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.

89(R) HB 5669 - Engrossed version - Bill Text

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.