Bill Text: TX HB1528 | 2017-2018 | 85th Legislature | Comm Sub

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Bill Title: Relating to the powers and duties of navigation districts and port authorities.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-05-08 - Comm. report sent to Local & Consent Calendar [HB1528 Detail]

Download: Texas-2017-HB1528-Comm_Sub.html

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85R9908 SLB-F
By: Perez H.B. No. 1528
Substitute the following for H.B. No. 1528:
By: Morrison C.S.H.B. No. 1528

A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of navigation districts and port
authorities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 2. 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 chapter.
SECTION 3. Section 60.039, Water Code, is amended to read as
follows:
Sec. 60.039. CERTAIN SURFACE LEASES AND EASEMENTS [LEASE].
(a) A district [The commission] may lease, as lessor, and grant
easements over the surface estate of real property [land] for not
more than 50 years by the adoption [entry] of a resolution or an
order [on the minutes of the commission] and the execution of a
lease or easement in the manner provided by the [original]
resolution or order. The lease or easement may not be extended
beyond the 50-year period by renewal, extension, or otherwise until
the term of the lease or easement has expired.
(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 on behalf of the district, as
lessor, for the surface estate of real property for not more than
one year without the commission's adoption of a resolution or [a
monthly tenancy or a tenancy from month to month. The lease term
may only exceed one year if:
[(1) the commission enters] an order approving [on the
minutes; and
[(2) the execution of the lease is in the manner
provided by the original order for] the lease.
(c) The executive director of the district, or a person
authorized by the commission or the executive director, may enter
into an easement on behalf of the district, as grantor, on the
surface of real property for not more than one year without the
commission's adoption of a resolution or an order approving the
easement.
SECTION 4. Section 60.040, Water Code, is amended to read as
follows:
Sec. 60.040. PUBLICATION OF NOTICE FOR SALES, EASEMENTS,
AND LEASES IN EXCESS OF 50 YEARS. (a) Before making a sale,
easement, or lease of real property [land] for more than 50 years,
the district [commission] shall publish a notice in the manner
provided in Section 60.035.
(b) A district may enter into negotiations with one or more
potential buyers, easement grantees, or lessees before the
publication of the notice without affecting the validity of the
sale, easement, or lease.
SECTION 5. 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 YEARS. Each bid submitted on real
property [land] to be sold or leased for more than 50 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 the bid if it is accepted by the district [commission].
SECTION 6. Section 60.042, Water Code, is amended to read as
follows:
Sec. 60.042. AWARD AND EXECUTION OF DEED OR LEASE IN EXCESS
OF 50 YEARS. (a) After notice is published under Section 60.040
[of this code], the district [commission] may sell or lease in
accordance with that section 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.
(b) The commission shall adopt a resolution or [enter an]
order [in its minutes] confirming the sale or lease. The resolution
or order shall include or incorporate by reference the terms of the
sale or lease and the consideration and shall provide that the
executive director of the district, or a person authorized by the
executive director of the district, is authorized to [commission
will] execute the [a] deed or lease as soon as the successful bidder
complies with the terms of the [his] bid.
SECTION 7. Section 60.101(c), Water Code, is amended to
read as follows:
(c) An installment sale or a lease under this section is not
a loan of the district's credit or a grant of public money. The
acquisition and leasing of land and facilities for the purposes
included in this section and the operation and industrial and
business development of ports and waterways are a public purpose
and a matter of public necessity.
SECTION 8. 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 9. Section 60.401(b), Water Code, is amended to
read as follows:
(b) A district may adopt this subchapter for a particular
purchase or period or for all purchases and contracts, subject to
the commission's right to authorize particular procurements under
Subchapter O.
SECTION 10. Sections 60.404(b) and (d), Water Code, are
amended to read as follows:
(b) A notice of proposed purchase and the time and place the
bids will be received and opened must be published once a week for
two consecutive weeks before the deadline for receiving the bids 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 11. Section 60.405, Water Code, is amended to read
as follows:
Sec. 60.405. COMPETITIVE SEALED PROPOSALS [PROPOSAL
PROCEDURES]. (a) Notwithstanding Section 60.404, 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 the
district's 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 proposals [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
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 12. Section 60.407, Water Code, is amended to read
as follows:
Sec. 60.407. OPENING SEALED PROPOSALS AND BIDS. (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.
(b) Opened bids and sealed proposals shall be kept on file
and made available for public inspection.
SECTION 13. 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 14. 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 [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 15. 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 the first step. In the second step, 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 16. Section 62.107, Water Code, is amended to read
as follows:
Sec. 62.107. ACQUISITION AND CONVEYANCE OF LAND. (a) Any
district created under this chapter may acquire by gift, purchase,
or condemnation and may own land adjacent or accessible by road,
rail, or water to the navigable water and ports developed by it
which may be necessary or required for any and all purposes incident
to or necessary for the development and operation of the navigable
water or ports within the district, or may be necessary or required
for or in aid of the development of industries and businesses on the
land.
(b) The district may lease and grant easements on any part
of the acquired land to any person [individual or corporation] and
may charge for the lease or easement reasonable tolls, rents, fees,
or other charges. The lease or easement may be on terms and
conditions considered appropriate or advantageous to the district.
The district may use the proceeds both for the maintenance and
operation of the business of the district and for the purpose of
making the district self-supporting and financially solvent and
returning the construction costs of the improvements within a
reasonable period.
(c) The acquisition and leasing of land or granting
easements on land for the purposes included in this section and the
operation and industrial and business development of ports and
waterways are a public purpose and a matter of public necessity.
SECTION 17. Subchapter D, Chapter 62, Water Code, is
amended by adding Section 62.123 to read as follows:
Sec. 62.123. FRANCHISES. (a) A district may grant
franchises for purposes consistent with this chapter to any person
on property owned or controlled by the district by restrictive
covenant or otherwise.
(b) No franchise shall be granted for longer than 50 years
nor shall a franchise be granted except on the affirmative vote of a
majority of the commissioners present at three separate meetings of
the commission which meetings may not be closer together than one
week.
(c) No franchise shall be granted until notice of the
franchise is published, at the expense of the applicant, once a week
for three consecutive weeks in a daily newspaper of general
circulation in the district. For the purposes of this subsection,
notice consists of:
(1) the text of the franchise in final form in all
material respects; or
(2) a descriptive caption stating the purpose of the
franchise and the location at which a complete copy of the franchise
in all material respects may be obtained.
(d) The franchise shall require the grantee to file the
grantee's written acceptance within 30 days after the franchise is
finally approved by the commission. The franchise is effective on
the date the grantee files the acceptance, unless the district and
the grantee agree on a later date.
(e) Nothing in this section shall be construed as preventing
the district from granting revocable licenses or permits for the
use of limited portions of waterfront or facilities for purposes
consistent with this chapter.
SECTION 18. 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 the
district treasurer [him] for the district and all district funds
which the treasurer [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 19. Section 62.208(a), Water Code, is amended to
read as follows:
(a) A district may issue revenue bonds on the terms and
under the provisions of Chapter 111, Acts of the 43rd Legislature,
1st Called Session, 1933, or Chapter 38, Acts of the 47th
Legislature, Regular Session, 1941:
(1) to purchase, construct, improve, enlarge, extend,
and repair dams, reservoirs, water rights, water wells,
desalinization facilities, canals, pipelines, pumps, pump
stations, land, easements, rights-of-way, and other property and
facilities necessary to provide a water supply for the irrigation
of land and for industrial, commercial, domestic, municipal, and
other beneficial uses;
(2) to accomplish any of the purposes designated in
the previously mentioned two acts; and
(3) for general improvement purposes without
designating the improvement.
SECTION 20. 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 21. 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, 2017.