85R4208 SLB-F
 
  By: Creighton S.B. No. 1395
 
 
 
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.  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 Section 61.115, 61.116, or
  61.117, or their predecessor statute, 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 the lease [it] does not
  interfere with use of or obstruct any natural or artificial
  waterway of the district used for navigation purposes.
         SECTION 2.  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 3.  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 4.  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 5.  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 6.  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 7.  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 8.  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 9.  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 10.  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 11.  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 12.  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 13.  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 14.  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 15.  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 16.  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 17.  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 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 18.  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.
         (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 19.  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 20.  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 21.  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 22.  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.