CHAPTER 54. HARBOR AND PORT FACILITIES IN CERTAIN MUNICIPALITIES
TRANSPORTATION CODE
TITLE 4. NAVIGATION
SUBTITLE A. WATERWAYS AND PORTS
CHAPTER 54. HARBOR AND PORT FACILITIES IN CERTAIN MUNICIPALITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 54.001. APPLICABILITY OF CHAPTER. This chapter applies
only to a municipality that:
(1) is located on:
(A) the Gulf of Mexico; or
(B) a channel, canal, bay, or inlet connected to that gulf; and
(2) has a population of more than 5,000.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.002. DEFINITIONS. In this chapter:
(1) "Board" means a board of trustees established under Section
54.051.
(2) "Obligation" includes a bond.
(3) "Port improvement or facility" means an improvement or
facility necessary or convenient for the proper operation of a
port or harbor of a municipality, including:
(A) land, an interest in land, or property;
(B) a wharf, pier, or dock;
(C) a roadway or belt railway;
(D) a warehouse, grain elevator, transport facility, handling
facility, or storage facility;
(E) a ship repair facility, dumping facility, bunkering
facility, floating plant or facility, lightering facility, towing
facility, or other facility that a navigation district is
authorized to provide;
(F) equipment and supplies; and
(G) any other structure, building, or facility necessary or
convenient for the proper operation of a port or harbor of the
municipality.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.003. AUTHORITY REGARDING PORT IMPROVEMENTS AND
FACILITIES. (a) A municipality that owns and operates a port
may construct, acquire, lease, improve, enlarge, extend, repair,
maintain, replace, develop, or operate a port improvement or
facility.
(b) A port improvement or facility may be constructed on land
acquired by purchase, lease, or otherwise, and the land, interest
in the land, or port improvement or facility may be conveyed by
lease, sublease, or sale by installment or otherwise on the terms
the municipality determines to be advantageous.
(c) Each power provided by this section is a public and
governmental function, is exercised for a public purpose, and is
a matter of public necessity.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.004. AUTHORITY TO IMPOSE TAX; ELECTION. (a)
Notwithstanding any law or charter provision to the contrary, the
governing body of a municipality may impose a tax at a rate not
to exceed 10 cents on each $100 of assessed valuation of property
for the maintenance and operation of a port or harbor of the
municipality.
(b) The tax may be imposed only if it has been approved by a
majority of the qualified voters voting at an election held for
that purpose.
(c) Section 41.001(a), Election Code, does not apply to the
election.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.005. APPLICABILITY OF OTHER LAW. Except to the extent
that it conflicts or is inconsistent with this chapter,
Subchapter B, Chapter 1502, Government Code, applies to revenue
obligations issued under this chapter, and a municipality to
which this chapter applies has, with respect to a revenue
obligation issued under this chapter, each power granted by that
subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
SUBCHAPTER B. MANAGEMENT AND CONTROL OF PORT IMPROVEMENTS AND
FACILITIES; BOARD OF TRUSTEES
Sec. 54.051. MANAGEMENT AND CONTROL BY GOVERNING BODY OR BOARD.
(a) An ordinance authorizing the issuance of obligations under
this chapter may provide that while the principal of or interest
on the obligations is outstanding, management and control of the
port improvement or facility and of the income and revenue from
the port improvement or facility, including the authority to set
a charge, prepare a budget, and authorize an expenditure, is
vested in:
(1) the governing body of the municipality; or
(2) the board of trustees named in the ordinance.
(b) A board may consist of not more than seven members, one of
whom must be a member of the governing body of the municipality.
(c) Notwithstanding Subsection (a), if the municipality is
operating under a home-rule charter that requires that the port
improvement or facility be managed or controlled by a board of
trustees, the charter controls.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.052. ORGANIZATION AND DUTIES OF BOARD. (a) An
ordinance under Section 54.051 that vests management and control
of a port improvement or facility in a board must:
(1) specify the board members' compensation;
(2) specify the members' terms of office;
(3) specify the members' powers and duties and the manner of
exercising those powers and duties;
(4) provide for the election or appointment of the members'
successors; and
(5) specify any other matter relating to the members'
organization and duties.
(b) If the municipality is operating under a home-rule charter
that contains a provision relating to a matter described by
Subsection (a), each provision of the ordinance relating to that
matter must be in accordance with and is governed by the charter.
(c) On any matter not covered by the ordinance or the municipal
charter, the board is governed by the laws and rules governing
the governing body of the municipality to the extent applicable.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.053. CHARACTER OF BOARD; GENERAL POWERS. (a) A board
is a body politic and corporate.
(b) A board may:
(1) manage, control, maintain, and operate each port improvement
or facility constituting a port or harbor of the municipality;
(2) employ a general manager and any other officer, employee, or
representative the board considers appropriate;
(3) notwithstanding any law or charter provision to the
contrary:
(A) prepare and adopt a budget for the operation of a port or
harbor of the municipality;
(B) set charges for a service or facility;
(C) authorize an expenditure; and
(D) manage and control the income and revenue of each port or
harbor of the municipality;
(4) determine policies and adopt rules and procedures for the
operation of each port or harbor of the municipality;
(5) acquire property or an interest in property for any purpose
set forth in Section 54.003 in the manner provided by this
chapter and construct a port improvement or facility on the
property;
(6) contract in its own name, but not in the name of the
municipality;
(7) sue and be sued in its own name;
(8) adopt, use, and alter a corporate seal;
(9) establish a port security force, employ public security
officers licensed by the Commission on Law Enforcement Officer
Standards and Education, and commission employees of the force as
peace officers;
(10) own, establish, construct, improve, equip, maintain,
operate, regulate, protect, or police any transportation facility
and any necessary appurtenance to that facility;
(11) construct, lease, improve, enlarge, extend, repair,
maintain, replace, develop, or operate a port improvement or
facility;
(12) exercise all powers of a municipality relating to the
creation of an economic development program under Chapter 380,
Local Government Code, for the purpose of making grants and
loans; and
(13) exercise any additional power granted by the ordinance or
charter.
(c) A board has the power to construct a port improvement or
facility on land acquired by purchase, lease, or otherwise, and a
board may convey by lease, sublease, or sale by installment or
otherwise, on the terms the board determines to be advantageous,
the land, interest in the land, or port improvement or facility.
(d) Each power provided by this section is a public and
governmental function, is exercised for a public purpose, and is
a matter of public necessity.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
169, Sec. 1, eff. September 1, 2007.
Sec. 54.054. COMPETITIVE BIDDING. (a) Except as otherwise
provided by this chapter, the board may award a contract
involving the expenditure of funds in excess of the amount
applicable to an expenditure of funds by a municipality under
Section 252.021(a), Local Government Code, only by competitive
bidding.
(b) Competitive bidding is not required:
(1) for a contract or expenditure exempt from competitive
bidding under Section 252.022, Local Government Code, or another
applicable law;
(2) for a contract for:
(A) personal or professional services;
(B) a real estate transaction;
(C) operation of a port improvement or facility under a specific
agreement for a limited term; or
(D) insurance; or
(3) if the board determines that the delay posed by the
competitive bidding procedure would prevent or substantially
impair the operation of a port.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
169, Sec. 2, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch.
1044, Sec. 1, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1266, Sec. 14, eff. June 19, 2009.
Sec. 54.055. APPROVAL BY ORDINANCE REQUIRED FOR SALE OF REAL
PROPERTY. Notwithstanding any other provision of this chapter, a
board may sell real property only if the governing body of the
municipality by ordinance approves the sale.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.056. BOARD ACT OR PROCEEDING PRESUMED VALID. (a) A
governmental act or proceeding of a board is conclusively
presumed, as of the date it occurred, to be valid and to have
occurred in accordance with all applicable law if:
(1) the third anniversary of the effective date of the act or
proceeding has expired; and
(2) a lawsuit to annul or invalidate the act or proceeding has
not been filed on or before that third anniversary.
(b) This section does not apply to:
(1) an act or proceeding that was void at the time it occurred;
(2) an act or proceeding that, under a statute of this state or
the United States, was a misdemeanor or felony at the time the
act or proceeding occurred; or
(3) a matter that on the effective date of this section:
(A) is involved in litigation if the litigation ultimately
results in the matter being held invalid by a final judgment of a
court; or
(B) has been held invalid by a final judgment of a court.
Added by Acts 2007, 80th Leg., R.S., Ch.
169, Sec. 3, eff. September 1, 2007.
SUBCHAPTER C. OBLIGATIONS
Sec. 54.101. DEFINITION. In this subchapter, "net revenue"
means the gross revenue derived from the operation of a port
improvement or facility the net revenue of which is pledged to
the payment of an obligation less:
(1) the reasonable expenses of maintaining and operating the
port improvement or facility, including necessary repair,
maintenance, and insurance of the port improvement or facility;
and
(2) if the municipality pledging the net revenue is a home-rule
municipality, any annual payment of the municipality provided for
in the charter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.102. AUTHORITY OF MUNICIPALITY TO ISSUE OBLIGATIONS.
The governing body of a municipality by ordinance may issue in
the name of the municipality obligations payable from taxes,
revenue, or both to provide money for a port improvement or
facility.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.103. ELECTION. (a) Obligations payable from ad valorem
taxes, other than refunding obligations, may be issued only if
authorized by a majority of the qualified voters voting at an
election held under Chapter 1251, Government Code.
(b) Notwithstanding any law or charter provision to the
contrary, an election is not required to authorize the issuance
under this chapter of obligations payable solely from revenue if:
(1) the obligations are not:
(A) a debt of the municipality; or
(B) a pledge of the faith and credit of the municipality; and
(2) the owner or holder of an obligation is not entitled to
demand payment from money raised by taxation.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.104. AUTHORITY OF BOARD TO ISSUE OBLIGATIONS. (a) A
board by resolution may issue in the name of the board, with the
consent of the governing body of the municipality:
(1) obligations payable from revenue in the manner provided by
this chapter to provide money for a port improvement or facility
or to refund previously issued obligations;
(2) expense warrants drawn against the revenue of the board to
pay expenses during the fiscal year of the board in which the
warrants are issued; or
(3) certificates of participation in contractual obligations to
pay money.
(b) Notwithstanding any other provision of this chapter, a board
may issue obligations only if the governing body of the
municipality by ordinance approves the issuance.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.105. LIMITATION ON AGGREGATE AMOUNT OF EXPENSE WARRANTS.
The aggregate amount of expense warrants issued under Section
54.104(a)(2) that are outstanding at any time during a fiscal
year may not exceed 50 percent of the difference between:
(1) the revenue of the board budgeted for that fiscal year; and
(2) the principal of and interest on board obligations other
than expense warrants to be paid from the revenue of the board
during that fiscal year.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.106. MATURITY OF OBLIGATION. An obligation issued under
this chapter must mature not later than 40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.107. SIGNATURES. (a) An obligation issued by a
municipality under this chapter must be signed by the mayor or
presiding officer of the municipality and countersigned by the
municipal secretary or municipal clerk.
(b) An obligation authorized by a board under this subchapter
must be signed by the presiding officer of the board and
countersigned by the secretary or assistant secretary.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.108. SALE OF OBLIGATIONS. (a) Obligations issued under
this chapter shall be sold at a public or private sale under
terms determined by the governing body or the board issuing the
obligations to be the most advantageous and reasonably
obtainable.
(b) Subsection (a) applies to obligations payable from revenue
notwithstanding any restriction in a municipal charter to the
contrary.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.109. CONTENTS OF ORDINANCE OR RESOLUTION AUTHORIZING
ISSUANCE OF OBLIGATIONS PAYABLE FROM REVENUE. (a) The ordinance
of the governing body of the municipality or the resolution of
the board authorizing the issuance of obligations payable from
revenue may:
(1) provide for the flow of funds and the establishment and
maintenance of an interest and sinking fund, reserve fund, or
other fund;
(2) specify a depository for the money; and
(3) contain any additional covenant, as considered appropriate,
with respect to the obligations, the pledged revenue, and the
operation and maintenance of each port improvement or facility
the net revenue of which is pledged, including provisions for:
(A) the lease of a port improvement or facility; and
(B) the use or pledge of money derived from that lease.
(b) The ordinance or resolution or another proceeding may:
(1) prohibit the further issuance of obligations payable from
pledged revenue; or
(2) reserve the right to issue additional obligations to be
secured by a pledge of and payable from the net revenue on a
parity with, or subordinate to, the lien and pledge in support of
the obligations being issued, subject to any condition provided
by the ordinance, resolution, or other proceeding.
(c) The ordinance, resolution, or other proceeding may provide
for an annual payment to the general fund of the municipality to
be made from revenue received from the operation of the port
improvement or facility the net revenue of which is pledged. The
amount of the payment may be specified in:
(1) the ordinance, resolution, or proceeding; or
(2) the charter of the municipality if the municipality is a
home-rule municipality.
(d) The ordinance, resolution, or other proceeding may provide
that surplus net revenue received from the operation of the port
improvement or facility the net revenue of which is pledged may
be used for the payment of the principal of and interest on any
obligation payable from taxes issued by the municipality under
this chapter.
(e) The ordinance, resolution, or other proceeding may contain
other provisions and covenants. If the municipality is a
home-rule municipality, the provisions must be consistent with
any charter provision relating to the port improvement or
facility that is not inconsistent with this chapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.110. REVIEW AND APPROVAL OF CONTRACTS RELATING TO
REVENUE OBLIGATIONS. (a) If revenue obligations issued under
this chapter state that they are secured in whole or in part by a
pledge of the proceeds from a contract, including a lease
contract, a copy of the contract and of the proceedings
authorizing the contract must be submitted to the attorney
general with the record relating to the issuance of the
obligations.
(b) The approval by the attorney general of the obligations is
approval of the contract.
(c) After approval, the contract is incontestable except for
forgery or fraud.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.111. SECURITY FOR AND PAYMENT OF OBLIGATIONS PAYABLE
FROM REVENUE. (a) Obligations issued under this chapter and
payable from revenue may be secured solely by and paid from a
pledge of the net revenue derived from the operation of all or a
designated part of a port improvement or facility then in
existence or to be improved, constructed, or acquired.
(b) While the principal of or interest on the obligations is
outstanding, the issuer shall:
(1) impose and collect charges in an amount sufficient to pay:
(A) maintenance and operation expenses of the port improvement
or facility the net revenue of which is pledged;
(B) the interest on the obligations as it accrues; and
(C) the principal of the obligations as the obligations mature;
and
(2) make any other payment prescribed by the ordinance,
resolution, or other proceeding authorizing or relating to the
issuance of the obligations.
(c) Obligations payable from revenue may be secured:
(1) solely by a pledge of all or part of the revenue from any
lease, sublease, sale, or contract of sale entered into by the
municipality or board with respect to the port improvement or
facility to be financed with the obligations; or
(2) as provided by Subdivision (1) and by a trust indenture and
a mortgage or deed of trust lien on or security interest in the
port improvement or facility.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.112. USE OF CERTAIN PROCEEDS. From the proceeds from
the sale of obligations issued under this chapter, there may be
appropriated or set aside:
(1) an amount for the payment of interest expected to accrue
while a port improvement or facility is under construction;
(2) an amount necessary to pay all expenses incurred and to be
incurred in the issuance, sale, and delivery of the obligations;
and
(3) an amount required by the ordinance or resolution
authorizing the issuance of the obligations to be deposited to
the credit of a reserve fund or other fund specified by the
ordinance or resolution.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.113. LEASE OR SALE OF PORT IMPROVEMENTS AND FACILITIES.
(a) In connection with the issuance of obligations payable from
revenue, a municipality or board may lease, sublease, or sell to
any person, firm, corporation, partnership, political subdivision
of this state, or agency of the United States any port
improvement or facility to be constructed or acquired with the
proceeds of the obligations.
(b) A lease, sublease, or contract of sale may contain any
provision the municipality or board determines advantageous,
including, in the case of a lease, a provision for:
(1) the sale of a port improvement or facility at the
termination of the lease; or
(2) the management and operation of a port improvement or
facility by the lessee.
(c) A lease or contract of sale may provide that the lessee or
purchaser of a port improvement or facility is unconditionally
obligated to make payments for use or purchase of the port
improvement or facility in amounts adequate to timely pay the
principal of and interest and premium on the obligations issued
to finance the construction or acquisition of the port
improvement or facility.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.114. ENCUMBRANCE OF PORT IMPROVEMENTS OR FACILITIES
FINANCED BY OBLIGATIONS PAYABLE FROM AD VALOREM TAXES. A
municipality may not encumber a port improvement or facility
financed by obligations payable from ad valorem taxes unless
authorized at the election required by Section 54.103.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
SUBCHAPTER D. REFUNDING OBLIGATIONS
Sec. 54.151. APPLICABILITY OF LAW RELATING TO ORIGINAL
OBLIGATIONS. The provisions of this chapter relating to original
obligations apply to refunding obligations issued under this
chapter to the extent the provisions can be made to apply.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.152. AUTHORITY TO ISSUE TAX REFUNDING OBLIGATIONS. The
governing body of a municipality, under the procedures provided
by this chapter, may issue tax obligations to refund outstanding
tax obligations, including original or refunding obligations,
issued by the municipality under this chapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.153. AUTHORITY TO ISSUE REVENUE REFUNDING OBLIGATIONS.
The governing body of a municipality or a board, under the
procedures provided by this chapter, may issue obligations
payable from revenue to refund outstanding obligations payable
from revenue, including original or refunding obligations:
(1) issued under this chapter;
(2) issued for a purpose described by Section 54.003; or
(3) payable from the revenue of a port improvement or facility.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.154. TERMS OF ISSUANCE OF REVENUE REFUNDING OBLIGATIONS.
(a) Revenue refunding obligations may:
(1) be combined with new or original revenue obligations into
one series or issue;
(2) be issued to refund obligations of more than one series or
issue;
(3) combine the pledges securing the obligations to be refunded
to secure the revenue refunding obligations; or
(4) be secured by a pledge of other or additional net revenue.
(b) A revenue refunding obligation may bear interest at a rate
higher than that of the obligation to be refunded.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.155. REGISTRATION OF REFUNDING OBLIGATIONS BY
COMPTROLLER. (a) Except as provided by Subsection (b), the
comptroller shall register refunding obligations on surrender and
cancellation of the obligations to be refunded.
(b) The comptroller shall register refunding obligations without
the surrender and cancellation of the obligations to be refunded
if the ordinance or resolution authorizing the issuance of the
refunding obligations requires that:
(1) the obligations be sold at public or private sale; and
(2) the proceeds from the sale be deposited:
(A) in a place where the underlying obligations are payable; or
(B) with the comptroller.
(c) Refunding obligations to which Subsection (b) applies may be
issued in an amount sufficient to pay the principal of and
interest on the obligations to be refunded to the option or
maturity date of the obligations.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.
Sec. 54.156. ESCROW AGREEMENT. (a) The proceeds from revenue
refunding obligations that are deposited as provided by Section
54.155(b)(2) shall be deposited under an escrow agreement so that
the proceeds and interest earned from the investment of the
proceeds will be available to pay the principal of and interest
on the obligations to be refunded as each becomes due.
(b) The escrow agreement may provide that the proceeds may,
until needed to pay principal and interest as each becomes due,
be invested in direct obligations of the United States.
(c) Interest earned on an investment described by Subsection
(b):
(1) may be pledged to the payment of the principal of and
interest on the obligations to be refunded or the refunding
obligations; or
(2) shall be considered as revenue of the applicable port
improvement or facility.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 20, eff. Sept. 1,
1999.