H.B. No. 2770

	AN ACT
	relating to the powers and duties of navigation districts, port
	authorities, and certain municipalities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 271.181(2) and (6), Local Government
	Code, are amended to read as follows:
	(2)  "Civil works project" means:
	(A)  roads, streets, bridges, utilities, water
	supply projects, water plants, wastewater plants, water
	d
	istribution and wastewater conveyance facilities, desalination
	projects, wharves, docks, navigation channels, dredge material
	placement areas, airport runways and taxiways, storm drainage and
	flood control projects, or transit projects;
	(B)  types of projects or facilities related to
	those described by Paragraph (A) and associated with civil
	engineering construction; and
	(C)  buildings or structures that are incidental
	to projects or facilities that are described by Paragraphs (A) and
	(B) and that are primarily civil engineering construction projects.
	(6)  "Local governmental entity" means a municipality,
	a county, a river authority, a defense base development authority
	established under Chapter 379B, a board of trustees under Chapter
	54, Transportation Code, a municipally owned water utility with a
	separate governing board appointed by the governing body of a
	municipality, or any other special district or authority authorized
	by law to enter into a public works contract for a civil works
	project.  The term does not include a regional tollway authority
	created under Chapter 366, Transportation Code, a regional mobility
	authority created under Chapter 370, Transportation Code, or a
	water district or authority created under Section 52, Article III,
	or Section 59, Article XVI, Texas Constitution, with a population
	of less than 50,000.
	SECTION 2.  Section 271.182, Local Government Code, as
	amended by Chapters 135 (S.B. 1047) and 725 (S.B. 229), Acts of the
	81st Legislature, Regular Session, 2009, is reenacted and amended
	to read as follows:
	Sec. 271.182.  APPLICABILITY. (a)  This subchapter applies
	to:
	(1)  a local governmental entity with a population of
	more than 100,000 within its geographic boundaries or service area;
	(2)  a board of trustees under Chapter 54,
	Transportation Code; and
	(3)  [.  (c)  This subchapter applies to] a municipally
	owned combined electric, water, and wastewater utility situated in
	an economically distressed area and located within 30 miles of the
	Lower Texas Gulf Coast.
	(b)  For purposes of Subsection (a), [For this subchapter,]
	"combined" means that the utilities are managed and controlled by
	one board whose members are appointed by the governing body of the
	municipality and that the financing of capital improvements is
	secured from the revenue [revenues] of all three utilities.
	SECTION 3.  Sections 271.186(a) and (b), Local Government
	Code, are amended to read as follows:
	(a)  During the first four years that this subchapter applies
	to a local governmental entity under Section 271.182:
	(1)  a local governmental entity with a population of
	500,000 or more may, under this subchapter, enter into contracts
	for not more than three projects in any fiscal year;
	(2)  a local governmental entity with a population of
	100,000 or more but less than 500,000 or a board of trustees under
	Chapter 54, Transportation Code, may, under this subchapter, enter
	into contracts for not more than two projects in any fiscal year;
	and
	(3)  a municipally owned water utility with a separate
	governing board appointed by the governing body of a municipality
	with a population of 500,000 or more may:
	(A)  independently enter into a contract for not
	more than one civil works project in any fiscal year; and
	(B)  enter into contracts for additional civil
	works projects in any fiscal year, but not more than the number of
	civil works projects prescribed by the limit in Subdivision (1) for
	the municipality, provided that:
	(i)  the additional contracts for the civil
	works projects entered into by the utility under this paragraph are
	allocated to the number of contracts the municipality that appoints
	the utility's governing board may enter under Subdivision (1); and
	(ii)  the governing body of the municipality
	must approve the contracts.
	(b)  After the period described by Subsection (a):
	(1)  a local governmental entity with a population of
	500,000 or more may, under this subchapter, enter into contracts
	for not more than six projects in any fiscal year;
	(2)  a local governmental entity with a population of
	100,000 or more but less than 500,000 or a board of trustees under
	Chapter 54, Transportation Code, may, under this subchapter, enter
	into contracts for not more than four projects in any fiscal year;
	and
	(3)  a municipally owned water utility with a separate
	governing board appointed by the governing body of a municipality
	with a population of 500,000 or more may:
	(A)  independently enter into contracts for not
	more than two civil works projects in any fiscal year; and
	(B)  enter into contracts for additional civil
	works projects in any fiscal year, but not more than the number of
	civil works projects prescribed by the limit in Subdivision (1) for
	the municipality, provided that:
	(i)  the additional contracts for the civil
	works projects entered into by the utility under this paragraph are
	allocated to the number of contracts the municipality that appoints
	the utility's governing board may enter under Subdivision (1); and
	(ii)  the governing body of the municipality
	must approve the contracts.
	SECTION 4.  Section 60.031, Water Code, is amended to read as
	follows:
	Sec. 60.031.  APPLICATION OF SUBCHAPTER.  (a)  The
	provisions of this subchapter shall apply to:
	(1)  any district not participating with the United
	States in a navigation project; or
	(2)  a district participating with the United States in
	a navigation project if the commission by resolution adopts:
	(A)  this subchapter; or
	(B)  sections of this subchapter under which the
	district will operate.
	(b)  For the purposes of Subsection (a)(2), a district that
	contracts with the United States for a navigation project under
	Subchapter F is considered to be participating with the United
	States in a navigation project while the contract is in effect.
	SECTION 5.  Section 60.038(b), Water Code, is amended to
	read as follows:
	(b)  Before a district may sell land, the commission shall
	determine by resolution that the land is no longer [Land which is
	sold or leased shall be declared surplus land and shall not be]
	needed for use by the district in connection with the development of
	a navigation project.
	SECTION 6.  Section 60.039, Water Code, is amended to read as
	follows:
	Sec. 60.039.  SURFACE LEASE [FOR NOT MORE THAN 30 YEARS].
	(a)  The commission may lease the surface of land for not more than
	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 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 for 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 on the minutes; and
	(2)  the execution of the lease is in the manner
	provided by the original order for the lease.
	SECTION 7.  Subchapter D, Chapter 60, Water Code, is amended
	by adding Section 60.0725 to read as follows:
	Sec. 60.0725.  NUISANCES; POLLUTION. The commission may
	suppress and prevent nuisances, pollution, and improper disposal of
	materials on any district property to:
	(1)  accomplish the purposes stated in Section 60.071;
	(2)  protect other district property; or
	(3)  promote the health, safety, and general welfare of
	persons using other district property.
	SECTION 8.  Section 60.101, Water Code, is amended by
	amending Subsection (b) and adding Subsections (c) and (d) to read
	as follows:
	(b)  To the extent that the district incurs indebtedness,
	[(]bonded or otherwise,[)] for purposes of financing the above
	facilities which in turn are sold by installment sale or otherwise,
	the [said] indebtedness, principal and interest, may be paid only
	from the loan [(]or bond sale[)] proceeds and from revenues
	generated from the project financed by the indebtedness, and
	security for payment of the principal of and interest on [said]
	indebtedness shall be limited to a pledge of the project's revenues
	and the project's facilities including enlargements and additions
	[thereafter made].
	(c)  An installment sale under this section is not a loan of
	the district's credit or a grant of public money.
	(d)  A district may contract with a broker to sell a tract of
	land in the same manner as the commissioners court of a county under
	Section 263.008, Local Government Code.
	SECTION 9.  Section 60.120(a), Water Code, is amended to
	read as follows:
	(a)  A district acting under [the provisions of] this
	subchapter may enter into any contract, lease, or agreement
	necessary or convenient to carry out any of the powers granted in
	this subchapter, including a contract for purchase, lease for
	purchase, or other agreement for the use or acquisition of real
	property, or improvements to real property or the use or
	acquisition of personal property. The contract, lease, or
	agreement may be entered into with any person and any government or
	governmental agency including the United States, [and] the State of
	Texas, and a public facility corporation organized under Chapter
	303, Local Government Code.
	SECTION 10.  Subchapter E, Chapter 60, Water Code, is
	amended by adding Section 60.124 to read as follows:
	Sec. 60.124.  GIFTS, GRANTS, AND DONATIONS.  A district may
	accept a gift, grant, donation, or bequest of money or property from
	any source for any district purpose.
	SECTION 11.  Section 60.271(f), Water Code, is amended to
	read as follows:
	(f)  The district shall adopt payment procedures consistent
	with Section 105.074(g), Local Government Code. The designated
	officer of a district may draw a check on a depository only on a
	warrant signed by the presiding officer [chairman] and attested by
	the secretary of the district, or by a procedure adopted under this
	section.
	SECTION 12.  Section 60.403, Water Code, is amended by
	amending Subsection (c) and adding Subsection (e) to read as
	follows:
	(c)  One original, photocopy, or electronic copy of the
	purchase order shall be [A purchase order must be executed in
	duplicate with one copy] delivered to the person from whom the
	purchase is made and one original, photocopy, or electronic copy
	shall be retained [remaining] on file in the district or port
	authority in accordance with Subtitle C, Title 6, Local Government
	Code.
	(e)  A district may establish an electronic requisition
	system to perform some or all of the functions required by
	Subsections (b), (c), and (d). An electronic requisition system
	established under this subsection must electronically transmit
	data to and receive data from the financial system of the district
	in a manner that meets professional, regulatory, and statutory
	requirements and standards, including those relating to
	purchasing, auditing, and accounting.
	SECTION 13.  Section 60.4035(a), Water Code, as amended by
	Chapters 415 (H.B. 1972) and 1191 (H.B. 3785), Acts of the 81st
	Legislature, Regular Session, 2009, is reenacted to read as
	follows:
	(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), the
	executive director of a district or an officer of a district
	authorized in writing by 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 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.
	SECTION 14.  Sections 60.404(a) and (d), Water Code, as
	amended by Chapters 415 (H.B. 1972) and 1191 (H.B. 3785), Acts of
	the 81st Legislature, Regular Session, 2009, are reenacted 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, 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 15.  Section 60.406(a), Water Code, as amended by
	Chapters 415 (H.B. 1972) and 1191 (H.B. 3785), Acts of the 81st
	Legislature, Regular Session, 2009, is reenacted to read as
	follows:
	(a)  Except as otherwise provided by Section 60.4035 or
	60.412, 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, 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.
	All bids must be sealed.
	SECTION 16.  Section 60.408(h), Water Code, is amended to
	read as follows:
	(h)  One original, photocopy, or electronic copy of a [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 original, photocopy, or electronic copy
	shall be retained [remaining] on file with the district or port
	authority in accordance with Subtitle C, Title 6, Local Government
	Code.
	SECTION 17.  Chapter 60, Water Code, is amended by adding
	Subchapter R to read as follows:
	SUBCHAPTER R.  CHARITABLE CONTRIBUTIONS
	Sec. 60.551.  DEFINITIONS. In this subchapter:
	(1)  "Charitable organization" means an organization
	that:
	(A)  is organized for charitable purposes under
	Chapter 22, Business Organizations Code, or holds a certificate of
	authority issued under that chapter;
	(B)  is exempt from taxation under Section 501(a)
	of the Internal Revenue Code of 1986 as an organization described in
	Section 501(c)(3) of that code and to which contributions are
	deductible for income tax purposes under Section 170 of that code;
	(C)  complies with all applicable federal
	nondiscrimination law, including Chapter 21, Title 42, United
	States Code;
	(D)  complies with all state statutes and rules
	relating to charitable organizations;
	(E)  is not a private foundation; and
	(F)  provides funds or programs for eligible
	services that directly or indirectly benefit the recipients.
	(2)  "District employee charitable campaign" means a
	campaign conducted in communities or areas in which district
	employees solicit contributions to an eligible charitable
	organization.
	(3)  "Eligible charitable organization" means a
	charitable organization eligible to participate in the district
	employee charitable campaign as provided by Section 60.561.
	(4)  "Eligible services" means services provided by a
	charitable organization that:
	(A)  benefit residents of this state, including
	children, youth, adults, elderly individuals, ill or infirm
	individuals, or individuals with a mental or physical disability,
	and consist of:
	(i)  human care, medical or other research
	in the field of human health, education, social adjustment, or
	rehabilitation;
	(ii)  relief for victims of natural disaster
	or other emergencies; or
	(iii)  assistance to impoverished
	individuals in need of food, shelter, clothing, or other basic
	needs; or
	(B)  benefit this state, and consist of activities
	to:
	(i)  safeguard public health and the
	environment; or
	(ii)  help solve environmental problems.
	(5)  "Federation or fund" means a fund-raising entity
	that:
	(A)  is a charitable organization;
	(B)  acts as an agent for at least five charitable
	organizations;
	(C)  is not organized exclusively to solicit
	contributions from district employees; and
	(D)  is supported by voluntary contributions by
	the public and is:
	(i)  incorporated in this state and has an
	established physical presence in this state in the form of an office
	or service facility that is staffed at least 20 hours a week; or
	(ii)  incorporated outside this state,
	includes at least 10 affiliated charitable organizations, and has
	existed at least three years.
	Sec. 60.552.  AUTHORIZATION OF CAMPAIGN. (a)  The
	commission or the executive director of a district may establish a
	program in the district to allow district employees to participate
	in a charitable campaign as provided by this subchapter.
	(b)  The commission or executive director of a district may
	adopt rules relating to the operation of a district employee
	charitable campaign as described in this subchapter.
	Sec. 60.553.  DEDUCTION AUTHORIZED. (a) A district
	employee may authorize a deduction each pay period from the
	employee's salary or wage payment for a charitable contribution as
	provided by this subchapter.
	(b)  An authorization must direct the district to distribute
	the deducted funds to a participating federation or fund.
	(c)  A deduction under this subchapter must be in the form
	prescribed by the district.
	Sec. 60.554.  VOLUNTARY PARTICIPATION. (a) Participation
	by a district employee in a state employee charitable campaign is
	voluntary. The district shall inform district employees that
	deductions are voluntary.
	(b)  The district shall adopt rules establishing a process
	for hearing employee complaints regarding coercive activity in a
	district employee charitable campaign.
	Sec. 60.555.  DESIGNATION OF AN ELIGIBLE CHARITABLE
	ORGANIZATION. (a) A district employee may designate in the
	authorization an eligible charitable organization to receive the
	deductions.
	(b)  If a district employee does not designate an eligible
	charitable organization, the employee's deductions shall be
	distributed to each participating federation or fund and eligible
	local charitable organization in the proportion that the deductions
	designated for that charitable organization bear to the total of
	designated deductions in the district employee charitable
	campaign.
	Sec. 60.556.  CONFIDENTIALITY. (a) Except as necessary to
	administer this subchapter or on written authorization of the
	employee, the following information is confidential:
	(1)  whether a district employee has authorized a
	deduction under this subchapter;
	(2)  the amount of the deduction; and
	(3)  the name of a federation or fund or charitable
	organization that a district employee has designated to receive
	contributions.
	(b)  The designation of a charitable organization by a
	district employee is not confidential if the employee executes a
	written pledge card or other document indicating that the employee
	wishes to receive an acknowledgement from the charitable
	organization.
	(c)  The district shall provide notice to district employees
	of the confidentiality provisions described by this section.
	Sec. 60.557.  REVOCATION OR CHANGE OF AUTHORIZATION. (a) A
	district employee may revoke or change an authorization by giving
	notice to the district.
	(b)  The notice must be in the form and manner prescribed by
	the district.
	(c)  A revocation or change takes effect on the date
	designated by the district, but not later than the 45th day after
	the date the district employee gives notice.
	Sec. 60.558.  DURATION OF DEDUCTION. (a) A deduction under
	this subchapter begins on the date designated by the district
	employee.
	(b)  A deduction under this subchapter, unless revoked or
	changed under Section 60.557, ends on the date designated by the
	district.
	Sec. 60.559.  FAIR AND EQUITABLE MANAGEMENT OF CAMPAIGN. A
	district employee charitable campaign must be managed fairly and
	equitably in accordance with this subchapter and the rules,
	policies, and procedures established by the district.
	Sec. 60.560.  CAMPAIGN POLICY AND MANAGEMENT. (a)  The
	executive director of the district shall oversee the district
	employee charitable campaign and the district's employees who
	conduct the campaign.
	(b)  The executive director of the district and employees
	designated by the executive director of the district shall:
	(1)  determine the eligibility of a federation or fund
	and its affiliated agencies for participation in the district
	employee charitable campaign;
	(2)  develop a campaign plan, budget, and materials to
	be used in the campaign;
	(3)  coordinate and facilitate the campaign;
	(4)  ensure that all district employee charitable
	campaign activities are conducted fairly and equitably to promote
	unified solicitation on behalf of all participants; and
	(5)  perform other duties required by rules relating to
	the district employee charitable campaign.
	Sec. 60.561.  ELIGIBILITY OF CHARITABLE ORGANIZATIONS,
	FEDERATIONS, AND FUNDS FOR PARTICIPATION. (a) To be eligible to
	participate in a district employee charitable campaign, a
	charitable organization must:
	(1)  be governed by a voluntary board of citizens that
	meets at least twice each year to set policy and manage the affairs
	of the organization;
	(2)  if the organization's annual budget:
	(A)  does not exceed $100,000, provide a completed
	Internal Revenue Service Form 990 and an accountant's review that
	offers full and open disclosure of the organization's internal
	operations; or
	(B)  exceeds $100,000, be audited annually in
	accordance with generally accepted auditing standards of the
	American Institute of Certified Public Accountants; and
	(3)  not spend more than 25 percent of its annual
	revenue for administrative and fund-raising expenses.
	(b)  A federation or fund that seeks participation in a
	district employee charitable campaign must apply on behalf of
	itself and its affiliated agencies to the district during the
	eligibility determination period specified by the district. The
	district shall review each application and may approve a federation
	or fund for statewide participation only if the federation or fund
	qualifies as a charitable organization.  The district may approve
	an affiliated charitable organization for participation only if the
	organization qualifies as a charitable organization.
	(c)  The district may use outside expertise and resources
	available to it, and rely on a certification of a charitable
	organization, or determination of qualification by a statewide
	employee charitable campaign under Section 659.146, Government
	Code, to assess the eligibility of a charitable organization that
	seeks to participate in a district employee charitable campaign.
	(d)  An appeal from a decision of the district shall be
	conducted in the manner prescribed by the commission. The appeals
	process must permit a charitable organization that is not approved
	for participation to apply for participation in a district employee
	charitable campaign.
	Sec. 60.562.  FUND-RAISING PRACTICES. The fund-raising
	practices of a participating charitable organization must:
	(1)  be truthful and consumer-oriented; and
	(2)  protect against:
	(A)  unauthorized use of a list of contributors to
	the organization;
	(B)  payment of commissions, kickbacks, finder
	fees, percentages, bonuses, or overrides for fund-raising;
	(C)  mailing of unordered merchandise or tickets
	with a request for money in return; and
	(D)  general phone solicitation of the public.
	Sec. 60.563.  LIMITATION ON USE OF CONTRIBUTIONS. (a) A
	participating charitable organization may use contributions under
	this subchapter only to provide eligible services or to fund a
	charitable organization that provides eligible services.
	(b)  A participating charitable organization may not use
	contributions under this subchapter to:
	(1)  directly or indirectly fund litigation; or
	(2)  make expenditures that would require the
	organization to register under Chapter 305, Government Code, if the
	organization were not an entity exempt from registration under that
	chapter.
	Sec. 60.564.  MISAPPLICATION OF CONTRIBUTIONS; AUDIT. (a)
	The district may obtain an audit of any participating charitable
	organization that the district reasonably believes has misapplied
	contributions under this subchapter.
	(b)  If an audit under this section reveals gross negligence
	or intentional misconduct on the part of a participating charitable
	organization, the district shall remove the charitable
	organization from the campaign. A charitable organization removed
	under this subsection is not eligible to participate in a district
	employee charitable campaign before the fifth anniversary of the
	date the charitable organization was removed.
	(c)  If an audit under this section reveals intentional
	misconduct on the part of a charitable organization, the district
	shall forward its findings to the appropriate law enforcement
	agency.
	(d)  The district may bring an action to recover misapplied
	contributions.
	(e)  If an investigation or lawsuit results in a recovery of
	misapplied contributions and there is not a judgment distributing
	the amounts recovered, the district shall determine the manner of
	refunding contributions to the appropriate district employees.
	SECTION 18.  Section 61.164(c), Water Code, is amended to
	read as follows:
	(c)  No franchise shall be granted until notice [after the
	franchise in its final form] is published [in full] at the expense
	of the applicant, once a week for three consecutive weeks in a daily
	newspaper of general circulation published inside the district.
	For the purposes of this subsection, notice consists of:
	(1)  the text of the franchise in full; or
	(2)  a descriptive caption stating the purpose of the
	franchise and the location at which a complete copy of the franchise
	may be obtained.
	SECTION 19.  Sections 62.107(a) and (c), Water Code, are
	amended to read as follows:
	(a)  Any district created under this chapter may acquire by
	gift, purchase, or condemnation and may own land adjacent or
	accessible 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.
	(c)  The acquisition 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 20.  Section 62.122, Water Code, is amended to read
	as follows:
	Sec. 62.122.  DISPOSITION OF SALVAGE OR SURPLUS PERSONAL
	PROPERTY.  (a)  Except as provided by Subsection (b), the [The]
	commission may periodically dispose of surplus or salvage personal
	property in the same manner as the commissioners court of a county
	under Subchapter D, Chapter 263, Local Government Code.
	(b)  The commission may authorize the destruction or
	disposition of salvage or surplus property as worthless if the
	property is so worn, damaged, or obsolete that it has no value for
	the purpose for which it was originally intended, and the expense to
	the district to attempt to sell the property would be more than the
	proceeds from the sale.
	SECTION 21.  Section 63.178(c), Water Code, is amended to
	read as follows:
	(c)  Before the franchise is granted, the commission must
	approve the franchise by a majority vote at three separate meetings
	held at least one week apart and must publish notice. For the
	purposes of this subsection, notice must be published [the
	franchise in full,] at the expense of the applicant, once a week for
	three consecutive weeks in a newspaper published in the district.
	The notice must consist of:
	(1)  the text of the franchise in full; or
	(2)  a descriptive caption stating the purpose of the
	franchise and the location at which a complete copy of the franchise
	may be obtained.
	SECTION 22.  Chapter 97, Acts of the 40th Legislature, 1st
	Called Session, 1927, is amended by adding Section 9 to read as
	follows:
	Sec. 9.  SUNSET REVIEW.  (a)  The Port of Houston Authority
	is subject to review under Chapter 325, Government Code (Texas
	Sunset Act), as if it were a state agency but may not be abolished
	under that chapter. The review shall be conducted as if the
	authority were scheduled to be abolished September 1, 2013.
	(b)  The reviews must assess the authority's governance,
	management, and operating structure, and the authority's
	compliance with legislative requirements.
	(c)  The authority shall pay the cost incurred by the Sunset
	Advisory Commission in performing a review of the authority under
	this section. The Sunset Advisory Commission shall determine the
	cost, and the authority shall pay the amount promptly on receipt of
	a statement from the Sunset Advisory Commission detailing the cost.
	(d)  This section expires September 1, 2013.
	SECTION 23.  This Act applies only to a contract entered into
	on or after the effective date of this Act. A contract entered into
	before the effective date of this Act is covered by the law in
	effect when the contract was entered into, and the former law is
	continued in effect for that purpose.
	SECTION 24.  To the extent of any conflict, this Act prevails
	over another Act of the 82nd Legislature, Regular Session, 2011,
	relating to nonsubstantive additions to and corrections in enacted
	codes.
	SECTION 25.  Section 60.465, Water Code, is repealed.
	SECTION 26.  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, 2011.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2770 was passed by the House on May 3,
	2011, by the following vote:  Yeas 144, Nays 0, 1 present, not
	voting; that the House refused to concur in Senate amendments to
	H.B. No. 2770 on May 27, 2011, and requested the appointment of a
	conference committee to consider the differences between the two
	houses; and that the House adopted the conference committee report
	on H.B. No. 2770 on May 29, 2011, by the following vote:  Yeas 147,
	Nays 0, 1 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2770 was passed by the Senate, with
	amendments, on May 24, 2011, by the following vote:  Yeas 31, Nays
	0; at the request of the House, the Senate appointed a conference
	committee to consider the differences between the two houses; and
	that the Senate adopted the conference committee report on H.B. No.
	2770 on May 29, 2011, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor