HB 5669

89R7880 SCF-F
		By: Phelan
  H.B. No. 5669
  A BILL TO BE ENTITLED
  AN ACT
  relating to the name and powers of the Sabine Pass Port Authority;
  altering the terms of the authority's port commission; altering the
  authority to issue bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Chapter 5012, Special District
  Local Laws Code, is amended to read as follows:
  CHAPTER 5012.  PORT OF SABINE PASS [PORT AUTHORITY]
         SECTION 2.  Sections 5012.0001, 5012.0002, and 5012.0003,
  Special District Local Laws Code, are amended to read as follows:
         Sec. 5012.0001.  DEFINITIONS.  In this chapter:
               (1)  ["Authority" means the Sabine Pass Port Authority.
               [(2)]  "Commission" means the port's [authority's] port
  commission.
               (2) [(3)]  "Commissioner" means a commission member.
               (3)  "Port" means the Port of Sabine Pass.
         Sec. 5012.0002.  LEGISLATIVE FINDINGS OF PURPOSE AND
  BENEFIT.  (a)  The port [authority] is [a port district] essential
  to accomplish the purposes of Section 52-a, Article III, and
  Section 59, Article XVI, Texas Constitution, and other public
  purposes stated in this chapter. By granting the port powers under
  this chapter, the legislature has established a program to
  accomplish the public purposes set out in Section 52-a, Article
  III, Texas Constitution.
         (b)  The port serves a public use and benefit.
         (c)  All land and other property included [territory] in the
  port will benefit [authority benefits] from the [authority's]
  improvements and services to be provided by the port under powers
  conferred by Section 52-a, Article III, and Section 59, Article
  XVI, Texas Constitution, and other powers granted under this
  chapter [, works, and facilities].
         Sec. 5012.0003.  PORT [AUTHORITY] TERRITORY.  The port
  [authority] is composed of the territory in Jefferson County
  described by Section 1, Chapter 379, Acts of the 63rd Legislature,
  Regular Session, 1973, as that territory may have been modified
  under:
               (1)  Subchapter H, Chapter 62, Water Code; or
               (2)  other law.
         SECTION 3.  The heading to Subchapter B, Chapter 5012,
  Special District Local Laws Code, is amended to read as follows:
  SUBCHAPTER B.  PORT [AUTHORITY] ADMINISTRATION
         SECTION 4.  Sections 5012.0051, 5012.0052, 5012.0053, and
  5012.0054, Special District Local Laws Code, are amended to read as
  follows:
         Sec. 5012.0051.  COMMISSION; TERMS; ELECTION.  (a)  The port
  [authority] is governed by a commission composed of five elected
  commissioners.
         (b)  Commissioners serve staggered four-year [two-year]
  terms, with the appropriate number of [two] commissioners elected
  in each even-numbered year on the uniform election date in May [and
  three commissioners elected in each odd-numbered year].
         (c)  The commission:
               (1)  is the port's [authority's] governing body; and
               (2)  has the powers conferred on navigation and canal
  commissioners of navigation districts and the commissioners court
  by the Water Code.
         Sec. 5012.0052.  QUALIFICATIONS FOR OFFICE.  Each
  commissioner must:
               (1)  be a resident of the port [authority];
               (2)  own taxable property in the port [authority]; and
               (3)  be a qualified voter.
         Sec. 5012.0053.  NOTICE OF COMMISSIONERS' ELECTION.  Notice
  of a commissioner's election shall be:
               (1)  signed by the commission's presiding officer or
  secretary; and
               (2)  posted in accordance with Section 4.003(b),
  Election Code [given by publishing notice once each week for two
  consecutive weeks in a newspaper with general circulation in the
  authority, with the first publication being made not earlier than
  the 60th day before the date of the election, and not later than the
  21st day before the date of the election].
         Sec. 5012.0054.  ELECTION RESULTS.  As soon as practicable
  after each election held by the port [authority], the commission
  shall declare the results of the election.
         SECTION 5.  Section 5012.0055(a), Special District Local
  Laws Code, is amended to read as follows:
         (a)  Each commissioner shall:
               (1)  take an oath of office that contains the
  applicable provisions provided by law for members of the
  commissioners court; and
               (2)  execute a bond for $10,000 payable to the port
  [authority], conditioned on the faithful performance of the
  commissioner's duties as a commissioner.
         SECTION 6.  Section 5012.0056, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 5012.0056.  VOTING REQUIREMENT.  The concurrence of a
  majority of the commissioners present at a meeting where a quorum is
  present is sufficient in any matter relating to port [authority]
  business.
         SECTION 7.  Section 5012.0057(c), Special District Local
  Laws Code, is amended to read as follows:
         (c)  The secretary shall be responsible for maintaining and
  preserving the minutes, records, and other documents of the port
  [authority].
         SECTION 8.  Sections 5012.0058, 5012.0101, 5012.0102,
  5012.0103, and 5012.0104, Special District Local Laws Code, are
  amended to read as follows:
         Sec. 5012.0058.  COMPENSATION OF COMMISSIONERS; EXPENSES.
  (a)  Each [Unless otherwise provided, each] commissioner is
  entitled to receive $600 per month for the commissioner's services
  [a fee of not more than $50 a day for each day of service necessary
  to discharge the duties of a commissioner].
         (b)  Each commissioner is entitled to reimbursement for
  actual expenses incurred on behalf of the port [authority] and
  approved by the commission.
         Sec. 5012.0101.  GENERAL POWERS.  The port [authority] may
  exercise:
               (1)  the rights, privileges, and functions provided by
  this chapter; and
               (2)  all powers, rights, privileges, and functions
  conferred by Chapters 60 and 62, Water Code.
         Sec. 5012.0102.  POWERS REGARDING PORTS, WATERWAYS, AND
  FACILITIES.  The port [authority] may:
               (1)  acquire, take over, construct, maintain, repair,
  operate, develop, and regulate wharves, docks, warehouses, grain
  elevators, ship repair facilities, belt railways, lands, and all
  other facilities or aids consistent with or necessary for the
  operation or development of ports, waterways, or maritime commerce
  inside or outside the port's [authority's] boundaries; and
               (2)  construct, extend, improve, repair, maintain,
  reconstruct, own, use, and operate any facility necessary or
  convenient to the exercise of such powers, rights, privileges, and
  functions granted by this chapter.
         Sec. 5012.0103.  BYLAWS AND RULES.  The port [authority] may
  adopt bylaws and rules for the management and regulation of its
  affairs.
         Sec. 5012.0104.  GIFT OR PURCHASE OF PROPERTY.  The port
  [authority] by gift or purchase may acquire any property or any
  interest in property that is:
               (1)  inside or outside the port's [authority's]
  boundaries; and
               (2)  necessary or convenient to exercising a power,
  right, privilege, or function conferred on the port [authority] by
  this chapter.
         SECTION 9.  Subchapter C, Chapter 5012, Special District
  Local Laws Code, is amended by adding Section 5012.01045 to read as
  follows:
         Sec. 5012.01045.  USE OF PORT PROPERTY.  (a)  The port may
  use port property for:
               (1)  job creation and retention;
               (2)  economic development;
               (3)  industry;
               (4)  commerce;
               (5)  manufacturing;
               (6)  housing;
               (7)  recreation;
               (8)  infrastructure installation on port property; or
               (9)  any other activity essential to accomplish the
  purposes of Section 52-a, Article III, Texas Constitution.
         (b)  For the purposes described by Subsection (a), the port
  may:
               (1)  develop, construct, improve, maintain, equip, and
  furnish buildings, equipment, facilities, or improvements on or to
  port property; and
               (2)  lease port property on terms the commission
  considers advisable to allow for the development, construction,
  improvement, maintenance, equipping, and furnishing of buildings,
  equipment, or facilities on or improvements to the property.
         (c)  The port may enter into a contract with another person
  to accomplish the purposes of this section on terms the commission
  considers appropriate, desirable, and in the port's best interests.
         (d)  The port may not issue bonds or other obligations
  payable from ad valorem taxes to finance a project authorized under
  this section.
         SECTION 10.  Sections 5012.0105, 5012.0106, 5012.0107, and
  5012.0108, Special District Local Laws Code, are amended to read as
  follows:
         Sec. 5012.0105.  EMINENT DOMAIN.  (a)  To exercise a power
  provided by law, the port [authority] may exercise the power of
  eminent domain to acquire any property and any interest in property
  inside the port's [authority's] boundaries.  The port [authority]
  must exercise the power of eminent domain in the manner provided by
  Chapter 21, Property Code.
         (b)  The port [authority] is a municipal corporation for the
  purposes of Section 21.021, Property Code.
         (c)  The port [authority] is not required to give bond for
  appeal or bond for costs in any judicial proceeding related to the
  port's [authority's] exercise of eminent domain.
         (d)  The port's [authority's] authority to exercise the power
  of eminent domain expired on September 1, 2013, unless the port
  [authority] submitted a letter to the comptroller in accordance
  with Section 2206.101(b), Government Code, not later than December
  31, 2012.
         Sec. 5012.0106.  LEASE OF PORT [AUTHORITY] FACILITIES.  A
  lease under Section 60.101, Water Code, may contain any provision
  the commission determines is advantageous to the port [authority],
  including a provision for:
               (1)  the sale of a leased property at the termination of
  the lease; and
               (2)  the management and operation of a leased property
  by the port or lessee.
         Sec. 5012.0107.  SALE OF SURPLUS PROPERTY.  The commission
  may order port [authority] property sold as provided in Section
  60.101, Water Code, if the property is not considered reasonably
  required to carry out the port's [authority's] plans.
         Sec. 5012.0108.  GENERAL AUTHORITY TO MAKE CONTRACTS AND
  EXECUTE INSTRUMENTS.  The port [authority] may make a contract or
  execute an instrument necessary or convenient to exercising a
  power, right, privilege, or function conferred on the port
  [authority] by this chapter.
         SECTION 11.  The heading to Section 5012.0109, Special
  District Local Laws Code, is amended to read as follows:
         Sec. 5012.0109.  PURCHASES AND [COMPETITIVE BIDDING FOR
  CERTAIN] CONTRACTS.
         SECTION 12.  Section 5012.0109(a), Special District Local
  Laws Code, is amended to read as follows:
         (a)  The commission may make purchases and contracts as
  provided by Subchapters N and O, Chapter 60, Water Code [Before the
  commission enters into a contract for the expenditure of an amount
  of $25,000 or more, the authority shall submit the proposed
  contract for competitive bids as provided by this section].
         SECTION 13.  Sections 5012.0110, 5012.0111, 5012.0112, and
  5012.0151, Special District Local Laws Code, are amended to read as
  follows:
         Sec. 5012.0110.  OFFICERS, AGENTS, AND EMPLOYEES.  The port
  [authority] may employ, prescribe the duties of, and set the
  compensation of officers, agents, and employees.
         Sec. 5012.0111.  SEAL.  The port [authority] may adopt and
  use a corporate seal.
         Sec. 5012.0112.  AUTHORITY TO SUE AND BE SUED.  The port
  [authority] may sue and be sued in its corporate name.
         Sec. 5012.0151.  MAINTENANCE AND OPERATIONS TAX.  The
  commission may impose an annual tax for the maintenance and
  operation of the port [authority] and the port's [authority's]
  improvements at a rate not to exceed 20 cents for each $100
  valuation of taxable property in the port [authority].
         SECTION 14.  Section 5012.0152(b), Special District Local
  Laws Code, is amended to read as follows:
         (b)  The tax assessor and collector shall execute a bond in
  an amount set by the commission that is:
               (1)  at least twice the average daily balance of the
  port [authority] in its depository for the preceding year; and
               (2)  not more than the estimated amount of revenues of
  the port [authority] for any year.
         SECTION 15.  Section 5012.0153, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 5012.0153.  AUTHORITY TO BORROW MONEY, ACCEPT GRANTS,
  AND ISSUE ASSOCIATED REVENUE BONDS.  The port [authority] may:
               (1)  borrow money for the port's [authority's]
  corporate purposes consistent with the constitution, this chapter,
  and Chapters 60-63, Water Code;
               (2)  borrow money or accept a grant from the United
  States or from a corporation or agency created or designated by the
  United States and, in connection with the loan or grant, enter into
  any agreement the United States or the corporation or agency may
  require; and
               (3)  make and issue bonds for money borrowed, in the
  manner provided by this chapter.
         SECTION 16.  Section 5012.0154(a), Special District Local
  Laws Code, is amended to read as follows:
         (a)  The port [authority] may:
               (1)  borrow money for current expenses; and
               (2)  evidence the borrowed money by warrants.
         SECTION 17.  Sections 5012.0201, 5012.0202, 5012.0203,
  5012.0204, and 5012.0205, Special District Local Laws Code, are
  amended to read as follows:
         Sec. 5012.0201.  AUTHORITY TO ISSUE BONDS; ELECTION.  (a)  
  The port [authority] may issue bonds for any corporate purpose.
         (b)  The port [authority] may issue bonds for a purpose
  described by Section 5012.0102(1) or to acquire necessary or proper
  lands, rights of way, extension or improvements of belt railway
  lines, or construction or improvements of wharves, docks, ship
  repair facilities, or other facilities or aids to navigation.
         (c)  The port [authority] may secure bonds issued under
  Subsection (b) by liens on properties acquired, constructed, or
  improved and pledge available revenues as additional security.
         (d)  An election to approve the issuance of bonds payable
  from taxes must be held in the manner provided for bond elections
  under Chapter 1251 [54], Government [Water] Code.
         Sec. 5012.0202.  FORM OF BONDS.  Port [Authority] bonds must
  be:
               (1)  issued in the port's [authority's] name; and
               (2)  signed by the commission's presiding officer.
         Sec. 5012.0203.  TERMS OF ISSUANCE.  Port [Authority] bonds
  may be:
               (1)  sold for cash;
               (2)  issued on terms the commission determines in
  exchange for any property, or any interest in property, that the
  commission considers necessary or convenient for the corporate
  purpose for which the bonds are issued; or
               (3)  issued in exchange for like principal amounts of
  other obligations of the port [authority], whether matured or
  unmatured.
         Sec. 5012.0204.  DEPOSIT OF PROCEEDS.  The proceeds of sale
  of port [authority] bonds shall be deposited in one or more banks or
  trust companies, and shall be paid out according to the terms on
  which the port [authority] and the purchasers of the bonds agree.
         Sec. 5012.0205.  RESOLUTION PROVISIONS.  (a)  A resolution
  authorizing bonds may contain provisions approved by the commission
  that are not inconsistent with this chapter, including provisions:
               (1)  reserving the right to redeem the bonds or
  requiring the redemption of the bonds, at a time, in an amount, and
  at a price, not to exceed 105 percent of the principal amount of the
  bonds, plus accrued interest;
               (2)  providing for the setting aside of sinking funds
  or reserve funds and the regulation and disposition of those funds;
               (3)  securing the payment of the principal of and
  interest on the bonds and of the sinking fund or reserve fund
  payments associated with the bonds by pledging:
                     (A)  all or any part of the gross or net revenue
  subsequently received by the port [authority] with respect to the
  property to be acquired or constructed with the bonds or the
  proceeds of the bonds; [or]
                     (B)  all or any part of the gross or net revenue
  subsequently received by the port [authority] from any source; or
                     (C)  all or any part of any contract payments
  received by the port, including payments received in lieu of taxes
  under a tax abatement agreement entered into under Chapter 312, Tax
  Code;
               (4)  securing the payment of the principal of and
  interest on the bonds by pledging taxes;
               (5)  prescribing the purposes to which the bonds or any
  bonds subsequently issued, or the proceeds of the bonds, may be
  applied;
               (6)  agreeing to set and collect rates and charges
  sufficient to produce revenue adequate to:
                     (A)  pay all expenses necessary to the operation,
  maintenance, and replacement of and additions to the port's
  [authority's] property;
                     (B)  pay the principal of, and the interest and
  premium, if any, on bonds issued under this chapter when the bonds
  become due and payable;
                     (C)  pay all sinking fund or reserve fund payments
  for those bonds out of those revenues as and when they become due
  and payable;
                     (D)  fulfill the terms of any agreements made with
  the holders of the bonds or with any person on their behalf; and
                     (E)  discharge all other lawful obligations of the
  port [authority] as and when the obligations become due;
               (7)  prescribing limitations on the issuance of
  additional bonds and subordinate lien bonds and on the agreements
  that may be made with the purchasers and successive holders of those
  bonds;
               (8)  regarding the construction, extension,
  improvement, reconstruction, operation, maintenance, and repair of
  the port's [authority's] properties and the carrying of insurance
  on all or any part of those properties covering loss, damage, or
  loss of use and occupancy resulting from specified risks;
               (9)  setting the procedure by which the port
  [authority] may change the terms of a contract with the
  bondholders, the amount of bonds the holders of which must consent
  to that change, and the manner in which the consent may be given;
  and
               (10)  providing for the execution and delivery by the
  port [authority] to a bank or trust company authorized by law to
  accept trusts, or to the United States or any officer of the United
  States, of indentures and agreements for the benefit of the
  bondholders setting forth any of the agreements authorized by this
  chapter to be made with or for the benefit of the bondholders and
  any other provisions that are customary in such indentures or
  agreements.
         (b)  A provision authorized by this section that is contained
  in a bond resolution is part of the contract between the port
  [authority] and the bondholders.
         SECTION 18.  Sections 5012.0206(a) and (c), Special District
  Local Laws Code, are amended to read as follows:
         (a)  The commission may declare an emergency because money is
  not available to meet any of the port's [authority's] needs,
  including to pay the principal of and interest on port [authority]
  bonds.
         (c)  Bond anticipation notes issued by the port [authority]
  must be taken up with the proceeds of the bonds, or the bonds may be
  issued and delivered in exchange for the bond anticipation notes.
         SECTION 19.  Section 5012.0207, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 5012.0207.  REFUNDING BONDS.  (a)  The port [authority]
  may make and issue bonds for the purpose of refunding or refinancing
  outstanding bonds authorized and issued by the port [authority]
  under this chapter or other law and the interest and any premium on
  the bonds to maturity or on any earlier redemption date specified in
  the resolution authorizing the issuance of the refunding bonds.
         (b)  Refunding bonds issued by the port [authority] may:
               (1)  be issued to refund more than one series of
  outstanding bonds;
               (2)  combine the pledges of the outstanding bonds for
  the security of the refunding bonds; or
               (3)  be secured by other or additional revenue.
         (c)  The provisions of this chapter regarding the issuance of
  bonds, the terms and provisions of bonds, and the remedies of the
  bondholders apply to refunding bonds issued by the port
  [authority].
         (d)  The comptroller shall register the refunding bonds
  issued by the port [authority] on the surrender and cancellation of
  the bonds to be refunded.
         (e)  Instead of issuing bonds to be registered on the
  surrender and cancellation of the bonds to be refunded, the port
  [authority], in the resolution authorizing the issuance of
  refunding bonds, may provide for the sale of the refunding bonds and
  the deposit of the proceeds at the places at which the bonds to be
  refunded are payable.  In that case, the refunding bonds may be
  issued in an amount sufficient to pay the interest and premium, if
  any, on the bonds to be refunded to the bonds' maturity date or
  specified earlier redemption date, and the comptroller shall
  register the refunding bonds without the concurrent surrender and
  cancellation of the bonds to be refunded.
         (f)  The port [authority] may also refund outstanding bonds
  in the manner provided by Chapters 60-63, Water Code.
         SECTION 20.  Sections 5012.0109(b), (c), and (d), Special
  District Local Laws Code, are repealed.
         SECTION 21.  (a)  The Port of Sabine Pass shall hold an
  election to elect five commissioners as described by Section
  5012.0051, Special District Local Laws Code, as amended by this
  Act, on the uniform election date in May 2026.
         (b)  The terms of the commissioners serving on the commission
  of the Port of Sabine Pass on the effective date of this Act expire
  on the date the commissioners elected under Subsection (a) of this
  section have qualified.
         (c)  At the first meeting of the commissioners of the Port of
  Sabine Pass that follows the election held under Subsection (a) of
  this section, the five commissioners elected shall draw lots to
  determine which three commissioners serve an initial term of two
  years, and which two commissioners serve a term of four years.
         SECTION 22.  (a)  The legal notice of the intention to
  introduce this Act, setting forth the general substance of this
  Act, has been published as provided by law, and the notice and a
  copy of this Act have been furnished to all persons, agencies,
  officials, or entities to which they are required to be furnished
  under Section 59, Article XVI, Texas Constitution, and Chapter 313,
  Government Code.
         (b)  The governor, one of the required recipients, has
  submitted the notice and Act to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this Act with the governor, the
  lieutenant governor, and the speaker of the house of
  representatives within the required time.
         (d)  All requirements of the constitution and laws of this
  state and the rules and procedures of the legislature with respect
  to the notice, introduction, and passage of this Act are fulfilled
  and accomplished.
         SECTION 23.  This Act takes effect September 1, 2025.