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.