopt and cause to be executed any other proceedings or instruments
necessary and/or convenient in the issuance of said obligations.
(g) The authority [Said District] may adopt plans for the
construction or refinancing of a 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
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 [governing body of
such District] 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
[governing body of the District] 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 [governing board
of any such District] may make provision for later supplementing
such resolution or indenture so as to vest the management and
control of such grain elevator in a Board of Trustees having the
powers, rights and duties herein conferred or imposed.
(h) Any resolution or order authorizing the issuance of
obligations hereunder may provide that the revenues from which such
obligations are to be paid and which are pledged to the payment of
such obligations shall from month to month as the same shall accrue
and be received, be set apart and placed in the interest and sinking
fund, reserve fund, and other funds established in said resolution
or order, and disbursed in the manner hereinabove provided.
(i) Any holder of obligations issued hereunder or of coupons
originally attached thereto, may either at law or in equity, by
suit, action, mandamus or other proceeding, enforce and compel
performance of all duties required by this chapter [Act] to be
performed by the port commission [Board of Navigation and Canal
Commissioners], including the making and collection of reasonable
and sufficient fees or charges for the use of the improvements and
facilities of the authority [District], the segregation of the
income and revenues of such improvements and facilities, and the
application of such income and revenues pursuant to the provisions
of this chapter [Act].
(j) As additional security for the payment of any
obligations issued hereunder, the port commission [Board of
Navigation and Canal Commissioners] 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 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 [Board
of Navigation and Canal Commissioners] 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 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 [District] in the operation of said improvements,
facilities and properties. The purchaser or purchasers of such
improvements, facilities and properties at any such sale, and 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 [Articles 8240, 8241, 8243, Revised Civil Statutes,
1925], and Chapter 134, Acts 1935, 44th Legislature, Regular
Session, as amended, and any 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 [Act], nor to the
granting of any franchise hereunder. Any obligations issued
pursuant to the provisions of this chapter [Act] and additionally
secured by an indenture or deed of trust as provided by this
subsection [Section 1(j)], 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 [Board
of Navigation and Canal Commissioners], be submitted to the
Attorney General of Texas for 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.
(k) The proceeds of the sale of any obligations issued
hereunder may be deposited in such bank or banks as may be agreed
upon between the purchaser at such sale and the port commission
[Board of Navigation and Canal Commissioners], and may be deposited
and paid out pursuant to such terms and conditions as may be so
agreed upon, it being expressly provided that the Statutes of Texas
pertaining to the deposit of [Navigation District] funds in the
depository of the authority [such District] shall not be applicable
to the deposit of the proceeds of such sale.
(l) The port commission [Board of Navigation and Canal
Commissioners] is authorized to enter into an agreement or
agreements with the purchaser or purchasers of any obligations
issued hereunder under the terms of which the port commission [such
Board] shall agree to keep all of the improvements and facilities,
the revenues of which are pledged to the payment of such
obligations, insured with insurers of good standing against loss or
damage by fire, water or flood, and also from any other hazards
customarily insured against by private companies operating similar
properties, and to carry with insurers of good standing such
insurance covering the use and occupancy of such property as is
customarily carried by such private companies. The cost of such
insurance shall be budgeted as maintenance and operation expense
and such insurance shall be carried for the benefit of the holders
of such obligations.
(m) The authority [Said District], 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 [Act], 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. Any and all contracts, leases or agreements
entered into pursuant hereto shall be approved by resolution or
order of the port commission [Board of Navigation and Canal
Commissioners of such District], and shall be executed by the
Chairman and attested by the executive director [Secretary]
thereof.
(n) Any obligations issued pursuant to the provisions of
this section [Act] shall be exempt from taxation by the State of
Texas or by any municipal corporation, county, or other political
subdivision or taxing district of the State.
(o) The port commission [Board of Navigation and Canal
Commissioners] shall have the power to issue obligations of the
authority [District] for the purpose of refunding any outstanding
obligations payable out of the revenues of the authority [District]
and accrued interest thereon. Such refunding obligations may be
issued to refund more than one series of issues of outstanding
obligations and combine the pledges for the outstanding obligations
for the security of the refunding obligations, and such refunding
obligations may be secured by other and additional revenues,
provided that such refunding will not impair the contract rights of
the holders of any of the outstanding obligations which are not to
be refunded.
(o-1) Such refunding obligations shall be authorized, shall
be executed, and shall mature as is provided herein for original
obligations, and shall bear interest at the same or lower rate than
that of the obligations refunded unless it is shown mathematically
that a saving will result in the total amount of interest to be
paid. Refunding bonds issued hereunder shall be approved by the
Attorney General of Texas as in the case of other bonds issued
hereunder, and shall be registered by the Comptroller of Public
Accounts upon surrender and cancellation of the bonds to be
refunded, but in lieu thereof, the resolution or order authorizing
their issuance may provide that they shall be sold and the proceeds
thereof deposited in the place or places where the original bonds
are payable, in which case the refunding bonds may be issued in an
amount sufficient to pay the interest on the original bonds to their
option or maturity date, and the Comptroller shall register them
without the surrender and cancellation of the original bonds. The
port commission [Board of Navigation and Canal Commissioners] may
combine refunding bonds and new bonds in one issue, in which event
the provisions of this subsection and Subsection [Section] (o)
shall apply to those bonds of the combined issue which are
designated in the resolution or order as the refunding bonds.
(p) After any bonds have been authorized by the authority
[District] hereunder, such bonds and the record relating to their
issuance shall be submitted to the Attorney General of Texas for his
examination as to the validity thereof, and after the Attorney
General has approved the same, such bonds shall be registered by the
Comptroller of Public Accounts of Texas. After such bonds 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.
(q) All bonds issued hereunder shall be and are hereby
declared to be, and to have all the qualifications of, negotiable
instruments under Chapter 3, Business & Commerce Code [the
Negotiable Instruments Law of the State of Texas], and all such
bonds shall be and are hereby declared to be legal and authorized
investments for banks, savings banks, trust companies, building and
loan associations, insurance companies, fiduciaries, trustees,
guardians, for State funds and retirement system funds (without
limiting the generalization of the foregoing, including the
Permanent School Fund of Texas, and funds of retirement systems
created under the Constitution and laws of the State of Texas), and
for the sinking funds of cities, towns, villages, counties, school
districts, or other governmental agencies, political corporations
or subdivisions of the State of Texas. Such bonds shall be eligible
to secure the deposit of any and all public funds of the State of
Texas, and any and all public funds of cities, towns, villages,
counties, school districts, or other governmental agencies,
political corporations or subdivisions of the State of Texas; and
such bonds shall be lawful and sufficient security for said
deposits to the extent of their face value when accompanied by all
unmatured coupons appurtenant thereto.
(r) This Section [1], 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 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.
Sec. 5007.007 [2]. CONVERSION OF AUTHORITY [DISTRICT] AND
TAX SUPPORTED OBLIGATIONS; CERTAIN POWERS AND DUTIES; ELECTIONS;
REFUNDING BONDS; MAINTENANCE TAX; ASSESSMENT OF TAXES. (a)
Effective and operative January 1, 1958, the authority [Port of
Houston Authority of Harris County, Texas,] is hereby converted to
a navigation district operating under the provisions of Section 59
of Article XVI, Constitution of Texas, and after that [said] date
the authority [said Authority] will operate under Section 59 of
Article XVI [and this Section 2 of this Act; provided, that neither
said Constitutional Provision nor this Section 2 shall apply to
said Authority until said effective date].
(a-1) The authority is [Said Authority will thereafter be]
empowered and authorized to exercise, in addition to all powers
conferred by this section [Act], all powers conferred upon the
authority [said 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,
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 90, Acts, 1945, Forty-ninth Legislature, Regular Session,
Page 130, as amended;] 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 [Act], then to the extent of conflict or inconsistency, the
provisions of this chapter [Act] shall govern.
(a-2) If the authority [Authority] makes a contract under
which another entity performs for the authority [Authority] any
work in which the authority [Authority] may engage under
[Subsection (a) of] Section 5007.006(a) [1 of this Act], the
authority [Authority] may require that a minimum of 25 percent of
the work be performed by the contractor and, notwithstanding any
other law to the contrary, may establish financial criteria for the
surety companies that provide payment and performance bonds.
[The Port Commission of said Authority shall be a seven (7)
commissioner board. Two (2) Port Commissioners shall be appointed
by a majority of the city council of the City of Houston, and two (2)
Port Commissioners shall be appointed by a majority of the Harris
County Commissioners Court. One (1) Port Commissioner shall be
appointed by a majority of the governing bodies of municipalities
located adjacent to the Houston Ship Channel that have a population
of 100,000 or more but less than 1,000,000 according to the most
recent federal census. One (1) Port Commissioner shall be
appointed by a majority of the Harris County Mayors' and Councils'
Association. The Port Commissioner appointed by the Harris County
Mayors' and Councils' Association must be a resident of a
municipality in Harris County that is located adjacent to the
Houston Ship Channel and has a population of less than 100,000
according to the most recent federal census. The chairman of the
commission shall be appointed by the city council of the City of
Houston and the Harris County Commissioners Court. The city
council and the commissioners court shall each have five votes in
the selection of the chairman of the commission. A majority of each
governing body shall determine how the votes for that body will be
cast. Except as specifically provided by this section, the Port
Commissioners shall continue to be selected and shall hold office
as provided by Sections 61.159 through 61.160, Water Code. Any act
or thing authorized to be done by said Port Commission by provisions
of this Act or by provision of any of the aforementioned laws and
legislative acts may be done and performed by the General Manager of
said Authority (or other person authorized to act in his place and
stead) when so authorized by general or special rule, regulation,
order, resolution or other direction of the Port Commission. The
Navigation Board of said Authority is hereby defined and shall be
composed of the County Judge and County Commissioners of Harris
County, Texas, the Mayor and Council members of the City of Houston,
Texas, and the members of the Harris County Mayors' and Councils'
Association.]
(b) If the port commission [Navigation and Canal
Commissioners of said District] shall from time to time determine
to make further construction or improvements by the issuance of tax
bonds or that additional tax bond funds are required with which to
maintain the existing improvements, they shall certify to the
Commissioners Court of Harris County the necessity for an
additional bond issue or issues stating the amount required, the
purposes of the same, the maximum rate of interest of said bonds,
and the time for which they are to run. A certified copy of an order
or resolution adopted by the port commission [Board of Navigation
and Canal Commissioners], setting forth such information, shall
constitute sufficient certification in this regard. The
Commissioners Court at a regular or special meeting, shall order an
election to vote on the proposition of the issuance of bonds and the
levy of taxes as hereinafter provided. Said order shall specify the
maximum amount of bonds to be issued, their maximum maturity date,
and the maximum rate of interest. The ballots for such election
shall contain words substantially as follows: "For the issuance of
bonds and levy of tax in payment thereof"; "Against the issuance of
bonds and levy of tax in payment thereof"; and said ballot shall
conform to the requirements of the provisions of the Constitution
of Texas[, Chapter 9 of Title 128, Revised Civil Statutes, 1925,]
and all other Statutes of Texas applicable thereto. Any and all
limitations, statutory or otherwise, restricting the amount of
bonds that may be issued by the authority [District] are hereby
removed.
(c) When any election is held under this chapter [Act],
notice thereof shall be given for not less than thirty (30) days
prior thereto, stating the time, places of holding the same, the
proposition or propositions to be voted upon, and the purposes
thereof, and shall contain a substantial copy of the election
order. Such notices shall be posted by the County Clerk in five (5)
public places in said County, one (1) of which shall be at the
Courthouse door, and four (4) of which shall be posted within the
limits of the authority [said Navigation District]. No other
notice of election shall be necessary. The authority [This
District], being presently a county-wide district, and so long as
it remains such, the regular voting or election precincts
established by the Commissioners Court for county-wide elections
shall be the voting or election precincts for all such bond
elections.
(d) [Only duly qualified resident electors of said District
who own taxable property within said District and who have duly
rendered the same for taxation shall be entitled to vote at said
elections. Every person who offers to vote in any such election who
is not known by the election officials to possess said
qualifications shall take the following oath before the Presiding
Judge of the polling place where he offers to vote, and the
Presiding Judge is authorized to administer the same: "I do
solemnly swear (or affirm) that I am a duly qualified resident
elector of Harris County Houston Ship Channel Navigation District
of Harris County, Texas, and that I own taxable property in said
District which has been duly rendered for taxation, and that I have
not voted before at this election."
[(e)] The Commissioners Court shall canvass the returns of
said election, and if a majority of those voting at the election
vote in favor of the issuance of the bonds and the levy of the tax in
payment thereof, then the Commissioners Court shall authorize the
issuance of such bonds and levy taxes to pay the interest on and
principal of such bonds, as hereinafter provided. In canvassing
such returns and declaring the result of any such election, a simple
resolution or order of said Commissioners Court shall be
satisfactory.
(e) [(f)] Bonds so authorized at an election may be issued
in one or more installments, and when the port commission [Board of
Navigation and Canal Commissioners] shall have determined the
amount of bonds to be issued in a particular series or issue, the
port commission [said Board] shall adopt a resolution or order
setting forth the amount of bonds then to be issued, and a certified
copy of such resolution or order shall be furnished the
Commissioners Court. Thereupon, said Commissioners Court, at a
regular or special meeting, shall adopt an order authorizing and
directing the issuance of bonds for the authority [such District]
in the amount so certified.
(f) [(g)] All tax bonds of the authority [District] shall be
issued in the name of the authority [District], shall be signed by
the County Judge and attested by the County Clerk, and shall have
the seal of the Commissioners Court impressed thereon; provided,
that the order authorizing the issuance of such bonds may provide
for the bonds to be signed by the facsimile signatures of said
County Judge and County Clerk, either or both, and for the seal on
the bonds to be a printed facsimile seal of the Commissioners Court;
and provided further that the interest coupons attached to said
bonds may also be executed by the facsimile signatures of said
officers. The County Treasurer shall register such bonds and shall
keep a record thereof, and evidence of such registration may be
shown on the bonds by the manual or facsimile signature of said
County Treasurer. Such bonds shall be issued in such
denominations, shall be payable at such time or times not exceeding
forty (40) years from their date or dates, and shall bear interest
at a rate or rates not to exceed the amount allowed by law [six
percent (6%) per annum], all as may be determined by said
Commissioners Court.
(g) [(h)] The port commission [Board of Navigation and
Canal Commissioners] shall sell such bonds for the best price
possible and in no event for less than their face value and accrued
interest thereon. Such bonds may be sold either prior to,
simultaneous with, or after the adoption of the order by the
Commissioners Court authorizing the issuance of such bonds; and if
such bonds are sold either prior to or simultaneous with the
adoption of said order by the Commissioners Court, then such order
shall contain a provision confirming the sale of such bonds. All
moneys received from the sale of such bonds shall be deposited with
the County Treasurer to the credit of the authority [District], and
shall be expended only for the bond purpose and incidental expenses
in connection therewith. No additional bond shall be required of
the County Treasurer or of any officer or official of the authority
[District] for the handling of the bond proceeds.
(h) [(i)] All such bonds, and the record of proceedings
pertaining thereto, shall be submitted to the Attorney General of
Texas for his examination as to the validity thereof, and after the
Attorney General has approved the same, such bonds shall be
registered by the Comptroller of Public Accounts of Texas. When
such bonds have been approved by the Attorney General, registered
by the Comptroller, and delivered to the purchasers, they shall
thereafter be incontestable for any cause except for forgery or
fraud.
(i) [(j)] When bonds have been issued, the Commissioners
Court shall levy and cause to be assessed and collected taxes
annually sufficient to pay the interest on such bonds, to provide a
sinking fund to redeem said bonds as they mature, and to pay the
cost of collection of such taxes.
(j) [(k)] The Commissioners Court shall have the power to
issue bonds to refund outstanding bonds of the authority [District]
and accrued interest thereon, and the provisions of this Section
[2] relating to the issuance of voted bonds shall apply to the
issuance of refunding bonds, except that no election therefor shall
be necessary. Refunding bonds shall bear interest at the same or
lower rate than the bonds to be refunded unless it is shown
mathematically that a saving will result in the total amount of
interest to be paid. Such bonds shall be approved by the Attorney
General as in the case of original bonds, and shall be registered by
the Comptroller upon surrender and cancellation of the bonds to be
refunded, but in lieu thereof, the order authorizing their issuance
may provide that they shall be sold and the proceeds thereof
deposited in the place or places where the bonds to be refunded are
payable, in which case the refunding bonds may be issued in an
amount sufficient to pay the principal of the bonds to be refunded
and the interest on such bonds to their option or maturity date, and
the Comptroller shall register them without the surrender and
cancellation of the bonds to be refunded. All refunding bonds,
after they have been approved by the Attorney General and
registered by the Comptroller, shall be incontestable for any cause
except for forgery or fraud.
(k) [(l)] The Commissioners Court may, upon the request of
the port commission [Board of Navigation and Canal Commissioners],
invest the sinking fund created for the benefit of any bonds issued
hereunder, in such county, municipal, district, or other bonds
required by law to be approved by the Attorney General of Texas.
(l) [(m)] The Commissioners Court shall be authorized to
levy and cause to be assessed and collected for the maintenance,
operation and upkeep of the authority [said District] and the
facilities, properties, and improvements of the authority [said
District], whether heretofore or hereafter constructed or acquired
and whether constructed or acquired under the provisions of this
chapter [Act] or otherwise, an annual tax not to exceed ten cents
(10¢) on each One Hundred Dollars ($100) valuation of taxable
property within the authority [such District]; provided that the
levying of such tax shall be first submitted to the qualified
taxpaying voters of the authority [said District] called and held
as herein provided for bond elections and the proposition shall be
adopted by a majority vote of those voting at the election.
(m) The Commissioners Court shall at the time of levy of
taxes for County purposes each year levy and cause to be assessed
and collected said maintenance tax within such voted limit of ten
cents (10¢) as has been determined by the port commission [Board of
Navigation and Canal Commissioners].
(n) The port commission [Board of Navigation and Canal
Commissioners of said District] shall provide all necessary
additional books for the use of the Assessor and Collector of taxes
and the Clerk of the Commissioners Court of Harris County, Texas.
The Tax Assessor of said Harris County shall be charged with the
assessment of all property for taxation within the authority [said
District] and when ordered to do so by the Commissioners Court of
Harris County shall assess all property within the authority [said
Navigation District] and list the same for taxation in the books or
rolls furnished him for said purposes, and return said books or
rolls at the same time when 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 [said District], the Tax Assessor and 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 [Act] 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 [Act]. The Tax Collector of Harris County
shall be charged with the assessment rolls of the authority [said
Navigation District], 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
[District]. The Tax Assessor-Collector shall receive for such
services such compensation as the port commission [Navigation and
Canal Commissioners of said District] and said Commissioners Court
shall agree upon; and such compensation shall be paid to the
Officers' Salary Fund of the County. The bond of such
Assessor-Collector shall stand as security for the proper
performance of his duties as Tax Assessor-Collector of the
authority [such District]; or, if in the judgment of the port
commission [Navigation and Canal Commissioners of such District] it
be necessary, an additional bond payable to the authority [such
District] may be required, and in all matters pertaining to the
collection of taxes levied under the provisions of this chapter
[Act], the 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 [Act]. It shall be the duty of the
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 [Navigation and Canal Commissioners] may become the
purchasers of the same for the benefit of the authority [Navigation
District]. Should said Tax Assessor and Collector fail or refuse to
comply with the order of said Commissioners Court requiring him to
assess and list for taxation all the property in the authority [such
Navigation District], or fail or refuse to give such additional
bond or security as herein provided, he shall be suspended from
further discharge of his duties by the Commissioners Court of said
County, and 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 [said Navigation District], and it shall be his
duty to open an account of all moneys received by him belonging to
the authority [such District] and all amounts paid out by him. He
shall deposit the funds of the authority [said District] in such
depository or depositories as may be designated by the port
commission [Navigation and Canal Commissioners] 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
[said district] for a period of two (2) years and until its
successor is selected and qualified. Should the port commission
[Navigation and Canal Commissioners] fail or refuse to select a
depository such depository shall be selected in like manner by the
Commissioners Court. The depository of the authority on April 29,
1957, [said district at the effective date of this Act] shall
continue to be the depository of the authority [district] 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 [Act], 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
[district]. The County Treasurer shall execute a good and
sufficient bond, payable to the port commissioners [Navigation and
Canal Commissioners of such district] and to their successors in
office for the benefit of the authority [said district] in an amount
to be fixed by the port commission [Navigation and Canal
Commissioners], such bond to be conditioned for the faithful
performance of his duties as treasurer of the authority [such
district] and to be approved by the port commission [said
Navigation and Canal Commissioners]; provided whenever any bonds
are issued by the authority [such navigation district] the County
Treasurer before receiving the proceeds of sale thereof shall
execute additional good and sufficient bond payable to the port
commission [Navigation and Canal Commissioners of said district] in
an amount to be fixed by the port commission [Navigation and Canal
Commissioners], 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 County Treasurer shall be
allowed such compensation for his services as treasurer of the
authority [such navigation district] as may be determined by the
port commission [said Navigation and Canal Commissioners], and such
compensation shall be paid to the Officers' Salary Fund of the
County.
(p) The authority [Harris County Houston Ship Channel
Navigation District of Harris County, Texas,] shall acquire,
purchase, lease, maintain, repair and operate facilities and
equipment for preventing, detecting, controlling and fighting
fires on or adjacent to the waterways, channels and turning basins
within its jurisdiction and for the protection of life and property
from damage by fire and explosion. The authority [District] 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 from
damages by fire and explosion thereon in the manner provided by
Subchapter D, Chapter 60, Water Code [Chapter 486, Acts of the 57th
Legislature, Regular Session, 1961, as amended]. 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 [District]. This chapter
[Act] shall be cumulative of all other laws on the subject but in
the event of conflict between this chapter [Act] 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 [Act], the
provisions of this chapter [Act] shall control.
(q) The authority [Harris County Houston Ship Channel
Navigation District of Harris County, Texas,] 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 [district's] ports and waterways 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.
Sec. 5007.008 [3]. REFUNDING OF BONDS HERETOFORE VOTED.
The Commissioners Court shall have the power to issue bonds of the
authority [District] to refund bonds of the authority [District]
which have heretofore been voted and which are outstanding at the
time of the adoption of the refunding bond order, and no election
therefor shall be necessary. Such refunding bonds shall mature
serially or otherwise in not to exceed forty (40) years from their
date, and shall bear interest at the same or lower rate than the
bonds to be refunded unless it is shown mathematically that a saving
will result in the total amount of interest to be paid. Such
refunding bonds shall be approved by the Attorney General of Texas,
and shall be registered by the Comptroller of Public Accounts of
Texas upon surrender and cancellation of the bonds to be refunded,
but in lieu thereof, the order authorizing their issuance may
provide that they shall be sold and the proceeds thereof deposited
in the place or places where the bonds to be refunded are payable,
in which case the refunding bonds may be issued in an amount
sufficient to pay the principal of the bonds to be refunded and the
interest on such bonds to their option or maturity date, and the
Comptroller shall register them without the surrender and
cancellation of the bonds to be refunded. All such refunding bonds,
after they have been approved by the Attorney General and
registered by the Comptroller, shall be incontestable for any cause
except for forgery or fraud.
Sec. 5007.009 [4]. CONSTRUCTION OF CHAPTER [ACT]. This
chapter [Act] shall be cumulative of other laws, and shall be
liberally construed to effectuate the purposes set forth herein.
It is hereby found and declared that all property in the authority
[District], both real and personal, is benefited by the authority
[District] and by the improvements and facilities constructed or
acquired under this chapter [Act]. It is expressly provided that
nothing in this chapter [Act] shall be construed to amend, repeal,
or affect the laws relating to pilots, pilotage, their appointment,
or their remuneration.
Sec. 5007.010 [5A]. NAME AND TITLE CHANGES. (a) 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) 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) The title of general manager of the authority is changed
to executive director.
SECTION 5. Chapter 5007, Special District Local Laws Code,
as added by this Act, is amended by adding Subchapter B to read as
follows:
SUBCHAPTER B. ADMINISTRATION AND PLANNING
Sec. 5007.201. CONFLICT OF LAWS. To the extent of a
conflict between this subchapter and any other law, including
Subchapter A, this subchapter prevails.
Sec. 5007.202. PROVISIONS NOT APPLICABLE TO AUTHORITY.
Chapter 90, Acts of the 49th Legislature, Regular Session, 1945,
and Chapter 211, Acts of the 54th Legislature, Regular Session,
1955, do not apply to the authority.
Sec. 5007.203. SUNSET REVIEW. (a) The authority is subject
to review under Chapter 325, Government Code (Texas Sunset Act), as
if it were a state agency but may not be abolished under that
chapter. The review shall be conducted as if the authority were
scheduled to be abolished September 1, 2017.
(b) The review must assess the authority's governance,
management, and operating structure, and the authority's
compliance with legislative requirements.
(c) The authority shall pay the cost incurred by the Sunset
Advisory Commission in performing a review of the authority under
this section. The Sunset Advisory Commission shall determine the
cost, and the authority shall pay the amount promptly on receipt of
a statement from the Sunset Advisory Commission detailing the cost.
(d) This section expires September 1, 2019.
Sec. 5007.204. GOVERNING BODY; APPOINTMENT; TERMS;
VACANCY. (a) The authority is governed by a port commission of
seven port commissioners appointed as follows:
(1) two port commissioners appointed by a majority of
the city council of the City of Houston;
(2) two port commissioners appointed by a majority of
the Harris County Commissioners Court;
(3) one port commissioner appointed by the city
council of the City of Pasadena, who must reside in the city of
Pasadena;
(4) one port commissioner appointed by a majority of
the Harris County Mayors' and Councils' Association, who must be a
resident of a municipality in Harris County that is located
adjacent to the Houston Ship Channel and has a population of less
than 100,000; and
(5) the chair of the port commission, appointed as
described by Section 5007.205.
(b) Sections 61.159(a) and (d) and 61.160, Water Code, apply
to the authority.
(c) The port commissioners serve staggered two-year terms
that expire on February 1.
(d) A person is not eligible for appointment to the port
commission if the person has previously served the equivalent of 12
full years on the port commission.
(e) Of the two port commissioners each appointed under
Subsections (a)(1) and (2), one serves a term expiring in an
even-numbered year and one serves a term expiring in an
odd-numbered year. The port commissioner appointed under
Subsection (a)(3) serves a term expiring in an odd-numbered year.
The port commissioner appointed under Subsection (a)(4) serves a
term expiring in an even-numbered year.
(f) Not later than the 30th day after the date on which a
term expires or on which a vacancy begins, the appointing entity
must appoint a new port commissioner. If the appointing entity
fails to make the appointment before the 30th day, the office is
considered an open position and the person serving in that position
is ineligible for reappointment to fill the position, and:
(1) if the appointing entity is the city council of the
City of Houston, the city council of the City of Pasadena, or the
Harris County Mayors' and Councils' Association, the Harris County
Commissioners Court shall appoint a port commissioner to fill the
position; or
(2) if the appointing entity is the Harris County
Commissioners Court, the city council of the City of Houston shall
appoint a port commissioner to fill the position.
(g) If a second appointing entity under Subsection (f)(1) or
(2) fails to make an appointment after the 60th day after the date
on which the term expires or the vacancy begins:
(1) the office is considered an open position and the
person serving in that position is ineligible for reappointment to
fill the position; and
(2) the governor shall appoint a port commissioner to
fill the position with the advice and consent of the senate.
(h) If a vacancy occurs through death, resignation, or other
reason, the vacancy shall be filled in the manner provided for
making the original appointment and in accordance with Subsections
(f) and (g).
(i) The governor may appoint a port commissioner under
Subsection (g) only if the appointing entity under Subsection (f)
fails to make an appointment within the period described by this
section, and any subsequent appointment must be made by the
appropriate appointing entity.
Sec. 5007.205. APPOINTMENT OF CHAIR; TERM. (a) The City of
Houston mayor and city council and the Harris County Commissioners
Court shall jointly appoint the chair of the port commission in
January of odd-numbered years. The term of the chair expires on
February 1 of each odd-numbered year.
(b) If the mayor, city council, and commissioners court do
not make an appointment within the period specified by this
section, the governor shall appoint the chair of the port
commission with the advice and consent of the senate. The governor
may appoint the chair only if the original appointing entities fail
to make an appointment within the period described by this section,
and any subsequent appointment must be made by the appointing
entities.
(c) The person appointed as the chair of the port commission
must comply with the qualifications described by Section 61.160,
Water Code.
(d) On the second Monday of January in each odd-numbered
year, the City of Houston mayor and city council, the Harris County
commissioners, and the Harris County judge shall hold a joint
meeting to appoint the chair of the port commission at the
headquarters of the authority.
(e) In the meeting held under Subsection (d):
(1) each city council member and the mayor shall have
one vote; and
(2) each county commissioner and the county judge
shall have the mixed-fraction number of votes equal to the sum of
the number of city council members plus the mayor divided by the sum
of the number of county commissioners plus the county judge.
(f) The presence of individuals with a majority of the total
potential votes is required to establish a quorum at the meeting. A
separate quorum from each group, representing the city and the
county, is not required. The chair must be appointed by at least a
majority of the total potential votes, in any combination.
(g) In the event of a tie, the city council, mayor, county
commissioners, and county judge have three calendar days to
deliberate, convene a meeting, and revote. The period may be
extended to allow for compliance with Chapter 551, Government Code,
as it applies to the notice requirement for an open meeting. If a
second vote results in a tie:
(1) the office of the chair of the port commission is
considered an open position and the person serving as the chair is
not eligible for reappointment to fill the position; and
(2) the governor shall appoint the chair as provided
by Subsection (b).
Sec. 5007.206. NAVIGATION BOARD. The navigation board of
the authority is composed of the county judge and county
commissioners of Harris County, the mayor and city council members
of the City of Houston, and the members of the Harris County Mayors'
and Councils' Association.
Sec. 5007.207. CONFLICT OF INTEREST. (a) In this section,
"Texas trade association" means a cooperative and voluntarily
joined statewide association of business or professional
competitors in this state designed to assist its members and its
industry or profession in dealing with mutual business or
professional problems and in promoting their common interest.
(b) A person may not be a port commissioner and may not be an
authority employee employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used
for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.), if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in a field relating to
maritime commerce; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in a field relating to
maritime commerce.
(c) A person may not be a port commissioner or act as the
general counsel to the port commission or the authority if the
person is required to register as a lobbyist under Chapter 305,
Government Code, because of the person's activities for
compensation on behalf of a profession related to the operation of
the authority.
(d) A person may not be a port commissioner if the person or
the person's spouse:
(1) is employed by or participates in the management
of a business entity or other organization regulated by or
receiving money from the authority; or
(2) uses or receives a substantial amount of tangible
goods, services, or money from the authority other than
compensation or reimbursement authorized by law for port commission
membership, attendance, or expenses.
Sec. 5007.208. FILING OF FINANCIAL STATEMENT BY PORT
COMMISSIONERS. (a) A port commissioner shall file the financial
statement required of state officers under Subchapter B, Chapter
572, Government Code, with:
(1) the authority; and
(2) the Texas Ethics Commission.
(b) Subchapter B, Chapter 572, Government Code:
(1) applies to a port commissioner subject to this
section as if the port commissioner were a state officer; and
(2) governs the contents of, timeliness of filing,
public inspection of, and civil and criminal penalties relating to
a statement filed under this section.
Sec. 5007.209. PORT COMMISSIONER TRAINING. (a) A person
who is appointed to and qualifies for office as a port commissioner
may not vote, deliberate, or be counted as a port commissioner in
attendance at a meeting of the port commission until the person
completes a training program that complies with this section.
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the authority;
(2) the programs, functions, policies, rules, and
budget of the authority;
(3) the results of the most recent formal audit of the
authority;
(4) the duties of the port commission as the board of
pilot commissioners for Harris County ports under Chapter 66,
Transportation Code;
(5) the requirements of laws relating to open
meetings, public information, administrative procedure, financial
disclosure, and conflicts of interest; and
(6) any applicable ethics policies adopted by the port
commission or the Texas Ethics Commission.
(c) A person appointed to the port commission is entitled to
reimbursement for the travel expenses incurred in attending the
training program regardless of whether the attendance at the
program occurs before or after the person qualifies for office.
Sec. 5007.210. REMOVAL FROM OFFICE. (a) It is a ground for
removal from the port commission that a port commissioner:
(1) does not have at the time of taking office the
qualifications required by Section 5007.204;
(2) does not maintain during service on the port
commission the qualifications required by Section 5007.204;
(3) is ineligible for membership under Section
5007.207;
(4) cannot, because of illness or disability,
discharge the port commissioner's duties for a substantial part of
the port commissioner's term;
(5) commits malfeasance in office; or
(6) is absent from more than half of the regularly
scheduled port commission meetings that the port commissioner is
eligible to attend during a calendar year without an excuse
approved by a majority vote of the port commission.
(b) The validity of an action of the port commission is not
affected by the fact that it is taken when a ground for removal of a
port commissioner exists.
(c) If the executive director has knowledge that a potential
ground for removal exists, the executive director shall notify the
chair of the port commission of the potential ground. The chair
shall then notify the entity that appointed the port commissioner
that a potential ground for removal exists. If the potential ground
for removal involves the chair, the executive director shall notify
the next highest ranking officer of the port commission, who shall
then notify the entities who appointed the chair that a potential
ground for removal exists.
Sec. 5007.211. PORT COMMISSION POLICIES. (a) The port
commission shall adopt detailed policies that document its
governance practices and make those policies available on the
authority's website.
(b) The port commission shall develop and implement
policies that clearly separate the policymaking responsibilities
of the port commission and the management responsibilities of the
executive director and the other employees of the authority.
(c) The port commission shall distribute a copy of all
policies adopted under this subchapter to each port commissioner
and authority employee not later than the third business day after
the date the person begins employment or a term as port
commissioner.
Sec. 5007.212. EXECUTIVE DIRECTOR. (a) The port commission
shall appoint an executive director of the authority for a term not
to exceed two years. The port commission shall prescribe the duties
and compensation of the executive director. The port commission may
delegate to the executive director full authority to manage and
operate the affairs of the authority subject only to orders of the
port commission.
(b) The port commission shall delegate to the executive
director the authority to employ all persons necessary for the
proper handling of the business and operation of the authority and
to determine the compensation to be paid to all employees, other
than the executive director or the chief audit executive employed
under Section 5007.226(c).
(c) The executive director shall execute a bond for $10,000
conditioned on the faithful performance of the executive director's
duties and other conditions as required by the authority. The bond
must be recorded in a record kept for that purpose in the
authority's office.
(d) The port commission by general or special rule,
regulation, order, resolution, or other direction may authorize the
executive director or another person authorized to act instead of
the executive director to perform any act on behalf of the port
commission.
Sec. 5007.213. STANDARDS OF CONDUCT; ETHICS POLICY. (a) A
port commissioner or an authority employee should not:
(1) accept or solicit any gift, favor, or service that
might reasonably tend to influence the port commissioner or
employee in the discharge of official duties or that the port
commissioner or employee knows or should know is being offered with
the intent to influence the port commissioner's or employee's
official conduct;
(2) accept other employment or engage in a business or
professional activity that the port commissioner or employee might
reasonably expect would require or induce the port commissioner or
employee to disclose confidential information acquired by reason of
the official position;
(3) accept other employment or compensation that could
reasonably be expected to impair the port commissioner's or
employee's independence of judgment in the performance of the port
commissioner's or employee's official duties;
(4) make personal investments that could reasonably be
expected to create a substantial conflict between the port
commissioner's or employee's private interest and the public
interest; or
(5) intentionally or knowingly solicit, accept, or
agree to accept any benefit for having exercised the port
commissioner's or employee's official powers or performed the port
commissioner's or employee's official duties in favor of another.
(b) The port commission shall adopt a written ethics policy
for the port commissioners and authority employees consistent with
the standards prescribed by Subsection (a).
Sec. 5007.214. ETHICS AFFIRMATION AND HOTLINE. (a) A port
commissioner or an authority employee shall annually affirm the
port commissioner's or employee's adherence to the ethics policy
adopted under Section 5007.213.
(b) The port commission shall establish and operate a
telephone hotline that enables a person to call the hotline number,
anonymously or not anonymously, to report alleged fraud, waste, or
abuse or an alleged violation of the ethics policy adopted under
Section 5007.213.
Sec. 5007.215. COMPLAINTS. (a) The authority shall
maintain a system to promptly and efficiently act on complaints
filed with the authority. The authority shall maintain information
about parties to the complaint, the subject matter of the
complaint, a summary of the results of the review or investigation
of the complaint, and its disposition.
(b) The authority shall make information available to the
public, including on the authority's website, describing its
procedures for complaint investigation and resolution.
(c) The authority shall periodically notify the complaint
parties of the status of the complaint until final disposition.
(d) The authority shall develop a standard form and a
procedure for submitting complaints to the authority and shall make
that form and procedure available on the authority's website. The
authority shall also make available on its website clear
information about what a person making a complaint should expect
after the complaint is filed, including timeliness for response and
resolution.
(e) The authority shall compile detailed statistics and
analyze trends on complaint information, including:
(1) the nature of the complaints;
(2) the disposition of the complaints; and
(3) the length of time to resolve complaints.
(f) Authority staff shall report the information compiled
under Subsection (e) to senior management as designated by the
executive director and the port commission on a regular basis.
Sec. 5007.216. PUBLIC INVOLVEMENT POLICY. The port
commission shall develop and implement a policy that provides a
structure for public involvement. The policy must include:
(1) a clear and detailed description of how the
authority will seek to actively engage stakeholders;
(2) specific actions the authority will take to meet
or exceed the requirements of laws related to open meetings; and
(3) strategies that include use of the authority's
website to make available clear, updated information on issues of
public concern.
Sec. 5007.217. WHISTLEBLOWER POLICY. The port commission
shall adopt a whistleblower policy consistent with Chapter 554,
Government Code.
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 approved travel for authority business or part of a
business-related function with outside parties.
Sec. 5007.219. PROMOTION AND DEVELOPMENT FUND. (a) In this
section, "promotion and development fund" means a fund created and
managed under Subchapter H, Chapter 60, Water Code.
(b) The port commission shall adopt clear, complete policy
and procedures to govern the use of the promotion and development
fund. The policy and procedures must include:
(1) provisions limiting acceptable uses of promotion
and development fund money to uses with a direct tie to the mission
of the authority;
(2) a consistent budget process;
(3) a process for requesting sponsorship funds by port
commissioners, authority employees, and outside groups;
(4) an approval process for each type of expenditure
from the promotion and development fund, including:
(A) the level of approval or notification
required for authority employees, applicable task forces, and the
port commission; and
(B) a requirement that each approved expenditure
must include a description of:
(i) the expected impact of the expenditure;
and
(ii) how the expenditure is consistent with
the strategic direction for promotion and development fund money as
adopted by the port commission;
(5) a procedure for handling exceptions to the policy,
including a requirement that an exception be subject to the same
reporting requirements as other approved expenditures from the
promotion and development fund;
(6) a provision for evaluating the policy's
effectiveness and having the port commission adopt updates to the
policy as needed at regularly scheduled public meetings; and
(7) requirements for regular tracking of all
expenditures from the promotion and development fund and reporting
of the expenditures to the port commission and to the public by
making the reports available on the authority's website.
(c) A report described by Subsection (b)(7) must include
detailed information about:
(1) travel by port commissioners;
(2) special uses of the authority's resources,
including the use of any public tour vessels and the associated
costs, sorted by authority division;
(3) sponsorship and similar spending; and
(4) total expenditures from the promotion and
development fund, including year-to-date summary information by
category of expenditure.
Sec. 5007.220. PLANNING DEFINITIONS. For the purposes of
Sections 5007.221, 5007.222, 5007.224, and 5007.225:
(1) "Long-range plan" means the plan developed under
Section 5007.221.
(2) "Mid-range plan" means the plan developed under
Section 5007.222.
(3) "One-year capital plan" means the plan developed
under Section 5007.224.
(4) "Staff" means one or more authority employees and
does not include a port commissioner.
Sec. 5007.221. LONG-RANGE PLANNING. (a) Appropriate staff
shall develop a long-range plan containing:
(1) a mission and values statement;
(2) an assessment of the authority's state as of the
date of the plan;
(3) an assessment of the projected operating
environment over the course of the long-range plan;
(4) a discussion of high-level goals, strategies, and
priorities;
(5) a scheme for ongoing evaluation of progress toward
stated goals, including performance measures; and
(6) other strategic planning elements, as considered
appropriate by the staff or port commission.
(b) The port commission shall establish a planning horizon
of at least 10 years for the long-range plan.
(c) The staff shall identify and collaborate with
stakeholders to obtain input on the long-range plan.
(d) The port commission may amend and shall adopt the plan
and any updates to the plan in an open meeting.
(e) The staff shall provide annual progress updates
according to performance measures developed under Subsection
(a)(5). The staff shall present a report on the annual progress to
the port commission.
(f) The staff shall complete a comprehensive reevaluation
and update of the long-range plan at least every five years, or more
frequently if the port commission finds that conditions warrant a
more frequent update.
Sec. 5007.222. MID-RANGE PLANNING. (a) Appropriate staff
shall develop a mid-range plan consistent with the long-range plan.
The mid-range plan must include:
(1) a five-year financial forecast addressing the
financial needs and financing options of the authority for the
five-year period, with information about the relative cost of the
options;
(2) a five-year capital plan, including a preliminary
analysis and prioritization of projects; and
(3) other detailed action plans as the port commission
or staff finds necessary to achieve the goals of the mid-range plan
or long-range plan.
(b) The staff shall present the mid-range plan in an open
meeting of the port commission. The port commission is not required
to adopt a mid-range plan.
Sec. 5007.223. BUDGET. The port commission shall annually
adopt a budget for the authority in an open meeting.
Sec. 5007.224. ONE-YEAR CAPITAL PLAN. (a) Appropriate
staff shall develop a one-year capital plan, including associated
financing, that is integrated with the budget of the authority.
(b) The port commission shall adopt the one-year capital
plan in an open meeting.
(c) The port commission shall establish and document a
detailed process for the analysis and approval of a project
proposed for inclusion in the one-year capital plan. A project may
be included in the one-year capital plan only if it is approved in
accordance with that process.
Sec. 5007.225. PUBLIC ACCESS TO BUDGET AND PLANNING
INFORMATION. (a) The port commission shall post on the authority's
website and otherwise make available to the public the authority's
most recently adopted budget and any plan adopted by the port
commission at an open meeting, including the long-range plan,
mid-range plan, one-year capital plan, and updates to that budget
or those plans.
(b) The port commission may redact sensitive business
information from the plans made publicly available under this
section.
Sec. 5007.226. INTERNAL AUDIT. (a) The port commission
shall establish an internal audit procedure consistent with the
purposes, duties, and standards for state agency internal audit
procedures under Chapter 2102, Government Code.
(b) The port commission shall create an internal audit task
force consisting of port commissioners.
(c) The port commission only shall hire and may fire or
suspend a chief audit executive, who shall report to the internal
audit task force. The chief audit executive shall coordinate all
audit activity, including:
(1) compliance reviews;
(2) reviews of internal controls;
(3) audits by the county auditor of Harris County;
(4) contracted audits;
(5) performance reviews; and
(6) investigations of alleged fraud, waste, abuse, or
ethics violations reported under Section 5007.214(b).
(d) The chief audit executive shall monitor the authority's
compliance with statutory requirements governing use of the
promotion and development fund, as defined by Section 5007.219(a).
(e) The port commission shall create, approve, and make
available on the authority's website a risk-based annual audit
plan.
(f) The port commission shall make internal audits
available on request to:
(1) the county auditor of Harris County; and
(2) any entity with the authority to appoint a port
commissioner.
Sec. 5007.227. HARRIS COUNTY AUDITOR. (a) The county
auditor of Harris County may conduct a financial audit of the
authority as part of an annual, county-wide risk assessment and
audit plan.
(b) The county auditor of Harris County may not conduct an
operational audit of the authority or any audit that exceeds the
scope of the audit described in Subsection (a).
(c) The authority shall reimburse the county auditor of
Harris County for an audit conducted under Subsection (a),
according to standard rates agreed to by the authority and the
county before an audit is scheduled or performed. The rates shall
be updated periodically.
(d) Sections 60.204(c) and 61.174(b) and (c), Water Code, do
not apply to the authority.
SECTION 6. The following provisions are repealed:
(1) Sections 2, 3, 4, 5, 6, and 7a, Chapter 97, Acts of
the 40th Legislature, 1st Called Session, 1927;
(2) Section 9, Chapter 97, Acts of the 40th
Legislature, 1st Called Session, 1927, as added by Section 22,
Chapter 1027, Acts of the 82nd Legislature, Regular Session, 2011;
(3) Section 9, Chapter 97, Acts of the 40th
Legislature, 1st Called Session, 1927, as added by Section 1.10,
Chapter 1232, Acts of the 82nd Legislature, Regular Session, 2011;
(4) Sections 2 and 3, Chapter 86, Acts of the 49th
Legislature, Regular Session, 1945;
(5) Sections 5, 6, and 7, Chapter 117, Acts of the 55th
Legislature, Regular Session, 1957;
(6) Sections 2 and 3, Chapter 186, Acts of the 57th
Legislature, Regular Session, 1961;
(7) Section 2, Chapter 43, Acts of the 62nd
Legislature, Regular Session, 1971; and
(8) Sections 2 and 3, Chapter 1042, Acts of the 70th
Legislature, Regular Session, 1987.
SECTION 7. (a) The terms of the port commissioners of the
Port of Houston Authority of Harris County, Texas, serving on the
effective date of this Act expire October 1, 2013.
(b) Not later than October 2, 2013, the entities described
by Section 5007.204, Special District Local Laws Code, as added by
this Act, shall make the appointments required by that section.
(c) Notwithstanding Sections 5007.204(c) and 5007.205,
Special District Local Laws Code, as added by this Act, the terms of
the initial port commissioners appointed under those sections shall
expire as follows:
(1) one port commissioner appointed under Section
5007.204(a)(1) and one port commissioner appointed under Section
5007.204(a)(2) shall serve terms expiring February 1, 2015;
(2) one port commissioner appointed under Section
5007.204(a)(1) and one port commissioner appointed under Section
5007.204(a)(2) shall serve terms expiring February 1, 2016;
(3) the port commissioner appointed under Section
5007.204(a)(3) shall serve a term expiring February 1, 2015;
(4) the port commissioner appointed under Section
5007.204(a)(4) shall serve a term expiring February 1, 2016; and
(5) the chair of the port commission appointed under
Section 5007.205 shall serve a term expiring February 1, 2015.
(d) Notwithstanding Section 5007.205, the meeting to
appoint the initial chair of the port commission must be held on the
third Monday of September in 2013.
(e) A person is not eligible for appointment to the port
commission of the Port of Houston Authority of Harris County,
Texas, if the person has previously served the equivalent of 12 full
years on the port commission.
SECTION 8. (a) Not later than December 1, 2013, the port
commissioners of the Port of Houston Authority of Harris County,
Texas, shall adopt the policies, plans, and procedures necessary to
implement Subchapter B, Chapter 5007, Special District Local Laws
Code, as added by this Act.
(b) Notwithstanding Section 5007.211, Special District
Local Laws Code, as added by this Act, all policies adopted by the
port commission of the Port of Houston Authority of Harris County,
Texas, shall be distributed to:
(1) each port commissioner and authority employee who
holds the office of commissioner or is employed by the authority on
October 2, 2013, not later than December 1, 2013;
(2) each employee hired after October 2, 2013, not
later than the third business day after the date the person begins
employment with the authority or December 1, 2013, whichever is
later; and
(3) each port commissioner whose term of office begins
after October 2, 2013, not later than the third business day after
the date the person qualifies for office or December 1, 2013,
whichever is later.
SECTION 9. (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 10. This Act takes effect September 1, 2013.