SRC-ARR S.B. 1665 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1665
76R7428 WP-FBy: Lindsay
Natural Resources
4/27/1999
As Filed


DIGEST 

The Port of Houston Authority (PHA), a navigation district and political
subdivision of the state, manages the public port facilities along the
Houston Ship Channel. The Port of Galveston (POG) is a separate utility of
the City of Galveston and operates the navigation and port facilities owned
by that city. At certain times, there have been discussions about
cooperative undertakings between PHA and POG, and in recent years PHA has
leased from POG certain container facilities in Galveston. S.B. 1665 would
authorize PHA to acquire additional facilities of POG on terms not
otherwise authorized under current law. 

PURPOSE

As proposed, S.B. 1665 regulates the authority of certain navigation
districts to acquire land or improvements on land, annex territory, and
issue bonds. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 62.107(a), Water Code, to authorize any district
created under this chapter to own land or improvements adjacent or
accessible to certain  navigable water and ports. Authorizes a district to
acquire land or improvements from any public or private owner on any terms
to which the commission of the district and the property owner agree.  

SECTION 2. Amends Chapter 62D, Water Code, by adding Section 62.1071, as
follows: 

Sec. 62.1071. ADDITIONAL COMMISSIONERS FOR ACQUISITIONS FROM CERTAIN
MUNICIPALITIES.  Requires a district that acquires land or an improvement
from a municipality that has a population of more than 35,000 to add one
member to its commission. Requires the governing body of the municipality
in which the acquired land or improvement is located to appoint the
additional commissioner. Requires the governing bodies of all the
municipalities jointly to appoint the additional commissioner, if the
acquired land or improvement is located in more than one municipality with
a population of more than 35,000 and that is located in the same county.
Requires the additional commissioner to serve a term as provided by
Sections 62.314(c) and (d). 

SECTION 3. Amends Chapter 62F, Water Code, by adding Sections 62.209 and
62.210, as follows: 

Sec. 62.209. USE OF BOND PROCEEDS TO ACQUIRE LAND. Prohibits the district
from expending for the acquisition of land or improvement outside of the
district's territorial boundaries proceeds of bonds issued by a district
that were authorized by the district's voters before the annexation of
territory or an acquisition of land or an improvement.  

Sec. 62.210. BOND ISSUANCE AFTER ANNEXATION OF TERRITORY. Set forth the
issuance of bonds after the annexation of territory. 

SECTION 4. Amends Sections 62.295 and 62.297, Water Code, as follows:
 
Sec. 62.295. ELECTION ORDER. Authorizes a district to order an annexation
election to annex territory without imposing on the territory any part of
the bonded debt of the district. Prohibits the district from imposing a tax
on the annexed territory or use tax money collected from the annexed
territory for payment of the principal of or interest on bond debt issued
by the district before the annexation, unless the voters approve at an
annexation election the assumption of the bonded debt. Makes a conforming
change. 

Sec. 62.297. BALLOTS. Requires the ballot for election to be printed to
allow for voting for or against: "Annexation to the navigation district,"
if the district holds an election to approve the annexation of territory
without imposing on the territory a part of the district's bond debt. Makes
a conforming change. 

SECTION 5. Amends Section 62.314(b)-(d), Water Code, to require the
commissioners court of the annexed county to appoint one commissioner who
is an elector of and resides in the district, rather than two
commissioners, who are electors and reside in the district. Requires the
additional commissioner, rather than commission member, to hold office for
a term equal to and expiring with the terms of the incumbent commission
members. Requires the terms of all commission members to be automatically
terminated, at the expiration of the term, rather than terms, of the
additional commissioner, rather than commission members. 

SECTION 6. Makes Sections 62.314(b)-(d), Water Code, prospective. 

SECTION 7. Emergency clause.
                      Effective date: upon passage.