BILL ANALYSIS

S.B. 1986

By: Creighton

Transportation

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Based on existing cargo allocations which do not completely align with actual district boundaries, the Port of Port Arthur Navigation District of Jefferson County, Texas is not eligible for certain federal funding that would assist in paying for port maintenance and dredging. Currently, revenue received for import cargo customs duties earned in Texas is sent to the federal government and deposited in the harbor maintenance trust fund (HMT). It has been suggested that increasing the port tonnage should allow the district access to surplus HMT funds for maintenance dredging, which is currently funded by the district despite serving the broader national, state, and local economic interest. S.B. 1986 seeks to draw down these additional funds by expanding the territory of the Port of Port Arthur Navigation District of Jefferson County, Texas and revising the attribution of waterborne commercial cargo and vessel movements in the expanded territory.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1986 amends Chapter 197, Acts of the 58th Legislature, Regular Session, 1963, to expand the territory of the Port of Port Arthur Navigation District of Jefferson County, Texas, to include a tract of land the metes and bounds of which are specified by the bill as a special purpose area of the district. The bill prohibits the district from imposing a tax in the special purpose area and authorizes waterborne commercial cargo and vessel movements originating in or departing from the area to be attributed as waterborne commercial cargo or vessel movements originating in or departing from the district for the purpose of reporting to the U.S. Army Corps of Engineers under applicable federal law. The inclusion of the special purpose area in the district expressly does not affect any powers or duties exercised in the special purpose area by the Sabine-Neches Navigation District or the Port of Beaumont Navigation District of Jefferson County, Texas.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2021.