82R7854 JXC-F By: Jackson S.B. No. 1104 A BILL TO BE ENTITLED 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. Section 68.001, Water Code, is amended by adding Subdivision (2-a) to read as follows: (2-a) "Facility" includes any interest in real property, including fixtures, improvements, leasehold interests, easements, licenses, and related rights. SECTION 2. Section 68.051(c), 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 3. Sections 68.152(a) and (b), 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 two nominees 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 4. 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 5. Section 68.161(b), Water Code, is amended to read as follows: (b) The board shall conduct its meetings in this state [the district]. SECTION 6. Section 68.301, Water Code, is amended to read as follows: Sec. 68.301. AUTHORITY TO IMPOSE ASSESSMENT. 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. The board may impose the assessments against all facilities or against a specific facility or group of facilities. SECTION 7. Section 68.303(a), 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, at the facility's physical location as reflected by any other information available. SECTION 8. Section 68.307(c), 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. SECTION 9. Section 68.313(b), Water Code, is amended 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. SECTION 10. Subchapter G, Chapter 68, Water Code, is amended by adding Section 68.316 to read as follows: Sec. 68.316. FACILITY OWNER'S OBLIGATIONS. (a) An assessment imposed by the board is a continuing and direct obligation of the owner of the facility on which the assessment is imposed regardless of whether the person owned the facility at the time the assessment was imposed. (b) The obligation to pay an assessment is not affected by a change in the: (1) ownership of the facility; (2) type of facility; (3) improvements that are part of the facility; or (4) district's territory. SECTION 11. 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. ADDITION OF TERRITORY AND FACILITIES BY BOARD. (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 recommend a security zone in which the facility to be added should be included. The board may recommend modifying a security zone 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. (c) 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 terms of the assessment. (d) 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. 68.402. ADDITION OF TERRITORY AND FACILITIES BY FACILITY OWNER. (a) The owner of a facility in the county may petition the board of a district 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 forward the petition to the commissioners court and make recommendations to the court under Subsection (c). (c) The board shall recommend the security zone in which the facility to be added should be included. The board may recommend modifying a security zone 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 board must include with the petition it forwards to the commissioners court a description of the portion, amount, and terms of the assessment. (e) The commissioners court shall grant the petition. Sec. 68.403. 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. 68.404. EXCLUSION OF TERRITORY AND FACILITIES BY BOARD. (a) A board may petition the commissioners court of the county that created the district to exclude territory from the district that contains a facility. The petition must include a finding by the board that excluding the territory is practical, just, and desirable. (b) The petition may include recommendations to: (1) modify or eliminate a security zone, including whether to change the location of any facilities that will remain in the district, provided that the district may not have fewer than four security zones; and (2) modify assessments that the facility has not paid. (c) 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 desirable. (d) 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 12. 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 13. 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.