S.B. No. 1104

AN ACT

relating to the operation, powers, and duties of ship channel districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (c), Section 68.051, Water Code, is amended to read as follows:

(c) Except as provided by Subsection (d), after [After] the district is created, the commissioners court that created the district by order may provide for this chapter to apply to any other type of facility that the district by petition requests the court to add.

SECTION 2. Subsections (a) and (b), Section 68.152, Water Code, are amended to read as follows:

(a) The commissioners court of the county shall appoint as [two] directors for each security zone the one or two nominees as appropriate for the staggering of terms who received the highest number of votes in a [from a list of two persons nominated by a majority] vote by [of] the facility owners in each security zone. Each [nominated] person nominated as a director must be employed by a facility owner at a facility in the zone.

(b) After reviewing the list of persons nominated to be directors, the commissioners court shall approve or disapprove the nominations for each security zone.

SECTION 3. Section 68.156, Water Code, is amended by adding Subsection (c) to read as follows:

(c) When a director's term expires, the successor director is appointed in the manner provided by this subchapter for that director position.

SECTION 4. Section 68.161, Water Code, is amended to read as follows:

Sec. 68.161. MEETINGS. (a) Except as provided by Subsection (c), the [The] board shall determine the frequency of its meetings and may hold meetings at any time the board determines.

(b) The board shall conduct its meetings in this state [the district].

(c) The board shall meet at least once per year in addition to conducting hearings as necessary under Section 68.302.

(d) The board may combine its annual meeting, or any other meeting, with a hearing held under Section 68.302.

(e) At each annual meeting and at each hearing required by Section 68.302, the board shall make available to the public the following, except to the extent the board determines that disclosure may jeopardize the safety and security of a facility in the district:

(1) an accounting of all federal and district money received and spent by the district during the preceding year;

(2) a summary of all security projects implemented by the district, including a report detailing the effectiveness of the security projects;

(3) a description of all pending or planned district security projects; and

(4) an estimate of the money that will be received through any proposed assessments and a description of how the money will be spent.

SECTION 5. Subchapter F, Chapter 68, Water Code, is amended by adding Sections 68.255 and 68.256 to read as follows:

Sec. 68.255. QUARTERLY FINANCIAL REPORT BY COMMISSIONERS COURT. The commissioners court shall provide a quarterly financial report to the board. The report must comply with generally accepted accounting principles and list all federal money received by the county and all outstanding obligations by the county to fund the district and its functions.

Sec. 68.256. QUARTERLY GENERAL ACCOUNTING BY BOARD. The board shall prepare a quarterly accounting of the district's general operating and maintenance costs. The accounting must comply with generally accepted accounting principles.

SECTION 6. Section 68.301, Water Code, is amended to read as follows:

Sec. 68.301. AUTHORITY TO IMPOSE ASSESSMENT; HEARING REQUIRED. (a) The board may impose one or more assessments [an assessment] against one or more facilities for any district purpose, including for general district purposes or for a specific security project or security service.

(b) The board may not impose the assessment until the board holds the hearing required by this subchapter.

SECTION 7. Subsection (a), Section 68.303, Water Code, is amended to read as follows:

(a) Not later than the 30th day before the date of the hearing, the district shall provide notice of the hearing by certified mail, return receipt requested, to each facility owner:

(1) at the current address of each facility according to the appraisal record maintained by the appraisal district for that facility under Section 25.02, Tax Code; or

(2) if the appraisal records do not accurately reflect that address or do not show the physical location of a particular facility, at the facility's physical location as reflected by any other information available.

SECTION 8. Subsection (c), Section 68.307, Water Code, is amended to read as follows:

(c) After all objections have been heard and action has been taken with regard to those objections, the board by resolution shall impose the assessments on the facilities and shall specify the method of payment of the assessments. A facility shall pay assessments in one lump sum on the date designated by the board, unless the board allows the [and may provide that those] assessments to be paid in periodic installments under Subsection (d).

SECTION 9. Section 68.313, Water Code, is amended by amending Subsection (b) and adding Subsection (d) to read as follows:

(b) An assessment, a reassessment, or an assessment resulting from an addition to or correction of the assessment roll by the district, penalties and interest on an assessment or reassessment, an expense of collection, and reasonable attorney's fees incurred by the district:

(1) are a first and prior lien against the facility [property] assessed;

(2) are superior to any other lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes; and

(3) are the personal liability of and a charge against the owners of the facility [property] even if the owners are not named in the assessment proceedings.

(d) This section applies to a property interest that is a facility listed in Section 68.051(b), including:

(1) an improvement or fixture; and

(2) an owned or leased property interest.

SECTION 10. Chapter 68, Water Code, is amended by adding Subchapter I to read as follows:

SUBCHAPTER I. ADDITION AND EXCLUSION OF TERRITORY AND FACILITIES

Sec. 68.401. PETITION BY BOARD TO ADD TERRITORY AND FACILITIES. (a) A board may petition the commissioners court of the county that created the district to add to the district territory that contains a facility in the county if the board finds that a security project or security service in the district benefits or will benefit the facility.

(b) The petition must describe:

(1) the territory to be added;

(2) the facilities in the territory to be added; and

(3) the total territory of the district after the addition of the territory.

(c) The petition must recommend a security zone in which the facility to be added should be included. The board may recommend modifying one or more security zones as necessary to add the facility. The board of a district that has four security zones may also recommend adding a fifth security zone as necessary to add the new facility. The recommendation must also note whether the security zone of any facilities will change if the petition is granted.

(d) If any part of an assessment imposed by the board is allocable to the facility to be added, the petition must describe the portion, amount, and payment terms of the portion of the assessment that is allocable to the facility.

Sec. 68.402. HEARING AND ACTION ON BOARD'S PETITION TO ADD TERRITORY AND FACILITIES. The commissioners court:

(1) shall publish notice and conduct a hearing on the petition under Sections 68.104 and 68.105; and

(2) may grant the petition if the commissioners court determines that a security project or security service in the district benefits or will benefit the facility.

Sec. 68.403. PETITION BY FACILITY OWNER TO ADD TERRITORY AND FACILITIES. (a) The owner of a facility in the county may petition the board of a district requesting that the board petition the commissioners court to add to the district territory that contains the facility in the county. The petition must describe the territory and facility to be added and be signed by each owner of the facility.

(b) If the board grants the petition, the board shall petition the commissioners court to add the territory and make recommendations to the court under Subsection (d).

(c) The petition the board submits to the commissioners court must describe:

(1) the territory to be added;

(2) the facilities in the territory to be added; and

(3) the total territory of the district after the addition of the territory.

(d) The board shall recommend the security zone in which the facility to be added should be included. The board may recommend modifying one or more security zones as necessary to add the facility. The board of a district that has four security zones may also recommend adding a fifth security zone as necessary to add the new facility. The recommendation must also note whether the security zone of any facilities will change if the petition is granted.

(e) If any part of an assessment imposed by the board is allocable to the facility to be added, the board must include with the petition it forwards to the commissioners court a description of the portion, amount, and payment terms of the portion of the assessment that is allocable to the facility.

Sec. 68.404. ACTION ON FACILITY OWNER'S PETITION TO ADD TERRITORY AND FACILITIES. The commissioners court may grant the petition.

Sec. 68.405. MODIFICATION OF ORDER. A commissioners court that adds territory under this subchapter shall modify the order that created the district under Section 68.107 to:

(1) modify the territory;

(2) add the facility;

(3) describe any security zones created or modified under this section, including the location of any facilities whose zone has changed;

(4) identify the security zone in which the added facility is located; and

(5) describe the portion, amount, and terms of payment of an assessment imposed by the board that is allocable to the facility.

Sec. 68.406. PETITION BY BOARD TO EXCLUDE TERRITORY AND FACILITIES. (a) On the request of a facility in the district or on its own motion, a board may petition the commissioners court of the county that created the district to exclude territory and included facilities from the district. The petition must include:

(1) a finding by the board that excluding the territory is practical, just, and reasonable;

(2) a description of the territory to be excluded; and

(3) a description of the total territory of the district after the exclusion of the territory.

(b) The petition may include recommendations to:

(1) modify one or more security zones or eliminate a security zone, provided that the district may not have fewer than four security zones; and

(2) modify assessments that the facility has not paid.

Sec. 68.407. HEARING AND ACTION ON BOARD'S PETITION TO EXCLUDE TERRITORY AND FACILITIES. (a) The commissioners court:

(1) shall publish notice and conduct a hearing on the petition under Sections 68.104 and 68.105; and

(2) may grant the petition if the commissioners court finds that exclusion of the territory that contains the facility is practical, just, and reasonable.

(b) A commissioners court that excludes territory under this section shall modify the order that created the district under Section 68.107 to:

(1) modify the territory;

(2) exclude the facility;

(3) describe any security zones modified or eliminated under this section, including the location of any facilities whose zone has changed; and

(4) modify unpaid assessments, as applicable.

SECTION 11. Section 68.152, Water Code, as amended by this Act, applies only to a director nominated on or after the effective date of this Act. A director nominated before the effective date of this Act is governed by the law in effect when the nomination was made, and that law is continued in effect for that purpose.

SECTION 12. 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 hereby certify that S.B. No. 1104 passed the Senate on April 29, 2011, by the following vote: Yeas 31, Nays 0.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 1104 passed the House on May 7, 2011, by the following vote: Yeas 120, Nays 0, one present not voting.

______________________________ Chief Clerk of the House

Approved:

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Date

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Governor