By: Hamric (Senate Sponsor - Armbrister) H.B. No. 1730
(In the Senate - Received from the House May 7, 2003;
May 9, 2003, read first time and referred to Committee on
Administration; May 16, 2003, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 6, Nays 0;
May 16, 2003, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 1730 By: Janek
A BILL TO BE ENTITLED
AN ACT
relating to the leasing and contracting powers of a port authority
or navigation district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 60.039, Water Code, is amended to read as
follows:
Sec. 60.039. SURFACE LEASE FOR NOT MORE THAN 30 [10] YEARS.
The commission may lease the surface of land for not more than 30
[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. The lease may not be extended beyond the 30-year [10-year]
period by renewal, extension, or otherwise.
SECTION 2. Section 60.040, Water Code, is amended to read as
follows:
Sec. 60.040. PUBLICATION OF NOTICE FOR SALES AND LEASES IN
EXCESS OF 30 [10] YEARS. Before making a sale or lease of land for
more than 30 [10] years, the commission shall publish a notice in
the manner provided in Section 60.035 of this subchapter.
SECTION 3. Section 60.041, Water Code, is amended to read as
follows:
Sec. 60.041. SECURITY FOR BIDS ON LAND TO BE SOLD OR LEASED
FOR MORE THAN 30 [10] YEARS. Each bid submitted on land to be sold
or leased for more than 30 [10] years shall be accompanied by a
certified check, cashier's check, or bidder's bond with a
responsible corporate surety authorized to do business in Texas.
The check or bond shall be in an amount equal to the bid for the land
or for the first rental payment under the lease and shall guarantee
that the bidder will perform the terms of his bid if it is accepted
by the commission.
SECTION 4. The heading to Section 60.042, Water Code, is
amended to read as follows:
Sec. 60.042. AWARD AND EXECUTION OF DEED OR LEASE IN EXCESS
OF 30 [10] YEARS.
SECTION 5. Section 60.151, Water Code, is amended to read as
follows:
Sec. 60.151. PURPOSE. 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. Section 60.152(a), Water Code, is amended to
read as follows:
(a) One [Two] or more districts, which are interested in or
may, in the judgment of the commission, be benefited by a navigation
or other project, may enter into contracts with the United States or
with another district [each other], or both, to consummate
navigation or other projects of common interest.
SECTION 7. Section 60.403(a), Water Code, is amended to
read as follows:
(a) A port commission, [or] authorized designated officer
of the port commission, or authorized designated employee of a port
authority or district may make routine purchases or contracts in an
amount not to exceed $25,000.
SECTION 8. Subchapter N, Chapter 60, Water Code, is amended
by adding Section 60.4035 to read as follows:
Sec. 60.4035. CONTRACTS: EMERGENCY PURCHASES. (a)
Notwithstanding Sections 60.404 and 60.406, the executive director
of a port commission or an officer of a port commission authorized
in writing by the executive director of the port commission may make
emergency purchases or contracts in an amount that exceeds $25,000
if necessary:
(1) to preserve or protect the public health and
safety of the residents of the district;
(2) to preserve the property of the district in the
case of a public calamity;
(3) to repair unforeseen damage to the property of the
district; or
(4) to respond to security directives issued by:
(A) the federal Department of Homeland Security,
including the Transportation Security Administration;
(B) the United States Coast Guard;
(C) the federal Department of Transportation,
including the Maritime Administration; or
(D) another federal or state agency responsible
for domestic security.
(b) The executive director of a port commission or the
authorized officer of the port commission shall notify the port
commissioners of any purchase made under Subsection (a) not later
than 48 hours after the purchase is made.
SECTION 9. Section 60.404(d), Water Code, is amended to
read as follows:
(d) The specifications must:
(1) describe in detail the item to be acquired;
(2) require that bids be sealed; [and]
(3) require the attachment to the bid of a certified
check, cashier's check, or bidders bond; and
(4) indicate whether a small business development
program adopted by the port commission of the port authority or
district applies to the purchase and, if so, where a copy of the
program requirements may be obtained.
SECTION 10. Subchapter N, Chapter 60, Water Code, is
amended by adding Section 60.4115 to read as follows:
Sec. 60.4115. NOTIFICATION OF SAFETY AND ENVIRONMENTAL
RECORD OF CONTRACTOR. (a) A person that enters into a contract
with a district or port authority shall 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. The notice must include:
(1) a general description of the conduct that resulted
in the citation, violation, penalty, or similar sanction; and
(2) the document from the agency or department that
provided notice to the person of the citation, violation, penalty,
or similar sanction.
(b) A district or port authority may 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. The district or port
authority shall compensate the person for services performed before
the termination of the contract.
(c) This section applies to all purchasing methods
available to a district or port authority.
SECTION 11. Section 60.412(a), Water Code, is amended to
read as follows:
(a) 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:
(1) an item that must be purchased in a case of public
calamity if it is necessary to make the purchase promptly to relieve
the necessity of the citizens or to preserve the property of the
district or port authority;
(2) an item necessary to preserve or protect the
public health or the safety of the residents of the district or port
authority;
(3) an item made necessary by unforeseen damage to the
property of the district or port authority;
(4) a personal or professional service;
(5) any work performed and paid for by the day as the
work progresses;
(6) any land or right-of-way; [or]
(7) an item that can be obtained only from one source,
including:
(A) items for which competition is precluded
because of the existence of patents, copyrights, secret processes,
or natural monopolies;
(B) films, manuscripts, or books;
(C) public utility services; and
(D) captive replacement parts or components for
equipment; or
(8) any item necessary to secure a district or port
authority during a period of heightened security as determined by:
(A) the federal Department of Homeland Security,
including the Transportation Security Administration;
(B) the United States Coast Guard;
(C) the United States Customs Service;
(D) the Federal Bureau of Investigation;
(E) the federal Department of Transportation,
including the Maritime Administration; or
(F) another federal, state, or local agency.
SECTION 12. Section 60.4125, Water Code, is amended by
adding Subsection (d) to read as follows:
(d) If a purchase or contract made under Subsection (a) is
subject to a small business development program adopted by the port
commission of the port authority or district, the purchase
solicitation must indicate that fact and must also indicate where a
copy of the program requirements may be obtained.
SECTION 13. (a) This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2003.
(b) Sections 60.4035 and 60.4115, Water Code, as added by
this Act, and Sections 60.404 and 60.4125, Water Code, as amended by
this Act, apply 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) The changes in law made to Sections 60.039, 60.040,
60.041, and 60.042, Water Code, by this Act apply to a lease entered
into before, on, or after the effective date of this Act.
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