|
ANALYSIS
Maintains a locally
appointed, seven-member Port Commission, but adds new procedures to encourage
timely appointments.
C.S.H.B. 1642 maintains the basic
structure of appointments to the seven-member Commission as exists in current
law. The substitute provides for two members appointed by Harris County; two
by the City of Houston; one by the City of Pasadena; one by the Harris County
Mayors’ and Councils’ Association; and the joint appointment of the Chair by
Harris County and the City of Houston. The substitute specifies that
existing general residency and other requirements in certain sections of the
Water Code continue to apply to Port Commissioners. The substitute adds
language to specify that the Commissioner appointed by the City of Pasadena
must reside in the City of Pasadena, and maintains the existing requirement
that the Commissioner appointed by the Harris County Mayors’ and Councils’
Association must be a resident of a city in Harris County, adjacent to the
Houston Ship Channel, with a population of less than 100,000. The substitute
specifies that Port Commissioners serve staggered two-year terms expiring on
February 1, and designates which positions expire in odd-numbered and even-numbered
years.
C.S.H.B. 1642 requires the City
of Houston and Harris County to jointly appoint the Chair of the Port
Commission on a specified date in January of odd-numbered years. The
substitute requires that the meeting to make the Chair appointment be held at
the Authority’s headquarters and specifies voting procedures, including
defining quorum for the meeting and establishing procedures in the event of a
tie. If the City of Houston and Harris County do not make the appointment
within the specified time period, or if two votes result in a tie, the
substitute specifies that the person serving as the Chair is not eligible for
reappointment and requires the Governor to appoint the Chair with Senate
confirmation.
For all positions other than
the Chair, the substitute specifies that appointing entities must make new
appointments not later than the 30th day after the date a term expires or a
vacancy begins. If the appointing entity fails to make the appointment
within the specified timeframe, the substitute specifies that the office is
considered an open position, the person serving is ineligible for
reappointment, and the appointing authority transfers to one of the other
local appointing entities. If the second appointing entity fails to make the
appointment after the 60th day after the date a term expires or a vacancy
begins, the substitute specifies that the Governor shall make the appointment
with required Senate confirmation.
C.S.H.B. 1642 specifies that if
a vacancy occurs for any other reason, it shall be filled in the manner
provided for in making the original appointment. The substitute also
specifies that if the authority to appoint a Commissioner rotates to another
entity, the authority only transfers for the term in question and any subsequent
appointment must be made by the original appointing entity.
Requires new appointments
for all Commission positions by October 2, 2013 and prohibits a person who
has already served 12 years from being appointed or reappointed.
C.S.H.B. 1642 specifies that
the terms of all Commissioners serving on the effective date of the Act
expire on October 1, 2013 and requires appointing entities to make new
appointments by October 2, 2013. The substitute specifies the meeting date
in September 2013 for the initial joint Chair appointment and specifies
staggered terms for each initial appointment. The substitute specifies that
a person is not eligible for appointment to the Port Commission, including
the initial appointments, if the person has previously served the equivalent
of 12 full years on the Commission.
Requires another Sunset
review of the Authority in four years.
C.S.H.B. 1642 requires a Sunset
review of the Port of Houston Authority in four years to assess the
Authority’s governance, management, and operating structure, and its
compliance with legislative requirements. The substitute specifies that the
Authority is not subject to abolishment under the Sunset Act, and requires
the Authority to pay the cost incurred by the Sunset Commission in conducting
the review.
Adds requirements to
promote good governance and ethics for the Port Commission and Authority
staff.
C.S.H.B. 1642 adds standard
Sunset language requiring the Port Commission to develop and implement
policies clearly separating the policymaking responsibilities of the
Commission and the management responsibilities of the Authority’s Executive
Director and staff. The substitute requires the Commission to adopt policies
for its governance practices and to make them available on the Authority’s
website. The substitute also specifies distribution of all adopted policies
to Commission members and Authority employees. The substitute specifies
certain employment decisions that must be delegated to the Executive Director
and consolidates provisions from existing session law to better organize Executive
Director duties under one heading. These provisions include specifying a
two-year term and a bonding requirement for the Executive Director and
authorizing the Commission to delegate certain duties to the Executive
Director.
C.S.H.B. 1642 requires the
Commission to adopt policies governing ethics, standards of conduct, and
whistleblower procedures, and to establish an ethics hotline. The substitute
also applies standard Sunset conflict of interest language for Commission
membership and high-ranking Authority employees; defines grounds for removal
for Commission members and provides a notification process if a potential
ground for removal exists; and requires specific training for Commission
members.
Applies state financial
disclosure requirements to Port Commissioners.
C.S.H.B. 1642 requires
Commissioners to file personal financial statements under the same
requirements as state officers.
Requires the Authority to
develop public involvement and complaints procedures.
C.S.H.B. 1642 requires the
Authority to develop and implement a policy that provides a structure for
public involvement including specific elements. The substitute also applies
standard Sunset language requiring the Authority to maintain a system for
receiving and acting on complaints, including developing a complaint form
available online, providing clear information about what to expect once a
complaint is filed, and reporting complaint statistics to senior management
and the Commission.
Requires the Authority to
develop detailed strategic and capital plans and provide public access to
planning information.
C.S.H.B. 1642 requires the
Authority to create a comprehensive strategic planning process, including
long-range strategies and shorter-range implementation plans tied to
financial and capital planning. Required plans include a long-range plan of
10 or more years; a mid-range plan including a five-year financial forecast
and capital plan; and a one-year capital plan integrated with the budget and
adopted by the Commission at a public meeting. The substitute also requires
the Commission to annually adopt a budget for the Authority in an open
meeting. The substitute requires the Commission to make these adopted plans
and the most recently adopted budget available to the public, including on
the Authority’s website, and allows the Commission to redact sensitive
business information from the publicly available plans.
Requires the Authority to
establish a standard internal audit function and clarifies the Harris County
Auditor’s authority to conduct risk-based financial audits.
C.S.H.B. 1642 requires the
Authority to establish an internal audit function consistent with standards
for state agency internal audit procedures. The substitute gives the Port
Commission only authority over the chief audit executive and requires the
Commission to approve the risk-based annual audit plan. The substitute also
requires the internal audit function to report to an internal audit task
force of the Commission. The substitute requires the Authority to provide
internal audits to the Harris County Auditor and appointing entities upon
request, and make its risk-based annual audit plan available on its website. The
substitute also specifies internal audit activity the chief audit executive
must coordinate.
C.S.H.B. 1642 authorizes
financial audits of the Authority by the Harris County Auditor as part of the
County Auditor’s overall risk assessment and annual audit plan for Harris
County, and prohibits the Harris County Auditor from performing operational
audits of the Authority. C.S.H.B. 1642 requires the Authority to reimburse
the County Auditor for any audits performed according to a specified
process. C.S.H.B. 1642 also eliminates outdated provisions prescribing the
Harris County Auditor’s current duties at the Authority by making them no
longer applicable to the Authority.
Requires the Authority to
adopt detailed Promotion and Development Fund and expense policies.
C.S.H.B. 1642 requires the Port
Commission to adopt comprehensive policies and provide detailed reporting on
the Authority’s use of its Promotion and Development Fund. The substitute requires
the policies to include a definition of acceptable uses of the Fund; a
consistent budget process and procedures for requesting funds; and a clear
approval process for Fund expenditures. The substitute requires procedures
for any exceptions to the adopted policy; regular re-evaluation of the policy
by the Commission; and regular tracking and detailed reporting of Fund
expenditures to the Commission and on the Authority’s website. C.S.H.B. 1642
also requires the Authority to adopt an expense policy including specific expenditure
control elements and protocols for submitting expense reports.
Transfers the Authority’s
un-codified session law into the Special District Local Laws Code and makes
technical changes.
C.S.H.B. 1642 transfers,
re-designates, and amends the Authority’s various source laws to Subtitle A,
Title 5, Special District Local Laws Code. The substitute conforms to
certain bill drafting conventions and makes clarifying changes and technical
corrections to the law, including repealing or updating obsolete provisions.
The substitute moves existing language defining the Authority’s navigation
board from one section of law to another for organization. The substitute
also provides that new provisions in the substitute related to the
Authority’s administration and planning prevail over any other law to the
extent of any conflict.
The substitute repeals
the following provisions:
·
Sections 2, 3, 4, 5, 6, and 7a, Chapter 97, Acts of the 40th
Legislature, 1st Called Session, 1927;
·
Section 9, Chapter 97, Acts of the 40th Legislature, 1st Called
Session, 1927, as added by Section 22, Chapter 1027, Acts of the 82nd
Legislature, Regular Session, 2011;
·
Section 9, Chapter 97, Acts of the 40th Legislature, 1st Called
Session, 1927, as added by Section 1.10, Chapter 1232, Acts of the 82nd
Legislature, Regular Session, 2011;
·
Sections 2 and 3, Chapter 86, Acts of the 49th Legislature,
Regular Session, 1945;
·
Sections 5,6, and 7, Chapter 117, Acts of the 55th Legislature,
Regular Session, 1957;
·
Sections 2 and 3, Chapter 186, Acts of the 57th Legislature,
Regular Session, 1961;
·
Section 2, Chapter 43, Acts of the 62nd Legislature, Regular
Session, 1971; and
·
Sections 2 and 3, Chapter 1042, Acts of the 70th Legislature,
Regular Session, 1987.
|
|
While C.S.H.B. 1642 may differ
from the original in minor or nonsubstantive ways, including making
clarifying changes and technical corrections to the law such as correcting or
removing obsolete language, and conforming to certain bill drafting
conventions, the following comparison is organized and highlighted in a
manner that indicates the substantial differences between the introduced and
committee substitute versions of the bill.
|
|
|
INTRODUCED
|
HOUSE COMMITTEE
SUBSTITUTE
|
|
(see SECTION 1, added Sec.
5007.201, Special District Local Laws, below.)
|
SECTION 1. Subtitle A, Title
5, Special District Local Laws Code, is amended by adding Chapter 5007 to
read as follows:
CHAPTER 5007. PORT OF
HOUSTON AUTHORITY OF HARRIS COUNTY, TEXAS
SUBCHAPTER A. GENERAL
PROVISIONS
Sec. 5007.001.
DEFINITIONS. In this chapter:
(1) "Authority"
means the Port of Houston Authority of Harris County, Texas.
(2) "Executive
director" means the executive director of the authority.
(3) "Port
commission" means the navigation and canal commission of the
authority.
(4) "Port
commissioner" means a member of the port commission.
|
|
SECTION 1. Chapter 97, Acts
of the 40th Legislature, 1st Called Session, 1927, is transferred to
Subtitle A, Title 5, Special District Local Laws Code, redesignated as
Chapter 5007, Special District Local Laws Code, and amended to read as
follows:
CHAPTER 5007. PORT OF
HOUSTON AUTHORITY OF HARRIS COUNTY, TEXAS
SUBCHAPTER A. GENERAL
PROVISIONS
|
SECTION 2. Sections 1 and 7,
Chapter 97, Acts of the 40th Legislature, 1st Called Session, 1927, are transferred
to Subchapter A, Chapter 5007, Special District Local Laws Code, as added
by this Act, redesignated as Sections 5007.002 and 5007.003, Special
District Local Laws Code, and amended to read as follows:
|
|
Sec. 5007.001 [1].
CREATION OF DISTRICT; VALIDATION; TERRITORY.
|
Sec. 5007.002 [1].
CREATION OF DISTRICT; VALIDATION; TERRITORY. Substantially the same
as introduced version, except makes a technical correction to remove
obsolete language.
|
|
Sec. 5007.002 [3].
VALIDATION OF ISSUANCE OF CERTAIN BONDS. (a) The petition, orders
of the Commissioners' Court, notices of election, the election and orders
declaring the result thereof and authorizing the issuance of the following
bonds: (a) An issue of $1,250,000.00, dated June 1, 1911, bearing 4 1/2%
interest, maturing equally each 10 years for forty years; (b) an issue of
$250,000.00, dated March 4, 1914, bearing 5% interest, maturing forty years
with an option to redeem same at any time after ten years; (c) an issue of
$1,500,000.00, dated August 1, 1919, bearing 5% interest and maturing
serially in 30 years; (d) an issue of $500,000.00, dated September 15,
1924 bearing 4 1/2% interest and maturing serially in thirty years; are
herenow in all respects confirmed, approved, ratified, and validated, and
held to be the legal and binding obligations [obilgations] of
said Harris County Houston Ship Channel Navigation District.
(b) [Sec. 4.]
The petition of the Navigation and Canal Commissioners of October 7, 1926,
to the Commissioners' Court asking for an election for One Million Five
Hundred Thousand ($1,500,000.00) Dollars of bonds; the order of the
Commissioners' Court of October 11, 1926, ordering an election for said
bonds for December 4, 1926; the notices of election, the publication and
posting of such notices, the form of ballot, the election itself, the
canvass by the Court of the votes cast at said election, and the order of
the Commissioners' Court dated December 13, 1926, authorizing the issuance
of One Million Five Hundred Thousand ($1,500,000.00) Dollars of the bonds
of said District, which bonds are dated February 1, 1927, due $50,000.00
each year for thirty years, bearing interest at the rate of 5%, payable
semi-annually, said bonds being in the denomination of $1,000.00 each and
setting out the form of said bonds, places of payment, rights of redemption
and other details of said issue; the order providing for a tax on all of
the taxable property in said District sufficient to pay the interest on
said bonds and provide a sinking fund for payment of said bonds at
maturity; and all orders of the Commissioners' Court supplementary to and
amendatory thereof, are in all respects ratified, confirmed, approved and
validated.
(c) [Sec. 5.]
The amount of bonds fixed in the order of said Court calling said election
for the purposes set forth in said order is hereby found to be proper and
necessary for the purposes set out therein and of benefit to all of the
property and tax payers in said District, and is hereby approved and
authorized, and the said Harris County Houston Ship Channel Navigation
District of Harris County, Texas, is hereby fully authorized and empowered
to issue and sell said bonds and use the proceeds of said bonds for the
purposes set forth in the order of said Court calling said election, and
said bonds as and when issued and sold at any time or from time to time
shall be and are hereby declared to be the legal, valid, and binding
obligations of said Harris County Houston Ship Channel Navigation District
of Harris County, Texas. The Commissioners' Court of Harris County, on
behalf of said District, is hereby fully authorized and empowered to levy
upon and against all of the taxable property in said Harris County Houston
Ship Channel Navigation District of Harris County, Texas, liable therefor,
in the manner and at the time provided for by the General Laws, sufficient
taxes to pay the interest on said bonds and provide sinking funds for the
payment of said bonds at maturity.
(d) [Sec. 6.]
The Attorney General of the State of Texas, on [an]
presentation to him for approval of any or all of said bonds duly executed
as provided by law, in the form set forth in the order referred to, is
authorized to approve and certify the same as valid and binding obligations
of the said Harris County Houston Ship Channel Navigation District of
Harris County, Texas.
|
Makes technical corrections by
repealing obsolete provisions. (See repealed provisions in SECTION 6
below.)
|
|
Sec. 5007.003 [7].
AUTHORITY TO ISSUE BONDS.
|
Sec. 5007.003 [7].
AUTHORITY TO ISSUE BONDS. Substantially the same as introduced
version.
|
|
Sec. 5007.004 [7a].
VALIDATION OF ACTS RELATING TO CERTAIN BONDS.
(a) All proceedings,
certificates, and acts of the Navigation and Canal Commissioners of the
Harris County Houston Ship Channel Navigation District of Harris County,
Texas, requesting the submission to an election in said District on
December 19, 1944, of Five Million Dollars ($5,000,000.00) of bonds of said
District for the purposes set out in the proposition including the purchase
of facilities and properties constructed or owned by any municipality
within said District containing one hundred thousand population or more
according to the last preceding Federal Census, and the further
construction and improvement of port facilities and properties; the orders
of the Commissioners Court of Harris County, Texas, calling the election
and canvassing the returns and declaring the election carried by more than
a two-thirds majority of the voters qualified as required by the
Constitution and laws of the State of Texas voting at said election; the
notice of election; the ballots; and all other proceedings had in
connection therewith are hereby declared not to be invalid by reason of the
following errors and omissions: (1) failure to include in the proceedings,
in the election order and notice, and in the proposition submitted (a) the
agreement between the District and the said municipality for the purchase
of existing facilities and properties of the said municipality by the
District; (b) the assumption by the District of outstanding bonds of the
municipality issued to construct or purchase certain of its facilities and
properties and the amount thereof; and (c) the amount of the tax to be
levied by the Commissioners Court to service the outstanding bonds of the
municipality assumed by the District and (2) the failure to properly word
in exact accordance with existing law the ballot submitting the purchase of
the said municipal facilities and properties to a vote, but said bonds so
voted shall be held to be in substantial compliance with the Constitution
and statutes of the State of Texas, and the Navigation and Canal
Commissioners of the Harris County Houston Ship Channel Navigation District
of Harris County, Texas, are authorized to request of the Commissioners
Court of Harris County, Texas, and the Commissioners Court is authorized to
enter the necessary orders and resolutions directing the issuance of such
bonds so voted at said election as may be needed from time to time for the
purposes set out in the proceedings and said bonds shall not be invalid
insofar as they are affected by the errors and omissions or failures above
enumerated, but such bonds insofar as they are affected by such errors and
omissions or failures are hereby legalized, confirmed, ratified, approved,
and validated as though correct in the first instance.
(b) The Attorney
General of Texas is directed to examine the record of the issuance of said
bonds as and when submitted to him for the purpose, and if he finds that
otherwise they have been issued conformably to the Constitution and laws of
the State of Texas, he shall approve said bonds notwithstanding the errors
and omissions or failures hereinabove listed, and said bonds shall not be
invalid by reason of the said errors and omissions or failures listed in
this chapter [Act].
(c) All of the bonds
of said District authorized at the said election of December 19, 1944,
including the bonds representing the purchase price of municipal facilities
and properties less the amount of outstanding bonds of the municipality
issued for the construction or purchase of such municipal facilities and
properties may be issued and sold in the manner provided by law when and if
approved by the Attorney General of the State of Texas, but the proceeds of
such sale shall be applied only to the purposes set out in the proposition
submitted at said election and so much of the proceeds of the sale as
represents the amount due for the purchase of municipal facilities and
properties under the terms of the agreement shall be paid the municipality
as of the effective date of the transfer of the said municipal facilities
and properties as set out in the agreement when made in the manner provided
by law. The provisions of Article 8238, Revised Civil Statutes of Texas as
amended, Acts, First Called Session, 1927, page 149, shall apply to the
purchase of and payment for municipal facilities and properties except as
herein provided.
|
Makes technical corrections
by repealing obsolete provisions. (See repealed provisions in SECTION 6
below.)
|
|
[Sec. 9. SUNSET REVIEW.
(a) The Port of Houston Authority of Harris County, Texas, is subject to
review under Chapter 325, Government Code (Texas Sunset Act), as if it were
a state agency but may not be abolished under that chapter. The review
shall be conducted as if the authority were scheduled to be abolished
September 1, 2013.
[(b) The reviews must
assess the authority's governance, management, and operating structure, and
the authority's compliance with legislative requirements.
[(c) The authority shall
pay the cost incurred by the Sunset Advisory Commission in performing a
review of the authority under this section. The Sunset Advisory Commission
shall determine the cost, and the authority shall pay the amount promptly
on receipt of a statement from the Sunset Advisory Commission detailing the
cost.
[(d) This section expires
September 1, 2013.
[Sec. 9. SUNSET REVIEW.
(a) The Port of Houston Authority is subject to review under Chapter 325,
Government Code (Texas Sunset Act), as if it were a state agency but may
not be abolished under that chapter. The review shall be conducted as if
the authority were scheduled to be abolished September 1, 2013.
[(b) The reviews must
assess the authority's governance, management, and operating structure, and
the authority's compliance with legislative requirements.
[(c) The authority shall
pay the cost incurred by the Sunset Advisory Commission in performing a
review of the authority under this section. The Sunset Advisory Commission
shall determine the cost, and the authority shall pay the amount promptly
on receipt of a statement from the Sunset Advisory Commission detailing the
cost.
[(d) This section expires
September 1, 2013.]
|
Substantially the same as
introduced version; see repealed provisions in SECTION 6 below.
|
|
|
SECTION 3. Sections 1
through 8, Chapter 292, Acts of the 40th Legislature, Regular Session,
1927, are transferred to Subchapter A, Chapter 5007, Special District Local
Laws Code, as added by this Act, redesignated as Sections 5007.004 and
5007.005, Special District Local Laws Code, and amended to read as follows:
|
|
Sec. 5007.005 [1].
GRANT OF TITLE TO CERTAIN ISLANDS AND OTHER LAND; RELATED POWERS AND
DUTIES; RIPARIAN LANDOWNERS; RESERVATION OF CERTAIN STATE RIGHTS AND
POWERS.
|
Sec. 5007.004 [1].
Substantially the same as introduced version.
|
|
Sec. 5007.006 [8].
RIGHTS OF WAY; EASEMENTS.
|
Sec. 5007.005 [8].
Substantially the same as introduced version.
|
|
|
SECTION 4. Sections 1, 2, 3,
4, and 5A, Chapter 117, Acts of the 55th Legislature, Regular Session,
1957, are transferred to Subchapter A, Chapter 5007, Special District Local
Laws Code, as added by this Act, redesignated as Sections 5007.006,
5007.007, 5007.008, 5007.009, and 5007.010, Special District Local Laws
Code, and amended to read as follows:
|
|
Sec. 5007.007 [1].
REVENUE OBLIGATIONS; CERTAIN POWERS; FEES AND CHARGES; GRAIN ELEVATORS;
TAXATION EXEMPTION; REFUNDING BONDS; CERTAIN BOND PROVISIONS.
|
Sec. 5007.006 [1].
Substantially the same as introduced version.
|
|
|
|
|
Sec. 5007.008 [2].
CONVERSION OF DISTRICT AND TAX SUPPORTED OBLIGATIONS; CERTAIN POWERS AND
DUTIES; ELECTIONS; REFUNDING BONDS; MAINTENANCE TAX; ASSESSMENT OF TAXES.
|
Sec. 5007.007 [2].
Substantially the same as introduced version, except Subsec. (d) makes a
technical correction to remove obsolete language.
|
|
Sec. 5007.009 [3].
REFUNDING OF BONDS HERETOFORE VOTED.
Sec. 5007.010 [4].
CONSTRUCTION OF CHAPTER [ACT].
|
Sec. 5007.008 [3].
Substantially the same as introduced version.
Sec. 5007.009 [4].
Substantially the same as introduced version.
|
|
Sec. 5007.011 [5].
VALIDATION PROVISIONS. Harris County Houston Ship Channel Navigation
District of Harris County, Texas, is hereby in all things validated, and
all acts and governmental proceedings of the Board of Navigation and Canal
Commissioners and other officials of the District and all acts and
governmental proceedings of the Commissioners Court of Harris County
relating to said District are hereby in all things validated, and the boundaries
of such District are hereby in all things validated, and all bonds
heretofore voted and issued and all elections heretofore held for the
issuance of bonds are hereby in all things validated. Without in any way
limiting the generalization of the foregoing, it is expressly provided that
the election held in said District on the 31st day of January, 1957, at
which election Seven Million Dollars ($7,000,000) bonds of said District
were authorized, and all proceedings relating thereto, are hereby in all things
validated. It is provided, however, that this Section shall have no
application to litigation pending on April 29, 1957 [upon the
effective date of this Act].
|
Makes technical corrections
by repealing obsolete provisions. (See repealed provisions in SECTION 6
below.)
|
|
Sec. 5007.012 [5A].
NAME AND TITLE CHANGES.
|
Sec. 5007.010 [5A].
Same as introduced version.
|
|
|
SECTION 5. Chapter 5007,
Special District Local Laws Code, as added by this Act, is amended by
adding Subchapter B to read as follows:
|
|
SUBCHAPTER B.
ADMINISTRATION AND PLANNING
|
SUBCHAPTER B.
ADMINISTRATION AND PLANNING
|
|
Sec. 5007.201.
DEFINITIONS. In this subchapter:
(1) "Authority"
means the Port of Houston Authority of Harris County, Texas.
(2) "Executive
director" means the executive director of the authority.
(3) "Port
commission" means the navigation and canal commission of the
authority.
(4) "Port
commissioner" means a member of the port commission.
|
Substantially the same as
introduced version; see SECTION 1 above.
|
|
Sec. 5007.202. CONFLICT
OF LAWS. To the extent of a conflict between this subchapter and any other
law, including Subchapter A, this subchapter prevails.
|
Sec. 5007.201. Same as
introduced version.
|
|
Sec. 5007.203. PROVISIONS
NOT APPLICABLE TO AUTHORITY. Chapter 90, Acts of the 49th Legislature,
Regular Session, 1945, does not apply to the authority.
|
Sec. 5007.202.
Substantially the same as introduced version.
|
|
Sec. 5007.204. SUNSET
REVIEW. (a) The authority is subject to review under Chapter 325,
Government Code (Texas Sunset Act), as if it were a state agency but may
not be abolished under that chapter. The review shall be conducted as if
the authority were scheduled to be abolished September 1, 2017.
(b) The review must
assess the authority's governance, management, and operating structure, and
the authority's compliance with legislative requirements.
(c) The authority shall
pay the cost incurred by the Sunset Advisory Commission in performing a
review of the authority under this section. The Sunset Advisory Commission
shall determine the cost, and the authority shall pay the amount promptly
on receipt of a statement from the Sunset Advisory Commission detailing the
cost.
(d) This section expires September 1, 2017.
|
Sec. 5007.203. SUNSET
REVIEW. (a) The authority is subject to review under Chapter 325,
Government Code (Texas Sunset Act), as if it were a state agency but may
not be abolished under that chapter. The review shall be conducted as if
the authority were scheduled to be abolished September 1, 2017.
(b) The review must
assess the authority's governance, management, and operating structure, and
the authority's compliance with legislative requirements.
(c) The authority shall
pay the cost incurred by the Sunset Advisory Commission in performing a review
of the authority under this section. The Sunset Advisory Commission shall
determine the cost, and the authority shall pay the amount promptly on
receipt of a statement from the Sunset Advisory Commission detailing the
cost.
(d) This section expires September 1, 2019.
|
|
Sec. 5007.205. GOVERNING
BODY; APPOINTMENT; TERMS. (a) The authority is governed by a port
commission of seven port commissioners appointed
by the governor with the advice and consent of the senate as follows:
(1) five port commissioners from a list of not more than 20 names
submitted to the governor by the Houston-Galveston Area Council or its
successor; and
(2) two port commissioners who are residents of this state who do
not reside in the area served by the Houston-Galveston Area Council,
including Austin, Brazoria, Chambers, Colorado, Fort Bend, Galveston,
Harris, Liberty, Matagorda, Montgomery, Walker, Waller, or Wharton County.
(See text of added Sec.
5007.205(b) below.)
No
equivalent provision.
(c) The port commissioners
serve staggered four-year terms that
expire on February 1 of odd-numbered years.
(d) A port commissioner
may not serve more than three terms.
(e) The port commission
has the rights, powers, and duties of a navigation board for the purposes
of Chapters 61 and 62, Water Code, and shall act as the navigation board of
the authority.
No
equivalent provision.
(b) The governor shall designate the chair of the port commission
from the members appointed.
No
equivalent provision.
|
Sec. 5007.204. GOVERNING
BODY; APPOINTMENT; TERMS; VACANCY. (a) The authority is governed by a
port commission of seven port commissioners appointed
as follows:
(1) two port commissioners appointed by a majority of the city
council of the City of Houston;
(2) two port commissioners appointed by a majority of the Harris
County Commissioners Court;
(3) one port commissioner appointed by the city council of the City
of Pasadena, who must reside in the city of Pasadena;
(4) one port commissioner appointed by a majority of the Harris
County Mayors' and Councils' Association, who must be a resident of a
municipality in Harris County that is located adjacent to the Houston Ship
Channel and has a population of less than 100,000; and
(5) the chair of the port commission, appointed as described by
Section 5007.205.
(See added Sec. 5007.205
below.)
(b) Sections 61.159(a)
and (d) and 61.160, Water Code, apply to the authority.
(c) The port
commissioners serve staggered two-year
terms that expire on February 1.
(d) A person is not
eligible for appointment to the port commission if the person has
previously served the equivalent of 12 full years on the port commission.
(See added Sec. 5007.206
below.)
(e) Of the two port
commissioners each appointed under Subsections (a)(1) and (2), one serves a
term expiring in an even-numbered year and one serves a term expiring in an
odd-numbered year. The port commissioner appointed under Subsection (a)(3)
serves a term expiring in an odd-numbered year. The port commissioner
appointed under Subsection (a)(4) serves a term expiring in an
even-numbered year.
(f) Not later than the
30th day after the date on which a term expires or on which a vacancy
begins, the appointing entity must appoint a new port commissioner. If the
appointing entity fails to make the appointment before the 30th day, the
office is considered an open position and the person serving in that
position is ineligible for reappointment to fill the position, and:
(1) if the appointing
entity is the city council of the City of Houston, the city council of the
City of Pasadena, or the Harris County Mayors' and Councils' Association,
the Harris County Commissioners Court shall appoint a port commissioner to
fill the position; or
(2) if the appointing
entity is the Harris County Commissioners Court, the city council of the
City of Houston shall appoint a port commissioner to fill the position.
(g) If a second
appointing entity under Subsection (f)(1) or (2) fails to make an
appointment after the 60th day after the date on which the term expires or
the vacancy begins:
(1) the office is
considered an open position and the person serving in that position is
ineligible for reappointment to fill the position; and
(2) the governor shall
appoint a port commissioner to fill the position with the advice and
consent of the senate.
(h) If a vacancy occurs
through death, resignation, or other reason, the vacancy shall be filled in
the manner provided for making the original appointment and in accordance
with Subsections (f) and (g).
(i) The governor may
appoint a port commissioner under Subsection (g) only if the appointing
entity under Subsection (f) fails to make an appointment within the period
described by this section, and any subsequent appointment must be made by
the appropriate appointing entity.
Sec. 5007.205.
APPOINTMENT OF CHAIR; TERM. (a) The City of
Houston mayor and city council and the Harris County Commissioners Court
shall jointly appoint the chair of the port commission in January of
odd-numbered years. The term of the chair expires on February 1 of each
odd-numbered year.
(b) If the mayor, city
council, and commissioners court do not make an appointment within the
period specified by this section, the governor shall appoint the chair of
the port commission with the advice and consent of the senate. The
governor may appoint the chair only if the original appointing entities
fail to make an appointment within the period described by this section,
and any subsequent appointment must be made by the appointing entities.
(c) The person appointed
as the chair of the port commission must comply with the qualifications
described by Section 61.160, Water Code.
(d) On the second Monday
of January in each odd-numbered year, the City of Houston mayor and city
council, the Harris County commissioners, and the Harris County judge shall
hold a joint meeting to appoint the chair of the port commission at the
headquarters of the authority.
(e) In the meeting held
under Subsection (d):
(1) each city council
member and the mayor shall have one vote; and
(2) each county
commissioner and the county judge shall have the mixed-fraction number of
votes equal to the sum of the number of city council members plus the mayor
divided by the sum of the number of county commissioners plus the county
judge.
(f) The presence of
individuals with a majority of the total potential votes is required to
establish a quorum at the meeting. A separate quorum from each group,
representing the city and the county, is not required. The chair must be
appointed by at least a majority of the total potential votes, in any
combination.
(g) In the event of a
tie, the city council, mayor, county commissioners, and county judge have three
calendar days to deliberate, convene a meeting, and revote. The period may
be extended to allow for compliance with Chapter 551, Government Code, as
it applies to the notice requirement for an open meeting. If a second vote
results in a tie:
(1) the office of the
chair of the port commission is considered an open position and the person
serving as the chair is not eligible for reappointment to fill the
position; and
(2) the governor shall
appoint the chair as provided by Subsection (b).
|
|
(See added Sec.
5007.205(e) above.)
|
Sec. 5007.206. NAVIGATION
BOARD. The navigation board of the authority is composed of the county
judge and county commissioners of Harris County, the mayor and city council
members of the City of Houston, and the members of the Harris County
Mayors' and Councils' Association.
|
|
Sec. 5007.206. CONFLICT
OF INTEREST.
|
Sec. 5007.207. Same
as introduced version.
|
|
Sec. 5007.207. FILING OF
FINANCIAL STATEMENT BY PORT COMMISSIONERS.
|
Sec. 5007.208. Same
as introduced version.
|
|
Sec. 5007.208. PORT
COMMISSIONER TRAINING. (a) A person who is appointed to and qualifies for
office as a port commissioner may not vote, deliberate, or be counted as a
port commissioner in attendance at a meeting of the port commission until
the person completes a training program that complies with this section.
(b) The training program
must provide the person with information regarding:
(1) the legislation that
created the authority;
(2) the programs,
functions, policies, rules, and budget of the authority;
(3) the results of the
most recent formal audit of the authority;
(4) the requirements of
laws relating to open meetings, public information, administrative
procedure, financial disclosure, and conflicts of interest; and
(5) any applicable ethics
policies adopted by the port commission or the Texas Ethics Commission.
(c) A person appointed to
the port commission is entitled to reimbursement for the travel expenses
incurred in attending the training program regardless of whether the
attendance at the program occurs before or after the person qualifies for
office.
|
Sec. 5007.209. PORT
COMMISSIONER TRAINING. (a) A person who is appointed to and qualifies for
office as a port commissioner may not vote, deliberate, or be counted as a
port commissioner in attendance at a meeting of the port commission until
the person completes a training program that complies with this section.
(b) The training program
must provide the person with information regarding:
(1) the legislation that
created the authority;
(2) the programs,
functions, policies, rules, and budget of the authority;
(3) the results of the
most recent formal audit of the authority;
(4) the duties of the port commission as the board of pilot
commissioners for Harris County ports under Chapter 66, Transportation
Code;
(5) the requirements of
laws relating to open meetings, public information, administrative
procedure, financial disclosure, and conflicts of interest; and
(6) any applicable ethics
policies adopted by the port commission or the Texas Ethics Commission.
(c) A person appointed to
the port commission is entitled to reimbursement for the travel expenses
incurred in attending the training program regardless of whether the
attendance at the program occurs before or after the person qualifies for
office.
|
|
Sec. 5007.209. REMOVAL
FROM OFFICE. (a) It is a ground for removal from the port commission that
a port commissioner:
(1) does not have at the
time of taking office the qualifications required by Section 5007.205;
(2) does not maintain
during service on the port commission the qualifications required by
Section 5007.205;
(3) is ineligible for
membership under Section 5007.206;
(4) cannot, because of
illness or disability, discharge the port commissioner's duties for a substantial
part of the port commissioner's term;
(5) commits malfeasance
in office; or
(6) is absent from more
than half of the regularly scheduled port commission meetings that the port
commissioner is eligible to attend during a calendar year without an excuse
approved by a majority vote of the port commission.
(b) The validity of an
action of the port commission is not affected by the fact that it is taken
when a ground for removal of a port commissioner exists.
(c) If the executive
director has knowledge that a potential ground for removal exists, the
executive director shall notify the chair of the port commission of the
potential ground. The chair shall then notify the governor and the attorney general that a potential ground for
removal exists. If the potential ground for removal involves the chair,
the executive director shall notify the next highest ranking officer of the
port commission, who shall then notify the governor
and the attorney general that a potential ground for removal exists.
|
Sec. 5007.210. REMOVAL
FROM OFFICE. (a) It is a ground for removal from the port commission that
a port commissioner:
(1) does not have at the
time of taking office the qualifications required by Section 5007.204;
(2) does not maintain
during service on the port commission the qualifications required by
Section 5007.204;
(3) is ineligible for
membership under Section 5007.207;
(4) cannot, because of
illness or disability, discharge the port commissioner's duties for a
substantial part of the port commissioner's term;
(5) commits malfeasance
in office; or
(6) is absent from more
than half of the regularly scheduled port commission meetings that the port
commissioner is eligible to attend during a calendar year without an excuse
approved by a majority vote of the port commission.
(b) The validity of an
action of the port commission is not affected by the fact that it is taken
when a ground for removal of a port commissioner exists.
(c) If the executive
director has knowledge that a potential ground for removal exists, the
executive director shall notify the chair of the port commission of the
potential ground. The chair shall then notify the entity that appointed the port commissioner that a potential
ground for removal exists. If the potential ground for removal involves
the chair, the executive director shall notify the next highest ranking
officer of the port commission, who shall then notify the entities who appointed the chair that a
potential ground for removal exists.
|
|
Sec. 5007.210. PORT
COMMISSION POLICIES.
|
Sec. 5007.211. Same
as introduced version.
|
|
Sec. 5007.211. EXECUTIVE
DIRECTOR. (a) The port commission shall appoint an executive director of
the authority for a term not to exceed two years. The port commission shall
prescribe the duties and compensation of the executive director. The port
commission may delegate to the executive director full authority to manage
and operate the affairs of the authority subject only to orders of the port
commission.
(b) The port commission
shall delegate to the executive director the authority to employ all
persons necessary for the proper handling of the business and operation of
the authority and to determine the compensation to be paid to all
employees, other than the executive director.
(c) The executive
director shall execute a bond for $10,000 conditioned on the faithful
performance of the executive director's duties and other conditions as
required by the authority. The bond must be recorded in a record kept for
that purpose in the authority's office.
Sec. 5007.212. STANDARDS
OF CONDUCT; ETHICS POLICY.
Sec. 5007.213. ETHICS
AFFIRMATION AND HOTLINE.
Sec. 5007.214.
COMPLAINTS.
Sec. 5007.215. PUBLIC
INVOLVEMENT POLICY.
Sec. 5007.216.
WHISTLEBLOWER POLICY.
Sec. 5007.217. EXPENSE
POLICY.
Sec. 5007.218. PROMOTION
AND DEVELOPMENT FUND.
Sec. 5007.219. PLANNING
DEFINITIONS.
Sec.5007.220. LONG-RANGE
PLANNING.
Sec. 5007.221. MID-RANGE
PLANNING.
Sec. 5007.222. BUDGET.
Sec. 5007.223. ONE-YEAR
CAPITAL PLAN.
Sec. 5007.224. PUBLIC
ACCESS TO BUDGET AND PLANNING INFORMATION.
Sec. 5007.225. INTERNAL
AUDIT. (a) The port commission shall establish an internal audit
procedure consistent with the purposes, duties, and standards for state
agency internal audit procedures under Chapter 2102, Government Code.
(b) The port commission
shall create an internal audit task force consisting of port commissioners.
(c) The port commission
shall employ a chief audit executive, who shall report to the internal
audit task force. The chief audit executive shall coordinate all audit
activity, including:
(1) compliance reviews;
(2) reviews of internal
controls;
(3) audits by the county
auditor of Harris County;
(4) contracted audits;
(5) performance reviews;
and
(6) investigations of
alleged fraud, waste, abuse, or ethics violations reported under Section
5007.213(b).
(d) The chief audit
executive shall monitor the authority's compliance with statutory
requirements governing use of the promotion and development fund, as defined
by Section 5007.218(a).
(e) The port commission
shall create, approve, and make available on the authority's website a
risk-based annual audit plan.
(f) The port commission
shall make internal audits available on request to:
(1) the county auditor of
Harris County;
(2) the Houston-Galveston Area Council; and
(3) the governor.
Sec. 5007.226. HARRIS
COUNTY AUDITOR.
|
Sec. 5007.212. EXECUTIVE
DIRECTOR. (a) The port commission shall appoint an executive director of
the authority for a term not to exceed two years. The port commission shall
prescribe the duties and compensation of the executive director. The port
commission may delegate to the executive director full authority to manage
and operate the affairs of the authority subject only to orders of the port
commission.
(b) The port commission
shall delegate to the executive director the authority to employ all
persons necessary for the proper handling of the business and operation of
the authority and to determine the compensation to be paid to all
employees, other than the executive director or
the chief audit executive employed under Section 5007.226(c).
(c) The executive
director shall execute a bond for $10,000 conditioned on the faithful
performance of the executive director's duties and other conditions as
required by the authority. The bond must be recorded in a record kept for
that purpose in the authority's office.
(d) The port commission by general or special rule, regulation,
order, resolution, or other direction may authorize the executive director
or another person authorized to act instead of the executive director to
perform any act on behalf of the port commission.
Sec. 5007.213. Same as
introduced version.
Sec. 5007.214.
Substantially the same as introduced version.
Sec. 5007.215. Substantially
the same as introduced version.
Sec. 5007.216. Same
as introduced version.
Sec. 5007.217. Same
as introduced version.
Sec. 5007.218. Same
as introduced version.
Sec. 5007.219. Same as
introduced version.
Sec. 5007.220. Substantially
the same as introduced version.
Sec. 5007.221. Same as
introduced version.
Sec. 5007.222. Same as
introduced version.
Sec. 5007.223. Same as
introduced version.
Sec. 5007.224. Same as
introduced version.
Sec. 5007.225. Same as
introduced version.
Sec. 5007.226. INTERNAL
AUDIT. (a) The port commission shall establish an internal audit
procedure consistent with the purposes, duties, and standards for state
agency internal audit procedures under Chapter 2102, Government Code.
(b) The port commission
shall create an internal audit task force consisting of port commissioners.
(c) The port commission
only shall hire and may fire or suspend a chief audit executive, who shall
report to the internal audit task force. The chief audit executive shall
coordinate all audit activity, including:
(1) compliance reviews;
(2) reviews of internal
controls;
(3) audits by the county
auditor of Harris County;
(4) contracted audits;
(5) performance reviews;
and
(6) investigations of
alleged fraud, waste, abuse, or ethics violations reported under Section
5007.214(b).
(d) The chief audit
executive shall monitor the authority's compliance with statutory
requirements governing use of the promotion and development fund, as
defined by Section 5007.219(a).
(e) The port commission
shall create, approve, and make available on the authority's website a
risk-based annual audit plan.
(f) The port commission
shall make internal audits available on request to:
(1) the county auditor of
Harris County; and
(2) any entity with the authority to appoint a port commissioner.
Sec. 5007.227. Same as
introduced version.
|
|
(See SECTION 1 above.)
(See stricken language in SECTION
1 above.)
(See stricken language in
SECTION 1 above.)
No
equivalent provision.
(See SECTION 1 above.)
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
|
SECTION 6. The following
provisions are repealed:
(1) Sections 2, 3, 4, 5, 6,
and 7a, Chapter 97, Acts of the 40th Legislature, 1st Called Session, 1927;
(2) Section 9, Chapter 97,
Acts of the 40th Legislature, 1st Called Session, 1927, as added by Section
22, Chapter 1027, Acts of the 82nd Legislature, Regular Session, 2011;
(3) Section 9, Chapter 97,
Acts of the 40th Legislature, 1st Called Session, 1927, as added by Section
1.10, Chapter 1232, Acts of the 82nd Legislature, Regular Session, 2011;
(4) Sections 2 and 3,
Chapter 86, Acts of the 49th Legislature, Regular Session, 1945;
(5) Sections 5, 6, and 7,
Chapter 117, Acts of the 55th Legislature, Regular Session, 1957;
(6) Sections 2 and 3,
Chapter 186, Acts of the 57th Legislature, Regular Session, 1961;
(7) Section 2, Chapter 43,
Acts of the 62nd Legislature, Regular Session, 1971; and
(8) Sections 2 and 3,
Chapter 1042, Acts of the 70th Legislature, Regular Session, 1987.
|
|
SECTION 2. (a) The terms of
the port commissioners of the Port of Houston Authority of Harris County,
Texas, serving on the effective date of this Act expire on September 1, 2013.
(b) Not later than September 2, 2013, the governor shall make the appointments
required by Section 5007.205, Special District Local Laws Code, as added by
this Act.
(c) Notwithstanding Section
5007.205(c), Special District Local Laws Code, as added by this Act, the
terms of the initial port commissioners appointed by the governor under
that section shall expire as follows:
(1) three port commissioners
appointed under Section 5007.205(a)(1) and one port commissioner appointed
under Section 5007.205(a)(2) shall serve terms expiring February 1, 2015;
and
(2) two port commissioners
appointed under Section 5007.205(a)(1) and one port commissioner appointed
under Section 5007.205(a)(2) shall serve terms expiring February 1, 2017.
(d)
A person serving on the port commission of the Port of Houston Authority of
Harris County, Texas, on November 13, 2012, is not eligible for appointment
to the port commission after September 1, 2013.
|
SECTION 7. (a) The terms of
the port commissioners of the Port of Houston Authority of Harris County,
Texas, serving on the effective date of this Act expire October 1, 2013.
(b) Not later than October 2, 2013, the entities described by Section 5007.204, Special District Local Laws
Code, as added by this Act, shall make the appointments required by
that section.
(c) Notwithstanding Sections
5007.204(c) and 5007.205, Special District Local Laws Code, as added by
this Act, the terms of the initial port commissioners appointed under those
sections shall expire as follows:
(1) one port commissioner
appointed under Section 5007.204(a)(1) and one port commissioner appointed
under Section 5007.204(a)(2) shall serve terms expiring February 1, 2015;
(2) one port commissioner
appointed under Section 5007.204(a)(1) and one port commissioner appointed
under Section 5007.204(a)(2) shall serve terms expiring February 1, 2016;
(3) the port commissioner
appointed under Section 5007.204(a)(3) shall serve a term expiring February
1, 2015;
(4) the port commissioner
appointed under Section 5007.204(a)(4) shall serve a term expiring February
1, 2016; and
(5) the chair of the port
commission appointed under Section 5007.205 shall serve a term expiring
February 1, 2015.
(d)
Notwithstanding Section 5007.205, the meeting to appoint the initial chair
of the port commission must be held on the third Monday of September in
2013.
(e)
A person is not eligible for appointment to the port commission of the Port
of Houston Authority of Harris County, Texas, if the person has previously
served the equivalent of 12 full years on the port commission.
|
|
SECTION 3. (a) Not later
than December 1, 2013, the port commissioners of the Port of Houston
Authority of Harris County, Texas, shall adopt the policies, plans, and
procedures necessary to implement Subchapter B, Chapter 5007, Special District
Local Laws Code, as added by this Act.
(b) Notwithstanding Section
5007.210, Special District Local Laws Code, as added by this Act, a policy
adopted by the port commission of the Port of Houston Authority of Harris
County, Texas, shall be distributed to:
(1) each port commissioner
and authority employee who holds the office of commissioner or is employed
by the authority on September 1, 2013,
not later than December 1, 2013;
(2) each employee hired
after September 1, 2013, not later
than the third business day after the date the person begins employment
with the authority or December 1, 2013, whichever is later; and
(3) each port commissioner
whose term of office begins after September
1, 2013, not later than the third business day after the date the
person qualifies for office or December 1, 2013, whichever is later.
|
SECTION 8. (a) Not later
than December 1, 2013, the port commissioners of the Port of Houston
Authority of Harris County, Texas, shall adopt the policies, plans, and
procedures necessary to implement Subchapter B, Chapter 5007, Special
District Local Laws Code, as added by this Act.
(b) Notwithstanding Section
5007.211, Special District Local Laws Code, as added by this Act, all
policies adopted by the port commission of the Port of Houston Authority of
Harris County, Texas, shall be distributed to:
(1) each port commissioner
and authority employee who holds the office of commissioner or is employed
by the authority on October 2, 2013,
not later than December 1, 2013;
(2) each employee hired
after October 2, 2013, not later than
the third business day after the date the person begins employment with the
authority or December 1, 2013, whichever is later; and
(3) each port commissioner
whose term of office begins after October 2,
2013, not later than the third business day after the date the
person qualifies for office or December 1, 2013, whichever is later.
|
|
SECTION 4. (a) The legal
notice of the intention to introduce this Act, setting forth the general
substance of this Act, has been published as provided by law, and the
notice and a copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished under
Section 59, Article XVI, Texas Constitution, and Chapter 313, Government
Code.
(b) The governor, one of the
required recipients, has submitted the notice and Act to the Texas
Commission on Environmental Quality.
(c) The Texas Commission on
Environmental Quality has filed its recommendations relating to this Act
with the governor, the lieutenant governor, and the speaker of the house of
representatives within the required time.
(d) All requirements of the
constitution and laws of this state and the rules and procedures of the
legislature with respect to the notice, introduction, and passage of this
Act are fulfilled and accomplished.
|
SECTION 9. Same as introduced
version.
|
|
SECTION 5. This Act takes
effect September 1, 2013.
|
SECTION 10. Same as
introduced version.
|
|