By: Garcia, et al.	S.B. No. 1894

	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.