By Lucio                                              S.B. No. 1282
         77R1339 MTB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the funding of port transportation or facility
 1-3     projects.
 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 DEVELOPMENT
 1-8                                   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 Department of Economic
1-13     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)  From money in the fund, the department
1-21     shall fund port transportation or facility projects.
1-22           (b)  The department may not fund a port transportation or
1-23     facility project unless an amount at least equal to the amount
1-24     provided by the department is invested in a project by a port
 2-1     authority or navigation district.
 2-2           (c)  Port facility or transportation projects eligible for
 2-3     funding under this chapter include:
 2-4                 (1)  construction or improvement of transportation
 2-5     facilities within the jurisdiction of a port;
 2-6                 (2)  the dredging or deepening of channels, turning
 2-7     basins, or harbors;
 2-8                 (3)  the construction or improvement of wharves, docks,
 2-9     structures, jetties, piers, storage facilities, cruise terminals,
2-10     or any facilities necessary or useful in connection with port
2-11     transportation or economic development;
2-12                 (4)  the acquisition of container cranes or other
2-13     mechanized equipment used in the movement of cargo or passengers in
2-14     international commerce;
2-15                 (5)  the acquisition of land to be used for port
2-16     purposes;
2-17                 (6)  the acquisition, improvement, enlargement, or
2-18     extension of existing port facilities; and
2-19                 (7)  environmental protection projects:
2-20                       (A)  required as a condition of a state, federal,
2-21     or local environmental permit or other form of state approval;
2-22                       (B)  necessary for the acquisition of spoil
2-23     disposal sites and improvements to existing and future spoil sites;
2-24     or
2-25                       (C)  that result from the undertaking of eligible
2-26     projects.
2-27           (d)  The department shall review the list of projects
 3-1     recommended by the committee to evaluate the economic benefit of
 3-2     each project and to determine whether each project is consistent
 3-3     with the port mission plan. The department shall approve projects
 3-4     for funding based on its review.
 3-5           Sec. 55.003.  GIFTS AND GRANTS. The department may accept
 3-6     gifts, grants, and donations from any source for the purposes of
 3-7     this chapter.
 3-8           Sec. 55.004.  AUDIT. The department may subject a project
 3-9     that receives money under this chapter to a final audit. The
3-10     department may adopt rules and perform other acts necessary or
3-11     convenient to ensure that the final audits are conducted and that
3-12     any deficiency or questioned costs noted by the audit are resolved.
3-13           Sec. 55.005.  PORT ACCESS ACCOUNT FUND. (a)  The port access
3-14     account fund is an account in the general revenue fund.
3-15           (b)  The following money shall be credited to the fund:
3-16                 (1)  money appropriated by the legislature for the
3-17     implementation and administration of this chapter;
3-18                 (2)  interest earned on deposits and investments of the
3-19     fund; and
3-20                 (3)  money received from other sources for the purpose
3-21     of port transportation and economic development.
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
3-27     audit by the state auditor.
 4-1           Sec. 55.006.  TEXAS PORT TRANSPORTATION AND ECONOMIC
 4-2     DEVELOPMENT ADVISORY COMMITTEE. (a)  The Texas Port Transportation
 4-3     and Economic Development Advisory Committee consists of:
 4-4                 (1)  a member of the governing body of each of the
 4-5     ports that are members of the Texas Ports Association or their
 4-6     designees; and
 4-7                 (2)  as nonvoting members, the executive directors of
 4-8     the department and of the General Land Office or their designees.
 4-9           (b)  The committee shall develop bylaws under which it
4-10     operates. The bylaws must specify the procedure by which the
4-11     presiding officer of the committee is elected. A majority of voting
4-12     members constitutes a quorum sufficient to conduct meetings and
4-13     business of the advisory committee. A vote of the majority of the
4-14     voting members present is sufficient for any action of the
4-15     committee, unless the bylaws of the committee require a greater
4-16     vote for a particular action.
4-17           (c)  The committee shall meet at the call of its presiding
4-18     officer, at the request of a majority of its membership, or at
4-19     times prescribed in its bylaws. The committee must meet at least
4-20     semiannually.
4-21           (d)  A member is not entitled to compensation for service on
4-22     the committee but is entitled to reimbursement for reasonable
4-23     expenses the member incurs in performing committee duties.
4-24           (e)  Sections 2110.002 and 2110.008, Government Code, do not
4-25     apply to the committee.
4-26           Sec. 55.007.  DUTIES OF COMMITTEE. The committee shall:
4-27                 (1)  prepare a port mission plan;
 5-1                 (2)  review each project eligible to be funded under
 5-2     this chapter and make recommendations for approval or disapproval
 5-3     to the department;
 5-4                 (3)  maintain trade data information that will assist
 5-5     ports in this state and international trade;
 5-6                 (4)  annually prepare a list of projects that have been
 5-7     recommended by the committee, including:
 5-8                       (A)  the recommended funding level for each
 5-9     project; and
5-10                       (B)  if staged implementation of the project is
5-11     appropriate, the funding requirements for each stage; and
5-12                 (5)  adopt rules for evaluating projects that may be
5-13     funded under this chapter, providing criteria for the evaluation of
5-14     the economic benefit of the project, measured by the potential for
5-15     the proposed project to increase:
5-16                       (A)  cargo flow;
5-17                       (B)  cruise passenger movement;
5-18                       (C)  international commerce;
5-19                       (D)  port revenues; and
5-20                       (E)  the number of jobs for the port's local
5-21     community.
5-22           Sec. 55.008.  MISSION PLAN. (a)  The committee shall prepare
5-23     a five-year port mission plan defining the goals and objectives of
5-24     the committee concerning the development of port facilities and an
5-25     intermodal transportation system. The port mission plan must
5-26     include a plan submitted by each port that is a member of the
5-27     committee and recommendations for:
 6-1                 (1)  the construction of transportation facilities
 6-2     connecting any port to another transportation mode; and
 6-3                 (2)  the efficient, cost-effective development of
 6-4     transportation facilities or port facilities for the purpose of:
 6-5                       (A)  enhancing international trade;
 6-6                       (B)  promoting cargo flow;
 6-7                       (C)  increasing cruise passenger movements;
 6-8                       (D)  increasing port revenues; and
 6-9                       (E)  providing economic benefits to the state.
6-10           (b)  The committee shall update the port mission plan
6-11     annually and shall submit the plan not later than February 1 of
6-12     each year to:
6-13                 (1)  the governor;
6-14                 (2)  the lieutenant governor;
6-15                 (3)  the speaker of the house of representatives;
6-16                 (4)  the General Land Office; and
6-17                 (5)  the department.
6-18           SECTION 2. The Texas Department of Economic Development shall
6-19     convene the initial meeting of the Texas Port Transportation and
6-20     Economic Development Advisory Committee, as created by this Act,
6-21     before March 1, 2002.
6-22           SECTION 3. This Act takes effect September 1, 2001.