This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

 
 
  H.B. No. 3011
 
 
 
 
AN ACT
  relating to the creation of ship channel security districts by
  certain populous counties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 4, Water Code, is amended by adding Chapter
  68 to read as follows:
  CHAPTER 68.  SHIP CHANNEL SECURITY DISTRICTS
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 68.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means a district's board of directors.
               (2)  "District" means a ship channel security district
  created under this chapter.
               (3)  "Security project" means a project promoting or
  aiding security in a district.
               (4)  "Security service" means a service promoting or
  aiding security in a district.
         Sec. 68.002.  NATURE OF DISTRICT; PURPOSE. A district is a
  special district and political subdivision of this state.  A
  district is created under Section 59, Article XVI, Texas
  Constitution, and is essential to accomplish the purposes of that
  section and Sections 52 and 52-a, Article III, Texas Constitution.
         Sec. 68.003.  PUBLIC PURPOSE OF SECURITY PROJECTS. A
  security project is owned, used, and held for public purposes by the
  district.
         Sec. 68.004.  LIBERAL CONSTRUCTION OF CHAPTER. This chapter
  shall be liberally construed in conformity with the findings and
  purposes stated in this chapter.
         Sec. 68.005.  GENERAL WATER DISTRICT LAW NOT APPLICABLE.
  Chapter 49 does not apply to a district.
  [Sections 68.006-68.050 reserved for expansion]
  SUBCHAPTER B. FACILITIES
         Sec. 68.051.  APPLICABILITY TO FACILITIES. (a) In this
  section:
               (1)  "Chemical manufacturers' association" means an
  association of chemical manufacturers, refiners, and supporting
  distribution and terminal facility managers that operate in a
  district.
               (2)  "Chemical manufacturers' association facility"
  means a facility owned by a member of a chemical manufacturers'
  association.
               (3)  "Mutual aid organization" means an organization
  that operates in a district and whose:
                     (A)  primary purpose is the promotion of social
  welfare by providing assistance for the common good and general
  welfare to and within the communities of its members for emergency
  fire protection and other public safety matters; and
                     (B)  members include various industries and
  governmental entities with the resources required to participate in
  those activities.
         (b)  This chapter applies to the following types of
  facilities in the district:
               (1)  a chemical manufacturers' association facility;
               (2)  a mutual aid organization facility;
               (3)  a facility as defined in 46 U.S.C. Section 70101;
               (4)  a facility described by 33 C.F.R. Section
  105.105(a);
               (5)  a facility subject to an area maritime
  transportation security plan under 46 U.S.C. Section 70103(b);
               (6)  a facility subject to 40 C.F.R. Part 112;
               (7)  a general shipyard facility as defined by 46
  C.F.R. Section 298.2;
               (8)  a facility included in one or more of the following
  categories and codes of the 2007 North American Industry
  Classification System:
                     (A)  crude petroleum and natural gas extraction,
  211111;
                     (B)  petroleum refineries, 324110;
                     (C)  petroleum manufacturing, 325110;
                     (D)  petroleum lubricating oil and grease
  manufacturing, 324191;
                     (E)  all other petroleum and coal products
  manufacturing, 324199;
                     (F)  all other chemical and other manufacturing,
  311111-339999;
                     (G)  petroleum bulk stations and terminals,
  424710;
                     (H)  plastics, chemical, and petroleum
  wholesalers, 424610, 424690, and 424720;
                     (I)  transportation, including rail, water, and
  road transportation and pipelines, 486110-486990, 488210, 488390,
  and 488490;
                     (J)  port and harbor operations, 488310;
                     (K)  marine cargo handling, 488320;
                     (L)  warehousing and storage, including general,
  refrigerated, farm and other, 493110, 493120, 493130, and 493190;
  and
                     (M)  deep sea and coastal freight and passenger
  transportation, 483111-483114; and
               (9)  a facility described by Subsection (c).
         (c)  After the district is created, the commissioners court
  that created the district by order may provide for this chapter to
  apply to any other facility that the district by petition requests
  the court to add.
         (d)  This chapter does not apply to the following facilities:
               (1)  a residential property, including a single-family
  or multifamily residence;
               (2)  a retail or service business that is not a facility
  as defined by 46 U.S.C. Section 70101;
               (3)  a public access facility as defined by 33 C.F.R.
  Section 101.105; or
               (4)  a facility that is not listed under Subsection (b)
  and that is owned by:
                     (A)  an electric utility or a power generation
  company as defined by Section 31.002, Utilities Code;
                     (B)  a gas utility as defined by Section 101.003
  or 121.001, Utilities Code;
                     (C)  a telecommunications provider as defined by
  Section 51.002, Utilities Code; or
                     (D)  a person who provides to the public cable
  television or advanced telecommunications services.
         Sec. 68.052.  DESIGNEES FOR FACILITY OWNERS. A facility's
  owner may designate a person:
               (1)  to act for the owner in connection with a district;
  and
               (2)  to bind the owner under this chapter.
  [Sections 68.053-68.100 reserved for expansion]
  SUBCHAPTER C. CREATION
         Sec. 68.101.  DISTRICT CREATION BY CERTAIN POPULOUS COUNTIES
  WITH SHIP CHANNELS. A district may be created only by the
  commissioners court of a county with a population of 3.3 million or
  more that has a ship channel in the county.
         Sec. 68.102.  PETITION FOR CREATION.  A district may be
  created only if the commissioners court of the county in which the
  district is proposed to be created receives a petition requesting
  the district's creation. The petition must be signed by:
               (1)  the owners of a majority of facilities in the
  proposed district; and
               (2)  the owners of a majority of the assessed value of
  facilities in the proposed district according to the most recent
  certified property tax rolls of the county.
         Sec. 68.103.  CONTENTS OF PETITION; DISTRICT TERRITORY. The
  petition must:
               (1)  propose a name for the district, which must:
                     (A)  generally describe the location of the
  district; and
                     (B)  be of the form "_______ Ship Channel Security
  District";
               (2)  state the general nature of the security projects
  and security services to be provided by the district; and
               (3)  describe the proposed district territory and the
  boundaries of four or five security zones inside the proposed
  district.
         Sec. 68.104.  NOTICE OF HEARING; CONTENTS OF NOTICE. (a)  
  The commissioners court of the county in which a district is
  proposed to be created shall set a date, time, and place for a
  hearing to consider the petition received by the commissioners
  court.
         (b)  The commissioners court shall issue public notice of the
  hearing. The notice must state:
               (1)  the date, time, and place of the hearing; and
               (2)  that any person may appear, present evidence, and
  testify for or against the creation of the proposed district.
         (c)  The commissioners court shall publish the notice in a
  newspaper of general circulation in the county at least one time at
  least 30 days before the hearing date.
         Sec. 68.105.  HEARING. At the hearing, any interested
  person may appear in person or by attorney, present evidence, and
  offer testimony for or against the creation of the proposed
  district.
         Sec. 68.106.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. After
  the hearing, the commissioners court shall consider whether to
  create the proposed district. The commissioners court must make
  the following findings before approving a petition requesting
  creation of a district:
               (1)  the district will serve a public use and benefit;
               (2)  facilities in the district will benefit from the
  security projects and security services proposed to be provided by
  the district;
               (3)  the creation of the district is in the public
  interest and useful for the protection of facilities in the
  district against the threat posed by terrorism; and
               (4)  the creation of the district is necessary to
  accomplish the purposes of Sections 52 and 52-a, Article III, and
  Section 59, Article XVI, Texas Constitution, and other public
  purposes stated in this chapter.
         Sec. 68.107.  ORDER CREATING DISTRICT; CHANGES. (a) If the
  commissioners court makes the findings under Section 68.106, the
  commissioners court by order may create the proposed district.
         (b)  The commissioners court may include in the order any
  changes or modifications to the proposed district as the court
  determines are appropriate to reflect the intent of the petition
  requesting creation of the district.
  [Sections 68.108-68.150 reserved for expansion]
  SUBCHAPTER D. BOARD OF DIRECTORS
         Sec. 68.151.  GOVERNING BODY; COMPOSITION.  A district is
  governed by a board of at least 10 but not more than 13 directors,
  appointed or serving as follows:
               (1)  two directors for each security zone appointed by
  the commissioners court of the county and nominated as provided by
  Section 68.152;
               (2)  one director appointed for the district at large
  by the commissioners court of the county under Section 68.153;
               (3)  one director appointed under Section 68.154; and
               (4)  any director serving under Section 68.155.
         Sec. 68.152.  SECURITY ZONE DIRECTORS. (a)  The
  commissioners court of the county shall appoint two directors for
  each security zone from a list of two persons nominated by a
  majority vote of the facility owners in each security zone.  Each
  nominated person must be employed by a facility owner at a facility
  in the zone.
         (b)  After reviewing the list, the commissioners court shall
  approve or disapprove the nominations for each security zone.
         (c)  If the commissioners court is not satisfied with the
  list provided for a security zone, the facility owners in the
  security zone shall provide to the court a new list under Subsection
  (a).
         Sec. 68.153.  AT-LARGE DIRECTOR. The director appointed by
  the commissioners court for the district at large may be:
               (1)  a person employed by a member of an association
  that includes steamship owners, operators, and agents and
  stevedoring and terminal companies and that:
                     (A)  is a Texas nonprofit corporation; and
                     (B)  leases space in the district; or
               (2)  any other person considered appropriate by the
  commissioners court.
         Sec. 68.154.  MUNICIPAL DIRECTOR.  (a)  If there is a
  countywide association of mayors and city councils of
  municipalities in a county that creates a district, the association
  shall appoint one director.
         (b)  If there is not an association described by Subsection
  (a), the municipalities in the district shall appoint a director.  
  If there is more than one municipality in the district, the
  governing body of each municipality by resolution may vote in favor
  of a nominated person and a person who receives the votes of a
  majority of governing bodies is appointed director.
         (c)  The director appointed under this section must reside in
  a municipality adjacent to the largest ship channel in the
  district.
         Sec. 68.155.  PORT AUTHORITY; EX OFFICIO DIRECTOR.  (a)  In
  this section, "port authority" means a navigation district located
  wholly or partly in the security district, and created or operating
  under Section 52, Article III, or Section 59, Article XVI, Texas
  Constitution.
         (b)  If a port authority is located in the district, the
  executive director, or a person designated by the executive
  director, serves as a director.  If more than one port authority is
  located in the district, the executive director, or a person
  designated by the executive director, of the port authority with
  the largest territory inside the district serves as a director.
         Sec. 68.156.  TERMS; INITIAL DIRECTORS.  (a)  Except as
  provided by Subsection (b), directors serve staggered two-year
  terms.
         (b)  The initial directors shall stagger their terms, with a
  majority of the directors serving two years, and a minority of
  directors serving one year. If the initial board has an even number
  of directors, the terms are staggered equally.  If the initial
  directors cannot agree on the staggering, the directors shall draw
  lots to determine the directors who serve one-year terms.
         Sec. 68.157.  VACANCY.  A vacancy in the board is filled by
  the remaining directors by appointing a person who meets the
  qualifications for the position, who shall serve for the unexpired
  term.
         Sec. 68.158.  QUORUM.  For purposes of determining whether a
  quorum of the board is present, a vacant board position is not
  counted.
         Sec. 68.159.  OFFICERS.  The board shall elect from its
  directors a presiding officer, a secretary, and any other officers
  the board considers necessary or appropriate.
         Sec. 68.160.  COMPENSATION.  A director is not entitled to
  compensation for service on the board, but is entitled to
  reimbursement for necessary and reasonable expenses incurred in
  carrying out the duties of a director.
         Sec. 68.161.  MEETINGS.  (a)  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 the district.
         Sec. 68.162.  REMOVAL.  The board may remove an appointed
  director for misconduct or failure to carry out the director's
  duties on receiving a written petition signed by a majority of the
  remaining directors.
  [Sections 68.163-68.200 reserved for expansion]
  SUBCHAPTER E. POWERS AND DUTIES
         Sec. 68.201.  GENERAL POWERS OF DISTRICT.  (a)  A district
  has all powers necessary or required to accomplish the purposes for
  which it was created.
         (b)  A district may do anything necessary, convenient, or
  desirable to carry out the powers expressly granted or implied by
  this chapter.
         Sec. 68.202.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW. Except as provided by this chapter, a district has
  the powers of a district created under Chapter 375, Local
  Government Code.
         Sec. 68.203.  RULES. The district may adopt rules to govern
  the operation of the district.
         Sec. 68.204.  NAME CHANGE. A board by resolution may change
  a district's name.
         Sec. 68.205.  CONTRACTS; GENERALLY. A district may contract
  with any person for any district purpose.
         Sec. 68.206.  SECURITY PROJECTS AND SERVICES.  (a)  The board
  shall determine what security projects or security services the
  district will perform. A security project may include a project
  eligible for funding under a port security grant program of the
  United States Department of Homeland Security.
         (b)  A district may own, operate, and maintain a security
  project or provide a security service as reasonably necessary to
  carry out a district power under this chapter.
         (c)  A district may acquire, construct, complete, develop,
  own, operate, maintain, and lease a security project or part of a
  security project or provide a security service inside and outside
  its boundaries.
         Sec. 68.207.  CONTRACTS FOR SECURITY PROJECTS OR SERVICES.
  (a) A district may contract with any person to plan, establish,
  develop, construct, renovate, maintain, repair, replace, or
  operate a security project or to provide a security service.
         (b)  A district may lease to any person a security project or
  any part of a security project.
         (c)  A district may contract with any person for the use or
  operation of a security project or any part of a security project.
         Sec. 68.208.  CONTRACTS FOR JOINT USE OF SECURITY PROJECT. A
  district may contract with any person, public or private, for the
  joint use of a security project.
         Sec. 68.209.  CONTRACTS WITH DISTRICT BY GOVERNMENTAL
  ENTITY.  This state, a municipality, a county, another political
  subdivision of this state, or any other person, without further
  authorization, may contract with the district to accomplish any
  district purpose.
         Sec. 68.210.  PROPERTY POWERS; GENERALLY. A district may
  acquire by grant, purchase, gift, devise, lease, or otherwise, and
  may hold, use, sell, lease, or dispose of any property, and
  licenses, patents, rights, and interests necessary, convenient, or
  useful for the full exercise of any of its powers under this
  chapter.
         Sec. 68.211.  SUITS.  A district may sue and be sued.
         Sec. 68.212.  NO EMINENT DOMAIN POWER. A district may not
  exercise the power of eminent domain.
  [Sections 68.213-68.250 reserved for expansion]
  SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS
         Sec. 68.251.  GRANTS; LOANS. A district may apply for and
  accept a grant or loan from any person, including:
               (1)  the United States;
               (2)  this state; and
               (3)  a political subdivision of this state.
         Sec. 68.252.  PAYMENT OF EXPENSES. A district may provide
  for payment of all expenses incurred in its establishment,
  administration, and operation.
         Sec. 68.253.  TAXES PROHIBITED. A district may not impose
  any tax, including a property tax or a sales and use tax.
         Sec. 68.254.  BONDS PROHIBITED. A district may not issue
  bonds.
  [Sections 68.255-68.300 reserved for expansion]
  SUBCHAPTER G. ASSESSMENTS
         Sec. 68.301.  AUTHORITY TO IMPOSE ASSESSMENT.  The board may
  impose an assessment against facilities for any district purpose.
         Sec. 68.302.  PROPOSED ASSESSMENTS. A security project or
  security service may be financed under this chapter after a hearing
  notice given as required by this subchapter and a public hearing by
  the board on the advisability of:
               (1)  the security project or security service; and
               (2)  the proposed assessments.
         Sec. 68.303.  NOTICE OF HEARING. (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 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.
         (b)  The notice must include:
               (1)  the time and place of the hearing;
               (2)  the general nature of the proposed security
  project or security service;
               (3)  the estimated cost of the security project or
  security service; and
               (4)  the proposed method of assessment.
         Sec. 68.304.  CONDUCTING HEARING; FINDINGS. (a)  A hearing
  on a proposed security project or security service, whether
  conducted by the board or a hearing examiner, may be adjourned from
  time to time.
         (b)  At the conclusion of the hearing, the board by
  resolution shall make findings relating to:
               (1)  the advisability of the security project or
  security service;
               (2)  the nature of the security project or security
  service;
               (3)  the estimated cost;
               (4)  the facilities benefited;
               (5)  the method of assessment; and
               (6)  the method and time for payment of the assessment.
         (c)  If a hearing examiner is appointed to conduct the
  hearing, after conclusion of the hearing, the hearing examiner
  shall file with the board a report stating the examiner's findings
  and conclusions for the board's consideration.
         Sec. 68.305.  FACILITIES TO BE ASSESSED.  (a)  In accordance
  with the findings, the board may impose an assessment against all
  the facilities in the district or any portion of the facilities in
  the district, and may impose an assessment against fewer facilities
  than those proposed for assessment in the hearing notice.
         (b)  Except as provided by Subsection (c), the facilities to
  be assessed may not include a facility that is not in the district
  at the time of the hearing unless there is an additional hearing
  preceded by the required notice.
         (c)  The owner of a facility described by Subsection (b) may
  waive the right to notice and an assessment hearing and may agree to
  the imposition and payment of assessments at an agreed rate for the
  facility.
         Sec. 68.306.  ASSESSMENT RATE CHANGE.  After notice and a
  hearing, the board by majority vote may increase or decrease the
  rate of assessment.  The board must provide notice of the hearing in
  the manner provided by Section 68.303.
         Sec. 68.307.  OBJECTIONS; LEVY OF ASSESSMENT. (a)  At a
  hearing on proposed assessments, at any adjournment of the hearing,
  or after consideration of the hearing examiner's report, the board
  shall hear and rule on all objections to each proposed assessment.
         (b)  The board by majority vote may amend proposed
  assessments for any facility.
         (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 and may provide that those
  assessments be paid in periodic installments.
         (d)  Periodic installments must be in amounts sufficient to
  meet annual costs for security projects or security services
  provided by this chapter and continue for the number of years
  required to pay for the security projects and security services to
  be rendered.
         (e)  If assessments are imposed for more than one security
  project or security service, the board may provide that assessments
  collected for one security project or security service may be used
  for another security project or security service.
         (f)  The board shall establish a procedure for the use or
  refund of any assessments in excess of those necessary to finance a
  security project or security service for which those assessments
  were collected.
         Sec. 68.308.  APPORTIONMENT OF ASSESSMENT. The board shall
  apportion the cost of a security project or security service to be
  assessed against a facility based on any reasonable assessment plan
  that results in imposing fair and equitable shares of the cost.
         Sec. 68.309.  ASSESSMENT ROLL. (a)  Once the estimated total
  cost of a security project or security service is determined, the
  board shall impose the assessments against each facility against
  which an assessment may be imposed in the district. The board may
  impose an annual assessment that is lower but not higher than the
  initial assessment.
         (b)  The board shall have an assessment roll prepared showing
  the assessments against each facility and the board's basis for the
  assessment. The assessment roll shall be filed with the secretary
  of the board or other officer who performs the function of secretary
  and be open for public inspection.
         Sec. 68.310.  SUPPLEMENTAL ASSESSMENTS. After notice and
  hearing in the manner required for original assessments, the board
  may make supplemental assessments to correct omissions or mistakes
  in the assessment:
               (1)  relating to the total cost of the security project
  or security service; or
               (2)  covering delinquencies or costs of collection.
         Sec. 68.311.  APPEAL. (a)  Not later than the 30th day after
  the date that an assessment is adopted, a facility owner may file a
  notice appealing the assessment to the board.
         (b)  The board shall set a date to hear the appeal.
         (c)  Failure to file the notice in the time required by this
  section results in loss of the right to appeal the assessment.
         (d)  The board may make a reassessment or new assessment of
  the facility if the assessment against the facility is:
               (1)  set aside by a court;
               (2)  found excessive by the board; or
               (3)  determined invalid by the board.
         (e)  A reassessment or new assessment under Subsection
  (d)(1) may not violate the court order that set aside the
  assessment.
         Sec. 68.312.  APPEAL OF RESOLUTION. (a) A facility against
  which an assessment is made by board resolution may appeal the
  assessment to a district court in the county in the manner provided
  for the appeal of contested cases under Chapter 2001, Government
  Code.
         (b)  Review by the district court is by trial de novo.
         Sec. 68.313.  FAILURE TO PAY ASSESSMENT; LIENS FOR
  ASSESSMENTS.  (a)  If an assessed facility fails to pay an
  assessment as provided in a district's assessment plan, the
  district may impose a lien against the facility assessed.
         (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 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 property even if the owners are not named in the
  assessment proceedings.
         (c)  The lien is effective from the date of the board's
  resolution imposing the assessment until the date the assessment is
  paid. The board may enforce the lien in the same manner that the
  board may enforce an ad valorem tax lien against real property.
         Sec. 68.314.  DELINQUENT ASSESSMENTS. A delinquent
  assessment incurs interest, penalties, and attorney's fees in the
  same manner as a delinquent ad valorem tax. The owner of a facility
  may pay at any time the entire assessment, with interest,
  penalties, and attorney's fees that have accrued on the assessment.
         Sec. 68.315.  ASSESSMENT OF GOVERNMENTAL ENTITIES AND
  NONPROFITS. (a) Except as provided by this section, the district
  may not impose an assessment on:
               (1)  a governmental entity, including a municipality,
  county, or other political subdivision; or
               (2)  an organization exempt from taxation under Section
  501(a), Internal Revenue Code of 1986, as an organization described
  by Section 501(c)(3) of that code.
         (b)  An entity or organization described by Subsection (a)
  may contract with a district to pay assessments under terms the
  district and the entity or organization consider advisable.
  [Sections 68.316-68.350 reserved for expansion]
  SUBCHAPTER H. DISSOLUTION
         Sec. 68.351.  DISSOLUTION OF DISTRICT FOR FAILURE TO IMPOSE
  AN ASSESSMENT. A district is dissolved if the district has not
  imposed an assessment before the fifth anniversary of the date of
  the order creating the district under Section 68.107. The county
  that created the district assumes any district debts or assets.
         Sec. 68.352.  DISSOLUTION OF DISTRICT BY BOARD VOTE OR OWNER
  PETITION.  (a)  The board by majority vote may dissolve the district
  at any time.
         (b)  A district may be dissolved as provided by Section
  375.262, Local Government Code.
         (c)  The county that created the district assumes any debts
  or assets of a dissolved district.
         SECTION 2.  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, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3011 was passed by the House on April
  26, 2007, by the following vote:  Yeas 133, Nays 1, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 3011 on May 23, 2007, by the following vote:  Yeas 144, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3011 was passed by the Senate, with
  amendments, on May 21, 2007, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor