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. 3-31 * * * * *