By: Garcia, Hinojosa S.B. No. 1894

(In the Senate - Filed March 13, 2015; March 25, 2015, read first time and referred to Committee on Natural Resources and Economic Development; May 7, 2015, reported adversely, with favorable Committee Substitute by the following vote: Yeas 9, Nays 0; May 7, 2015, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1894 By: Estes

A BILL TO BE ENTITLED

AN ACT

relating to the powers and duties of navigation districts, port authorities, and boards of trustees of municipal port facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 551.0415, Government Code, is amended to read as follows:

Sec. 551.0415. BOARD OF TRUSTEES OR GOVERNING BODY OF MUNICIPALITY, [OR] COUNTY, OR NAVIGATION DISTRICT: REPORTS ABOUT ITEMS OF COMMUNITY INTEREST REGARDING WHICH NO ACTION WILL BE TAKEN.

SECTION 2. Section 551.0415(a), Government Code, is amended to read as follows:

(a) Notwithstanding Sections 551.041 and 551.042, a quorum of the governing body of a municipality, [or] county, navigation district, or board of trustees established under Chapter 54, Transportation Code, may receive from staff of the political subdivision and a member of the governing body may make a report about items of community interest during a meeting of the governing body without having given notice of the subject of the report as required by this subchapter if no action is taken and, except as provided by Section 551.042, possible action is not discussed regarding the information provided in the report.

SECTION 3. Section 60.034, Water Code, is amended to read as follows:

Sec. 60.034. OIL, GAS, AND MINERAL LEASES. Except for lands or flats purchased from this state under Article 8225, Revised Statutes, a district [The commission] may lease for oil, gas, and minerals rights-of-way, spoil grounds, spoil basins, or any other land owned by the [a navigation] district if it does not interfere with use of or obstruct any natural or artificial waterway of the district used for navigation purposes.

SECTION 4. The heading to Section 60.035, Water Code, is amended to read as follows:

Sec. 60.035. NOTICE OF CERTAIN OIL, GAS, AND MINERAL LEASES [LEASE].

SECTION 5. Section 60.035(a), Water Code, is amended to read as follows:

(a) Before a district may enter into a lease [may be executed by the commission] under Section 60.034 [of this code], the district [commission] shall have a notice requesting bids on the lease published in a newspaper of general circulation in the district. The notice shall be published at least once a week for two consecutive weeks before the final date for the receipt of bids. Chapter 71, Natural Resources Code, does not apply to a lease made under this section if the lease is made in accordance with this section and Sections 60.036 and 60.037 of this code.

SECTION 6. Section 60.038, Water Code, is amended to read as follows:

Sec. 60.038. DISPOSITION [SALE OR LEASE] OF INTERESTS IN REAL PROPERTY [LAND]. (a) A district may sell, exchange, or lease real property or any interest in real property [all or any part of land] owned by it, whether the real property was [land is] acquired by gift or purchase, in settlement of any litigation, controversy, or claim in behalf of the district, or in any other manner, except that lands or flats heretofore purchased from the State of Texas under Article 8225, Revised [Civil] Statutes [of Texas, 1925], or granted by the State of Texas in any general or special act, may be sold only to the State of Texas or exchanged with the State of Texas for other lands or exchanged for adjacent littoral land as authorized by Section 61.117 of this code. Except for lands or flats purchased from this state under Article 8225, Revised Statutes, the district may impose restrictions on the development, use, and transfer of any real property or interest in real property in connection with its sale or exchange under this section.

(b) Before a district may sell or exchange real property [land], the commission shall determine by resolution that the land is no longer needed for use by the district in connection with the development of a navigation project.

(c) A sale [Sale] or exchange [lease] of real property [land] shall be made as provided by Sections 60.040-60.042 [60.039-60.042 of this code].

SECTION 7. Section 60.039, Water Code, is amended to read as follows:

Sec. 60.039. CERTAIN SURFACE LEASES [LEASE]. (a) A district [The commission] may lease, as lessor, the surface of real property [land] for not more than 50 [30] 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 50-year [30-year] period by renewal, extension, or otherwise.

(b) The commission or the executive director of the district, or a person authorized by the commission or the executive director, may enter into a lease, as lessor, for the surface of real property for not more than one year without [a monthly tenancy or a tenancy from month to month. The lease term may only exceed one year if]:

(1) entering [the commission enters] an order on the minutes; or [and]

(2) executing [the execution of] the lease [is] in the manner provided by the original order for the lease.

SECTION 8. Section 60.040, Water Code, is amended to read as follows:

Sec. 60.040. PUBLICATION OF NOTICE FOR SALES AND LEASES IN EXCESS OF 50 [30] YEARS. Before making a sale of real property or a lease of real property [land] for more than 50 [30] years, the district [commission] shall publish a notice in the manner provided in Section 60.035 [of this subchapter]. Before publication of the notice, a district may enter into negotiations with one or more potential buyers or lessees without affecting the validity of the sale or lease.

SECTION 9. Section 60.041, Water Code, is amended to read as follows:

Sec. 60.041. SECURITY FOR BIDS ON REAL PROPERTY [LAND] TO BE SOLD OR LEASED FOR MORE THAN 50 [30] YEARS. Each bid submitted on real property [land] to be sold or leased for more than 50 [30] years under Section 60.040 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 five percent of the bid price for the real property [land] or 100 percent of [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 district [commission].

SECTION 10. Section 60.042(a), Water Code, is amended to read as follows:

(a) After notice is published under Section 60.040 [of this code], the district [commission] may sell or lease in accordance with Section 60.040 all or any part of the real property [land] to the highest and best bidder for an amount which is not less than the reasonable market value in the locality at the time and place of the sale or lease.

SECTION 11. Section 60.071, Water Code, is amended to read as follows:

Sec. 60.071. GENERAL RULE-MAKING AUTHORITY. The commission of a district which owns, operates, and maintains wharves, docks, piers, sheds, warehouses, and other similar terminal facilities which are not located inside the boundaries of any incorporated city, town, or village may pass, amend, and repeal any ordinance, rule, or police regulation which is not contrary to the constitution or laws of this state and which is necessary to protect the property and to promote the health, safety, and general welfare of persons using the property or living or working near the property.

SECTION 12. Section 60.124, Water Code, is amended to read as follows:

Sec. 60.124. GIFTS, GRANTS, AND DONATIONS. A district may accept a gift, grant, donation, or bequest of money, services, equipment, goods, or other tangible or intangible property from any source for any district purpose.

SECTION 13. Sections 60.404(b) and (d), Water Code, are amended to read as follows:

(b) A notice of proposed purchase must be published once a week for two consecutive weeks in a newspaper with general circulation in each county in which the district [or port authority] is located. [The first notice must be published not later than the 14th day before the date the bids are to be opened.] If there is no newspaper of general circulation in a county in which the district [or port authority] is located, the notice shall be published in a newspaper of general circulation in the county nearest the county seat of the county in which the district is located or the county in which the greatest amount of the district's territory is located [for that county must be given by posting the notice in a prominent place in the courthouse of that county for not less than 14 days before the date the bids are to be opened].

(d) The specifications must:

(1) describe in detail the item to be acquired;

(2) require that bids be sealed;

(3) require the attachment to the bid of a certified check, cashier's check, or bidders bond, if security is required in connection with the bid; and

(4) indicate whether a small business development program, local preference program, or other contracting 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 14. Section 60.405, Water Code, is amended to read as follows:

Sec. 60.405. PROPOSAL PROCEDURES. (a) Items other than construction services valued at more than the amount authorized by Section 60.403(a) for routine purchases or contracts [Insurance or high technology items] may be purchased under the procedure provided by this section.

(b) Quotations shall be solicited by the district or its broker through a request for proposals from as many sources as are reasonably available. The request for proposals must specify the relative importance of price and all other factors of evaluation.

(c) Public notice of the request for proposal must be made in the same manner as provided by Section 60.404 [of this code].

(d) The award of the contract shall be made by the port commission in open session to the responsible offerer whose proposal is determined to provide the best value to the district [be the lowest evaluated offer resulting from negotiation] giving consideration to evaluation factors set forth in the request for proposals.

(e) If so provided in the request for proposals, information in proposals may not be disclosed to the public [competing offerers] until the contract is awarded. After a contract is awarded, proposals shall be open for public inspection, except that information contained in a proposal identified as a trade secret or as confidential shall be kept confidential.

(f) A district [port commission] may adopt rules relating to negotiations to be conducted with responsible offerers submitting proposals. Offerers must be accorded fair and equal treatment with respect to any opportunity for negotiation and revision of proposals. Revisions to proposal and contract terms may be permitted after submission of a proposal and before award of the contract.

SECTION 15. The heading to Section 60.407, Water Code, is amended to read as follows:

Sec. 60.407. OPENING SEALED PROPOSALS AND BIDS.

SECTION 16. Section 60.407(a), Water Code, is amended to read as follows:

(a) An official of the district [or port authority] shall open the bids and competitive sealed proposals on the date specified in the notice. If an error is discovered in the original specifications or the nature of the item to be purchased requires an extension, the date may be extended.

SECTION 17. Section 60.409(b), Water Code, is amended to read as follows:

(b) If a district [or port authority] uses unit pricing in its notice, the information furnished proposers or bidders shall specify the approximate quantities estimated on the best available information, or other quantities reasonably specified to permit comparison of proposals or bids, and the total contract amount may be based on estimated maximum quantities, but the compensation paid the bidder must be based on the actual quantities purchased.

SECTION 18. Section 60.458, Water Code, is amended to read as follows:

Sec. 60.458. PURCHASE CONTRACT AWARD CRITERIA. Except as provided by this subchapter, in determining to whom to award a contract, the district may consider:

(1) the purchase price;

(2) the reputation of the vendor and of the vendor's goods or services;

(3) the quality of the vendor's goods or services;

(4) the extent to which the goods or services meet the district's needs;

(5) the vendor's past relationship with the district;

(6) the impact on the ability of the district to comply with laws and rules relating to historically underutilized businesses[,] and on the district's small business development program, local preference program, or other [another] contracting program adopted by the [approved by the] district, if any;

(7) the total long-term cost to the district to acquire the vendor's goods or services; and

(8) any other relevant factor specifically listed in the request for bids or proposals.

SECTION 19. Section 60.463, Water Code, is amended by amending Subsections (d) and (e) and adding Subsection (d-1) to read as follows:

(d) The district shall select a contractor through competitive sealed proposals in either a one-step or two-step process. The district shall prepare a request for competitive sealed proposals, in the case of a one-step process, or a request for qualifications, in the case of a two-step process, that includes construction documents, selection criteria, project scope, schedule, the time and place for receipt of proposals or qualifications, as applicable, a statement as to whether the selection process is a one-step or two-step process, and other information that contractors may require to respond to the request. The district shall state in the request for proposals or qualifications, as applicable, the selection criteria that will be used in selecting the successful offeror. If a one-step process is used, the district may request, as part of the offeror's proposal, proposed prices.

(d-1) If a two-step process is used, the district may not request prices in step one. In step two, the district may request that five or fewer offerors, selected solely on the basis of qualifications, provide additional information, including proposed prices.

(e) At each step, the [The] district shall receive, publicly open, and read aloud the names of the offerors [and, if any lump-sum prices are required to be stated, all such lump-sum prices stated in each proposal]. At the appropriate step, the district shall read aloud the prices, if any, stated in each proposal as the proposal is opened. Not later than the 45th day after the date of opening the proposals, the district shall evaluate and rank each proposal submitted in relation to the published selection criteria.

SECTION 20. Section 61.164(b), Water Code, is amended to read as follows:

(b) No franchise shall be granted for longer than 50 [30] years nor shall a franchise be granted except on the affirmative vote of a majority of the commissioners at three separate meetings of the commission which meetings may not be closer together than one week.

SECTION 21. Section 62.153, Water Code, is amended to read as follows:

Sec. 62.153. DUTIES OF DISTRICT TREASURER. The district treasurer shall:

(1) open an account for all funds received by him for the district and all district funds which he pays out;

(2) pay out money on vouchers signed by the chairman of the commission, any two members of the commission, or the commissioners court, or any two of any number of persons delegated by the commission with authority to sign vouchers, provided that the commission may, in such delegation, limit the authority of such persons and may require that each furnish a fidelity bond in such amount as the commission shall specify and subject to commission approval;

(3) carefully preserve all orders for the payment of money; [and]

(4) render a correct account to the commissioners court of all matters relating to the financial condition of the district as often as required by the commissioners court; and

(5) not be required to sign a check drawn on a depository selected under Section 62.156, unless the district treasurer is the designated officer of the district, as defined by Section 60.271(g).

SECTION 22. Section 63.178(b), Water Code, is amended to read as follows:

(b) A franchise may be granted for a period of not more than 50 [30] years.

SECTION 23. 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, 2015.

* * * * *