Texas 2017 - 85th Regular

Texas Senate Bill SB1395 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Creighton, et al. S.B. No. 1395
2		-	(Perez)
	1	+	S.B. No. 1395
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the powers and duties of navigation districts and port
8	6		authorities.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. The heading to Section 60.035, Water Code, is
11	9		amended to read as follows:
12	10		Sec. 60.035. NOTICE OF CERTAIN OIL, GAS, AND MINERAL LEASES
13	11		[LEASE].
14	12		SECTION 2. Section 60.035(a), Water Code, is amended to
15	13		read as follows:
16	14		(a) Before a district may enter into a lease [may be
17	15		executed by the commission] under Section 60.034 [of this code],
18	16		the district [commission] shall have a notice requesting bids on
19	17		the lease published in a newspaper of general circulation in the
20	18		district. The notice shall be published at least once a week for
21	19		two consecutive weeks before the final date for the receipt of bids.
22	20		Chapter 71, Natural Resources Code, does not apply to a lease made
23	21		under this section if the lease is made in accordance with this
24	22		section and Sections 60.036 and 60.037 of this chapter.
25	23		SECTION 3. Section 60.040, Water Code, is amended to read as
26	24		follows:
27	25		Sec. 60.040. PUBLICATION OF NOTICE FOR SALES, EASEMENTS,
28	26		AND LEASES IN EXCESS OF 50 YEARS. (a) Before making a sale,
29	27		easement, or lease of real property [land] for more than 50 years,
30	28		the district [commission] shall publish a notice in the manner
31	29		provided in Section 60.035.
32	30		(b) A district may enter into negotiations with one or more
33	31		potential buyers, easement grantees, or lessees before the
34	32		publication of the notice without affecting the validity of the
35	33		sale, easement, or lease.
36	34		SECTION 4. Section 60.041, Water Code, is amended to read as
37	35		follows:
38	36		Sec. 60.041. SECURITY FOR BIDS ON REAL PROPERTY [LAND] TO BE
39	37		SOLD OR LEASED FOR MORE THAN 50 YEARS. Each bid submitted on real
40	38		property [land] to be sold or leased for more than 50 years under
41	39		Section 60.040 shall be accompanied by a certified check, cashier's
42	40		check, or bidder's bond with a responsible corporate surety
43	41		authorized to do business in Texas. The check or bond shall be in an
44	42		amount equal to five percent of the bid price for the real property
45	43		[land] or 100 percent of [for] the first rental payment under the
46	44		lease and shall guarantee that the bidder will perform the terms of
47	45		the bid if it is accepted by the district [commission].
48	46		SECTION 5. Section 60.042, Water Code, is amended to read as
49	47		follows:
50	48		Sec. 60.042. AWARD AND EXECUTION OF DEED OR LEASE IN EXCESS
51	49		OF 50 YEARS. (a) After notice is published under Section 60.040
52	50		[of this code], the district [commission] may sell or lease in
53	51		accordance with that section all or any part of the real property
54	52		[land] to the highest and best bidder for an amount which is not
55	53		less than the reasonable market value in the locality at the time
56	54		and place of the sale or lease.
57	55		(b) The commission shall adopt a resolution or [enter an]
58	56		order [in its minutes] confirming the sale or lease. The resolution
59	57		or order shall include or incorporate by reference the terms of the
60	58		sale or lease and the consideration and shall provide that the
61	59		executive director of the district, or a person authorized by the
62	60		executive director of the district, is authorized to [commission
63	61		will] execute the [a] deed or lease as soon as the successful bidder
64	62		complies with the terms of the [his] bid.
65	63		SECTION 6. Section 60.101(c), Water Code, is amended to
66	64		read as follows:
67	65		(c) An installment sale or a lease under this section is not
68	66		a loan of the district's credit or a grant of public money. The
69	67		acquisition and leasing of land and facilities for the purposes
70	68		included in this section and the operation and industrial and
71	69		business development of ports and waterways are a public purpose
72	70		and a matter of public necessity.
73	71		SECTION 7. Section 60.124, Water Code, is amended to read as
74	72		follows:
75	73		Sec. 60.124. GIFTS, GRANTS, AND DONATIONS. A district may
76	74		accept a gift, grant, donation, or bequest of money, services,
77	75		equipment, goods, or other tangible or intangible property from any
78	76		source for any district purpose.
79	77		SECTION 8. Section 60.401(b), Water Code, is amended to
80	78		read as follows:
81	79		(b) A district may adopt this subchapter for a particular
82	80		purchase or period or for all purchases and contracts, subject to
83	81		the commission's right to authorize particular procurements under
84	82		Subchapter O.
85	83		SECTION 9. Sections 60.404(b) and (d), Water Code, are
86	84		amended to read as follows:
87	85		(b) A notice of proposed purchase and the time and place the
88	86		bids will be received and opened must be published once a week for
89	87		two consecutive weeks before the deadline for receiving the bids in
90	88		a newspaper with general circulation in each county in which the
91	89		district [or port authority] is located. [The first notice must be
92	90		published not later than the 14th day before the date the bids are
93	91		to be opened.] If there is no newspaper of general circulation in a
94	92		county in which the district [or port authority] is located, the
95	93		notice shall be published in a newspaper of general circulation in
96	94		the county nearest the county seat of the county in which the
97	95		district is located or the county in which the greatest amount of
98	96		the district's territory is located [for that county must be given
99	97		by posting the notice in a prominent place in the courthouse of that
100	98		county for not less than 14 days before the date the bids are to be
101	99		opened].
102	100		(d) The specifications must:
103	101		(1) describe in detail the item to be acquired;
104	102		(2) require that bids be sealed;
105	103		(3) require the attachment to the bid of a certified
106	104		check, cashier's check, or bidders bond, if security is required in
107	105		connection with the bid; and
108	106		(4) indicate whether a small business development
109	107		program, local preference program, or other contracting program
110	108		adopted by the [port commission of the port authority or] district
111	109		applies to the purchase and, if so, where a copy of the program
112	110		requirements may be obtained.
113	111		SECTION 10. Section 60.405, Water Code, is amended to read
114	112		as follows:
115	113		Sec. 60.405. COMPETITIVE SEALED PROPOSALS [PROPOSAL
116	114		PROCEDURES]. (a) Notwithstanding Section 60.404, items other
117	115		than construction services valued at more than the amount
118	116		authorized by Section 60.403(a) for routine purchases or contracts
119	117		[Insurance or high technology items] may be purchased under the
120	118		procedure provided by this section.
121	119		(b) Quotations shall be solicited by the district or the
122	120		district's broker through a request for proposals from as many
123	121		sources as are reasonably available. The request for proposals
124	122		must specify the relative importance of price and all other factors
125	123		of evaluation.
126	124		(c) Public notice of the request for proposals [proposal]
127	125		must be made in the same manner as provided by Section 60.404 [of
128	126		this code].
129	127		(d) The award of the contract shall be made by the
130	128		commission in open session to the responsible offerer whose
131	129		proposal is determined to provide the best value to the district [be
132	130		the lowest evaluated offer resulting from negotiation] giving
133	131		consideration to evaluation factors set forth in the request for
134	132		proposals.
135	133		(e) If so provided in the request for proposals, information
136	134		in proposals may not be disclosed to the public [competing
137	135		offerers] until the contract is awarded. After a contract is
138	136		awarded, proposals shall be open for public inspection, except that
139	137		information contained in a proposal identified as a trade secret or
140	138		as confidential shall be kept confidential.
141	139		(f) A district [port commission] may adopt rules relating to
142	140		negotiations to be conducted with responsible offerers submitting
143	141		proposals. Offerers must be accorded fair and equal treatment with
144	142		respect to any opportunity for negotiation and revision of
145	143		proposals. Revisions to proposal and contract terms may be
146	144		permitted after submission of a proposal and before award of the
147	145		contract.
148	146		SECTION 11. Section 60.407, Water Code, is amended to read
149	147		as follows:
150	148		Sec. 60.407. OPENING SEALED PROPOSALS AND BIDS. (a) An
151	149		official of the district [or port authority] shall open the bids and
152	150		competitive sealed proposals on the date specified in the notice.
153	151		If an error is discovered in the original specifications or the
154	152		nature of the item to be purchased requires an extension, the date
155	153		may be extended.
156	154		(b) Opened bids and sealed proposals shall be kept on file
157	155		and made available for public inspection.
158	156		SECTION 12. Section 60.409(b), Water Code, is amended to
159	157		read as follows:
160	158		(b) If a district [or port authority] uses unit pricing in
161	159		its notice, the information furnished proposers or bidders shall
162	160		specify the approximate quantities estimated on the best available
163	161		information or other quantities reasonably specified to permit
164	162		comparison of proposals or bids, and the total contract amount may
165	163		be based on estimated maximum quantities, but the compensation paid
166	164		the bidder must be based on the actual quantities purchased.
167	165		SECTION 13. Section 60.458, Water Code, is amended to read
168	166		as follows:
169	167		Sec. 60.458. PURCHASE CONTRACT AWARD CRITERIA. Except as
170	168		provided by this subchapter, in determining to whom to award a
171	169		contract, the district may consider:
172	170		(1) the purchase price;
173	171		(2) the reputation of the vendor and of the vendor's
174	172		goods or services;
175	173		(3) the quality of the vendor's goods or services;
176	174		(4) the extent to which the goods or services meet the
177	175		district's needs;
178	176		(5) the vendor's past relationship with the district;
179	177		(6) the impact on the ability of the district to comply
180	178		with laws and rules relating to historically underutilized
181	179		businesses and on[,] the district's small business development
182	180		program, local preference program, or other [another] contracting
183	181		program adopted [approved] by the district, if any;
184	182		(7) the total long-term cost to the district to
185	183		acquire the vendor's goods or services; and
186	184		(8) any other relevant factor specifically listed in
187	185		the request for bids or proposals.
188	186		SECTION 14. Section 60.463, Water Code, is amended by
189	187		amending Subsections (d) and (e) and adding Subsection (d-1) to
190	188		read as follows:
191	189		(d) The district shall select a contractor through
192	190		competitive sealed proposals in either a one-step or two-step
193	191		process. The district shall prepare a request for competitive
194	192		sealed proposals, in the case of a one-step process, or a request
195	193		for qualifications, in the case of a two-step process, that
196	194		includes construction documents, selection criteria, project
197	195		scope, schedule, the time and place for receipt of proposals or
198	196		qualifications, as applicable, a statement as to whether the
199	197		selection process is a one-step or two-step process, and other
200	198		information that contractors may require to respond to the request.
201	199		The district shall state in the request for proposals or
202	200		qualifications, as applicable, the selection criteria that will be
203	201		used in selecting the successful offeror. If a one-step process is
204	202		used, the district may request, as part of the offeror's proposal,
205	203		proposed prices.
206	204		(d-1) If a two-step process is used, the district may not
207	205		request prices in the first step. In the second step, the district
208	206		may request that five or fewer offerors, selected solely on the
209	207		basis of qualifications, provide additional information, including
210	208		proposed prices.
211	209		(e) At each step, the [The] district shall receive, publicly
212	210		open, and read aloud the names of the offerors [and, if any lump-sum
213	211		prices are required to be stated, all such lump-sum prices stated in
214	212		each proposal]. At the appropriate step, the district shall read
215	213		aloud the prices, if any, stated in each proposal as the proposal is
216	214		opened. Not later than the 45th day after the date of opening the
217	215		proposals, the district shall evaluate and rank each proposal
218	216		submitted in relation to the published selection criteria.
219	217		SECTION 15. Section 62.107, Water Code, is amended to read
220	218		as follows:
221	219		Sec. 62.107. ACQUISITION AND CONVEYANCE OF LAND. (a) Any
222	220		district created under this chapter may acquire by gift, purchase,
223	221		or condemnation and may own land adjacent or accessible by road,
224	222		rail, or water to the navigable water and ports developed by it
225	223		which may be necessary or required for any and all purposes incident
226	224		to or necessary for the development and operation of the navigable
227	225		water or ports within the district, or may be necessary or required
228	226		for or in aid of the development of industries and businesses on the
229	227		land.
230	228		(b) The district may lease and grant easements on any part
231	229		of the acquired land to any person [individual or corporation] and
232	230		may charge for the lease or easement reasonable tolls, rents, fees,
233	231		or other charges. The lease or easement may be on terms and
234	232		conditions considered appropriate or advantageous to the district.
235	233		The district may use the proceeds both for the maintenance and
236	234		operation of the business of the district and for the purpose of
237	235		making the district self-supporting and financially solvent and
238	236		returning the construction costs of the improvements within a
239	237		reasonable period.
240	238		(c) The acquisition and leasing of land for the purposes
241	239		included in this section and the operation and industrial and
242	240		business development of ports and waterways are a public purpose
243	241		and a matter of public necessity.
244	242		SECTION 16. Subchapter D, Chapter 62, Water Code, is
245	243		amended by adding Section 62.123 to read as follows:
246	244		Sec. 62.123. FRANCHISES. (a) A district may grant
247	245		franchises for purposes consistent with this chapter to any person
248	246		on property owned or controlled by the district by restrictive
249	247		covenant or otherwise.
250	248		(b) No franchise shall be granted for longer than 50 years
251	249		nor shall a franchise be granted except on the affirmative vote of a
252	250		majority of the commissioners present at three separate meetings of
253	251		the commission which meetings may not be closer together than one
254	252		week.
255	253		(c) No franchise shall be granted until notice of the
256	254		franchise is published at the expense of the applicant, once a week
257	255		for three consecutive weeks in a daily newspaper of general
258	256		circulation in the district. For the purposes of this subsection,
259	257		notice consists of:
260	258		(1) the text of the franchise in final form in all
261	259		material respects; or
262	260		(2) a descriptive caption stating the purpose of the
263	261		franchise and the location at which a complete copy of the franchise
264	262		in all material respects may be obtained.
265	263		(d) The franchise shall require the grantee to file the
266	264		grantee's written acceptance within 30 days after the franchise is
267	265		finally approved by the commission.
268	266		(e) Nothing in this section shall be construed as preventing
269	267		the district from granting revocable licenses or permits for the
270	268		use of limited portions of waterfront or facilities for purposes
271	269		consistent with this chapter.
272	270		SECTION 17. Section 62.153, Water Code, is amended to read
273	271		as follows:
274	272		Sec. 62.153. DUTIES OF DISTRICT TREASURER. The district
275	273		treasurer shall:
276	274		(1) open an account for all funds received by the
277	275		district treasurer [him] for the district and all district funds
278	276		which the treasurer [he] pays out;
279	277		(2) pay out money on vouchers signed by the chairman of
280	278		the commission, any two members of the commission, or the
281	279		commissioners court, or any two of any number of persons delegated
282	280		by the commission with authority to sign vouchers, provided that
283	281		the commission may, in such delegation, limit the authority of such
284	282		persons and may require that each furnish a fidelity bond in such
285	283		amount as the commission shall specify and subject to commission
286	284		approval;
287	285		(3) carefully preserve all orders for the payment of
288	286		money; [and]
289	287		(4) render a correct account to the commissioners
290	288		court of all matters relating to the financial condition of the
291	289		district as often as required by the commissioners court; and
292	290		(5) not be required to sign a check drawn on a
293	291		depository selected under Section 62.156, unless the district
294	292		treasurer is the designated officer of the district, as defined by
295	293		Section 60.271(g).
296	294		SECTION 18. Section 62.208(a), Water Code, is amended to
297	295		read as follows:
298	296		(a) A district may issue revenue bonds on the terms and
299	297		under the provisions of Chapter 111, Acts of the 43rd Legislature,
300	298		1st Called Session, 1933, or Chapter 38, Acts of the 47th
301	299		Legislature, Regular Session, 1941:
302	300		(1) to purchase, construct, improve, enlarge, extend,
303	301		and repair dams, reservoirs, water rights, water wells,
304	302		desalinization facilities, canals, pipelines, pumps, pump
305	303		stations, land, easements, rights-of-way, and other property and
306	304		facilities necessary to provide a water supply for the irrigation
307	305		of land and for industrial, commercial, domestic, municipal, and
308	306		other beneficial uses;
309	307		(2) to accomplish any of the purposes designated in
310	308		the previously mentioned two acts; and
311	309		(3) for general improvement purposes without
312	310		designating the improvement.
313	311		SECTION 19. Section 63.178(b), Water Code, is amended to
314	312		read as follows:
315	313		(b) A franchise may be granted for a period of not more than
316	314		50 [30] years.
317	315		SECTION 20. This Act takes effect immediately if it
318	316		receives a vote of two-thirds of all the members elected to each
319	317		house, as provided by Section 39, Article III, Texas Constitution.
320	318		If this Act does not receive the vote necessary for immediate
321	319		effect, this Act takes effect September 1, 2017.
	320	+	______________________________ ______________________________
	321	+	President of the Senate Speaker of the House
	322	+	I hereby certify that S.B. No. 1395 passed the Senate on
	323	+	May 1, 2017, by the following vote: Yeas 31, Nays 0.
	324	+	______________________________
	325	+	Secretary of the Senate
	326	+	I hereby certify that S.B. No. 1395 passed the House on
	327	+	May 20, 2017, by the following vote: Yeas 136, Nays 0, one
	328	+	present not voting.
	329	+	______________________________
	330	+	Chief Clerk of the House
	331	+	Approved:
	332	+	______________________________
	333	+	Date
	334	+	______________________________
	335	+	Governor