1-1 AN ACT 1-2 relating to the funding of port transportation or facility projects 1-3 or port studies. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle A, Title 4, Transportation Code, is 1-6 amended by adding Chapter 55 to read as follows: 1-7 CHAPTER 55. TEXAS PORT TRANSPORTATION AND ECONOMIC 1-8 DEVELOPMENT FUNDING 1-9 Sec. 55.001. DEFINITIONS. In this chapter: 1-10 (1) "Committee" means the Texas Port Transportation 1-11 and Economic Development Advisory Committee. 1-12 (2) "Department" means the Texas Department of 1-13 Economic Development. 1-14 (3) "Fund" means the port access account fund. 1-15 (4) "Port transportation or facility project" means a 1-16 project necessary or convenient for the proper operation of a port 1-17 that will improve the movement and intermodal transportation of 1-18 cargo or passengers in commerce and trade. 1-19 Sec. 55.002. TEXAS PORT TRANSPORTATION AND ECONOMIC 1-20 DEVELOPMENT FUNDING. (a) Using only money in the fund, the 1-21 department shall fund: 1-22 (1) port transportation or facility projects; or 1-23 (2) port studies. 1-24 (b) The department may not fund a port transportation or 1-25 facility project unless an amount at least equal to the amount 2-1 provided by the department is invested in a project by a port 2-2 authority or navigation district. 2-3 (c) Port transportation or facility projects eligible for 2-4 funding under this chapter include: 2-5 (1) construction or improvement of transportation 2-6 facilities within the jurisdiction of a port; 2-7 (2) the dredging or deepening of channels, turning 2-8 basins, or harbors; 2-9 (3) the construction or improvement of wharves, docks, 2-10 structures, jetties, piers, storage facilities, cruise terminals, 2-11 or any facilities necessary or useful in connection with port 2-12 transportation or economic development; 2-13 (4) the acquisition of container cranes or other 2-14 mechanized equipment used in the movement of cargo or passengers in 2-15 international commerce; 2-16 (5) the acquisition of land to be used for port 2-17 purposes; 2-18 (6) the acquisition, improvement, enlargement, or 2-19 extension of existing port facilities; and 2-20 (7) environmental protection projects: 2-21 (A) required as a condition of a state, federal, 2-22 or local environmental permit or other form of state approval; 2-23 (B) necessary for the acquisition of spoil 2-24 disposal sites and improvements to existing and future spoil sites; 2-25 or 2-26 (C) that result from the undertaking of eligible 3-1 projects. 3-2 (d) The department, in consultation with the committee, 3-3 shall review the list of projects recommended by the committee to 3-4 evaluate the economic benefit of each project. The department, in 3-5 consultation with the committee, shall approve projects or studies 3-6 for funding based on its review. 3-7 Sec. 55.003. GIFTS AND GRANTS. The department may accept 3-8 gifts, grants, and donations from any source for the purposes of 3-9 this chapter. 3-10 Sec. 55.004. AUDIT. The department may subject a project 3-11 that receives money under this chapter to a final audit. The 3-12 department may adopt rules and perform other acts necessary or 3-13 convenient to ensure that the final audits are conducted and that 3-14 any deficiency or questioned costs noted by the audit are resolved. 3-15 Sec. 55.005. PORT ACCESS ACCOUNT FUND. (a) The port access 3-16 account fund is an account in the general revenue fund. 3-17 (b) The following money shall be credited to the fund: 3-18 (1) money received from gifts, grants, and donations; 3-19 and 3-20 (2) interest earned on deposits and investments of the 3-21 fund. 3-22 (c) Money in the fund may be appropriated only to the 3-23 department to perform the department's powers and duties concerning 3-24 port transportation and economic development under this chapter and 3-25 to pay the department's expenses incurred under this chapter. 3-26 (d) The financial transactions of the fund are subject to 4-1 audit by the state auditor. 4-2 Sec. 55.006. TEXAS PORT TRANSPORTATION AND ECONOMIC 4-3 DEVELOPMENT ADVISORY COMMITTEE. (a) The Texas Port Transportation 4-4 and Economic Development Advisory Committee consists of: 4-5 (1) a member of the governing body of each of the 4-6 ports that are members of the Texas Ports Association or their 4-7 designees; and 4-8 (2) as a nonvoting member, the executive director or 4-9 the designee of the department. 4-10 (b) The committee shall develop bylaws under which it 4-11 operates. The bylaws must specify the procedure by which the 4-12 presiding officer of the committee is elected. A majority of 4-13 voting members constitutes a quorum sufficient to conduct meetings 4-14 and business of the committee. A vote of the majority of the 4-15 voting members present is sufficient for any action of the 4-16 committee, unless the bylaws of the committee require a greater 4-17 vote for a particular action. 4-18 (c) The committee shall meet at the call of its presiding 4-19 officer, at the request of a majority of its membership, or at 4-20 times prescribed in its bylaws. The committee must meet at least 4-21 semiannually. 4-22 (d) A member is not entitled to compensation for service on 4-23 the committee but is entitled to reimbursement for reasonable 4-24 expenses the member incurs in performing committee duties. 4-25 (e) Sections 2110.002 and 2110.008, Government Code, do not 4-26 apply to the committee. 5-1 Sec. 55.007. DUTIES OF COMMITTEE. The committee shall: 5-2 (1) prepare a port mission plan; 5-3 (2) review each project eligible to be funded under 5-4 this chapter and make recommendations for approval or disapproval 5-5 to the department; 5-6 (3) maintain trade data information that will assist 5-7 ports in this state and international trade; 5-8 (4) annually prepare a list of projects that have been 5-9 recommended by the committee, including: 5-10 (A) the recommended funding level for each 5-11 project; and 5-12 (B) if staged implementation of the project is 5-13 appropriate, the funding requirements for each stage; and 5-14 (5) adopt rules for evaluating projects that may be 5-15 funded under this chapter, providing criteria for the evaluation of 5-16 the economic benefit of the project, measured by the potential for 5-17 the proposed project to increase: 5-18 (A) cargo flow; 5-19 (B) cruise passenger movement; 5-20 (C) international commerce; 5-21 (D) port revenues; and 5-22 (E) the number of jobs for the port's local 5-23 community. 5-24 Sec. 55.008. CAPITAL PROGRAM. (a) The committee shall 5-25 prepare a two-year port capital program defining the goals and 5-26 objectives of the committee concerning the development of port 6-1 facilities and an intermodal transportation system. The port 6-2 capital program must include projects or studies submitted by each 6-3 port that is a member of the committee and recommendations for: 6-4 (1) the construction of transportation facilities 6-5 connecting any port to another transportation mode; and 6-6 (2) the efficient, cost-effective development of 6-7 transportation facilities or port facilities for the purpose of: 6-8 (A) enhancing international trade; 6-9 (B) promoting cargo flow; 6-10 (C) increasing cruise passenger movements; 6-11 (D) increasing port revenues; and 6-12 (E) providing economic benefits to the state. 6-13 (b) The committee shall update the port capital program 6-14 annually and shall submit the capital program not later than 6-15 February 1 of each year to: 6-16 (1) the governor; 6-17 (2) the lieutenant governor; 6-18 (3) the speaker of the house of representatives; and 6-19 (4) the department. 6-20 SECTION 2. The Texas Department of Economic Development 6-21 shall convene the initial meeting of the Texas Port Transportation 6-22 and Economic Development Advisory Committee, as created by this 6-23 Act, before January 1, 2002. 6-24 SECTION 3. This Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1282 passed the Senate on April 17, 2001, by a viva-voce vote; and that the Senate concurred in House amendment on May 24, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1282 passed the House, with amendment, on May 11, 2001, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor