1-1     By:  Lucio, Bernsen                                   S.B. No. 1282
 1-2           (In the Senate - Filed March 7, 2001; March 12, 2001, read
 1-3     first time and referred to Committee on Business and Commerce;
 1-4     April 9, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 7, Nays 0; April 9, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1282                   By:  Lucio
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the funding of port transportation or facility projects
1-11     or port studies.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subtitle A, Title 4, Transportation Code, is
1-14     amended by adding Chapter 55 to read as follows:
1-15             CHAPTER 55.  TEXAS PORT TRANSPORTATION AND ECONOMIC
1-16                             DEVELOPMENT FUNDING
1-17           Sec. 55.001.  DEFINITIONS.  In this chapter:
1-18                 (1)  "Committee" means the Texas Port Transportation
1-19     and Economic Development Advisory Committee.
1-20                 (2)  "Department" means the Texas Department of
1-21     Economic Development.
1-22                 (3)  "Fund" means the port access account fund.
1-23                 (4)  "Port transportation or facility project" means a
1-24     project necessary or convenient for the proper operation of a port
1-25     that will improve the movement and intermodal transportation of
1-26     cargo or passengers in commerce and trade.
1-27           Sec. 55.002.  TEXAS PORT TRANSPORTATION AND ECONOMIC
1-28     DEVELOPMENT FUNDING.  (a)  From money in the fund, the department
1-29     shall fund:
1-30                 (1)  port transportation or facility projects; or
1-31                 (2)  port studies.
1-32           (b)  The department may not fund a port transportation or
1-33     facility project unless an amount at least equal to the amount
1-34     provided by the department is invested in a project by a port
1-35     authority or navigation district.
1-36           (c)  Port transportation or facility projects eligible for
1-37     funding under this chapter include:
1-38                 (1)  construction or improvement of transportation
1-39     facilities within the jurisdiction of a port;
1-40                 (2)  the dredging or deepening of channels, turning
1-41     basins, or harbors;
1-42                 (3)  the construction or improvement of wharves, docks,
1-43     structures, jetties, piers, storage facilities, cruise terminals,
1-44     or any facilities necessary or useful in connection with port
1-45     transportation or economic development;
1-46                 (4)  the acquisition of container cranes or other
1-47     mechanized equipment used in the movement of cargo or passengers in
1-48     international commerce;
1-49                 (5)  the acquisition of land to be used for port
1-50     purposes;
1-51                 (6)  the acquisition, improvement, enlargement, or
1-52     extension of existing port facilities; and
1-53                 (7)  environmental protection projects:
1-54                       (A)  required as a condition of a state, federal,
1-55     or local environmental permit or other form of state approval;
1-56                       (B)  necessary for the acquisition of spoil
1-57     disposal sites and improvements to existing and future spoil sites;
1-58     or
1-59                       (C)  that result from the undertaking of eligible
1-60     projects.
1-61           (d)  The department, in consultation with the committee,
1-62     shall review the list of projects recommended by the committee to
1-63     evaluate the economic benefit of each project.  The department, in
1-64     consultation with the committee, shall approve projects or studies
 2-1     for funding based on its review.
 2-2           Sec. 55.003.  GIFTS AND GRANTS.  The department may accept
 2-3     gifts, grants, and donations from any source for the purposes of
 2-4     this chapter.
 2-5           Sec. 55.004.  AUDIT.  The department may subject a project
 2-6     that receives money under this chapter to a final audit.  The
 2-7     department may adopt rules and perform other acts necessary or
 2-8     convenient to ensure that the final audits are conducted and that
 2-9     any deficiency or questioned costs noted by the audit are resolved.
2-10           Sec. 55.005.  PORT ACCESS ACCOUNT FUND.  (a)  The port access
2-11     account fund is an account in the general revenue fund.
2-12           (b)  The following money shall be credited to the fund:
2-13                 (1)  money appropriated by the legislature for the
2-14     implementation and administration of this chapter;
2-15                 (2)  interest earned on deposits and investments of the
2-16     fund; and
2-17                 (3)  money received from other sources for the purpose
2-18     of port transportation and economic development.
2-19           (c)  Money in the fund may be appropriated only to the
2-20     department to perform the department's powers and duties concerning
2-21     port transportation and economic development under this chapter and
2-22     to pay the department's expenses incurred under this chapter.
2-23           (d)  The financial transactions of the fund are subject to
2-24     audit by the state auditor.
2-25           Sec. 55.006.  TEXAS PORT TRANSPORTATION AND ECONOMIC
2-26     DEVELOPMENT ADVISORY COMMITTEE.  (a)  The Texas Port Transportation
2-27     and Economic Development Advisory Committee consists of:
2-28                 (1)  a member of the governing body of each of the
2-29     ports that are members of the Texas Ports Association or their
2-30     designees; and
2-31                 (2)  as a nonvoting member, the executive director or
2-32     the designee of the department.
2-33           (b)  The committee shall develop bylaws under which it
2-34     operates.  The bylaws must specify the procedure by which the
2-35     presiding officer of the committee is elected.  A majority of
2-36     voting members constitutes a quorum sufficient to conduct meetings
2-37     and business of the committee.  A vote of the majority of the
2-38     voting members present is sufficient for any action of the
2-39     committee, unless the bylaws of the committee require a greater
2-40     vote for a particular action.
2-41           (c)  The committee shall meet at the call of its presiding
2-42     officer, at the request of a majority of its membership, or at
2-43     times prescribed in its bylaws.  The committee must meet at least
2-44     semiannually.
2-45           (d)  A member is not entitled to compensation for service on
2-46     the committee but is entitled to reimbursement for reasonable
2-47     expenses the member incurs in performing committee duties.
2-48           (e)  Sections 2110.002 and 2110.008, Government Code, do not
2-49     apply to the committee.
2-50           Sec. 55.007.  DUTIES OF COMMITTEE.  The committee shall:
2-51                 (1)  prepare a port mission plan;
2-52                 (2)  review each project eligible to be funded under
2-53     this chapter and make recommendations for approval or disapproval
2-54     to the department;
2-55                 (3)  maintain trade data information that will assist
2-56     ports in this state and international trade;
2-57                 (4)  annually prepare a list of projects that have been
2-58     recommended by the committee, including:
2-59                       (A)  the recommended funding level for each
2-60     project; and
2-61                       (B)  if staged implementation of the project is
2-62     appropriate, the funding requirements for each stage; and
2-63                 (5)  adopt rules for evaluating projects that may be
2-64     funded under this chapter, providing criteria for the evaluation of
2-65     the economic benefit of the project, measured by the potential for
2-66     the proposed project to increase:
2-67                       (A)  cargo flow;
2-68                       (B)  cruise passenger movement;
2-69                       (C)  international commerce;
 3-1                       (D)  port revenues; and
 3-2                       (E)  the number of jobs for the port's local
 3-3     community.
 3-4           Sec. 55.008.  CAPITAL PROGRAM.  (a)  The committee shall
 3-5     prepare a two-year port capital program defining the goals and
 3-6     objectives of the committee concerning the development of port
 3-7     facilities and an intermodal transportation system.  The port
 3-8     capital program must include projects or studies submitted by each
 3-9     port that is a member of the committee and recommendations for:
3-10                 (1)  the construction of transportation facilities
3-11     connecting any port to another transportation mode; and
3-12                 (2)  the efficient, cost-effective development of
3-13     transportation facilities or port facilities for the purpose of:
3-14                       (A)  enhancing international trade;
3-15                       (B)  promoting cargo flow;
3-16                       (C)  increasing cruise passenger movements;
3-17                       (D)  increasing port revenues; and
3-18                       (E)  providing economic benefits to the state.
3-19           (b)  The committee shall update the port capital program
3-20     annually and shall submit the capital program not later than
3-21     February 1 of each year to:
3-22                 (1)  the governor;
3-23                 (2)  the lieutenant governor;
3-24                 (3)  the speaker of the house of representatives; and
3-25                 (4)  the department.
3-26           SECTION 2.  The Texas Department of Economic Development
3-27     shall convene the initial meeting of the Texas Port Transportation
3-28     and Economic Development Advisory Committee, as created by this
3-29     Act, before January 1, 2002.
3-30           SECTION 3.  This Act takes effect September 1, 2001.
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