RESOLUTION IN OPPOSITION OF SENATE BILL 1641

AND HOUSE BILL 4137

87th TEXAS LEGISLATURE

WHEREAS, the Port of Corpus Christi Authority of Nueces County, Texas (“Port
Authority”) is a navigation district and political subdivision of the State of Texas operating
under the provisions of Article XVI, Section 59, Texas Constitution, and related laws of
the State of Texas, particularly Chapters 60 and 62, Texas Water Code; and

WHEREAS, the Port Authority was established as the Nueces County Navigation
District No. 1 on November 13, 1922, under Article III, Section 52, Texas Constitution,
and the Texas statutes now codified in Subchapter B, Chapter 61, Water Code; and

WHEREAS, on April 23, 1931, in accordance with Texas statutes now codified in
Subchapter J, Chapter 60, Water Code, the Port Authority was converted to a navigation
district operating under the provisions of Article XVI, Section 59, Texas Constitution; and

WHEREAS, the Port Authority is the largest energy export gateway in the United
States, as well as the largest U.S. Port in total annual revenue tonnage, and third-largest
in total waterway tonnage; and

WHEREAS, the Port Authority is a major driver of employment and job creation in
South Texas, accounting for over 98,000 Port-related jobs in the region; and

WHEREAS, the Port Authority has a significant economic impact for the State of
Texas ($19 billion), the Texas Coastal Bend ($3 billion), and the United States ($150
billion); and

WHEREAS, the governing body of the Port Authority is the Port Commission which
has seven (7) Port Commissioners; and

WHEREAS, in 2003 the Texas Legislature passed Senate Bill (“SB”) 1934 which
called for a special election in San Patricio County to determine whether San Patricio
County should be annexed by the Port Authority; and

WHEREAS, SB 1934 also provided that if the annexation of San Patricio County
by the Port Authority was approved by a majority of the voters, the Port Commissioners
would be appointed thereafter as follows:

• three (3) appointed by the Nueces County Commissioners Court,

• three (3) appointed by the Corpus Christi City Council, and
• one (1) appointed by the San Patricio County Commissioners Court; and

WHEREAS, the House Research Organization Bill Analysis for SB 1934 includes
the following statement: “Supporters of the bill say that it is a product of intense

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negotiation among local jurisdictions and elected officials and would offer a compromise
approach that all affected jurisdictions in South Texas can support. The City of Corpus
Christi and Nueces and San Patricio counties have passed resolutions supporting the
annexation ballot language and port commission makeup proposed in SB 1934.”

WHEREAS, SB 1641 has recently been introduced by Senator Judith Zaffirini and
companion House Bill (“HB”) 4137 has been recently introduced by Representative JM
Lozano relating to the composition of the Port Commission of the Port Authority; and

WHEREAS, SB 1641 and HB 4137 propose to reduce the number of Port

Commissioners appointed by the Nueces County Commissioners Court from three (3) to
two (2) and increase the number of Port Commissioners appointed by the San Patricio
County Commissioners Court from one (1) to two (2); and

WHEREAS, the legislation permitting the annexation of San Patricio County in

2003 was the subject of intense negotiations that ultimately resulted in all interested
parties supporting the legislation, but SB 1641 and HB 4137 do not have the support of
the Nueces County Commissioners Court or the Port Commission; and

WHEREAS, the Port Commission believes that any unilateral attempt to increase
the number of Port Commissioners appointed by the San Patricio County Commissioners
Court and decrease the number of Port Commissioners appointed by the Nueces County
Commissioners Court is misguided and will result in further strained relationships
between the counties and distract the Port Commission and the Port Authority’s staff from
keeping the Port Authority at the forefront of economic development and prosperity in our
region; and

WHEREAS, the Port Commission believes that a shift in the number of Port
Commissioners appointed by the counties or the City of Corpus Christi can only be
successful if the leadership of these local governments have reached a consensus on
such a shift as occurred in 2003 when San Patricio County was annexed by the Port
Authority; and

WHEREAS, the legislation authorizing the annexation of San Patricio County and
providing that the Commissioners Court of San Patricio County would appoint one Port
Commissioner was based, in part, on the then-current population of San Patricio County
which according to US Census data in 2003 was 66,440; and

WHEREAS, the population of San Patricio County as of 2019 based on US Census

data is 66,730 (a population increase of less than 300); indicating that there is no
population growth in San Patricio County to support an increase in the number of Port
Commissioner appointments for San Patricio County; and

WHEREAS, the population of Nueces County as of 2019 based on US Census

data is 362,294; indicating that 6/7ths of the two-county region’s population is in Nueces

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County and 1/7th is in San Patricio County (consistent with the current allocation of Port
Commissioner appointments); and

WHEREAS, currently 83% of the Port Authority's land holdings are located in
Nueces County in comparison to 17% of the land holdings in San Patricio County; and

WHEREAS, the taxpayers of San Patricio County have not yet paid any ad
valorem taxes in support of a Port Authority project or infrastructure; and

WHEREAS, projected growth is expected in Nueces County to further expand

commercial and industrial growth, impact employment opportunities, generate business
revenue and broaden the tax base; and

WHEREAS, the Corpus Christi Ship Channel, the LaQuinta Channel with its
tributary channel known as Jewel Fulton Canal, the Inner Harbor, the canals in Rincon
Industrial Park, the channels connecting them with the Corpus Christi Ship Channel, and
all other channels and canals within the jurisdiction of the Port Authority are all located in
Nueces County; and

WHEREAS, the current Port Authority governance structure has yielded a long-
standing commitment to transparency, billions of dollars in economic development
investments, record profits for the past two (2) years, and the creation of thousands of
new jobs to help support and better the quality of life for individuals and families around
the Coastal Bend.

NOW, THEREFORE, BE IT RESOLVED BY THE PORT COMMISSION OF THE

PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TEXAS that it does
hereby express its opposition to Senate Bill 1641 and House Bill 4137.

This Resolution was adopted by the Port Commission of the Port of Corpus Christi
Authority of Nueces County, Texas, at a public meeting of the Port Commission held on
March 23, 2021.

Charles W. Zahn, Jr.

Chairman, Port Commission

ATTEST:

Catherine Tobin Hilliard

Secretary, Port Commission