Texas 2017 - 85th Regular

Texas Senate Bill SB1864 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1864
	1	+	By: Taylor of Galveston, et al. S.B. No. 1864
	2	+	(Perez)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the administration of the Port of Houston Authority.
6	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	9		SECTION 1. Section 5007.002(a), Special District Local Laws
8	10		Code, is amended to read as follows:
9	11		(a) That, effective June 6, 1927, the Harris County Houston
10	12		Ship Channel Navigation District of Harris County, Texas, in Harris
11	13		County, as hereinafter described by metes and bounds, is hereby
12	14		created and established under authority of Article 3, Section 52,
13	15		of the Constitution of the State of Texas, for the purpose of the
14	16		development of deep water navigation and the improvement of rivers,
15	17		bays, creeks, streams, and canals within or adjacent to the
16	18		authority, including the Houston Ship Channel and dredge material
17	19		management areas, and to construct and maintain canals or waterways
18	20		to permit navigation or in aid thereof and for the purpose of and
19	21		authority to acquire, purchase, undertake, construct, maintain,
20	22		operate, develop, and regulate wharves, docks, warehouses, grain
21	23		elevators, bunkering facilities, belt railroads, floating plants,
22	24		lighterage, lands, dredge material management areas, towing
23	25		facilities, and all other facilities or aids incident to or
24	26		necessary to the operation or development of ports or waterways
25	27		within the authority, including the Houston Ship Channel and dredge
26	28		material management areas [and extending to the Gulf of Mexico], as
27	29		provided in Chapter 9 of the Revised Statutes of 1925; and all
28	30		orders of the Commissioners' Court of Harris County, Texas, and of
29	31		the Navigation Commissioners, heretofore made in respect to the
30	32		creation of such authority and the authorization and issuance of
31	33		the bonds of said authority are hereby in all things ratified,
32	34		confirmed, and validated.
33	35		SECTION 2. Sections 5007.004(b) and (c), Special District
34	36		Local Laws Code, are amended to read as follows:
35	37		(b) The authority, or its successors, is hereby granted the
36	38		right, power and authority to authorize, establish, construct,
37	39		purchase, own, maintain, equip, regulate, operate and lease
38	40		wharves, piers, docks, dry docks, marine ways and all other
39	41		structures and appliances for facilitating or accommodating
40	42		commerce or navigation, and to dredge out channels, slips and
41	43		turning basins, and to fill in space between the main land and
42	44		islands and to fill areas for wharves, piers, docks, dry docks,
43	45		marine ways and for all other structures and appliances for
44	46		facilitating and accommodating commerce and navigation, having
45	47		first secured a permit from the Government of the United States of
46	48		America as required by Federal law [therefor], and to construct, or
47	49		cause or authorize to be constructed on said wharves, piers, docks,
48	50		dry docks, marine ways and other structures and appliances for
49	51		facilitating and accommodating commerce and navigation, or on lands
50	52		so filled in, any and all elevators, warehouses, bunkers, railway
51	53		terminals and sidetracks, or any other facilities or aids
52	54		whatsoever to navigation or commerce. Said lands shall be used by
53	55		the authority, or its successors, solely for the establishment,
54	56		improvement and conduct of a [an] harbor and ship channel and for
55	57		the construction, maintenance and operation [thereon] of any
56	58		facilities or aids whatsoever related to the same, and the
57	59		authority, or its successors, shall not at any time, grant, convey,
58	60		give or alien said lands or any part thereof, to any individual,
59	61		firm or corporation for any purpose whatsoever; provided, that the
60	62		authority, or its successors, may grant franchises thereon for
61	63		limited periods of time for wharves, and other public uses and
62	64		purposes, and may lease said lands and facilities or any part
63	65		thereof for limited periods for purposes consistent with this
64	66		chapter, but no wharves, piers or structures of any kind shall be
65	67		constructed on said lands by anyone save the authority, except
66	68		under a franchise or lease granted by the authority and in a manner
67	69		first prescribed by and approved of by the authority or its
68	70		successors.
69	71		(c) For the purpose of carrying out the provisions of this
70	72		section, the authority, or its successors, is hereby granted the
71	73		right, power and authority to abate and remove any and all
72	74		encroachments or structures of any kind now or hereafter existing
73	75		on said property, save such as may have been constructed under
74	76		permit from the [United States War Department, or other] proper
75	77		Federal authority, and shall have the right to bring such suit or
76	78		suits as may be necessary to carry out the provisions of this
77	79		section to the same extent and as fully and completely as the right
78	80		to bring such a suit or suits existed in the State prior to the
79	81		passage hereof.
80	82		SECTION 3. The heading to Section 5007.006, Special
81	83		District Local Laws Code, is amended to read as follows:
82	84		Sec. 5007.006. REVENUE OBLIGATIONS; CERTAIN POWERS; FEES
83	85		AND CHARGES; FACILITIES [GRAIN ELEVATORS]; TAXATION EXEMPTION;
84	86		REFUNDING BONDS; CERTAIN BOND PROVISIONS.
85	87		SECTION 4. Sections 5007.006(d), (e), (g), (j), (m), and
86	88		(r), Special District Local Laws Code, are amended to read as
87	89		follows:
88	90		(d) Such obligations shall not constitute an indebtedness
89	91		or pledge of the credit of the authority, and the holders thereof
90	92		shall never have the right to demand payment thereof out of any
91	93		funds raised or to be raised by taxation, and such obligations shall
92	94		contain a recital to that effect. All obligations issued hereunder
93	95		shall be in registered or coupon form, and if in coupon form may be
94	96		registerable as to principal only, or as to both principal and
95	97		interest, shall bear interest at a rate not to exceed the amount
96	98		allowed by law, payable annually or semiannually, and shall be in
97	99		such denominations and shall mature serially or at one time not more
98	100		than forty (40) years from their date in such manner as may be
99	101		provided by the port commission. Principal of and interest on such
100	102		obligations shall be made payable at any place or places within or
101	103		without the State of Texas, and in the discretion of the port
102	104		commission such obligations may be made callable and/or refundable
103	105		at the option of the port commission prior to maturity at such
104	106		premium or premiums as the port commission shall determine. Such
105	107		obligations shall be signed by the manual or facsimile signatures
106	108		of the chair of the port commission [Chairman] and the executive
107	109		director [of the port commission] as may be provided in the
108	110		proceedings authorizing said obligations, and the interest coupons
109	111		attached thereto may also be executed by the facsimile signatures
110	112		of such officers. Such obligations shall be sold in such manner and
111	113		at such times as the port commission shall determine to be expedient
112	114		and necessary to the interests of the authority, provided, that in
113	115		no event shall such obligations be sold for a price which will
114	116		result in an interest yield therefrom of more than the amount
115	117		allowed by law computed to maturity according to standard bond
116	118		tables in general use by banks and insurance companies. Any premium
117	119		or premiums provided for the call or refunding of any bonds issued
118	120		pursuant to this Section shall not be included in the computation of
119	121		the maximum interest yield on such bonds. In the event of the
120	122		officers whose signatures are on such obligations or coupons shall
121	123		cease to be such officers before the delivery of such obligations to
122	124		the purchaser, such signature or signatures, nevertheless, shall be
123	125		valid and sufficient for all purposes. All obligations issued
124	126		hereunder shall constitute negotiable instruments under Chapter 3,
125	127		Business & Commerce Code.
126	128		(e) Any obligations issued hereunder may be issued payable
127	129		from and secured by the pledge of all the revenues derived from the
128	130		operation of the improvements and facilities of the authority,
129	131		exclusive of any revenues derived from taxation or assessments, or
130	132		may be payable from and secured by the pledge of only such revenues
131	133		as may be derived from the operation of the improvements and
132	134		facilities acquired or improved with the proceeds of the sale of
133	135		such obligations, or may be payable from and secured by the pledge
134	136		of a specified part of the revenues derived from the operation of
135	137		the improvements and facilities of the authority, all as may be
136	138		provided in the proceedings authorizing the issuance of such
137	139		obligations.
138	140		(g) The authority may adopt plans for the construction or
139	141		refinancing of a facility [grain elevator or elevators], to be paid
140	142		for by the issuance and sale of obligations payable from and secured
141	143		by a pledge of revenues to be derived from the operation of the
142	144		facility [said grain elevator] and further secured by a trust
143	145		indenture, or by a deed of trust on the physical properties of such
144	146		improvement; and during the time any such improvement is encumbered
145	147		by the pledge of such revenues and the lien upon its physical
146	148		properties, in the proceedings authorizing the bonds or the
147	149		indenture, may vest its management and control in a Board of
148	150		Trustees, to be named in such resolution or indenture, consisting
149	151		of not less than five (5) nor more than nine (9) members. The
150	152		compensation of the members of such Board of Trustees shall be fixed
151	153		by such resolution or indenture, but shall never exceed one percent
152	154		(1%) of the gross receipts of such improvement in any one (1) year.
153	155		The terms of office of the members of such Board of Trustees, their
154	156		powers and duties, including the power to fix fees and charges for
155	157		the use of such improvements, and the manner of exercising same, the
156	158		manner of the selection of their successors, and all matters
157	159		pertaining to their duties and the organization of such Board of
158	160		Trustees shall be specified in such resolution or indenture. Any
159	161		such Board of Trustees may adopt bylaws regulating the procedure of
160	162		the Board and fixing the duties of its officers, but the bylaws
161	163		shall not contain any provision in conflict with the covenants and
162	164		provisions contained in the resolution authorizing the bonds or the
163	165		indenture. In all matters wherein the resolution or indenture are
164	166		silent as to the powers, duties, obligations and procedure of the
165	167		Board, the laws and rules governing the port commission shall
166	168		control the Board of Trustees in so far as applicable. The Board
167	169		may be created by the resolution or indenture, and in that event
168	170		shall have all or any of the powers and authority which could be
169	171		exercised by the port commission in so far as the management and
170	172		operation of any such improvement is concerned. By the terms of any
171	173		such resolution or indenture the port commission may make provision
172	174		for later supplementing such resolution or indenture so as to vest
173	175		the management and control of the facility [such grain elevator] in
174	176		a Board of Trustees having the powers, rights and duties herein
175	177		conferred or imposed.
176	178		(j) As additional security for the payment of any
177	179		obligations issued hereunder, the port commission may in its
178	180		discretion have executed in favor of the holders of such
179	181		obligations an indenture or deed of trust mortgaging and
180	182		encumbering all or any part of the physical properties comprising
181	183		the improvements and facilities the net revenues of which are
182	184		pledged to the payment of such obligations, including the lands
183	185		upon which said improvements and facilities are located, and may
184	186		provide in such mortgage or encumbrance for a grant to any purchaser
185	187		or purchasers at foreclosure sale thereunder of a franchise or
186	188		lease to operate such improvements, facilities and properties for a
187	189		term of not over fifty (50) years from the date of such purchase,
188	190		subject to all laws regulating same then in force. Any such
189	191		indenture or deed of trust may contain such terms and provisions as
190	192		the port commission shall deem proper and shall be enforceable in
191	193		the manner provided by the laws of Texas for the enforcement of
192	194		other mortgages and encumbrances. Under any such sale ordered
193	195		pursuant to the provisions of such mortgage or encumbrance, the
194	196		purchaser or purchasers at such sale, and the purchaser's or
195	197		purchasers' [his or their] successors or assigns, shall be vested
196	198		with a permit or franchise conforming to the provisions stipulated
197	199		in the indenture or deed of trust to maintain and operate the
198	200		improvements, facilities and properties purchased at such sale with
199	201		like powers and privileges as may theretofore have been enjoyed by
200	202		the authority in the operation of said improvements, facilities and
201	203		properties. The purchaser or purchasers of such improvements,
202	204		facilities and properties at any such sale, and the purchaser's
203	205		[his or their] successors and assigns, may operate said
204	206		improvements, facilities and properties as provided in the last
205	207		above sentence or may at their option remove all or any part or
206	208		parts of said improvements, facilities and properties for diversion
207	209		to other purposes. The provisions of [Sections 61.164, 61.165, and
208	210		61.168, Water Code, and Chapter 134, Acts 1935, 44th Legislature,
209	211		Regular Session, as amended, and] any statute not included in this
210	212		chapter that relates [other Statutes relating] to the authorization
211	213		or execution of mortgages and encumbrances or the granting of
212	214		franchises or leases shall not be applicable to the authorization
213	215		or execution of any mortgage or encumbrance entered into pursuant
214	216		to the provisions of this chapter, nor to the granting of any
215	217		franchise or lease hereunder. Any obligations issued pursuant to
216	218		the provisions of this chapter and additionally secured by an
217	219		indenture or deed of trust as provided by this subsection, whether
218	220		such obligations are notes or certificates of indebtedness or
219	221		otherwise, and the record relating to their issuance, may, at the
220	222		option of the port commission, be submitted to the Attorney General
221	223		of Texas for the attorney general's [his] examination and approval,
222	224		as in the case of bonds, and after the Attorney General has approved
223	225		the same, such obligations shall be registered by the Comptroller
224	226		of Public Accounts of Texas; and after such obligations have been
225	227		approved by the Attorney General and registered by the Comptroller,
226	228		they shall thereafter be incontestable for any cause except for
227	229		forgery or fraud.
228	230		(m) The authority, in addition to the other powers
229	231		hereinabove set out, shall have general power and authority to make
230	232		and enter into all contracts, leases and agreements necessary or
231	233		convenient to the carrying out of any of the powers granted in this
232	234		chapter, which contracts, leases or agreements may be entered into
233	235		with any person, real or artificial, any corporation, municipal,
234	236		public or private, and the government or governmental agency,
235	237		including those of the United States and the State of Texas. Except
236	238		as provided by Chapter 60, Water Code, any [Any and all] contracts,
237	239		leases or agreements entered into pursuant hereto shall be approved
238	240		by action [resolution or order] of the port commission, and shall be
239	241		executed by the chair of the port commission [Chairman] and
240	242		attested by the executive director [thereof].
241	243		(r) This Section, without reference to other Statutes of the
242	244		State of Texas, shall constitute full authority for the
243	245		authorization and issuance of obligations hereunder and for the
244	246		accomplishment of all things herein authorized to be done, and no
245	247		proceedings relating to the authorization or issuance of such
246	248		obligations or the doing of such things shall be necessary except
247	249		such as are herein required, and no [neither the Bond and Warrant
248	250		Law of 1931 or any other] provisions of the Laws of the State of
249	251		Texas[,] pertinent to the authorization or issuance of obligations,
250	252		the operation and maintenance of ports, canals and waterways, the
251	253		granting of franchise, permits, or leases, the right to elections
252	254		or referendum petitions, shall in anywise impede or restrict the
253	255		carrying out of the acts authorized to be done hereunder or acts
254	256		done pursuant hereto.
255	257		SECTION 5. Sections 5007.007(a-1), (n), (o), (p), and (q),
256	258		Special District Local Laws Code, are amended to read as follows:
257	259		(a-1) The authority is empowered and authorized to
258	260		exercise, in addition to all powers conferred by this section, all
259	261		powers conferred upon the authority by the law or laws under which
260	262		it was organized, and, in addition, shall have all of the powers and
261	263		jurisdiction conferred upon Districts originally organized under
262	264		Article XVI, Section 59, of the Constitution of the State of Texas,
263	265		including [and particularly] Subchapters B, H, and K, Chapter 60,
264	266		Water Code, and Sections 60.034 through 60.042, 61.075, 61.076,
265	267		61.082, 61.112, 61.115 through 61.117, 61.151 through 61.168,
266	268		61.172 through 61.174, and 61.176, Water Code, as amended, and
267	269		Articles 8248, 8249, 8250, 8251, 8252, 8253, 8254, 8255, 8256,
268	270		8257, and 8258, Revised Civil Statutes of Texas, 1925, as amended,
269	271		as well as Chapter 6, Acts, 1941, Forty-seventh Legislature, Page
270	272		8, as amended; Chapter 176, Acts, 1955, Fifty-fourth Legislature,
271	273		Page 554; Chapter 217, Acts, 1949, Fifty-first Legislature, Page
272	274		407; provided, that if there is any conflict or inconsistency
273	275		between said laws or any of them, and this chapter, then to the
274	276		extent of conflict or inconsistency, the provisions of this chapter
275	277		shall govern.
276	278		(n) The port commission shall provide all necessary
277	279		additional books for the use of the tax assessor-collector
278	280		[Assessor and Collector of taxes] and the Clerk of the
279	281		Commissioners Court of Harris County, Texas. The tax
280	282		assessor-collector [Tax Assessor] of [said] Harris County shall be
281	283		charged with the assessment of all property for taxation within the
282	284		authority and when ordered to do so by the Commissioners Court of
283	285		Harris County shall assess all property within the authority and
284	286		list the same for taxation in the books or rolls furnished the tax
285	287		assessor-collector [him] for said purposes, and return said books
286	288		or rolls at the same time when the tax assessor-collector [he]
287	289		returns the other books or rolls of the State and County Taxes for
288	290		correction and approval to the Commissioners Court of said County,
289	291		and if said Court shall find said books or rolls correct they shall
290	292		approve the same, and in all matters pertaining to the assessment of
291	293		property for taxation in the authority, the tax assessor-collector
292	294		[Tax Assessor] and appraisal review board [Board of Equalization]
293	295		of said County shall be authorized to act and shall be governed by
294	296		the laws of Texas for assessing and equalizing property for State
295	297		and County Taxes, except as herein provided. All taxes authorized
296	298		to be levied by this chapter shall be a lien upon the property upon
297	299		which said taxes are assessed, and said taxes may be paid and shall
298	300		mature and be paid at the time provided by the laws of this State for
299	301		the payment of State and County Taxes; and all the penalties
300	302		provided by the laws of this State for the nonpayment of State and
301	303		County Taxes shall apply to all taxes authorized to be levied by
302	304		this chapter. The tax assessor-collector [Tax Collector] of Harris
303	305		County shall be charged with the assessment rolls of the authority,
304	306		and is required to make collection of all taxes levied and assessed
305	307		against the property in said County and promptly pay over the same
306	308		to the Treasurer of the authority. The tax assessor-collector [Tax
307	309		Assessor-Collector] shall receive compensation for [such] services
308	310		[such compensation as the port commission and said Commissioners
309	311		Court shall agree upon;] and such compensation shall be paid as
310	312		provided by law [to the Officers' Salary Fund of the County]. The
311	313		bond of the tax assessor-collector [such Assessor-Collector] shall
312	314		stand as security for the proper performance of the [his] duties of
313	315		the tax assessor-collector [as Tax Assessor-Collector] of the
314	316		authority; or, if in the judgment of the port commission it be
315	317		necessary, an additional bond payable to the authority may be
316	318		required, and in all matters pertaining to the collection of taxes
317	319		levied under the provisions of this chapter, the tax
318	320		assessor-collector [Tax Collector] shall be authorized to act and
319	321		shall be governed by the laws of the State of Texas for the
320	322		collection of State and County Taxes, except as herein provided;
321	323		and suits may be brought for the collection of said taxes and the
322	324		enforcement of the tax liens created by this chapter. It shall be
323	325		the duty of the tax assessor-collector [Tax Collector] to make a
324	326		certified list of all delinquent property upon which the navigation
325	327		tax has not been paid, and return the same to the County
326	328		Commissioners Court, which shall proceed to have the same collected
327	329		by the sale of such delinquent property in the same manner, both by
328	330		suit and otherwise, as now or may be provided for the sale of
329	331		property for the collection of State and County Taxes; and, at the
330	332		sale of any property for any delinquent tax, the port commission may
331	333		become the purchasers of the same for the benefit of the authority.
332	334		Should the tax assessor-collector [said Tax Assessor and Collector]
333	335		fail or refuse to comply with the order of said Commissioners Court
334	336		requiring the tax assessor-collector [him] to assess and list for
335	337		taxation all the property in the authority, or fail or refuse to
336	338		give such additional bond or security as herein provided, the tax
337	339		assessor-collector [he] shall be suspended from further discharge
338	340		of the tax assessor-collector's [his] duties by the Commissioners
339	341		Court of said County, and the tax assessor-collector [he] shall be
340	342		removed from office in the mode prescribed by law for the removal of
341	343		county officers.
342	344		(o) The County Treasurer of Harris County shall be treasurer
343	345		of the authority, and [it] shall [be his duty to] open an account of
344	346		all moneys received by the treasurer [him] belonging to the
345	347		authority and all amounts paid out by the treasurer [him]. The
346	348		treasurer [He] shall deposit the funds of the authority in such
347	349		depository or depositories as may be designated by the port
348	350		commission in the manner provided by law [for the selection of a
349	351		county depository, and such depository so selected shall be the
350	352		depository of the authority for a period of two (2) years and until
351	353		its successor is selected and qualified]. Should the port
352	354		commission fail or refuse to select a depository such depository
353	355		shall be selected in like manner by the Commissioners Court. The
354	356		treasurer [The depository of the authority on April 29, 1957, shall
355	357		continue to be the depository of the authority until its successor
356	358		is selected and qualified as herein provided. He] shall pay out no
357	359		money except upon the conditions provided for in this chapter and
358	360		under other law[,] and [he] shall carefully preserve on file all
359	361		orders for the payment of money; and, as often as required by the
360	362		[said] Commissioners Court, [he] shall render a correct account to
361	363		them of all matters pertaining to the financial condition of the
362	364		authority. The treasurer [County Treasurer] shall execute a good
363	365		and sufficient bond, payable to the [port commissioners and to
364	366		their successors in office for the benefit of the] authority in an
365	367		amount to be fixed by the port commission, such bond to be
366	368		conditioned for the faithful performance of the [his] duties of the
367	369		[as] treasurer of the authority and to be approved by the port
368	370		commission; provided whenever any bonds are issued by the
369	371		authority, [the County Treasurer] before receiving the proceeds of
370	372		sale thereof the treasurer shall execute additional good and
371	373		sufficient bond payable to the port commission in an amount to be
372	374		fixed by the port commission, which bond shall likewise be
373	375		conditioned and approved as aforesaid, but such additional bond
374	376		shall not be required after such Treasurer shall have properly
375	377		disbursed the proceeds of such bond issue; and the treasurer
376	378		[County Treasurer] shall be allowed such compensation for [his]
377	379		services performed as treasurer of the authority as may be
378	380		determined by the port commission[, and such compensation shall be
379	381		paid to the Officers' Salary Fund of the County].
380	382		(p) The authority shall acquire, purchase, lease, maintain,
381	383		repair and operate facilities and equipment for preventing,
382	384		detecting, controlling, responding to, and fighting fires,
383	385		explosions, and hazardous material incidents on or adjacent to the
384	386		waterways, channels and turning basins within its jurisdiction,
385	387		including the Houston Ship Channel, and for the protection of life
386	388		and property from damage by fire, [and] explosion, and hazardous
387	389		material incidents. The authority shall promulgate and enforce
388	390		ordinances, rules and regulations for the promotion of the safety
389	391		of life and property on or adjacent to the waterways, channels and
390	392		turning basins within its jurisdiction, including the Houston Ship
391	393		Channel, from damages by fire, explosion, and hazardous material
392	394		incidents [and explosion thereon] in the manner provided by
393	395		Subchapter D, Chapter 60, Water Code. The powers and functions
394	396		herein authorized may be exercised both within and without the
395	397		corporate limits of any city, town or village situated within the
396	398		boundaries of the authority. This chapter shall be cumulative of
397	399		all other laws on the subject but in the event of conflict between
398	400		this chapter and any law of this state or any charter provision or
399	401		ordinance of any such city, town or village relating to the subject
400	402		matter of this chapter, the provisions of this chapter shall
401	403		control.
402	404		(q) The authority is authorized to acquire, purchase,
403	405		construct, enlarge, extend, repair, maintain, operate, or develop
404	406		traffic control facilities and everything appurtenant thereto,
405	407		together with all other facilities or aids incident to or useful in
406	408		the operation or development of the [authority's] ports and
407	409		waterways within the authority's jurisdiction, including the
408	410		Houston Ship Channel, or in aid of navigation and commerce thereon.
409	411		[The traffic control facilities shall be financed out of available
410	412		revenue and shall not utilize bond revenue funds.]
411	413		SECTION 6. Section 5007.010, Special District Local Laws
412	414		Code, is amended to read as follows:
413	415		Sec. 5007.010. NAME AND TITLE CHANGES. (a) Effective
414	416		August 30, 1971, the [The] name of the Harris County Houston Ship
415	417		Channel Navigation District of Harris County, Texas, is changed to
416	418		the Port of Houston Authority of Harris County, Texas.
417	419		(b) Effective August 30, 1971, the [The] name of the Board
418	420		of Navigation and the Canal Commissioners of the authority is
419	421		changed to the port commission, and the title of each member is port
420	422		commissioner.
421	423		(c) Effective August 30, 1971, the [The] title of general
422	424		manager of the authority is changed to executive director.
423	425		SECTION 7. Subchapter B, Chapter 5007, Special District
424	426		Local Laws Code, is amended by adding Section 5007.2065 to read as
425	427		follows:
426	428		Sec. 5007.2065. SERVICE ON FREIGHT RAIL DISTRICT BOARD.
427	429		The chair of the port commission may designate an officer or
428	430		employee of the authority to serve on behalf of the chair as a
429	431		director of a freight rail district created under Section 171.052,
430	432		Transportation Code.
431	433		SECTION 8. Section 5007.218, Special District Local Laws
432	434		Code, is amended to read as follows:
433	435		Sec. 5007.218. EXPENSE POLICY. The port commission shall
434	436		adopt an expense policy that includes:
435	437		(1) spending guidelines for meals, lodging, and
436	438		entertainment, including a process for handling and documenting
437	439		exceptions to the guidelines if business needs require an
438	440		exception;
439	441		(2) clear expense report protocols, including:
440	442		(A) the use of cash advances;
441	443		(B) the separation of reports from port
442	444		commissioners and authority employees; and
443	445		(C) clear lines of accountability for the
444	446		submission of reports; and
445	447		(3) a prohibition on the use of authority funds for a
446	448		meal for a port commissioner or an authority employee that is not
447	449		part of:
448	450		(A) approved travel for authority business;
449	451		(B) [or part of] a ceremonial or business-related
450	452		function with outside parties;
451	453		(C) an employee training program; or
452	454		(D) an event with the purpose of employee
453	455		recognition, seasonal celebration, or building morale.
454	456		SECTION 9. This Act takes effect immediately if it receives
455	457		a vote of two-thirds of all the members elected to each house, as
456	458		provided by Section 39, Article III, Texas Constitution. If this
457	459		Act does not receive the vote necessary for immediate effect, this
458	460		Act takes effect September 1, 2017.
459		-	______________________________ ______________________________
460		-	President of the Senate Speaker of the House
461		-	I hereby certify that S.B. No. 1864 passed the Senate on
462		-	May 4, 2017, by the following vote: Yeas 31, Nays 0.
463		-	______________________________
464		-	Secretary of the Senate
465		-	I hereby certify that S.B. No. 1864 passed the House on
466		-	May 19, 2017, by the following vote: Yeas 144, Nays 0, two
467		-	present not voting.
468		-	______________________________
469		-	Chief Clerk of the House
470		-	Approved:
471		-	______________________________
472		-	Date
473		-	______________________________
474		-	Governor