H.B. No. 3785

	AN ACT
	relating to the powers and duties of a navigation district or port
	authority.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 60, Water Code, is amended by adding
	Subchapter B-1 to read as follows:
	SUBCHAPTER B-1. EMPLOYEE CATASTROPHIC ASSISTANCE PROGRAM
	Sec. 60.021.  DEFINITIONS. In this subchapter:
	(1)  "Administrator" means the person designated by the
	commission or executive director of a district to administer the
	district's employee catastrophic assistance fund.
	(2)  "Assistance fund" means an employee catastrophic
	assistance fund established by a district under this subchapter.
	(3)  "Employee" means a district employee with 12 or
	more months of continuous employment with the district who is paid
	from the general fund of the district, from a special fund of the
	district, or from special grants paid through the district.
	Sec. 60.022.  ESTABLISHMENT OF EMPLOYEE CATASTROPHIC
	ASSISTANCE PROGRAM. (a) The commission or executive director of a
	district may establish a program in the district to allow an
	employee to voluntarily transfer time earned by the employee as
	sick leave or vacation leave to a district employee catastrophic
	assistance fund.
	(b)  The commission or executive director of a district shall
	designate a person to administer the district assistance fund.
	(c)  The commission or executive director of a district shall
	identify natural or man-made events classified as catastrophic for
	purposes of this subchapter.
	(d)  The commission or executive director of a district may
	adopt rules and prescribe procedures and forms relating to the
	operation of the district assistance fund.
	Sec. 60.023.  EMPLOYEE CONTRIBUTION TO DISTRICT ASSISTANCE
	FUND. (a) To contribute to the district assistance fund, an
	employee must submit an application to the administrator in the
	prescribed form.
	(b)  On approval by the administrator, in a fiscal year the
	employee may contribute to the district assistance fund not less
	than one day or more than 10 days of the employee's combined accrued
	sick leave and vacation leave time. The administrator shall credit
	the fund with a dollar amount equivalent to the hourly salary of the
	employee multiplied by the number of hours contributed by the
	employee and shall deduct the same number of hours from the accrued
	sick leave or vacation leave time, as applicable, to which the
	employee was entitled before the contribution as if the employee
	had used the time for personal purposes.
	(c)  An employee who is terminated or who resigns or retires
	may make a contribution of not more than 10 days of the combined
	accrued sick leave or vacation leave time earned by the employee, to
	take effect immediately before the effective date of the
	termination, resignation, or retirement.
	Sec. 60.024.  TRANSFERS FROM DISTRICT ASSISTANCE FUND TO
	EMPLOYEES. (a) An employee may be eligible for a transfer of money
	from the district assistance fund if, because of a catastrophic
	event, the employee has suffered unreimbursed losses or expenses.
	(b)  An eligible employee must apply to the administrator for
	a transfer of money from the district assistance fund. If the
	administrator determines that the employee is eligible, the
	administrator shall approve the transfer of money from the fund to
	the employee.
	(c)  An eligible employee may not receive from the district
	assistance fund more than $5,000 for any catastrophic event. The
	administrator shall determine the amount of money that is
	transferred to the eligible employee.
	SECTION 2.  Section 60.153, Water Code, is amended to read as
	follows:
	Sec. 60.153.  EXECUTION OF CONTRACTS.  A contract entered
	into by a district under this subchapter shall be approved by
	resolution of the commission and[,] executed by the presiding
	officer of the commission, the executive director of the district,
	or an authorized representative of the executive director[, and
	duly attested by the corporate seal of the district].
	SECTION 3.  Section 60.4035, Water Code, is amended to read
	as follows:
	Sec. 60.4035.  CONTRACTS: EMERGENCY PURCHASES.  (a)
	Notwithstanding the competitive bidding requirements and proposal
	procedures of this subchapter and Subchapter O and the requirements
	of Sections 60.408(a), (b), (c), (d), and (e) [Sections 60.404 and
	60.406], the executive director of a district [port commission] or
	an officer of a district [port commission] authorized in writing by
	the [executive director of the] port commission may make emergency
	purchases or contracts or emergency amendments to existing purchase
	orders or contracts in an amount that exceeds the amount authorized
	under Section 60.403(a) for routine purchases or contracts
	[$25,000] if necessary:
	(1)  to preserve or protect the public health and
	safety of the residents of the district;
	(2)  to preserve the property of the district in the
	case of a public calamity;
	(3)  to repair unforeseen damage to the property of the
	district; or
	(4)  to respond to security directives issued by:
	(A)  the federal Department of Homeland Security,
	including the Transportation Security Administration;
	(B)  the United States Coast Guard;
	(C)  the federal Department of Transportation,
	including the Maritime Administration; or
	(D)  another federal or state agency responsible
	for domestic security.
	(b)  The executive director of a district [port commission]
	or the authorized officer of the district [port commission] shall
	notify the port commissioners of any purchase made under Subsection
	(a) not later than 48 hours after the purchase is made.
	SECTION 4.  Sections 60.404(a) and (d), Water Code, are
	amended to read as follows:
	(a)  If the materials, supplies, machinery, equipment, or
	other items to be purchased or contracted for are valued at an
	amount greater than the amount authorized under Section 60.403(a)
	for routine purchases or contracts [exceed $25,000], notice shall
	be published as provided by this section.
	(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 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 5.  Section 60.406, Water Code, is amended to read as
	follows:
	Sec. 60.406.  COMPETITIVE BIDDING AND PROPOSAL PROCEDURES
	REQUIRED FOR CERTAIN CONTRACTS.  (a)  Except as otherwise provided
	by Section 60.4035 or 60.412, before [Before] a district or port
	authority may purchase one or more items under a contract that will
	require an expenditure of more than the amount authorized under
	Section 60.403(a) for routine purchases or contracts [$25,000], the
	port commission of that district or port authority must comply with
	the competitive bidding requirements or proposal procedures
	provided by this subchapter or Subchapter O [Sections 60.404 and
	60.405 of this code]. All bids must be sealed.
	(b)  The competitive bidding and proposal requirements
	provided by this subchapter and Subchapter O [Sections 60.404 and
	60.405 of this code] apply only to contracts for which payment will
	be made from current funds or bond funds.
	(c)  In applying the competitive bidding procedures and
	proposal procedures, all separate, sequential, or component
	purchases of items ordered or purchased from the same supplier by
	the same officer, entity, or department, purchased with the intent
	of avoiding the requirements of this subchapter or Subchapter O
	[Section 60.404 or 60.405 of this code], shall be treated as if they
	are part of a single purchase and a single contract.
	SECTION 6.  Sections 60.408(e), (f), (g), (h), and (i),
	Water Code, are amended to read as follows:
	(e)  A contract valued at more than the amount authorized
	under Section 60.403(a) for routine purchases or contracts shall be
	awarded at a regularly scheduled or specially called meeting of the
	port commission.
	(f)  A [The] contract valued at more than the amount
	authorized under Section 60.403(a) for routine purchases or
	contracts must be in writing, executed for the district or port
	authority by the district's or port authority's [its] executive or
	designated officer or by an authorized designated employee of the
	district or port authority, and filed with the proper officer of the
	district or port authority.
	(g)  Before a contract valued at more than the amount
	authorized under Section 60.403(a) for routine purchases or
	contracts takes effect or is binding on a district or port
	authority, the appropriate financial officer of the district or
	port authority must certify that funds are or will be available to
	meet the contract when due.
	(h)  A contract, requisition, or purchase order valued at
	more than the amount authorized under Section 60.403(a) for routine
	purchases or contracts must be issued in duplicate with one copy
	delivered to the contractor and one copy remaining on file with the
	district or port authority.
	(i)  A purchase or contract valued at more than the amount
	authorized under Section 60.403(a) for routine purchases or
	contracts that is not in compliance with this subchapter is void and
	unenforceable.
	SECTION 7.  Section 60.411(b), Water Code, is amended to
	read as follows:
	(b)  Not later than the 10th day after the date of the signing
	of a contract or issuance of a contract or purchase order [if
	required by a district or port authority], the bidder or proposal
	offerer shall furnish a performance bond to the district or port
	authority, if required by a district or port authority, for the full
	amount of the contract if the contract exceeds $50,000.
	SECTION 8.  Section 60.412, Water Code, is amended by
	amending Subsection (a) and adding Subsection (c) to read as
	follows:
	(a)  A contract for a purchase is exempt from the competitive
	bidding requirements and proposal procedures of this subchapter and
	Subchapter O [Sections 60.404 and 60.405] if a contract is for the
	purchase of:
	(1)  an item that must be purchased in a case of public
	calamity if it is necessary to make the purchase promptly to relieve
	the necessity of the citizens or to preserve the property of the
	district or port authority;
	(2)  an item necessary to preserve or protect the
	public health or the safety of the residents of the district or port
	authority;
	(3)  an item made necessary by unforeseen damage to the
	property of the district or port authority;
	(4)  a personal or professional service;
	(5)  any work performed and paid for by the day as the
	work progresses;
	(6)  any land or right-of-way;
	(7)  an item that can be obtained only from one source,
	including:
	(A)  items for which competition is precluded
	because of the existence of patents, copyrights, secret processes,
	or natural monopolies;
	(B)  films, manuscripts, or books;
	(C)  public utility services; and
	(D)  captive replacement parts or components for
	equipment;
	(8)  any item necessary to secure a district or port
	authority during a period of heightened security as determined by:
	(A)  the federal Department of Homeland Security,
	including the Transportation Security Administration;
	(B)  the United States Coast Guard;
	(C)  the United States Bureau of Customs and
	Border Protection;
	(D)  the Federal Bureau of Investigation;
	(E)  the federal Department of Transportation,
	including the Maritime Administration; or
	(F)  another federal, state, or local agency; or
	(9)  an item from the United States, including any
	agency thereof, or from this state, including an agency of this
	state.
	(c)  A district or port authority shall comply with Chapter
	2254, Government Code, in procuring professional services.
	SECTION 9.  Section 60.463(e), Water Code, is amended to
	read as follows:
	(e)  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. 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 10.  Section 60.012, Water Code, is repealed.
	SECTION 11.  The changes in law made by this Act affecting
	contracts, purchases, or amendments to existing purchase orders or
	contracts made by a navigation district or port authority under
	Subchapter N or O, Chapter 60, Water Code, apply only to a contract,
	purchase, or amendment made on or after the effective date of this
	Act. A contract, purchase, or amendment made before the effective
	date of this Act is governed by the law in effect on the date the
	contract, purchase, or amendment was made, and that law is
	continued in effect for that purpose.
	SECTION 12.  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, 2009.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 3785 was passed by the House on April
	30, 2009, by the following vote:  Yeas 144, Nays 0, 1 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 3785 on May 29, 2009, by the following vote:  Yeas 143, Nays 0,
	1 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 3785 was passed by the Senate, with
	amendments, on May 27, 2009, by the following vote:  Yeas 31, Nays
	0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor