C.S.H.B. 1730 78(R) BILL ANALYSIS
C.S.H.B. 1730
By: Hamric
Transportation
Committee Report (Substituted)
BACKGROUND AND PURPOSE
Currently, the Texas Water Code restricts the lease term for which ports
may lease property to businesses to not more than 10 years. This
restriction puts Texas ports at a disadvantage with other ports around the
nation. Many Texas airports already have provisions allowing leases of
property of up to 30 years without a bid. Individual maritime companies
at times will guarantee significant capital investment in property at
public ports; however, usually only with a long-term lease giving the
company sufficient time to recoup its expenditure. Ten years is normally
insufficient time for a company to recoup its investment.
In addition, the Texas Water Code currently only authorizes contracts
with the federal government when two or more ports are involved. While
federal law which contains no such prohibition supercedes, the Committee
Substitute to House Bill 1730 eliminates conflict and ambiguity in the
law.
CSHB 1730 authorizes ports to lease property to businesses for a period
longer than 10 years, eliminates ambiguities in the law pertaining to an
individual port's authority to contract with the federal government, and
deems items purchased during a period of heightened security exempt from
the competitive bidding process.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution.
ANALYSIS
Section 1. Amends Section 60.039, Water Code, as follows:
Section 60.039:makes conforming changes authorizing a port commission to
lease property for 30 years, rather than 10 years, without a bid.
Section 2. Amends Section 60.040, Water Code, as follows:
Section 60.040:makes conforming changes requiring a port commission to
post notice of sale or 30-year, rather than 10-year, lease of land in the
manner prescribed by Section 60.035, Water Code.
Section 3. Amends Section 60.041, Water Code, as follows:
Section 60.041:makes conforming changes requiring a bid submitted for
sale or 30-year, rather than 10-year, lease of land to be accompanied by a
certified check, cashier's check, or bidder's bond.
Section 4. Amends heading of Section 60.042, Water Code, as follows:
Sec. 60.042. AWARD AND EXECUTION OF DEED OR LEASE IN EXCESS OF 30 YEARS
Section 5. Amends Section 60.151, Water Code as follows:
Section 60.151:makes conforming changes authorizing navigation
districts to contract with the federal government individually, rather
than just jointly.
Section 6. Amends Section 60.152(a), Water Code, as follows:
Section 60.152(a):makes conforming changes authorizing navigation
districts to contract with the federal government, another navigation
district, or both, individually, rather than just jointly.
Section 7. Amends Section 60.403(a), Water Code, as follows:
Section 60.403(a):authorizes a designated employee of a port or
navigation district, in addition to a designated officer of a port
commission, to make routine purchases or enter into contracts up to
$25,000.00.
Section 8. Amends Subchapter N, Chapter 60, Water Code by adding Section
60.4035 as follows:
Sec. 60.4035. CONTRACTS: EMERGENCY PURCHASES.
Section 60.4035(a):authorizes, notwithstanding Sections 60.404 and
60.406, Water Code, the executive director or authorized officer of a port
or navigation district to make emergency purchases or enter into emergency
contracts exceeding $25,000.00 if necessary to:
(1)to preserve and protect the health and safety of residents of the
navigation district;
(2)to preserve property in case of public calamity;
(3)to repair unforeseen damage to property; or
(4)to respond to security directives issued by appropriate federal,
state, and local authorities.
Section 60.4035(b):requires the executive director or authorized officer
of a port or navigation district making an emergency purchase to notify
the port commissioners not later than 48 hours after the purchase.
Section 9. Amends Subchapter N, Chapter 60, Water Code, by adding
Section 60.4115 as follows:
Sec. 60.4115. NOTIFICATION OF SAFETY AND ENVIRONMENTAL RECORD OF
CONTRACTOR
Section 60.4115(a):authorizes a navigation district or port authority to
require, at the request of the district or authority, a company entering
into contract with the district or authority to provide notice as to any
citation, notice of violation or penalty, or other similar document,
regarding a serious safety and environmental violation the contractee has
received; and, such notice must include:
(1)a general description of the conduct that resulted in adverse
action; and
(2)documentation from the agency providing notice of the conduct and
adverse action;
Section 60.4115(b):authorizes a navigation district or port authority to
terminate a contract if the district or authority determines the
contractee failed to give notice of violations or made misrepresentations
as to certain conduct; and, requires the district or authority to
compensate the contractee for services performed upon termination of
contract.
Section 60.4115(c):applies this section to all methods available to a
navigation district or port authority.
Section 10. Amends Section 60.412(a) by adding Subsection (8) as follows:
Section 60.412(a)(8):exempts from the competitive bidding process any
item purchased which is necessary to secure a navigation district or port
authority during a period of heightened security as determined by the
appropriate federal, state, and local authorities.
Section 11.
(a)This Act takes immediate effect upon two-thirds vote of all members of
both the House and Senate; or, September 1, 2003.
(b)Section 60.4115, Water Code, as added by this Act, applies only to
contracts entered into on or after the effective date of this Act.
(c)This Act applies to leases entered into before, on, or after the
effective date of this Act.
EFFECTIVE DATE
Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.
COMPARISON OF ORIGINAL TO SUBSTITUTE
CSHB 1730 deems items purchased during a period of heightened security
exempt from the competitive bidding process.