SRC-JLB C.S.S.B. 1254 78(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1254
By: Armbrister
Natural Resources
4/30/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, the Texas Water Code allows property to be leased to a company
for less than ten years without a bid process.  Some perceive the code as
putting Texas ports at a disadvantage with other ports around the nation.
Individual  maritime companies at times will guarantee significant capital
investment into properties at public ports but only with a long-term lease
to give the company enough time to recover the expenditure.  Many Texas
airports already have provisions allowing leases of property for up to 30
years without a bid.  C.S.S.B. 1254 brings Texas ports in line with
competing states and Texas airports.  C.S.S.B. 1254 also provides for
certain emergency purchases to meet security needs. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 60.039, Water Code, as follows:
 
Sec. 60.039.  New heading:  SURFACE LEASE FOR NOT MORE THAN 30 YEARS.
Authorizes the navigation and canal commission (commission) to lease the
surface of land for not more than 30, rather than 10, years by the entry
of an order on the minutes of the commission and the execution of a lease
in the manner provided by the original order. Makes a conforming change. 

SECTION 2.  Amends Section 60.040, Water Code, to make conforming changes.

SECTION 3.  Amends Section 60.041, Water Code, to make conforming changes.

SECTION 4.  Amends the heading to Section 60.042, Water Code, to make a
conforming change. 

SECTION 5.  Amends Section 60.151, Water Code, as follows:
 
Sec. 60.151.  PURPOSE.  Provides that it is the purpose and intent of this
subchapter to confer on districts individually, jointly, or mutually
interested in a navigation project, including a project relating to
improvements and facilities described in Sections 60.032 and 60.101 of
this code, the fullest possible power of contract with regard to
navigation or other projects of individual or common interest. 
 
SECTION 6.  Amends Subsection (a), Section 60.152, Water Code, to
authorize one, rather than two, or more districts, which are interested in
or may, in the judgment of the commission, be benefitted by a navigation
or other project, to enter into contracts with the United States or with
another district, rather than each other, or both, to consummate
navigation or other projects of common interest. 
 
SECTION 7.  Amends Section 60.403, Water Code, by amending Subsection (a)
and adding Subsection (e), as follows: 
 
(a)  Authorizes a port commission, authorized designated officer of the
port commission, or authorized designated employee of a port authority or
district to make routine purchases or contracts in an amount not to exceed
$25,000. 

(e)  Authorizes a port commission to authorize its executive director, or
any officer of the port commission specified in writing by the executive
director, to make emergency purchases of more than $25,000 when necessary
to preserve or protect the public health or the safety of the residents
within the boundaries of the port authority or the district, when
necessary in the case of public calamity to relieve the necessity of
residents or to preserve the property of the port authority or the
district, when necessary because of unforeseen damage to the property of
the port authority or the district, or when made necessary by security
directives from the United States Homeland Security Department, the United
States Coast Guard, the United States Transportation Security
Administration, the United States Maritime Administration, or another
state or federal agency responsible for homeland security.  Requires the
executive director or the executive director's designee to notify the port
commissioners of a purchase not later than 48 hours after making the
purchase under this authorization. 

SECTION 8.  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.  (a)  Requires a person that enters into a contract with a
district or port authority to provide, at the request of the district or
port authority, notice to the district or authority of any citation,
notice of violation or penalty, or other similar document, regarding a
serious safety or environmental violation that the person received from an
agency or department of this state or of the federal government.  Requires
the notice to include certain information. 

(b)  Authorizes a district or port authority to terminate a contract with
a person if the district or authority determines that the person failed to
give notice as required by Subsection (a) or misrepresented conduct that
resulted in a citation, notice of violation or penalty, or similar
sanction.  Requires the district or port authority to compensate the
person for services performed before the termination of the contract. 
 
(c)  Provides that this section applies to all purchasing methods
available to a district or port authority. 
 
SECTION 9.  Amends Subsection (a), Section 60.412, Water Code, to provide
that a contract for a purchase is exempt from the requirements of Sections
60.404 and 60.405 of this code if a contract is for the purchase of
certain items. 

SECTION 10.  (a)  Effective date:  upon passage or September 1, 2003.
 
(b) Provides that Section 60.4115, Water Code, as added by this Act
applies only to a contract entered into on or after the effective date of
this Act.  A contract entered into before the effective date of this Act
is governed by the law in effect at the time the contract was entered
into, and the former law is continued in effect for that purpose. 

(c)  Provides that the changes in law made to Sections 60.039, 60.040,
60.041, and 60.042, Water Code, by this Act apply only to a lease entered
into on or after the effective date of this Act. Provides that a lease
entered into before the effective date of this Act is governed by the law
in effect at the time the lease was entered into, and the former law is
continued in effect for that purpose.