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