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Statutes > Texas > Water-code > Title-4-general-law-districts > Chapter-68-ship-channel-security-districts

WATER CODE

TITLE 4. GENERAL LAW DISTRICTS

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.003. PUBLIC PURPOSE OF SECURITY PROJECTS. A security

project is owned, used, and held for public purposes by the

district.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.004. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.005. GENERAL WATER DISTRICT LAW NOT APPLICABLE. Chapter

49 does not apply to a district.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.053. USE OF CERTAIN DEPARTMENT OF TRANSPORTATION

PROPERTY FOR SHIP CHANNEL SECURITY. (a) In this section,

"department" means the Texas Department of Transportation.

(b) Use of the department's facilities or property to serve a

project aiding security in a ship channel security district

created under this chapter serves a transportation purpose. A

ship channel security district or a county whose commissioners

court has created a ship channel security district may enter into

an agreement with the department to provide for use of the

department's facilities or property to aid security in the

district.

(c) A county that has entered into an agreement with the

department for use of the department's fiber optic network for

transportation purposes may use the fiber optic network to serve

a project aiding security in a ship channel security district

created under this chapter in the same manner as other

transportation purposes unless the agreement precludes the use of

the fiber optic network for that purpose.

Added by Acts 2009, 81st Leg., R.S., Ch.

4, Sec. 1, eff. April 29, 2009.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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).

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.158. QUORUM. For purposes of determining whether a

quorum of the board is present, a vacant board position is not

counted.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.203. RULES. The district may adopt rules to govern the

operation of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.204. NAME CHANGE. A board by resolution may change a

district's name.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.205. CONTRACTS; GENERALLY. A district may contract with

any person for any district purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.211. SUITS. A district may sue and be sued.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.212. NO EMINENT DOMAIN POWER. A district may not

exercise the power of eminent domain.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.252. PAYMENT OF EXPENSES. A district may provide for

payment of all expenses incurred in its establishment,

administration, and operation.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.253. TAXES PROHIBITED. A district may not impose any

tax, including a property tax or a sales and use tax.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.254. BONDS PROHIBITED. A district may not issue bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

SUBCHAPTER G. ASSESSMENTS

Sec. 68.301. AUTHORITY TO IMPOSE ASSESSMENT. The board may

impose an assessment against facilities for any district purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

State Codes and Statutes

Statutes > Texas > Water-code > Title-4-general-law-districts > Chapter-68-ship-channel-security-districts

WATER CODE

TITLE 4. GENERAL LAW DISTRICTS

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.003. PUBLIC PURPOSE OF SECURITY PROJECTS. A security

project is owned, used, and held for public purposes by the

district.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.004. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.005. GENERAL WATER DISTRICT LAW NOT APPLICABLE. Chapter

49 does not apply to a district.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.053. USE OF CERTAIN DEPARTMENT OF TRANSPORTATION

PROPERTY FOR SHIP CHANNEL SECURITY. (a) In this section,

"department" means the Texas Department of Transportation.

(b) Use of the department's facilities or property to serve a

project aiding security in a ship channel security district

created under this chapter serves a transportation purpose. A

ship channel security district or a county whose commissioners

court has created a ship channel security district may enter into

an agreement with the department to provide for use of the

department's facilities or property to aid security in the

district.

(c) A county that has entered into an agreement with the

department for use of the department's fiber optic network for

transportation purposes may use the fiber optic network to serve

a project aiding security in a ship channel security district

created under this chapter in the same manner as other

transportation purposes unless the agreement precludes the use of

the fiber optic network for that purpose.

Added by Acts 2009, 81st Leg., R.S., Ch.

4, Sec. 1, eff. April 29, 2009.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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).

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.158. QUORUM. For purposes of determining whether a

quorum of the board is present, a vacant board position is not

counted.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.203. RULES. The district may adopt rules to govern the

operation of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.204. NAME CHANGE. A board by resolution may change a

district's name.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.205. CONTRACTS; GENERALLY. A district may contract with

any person for any district purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.211. SUITS. A district may sue and be sued.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.212. NO EMINENT DOMAIN POWER. A district may not

exercise the power of eminent domain.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.252. PAYMENT OF EXPENSES. A district may provide for

payment of all expenses incurred in its establishment,

administration, and operation.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.253. TAXES PROHIBITED. A district may not impose any

tax, including a property tax or a sales and use tax.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.254. BONDS PROHIBITED. A district may not issue bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

SUBCHAPTER G. ASSESSMENTS

Sec. 68.301. AUTHORITY TO IMPOSE ASSESSMENT. The board may

impose an assessment against facilities for any district purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Water-code > Title-4-general-law-districts > Chapter-68-ship-channel-security-districts

WATER CODE

TITLE 4. GENERAL LAW DISTRICTS

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.003. PUBLIC PURPOSE OF SECURITY PROJECTS. A security

project is owned, used, and held for public purposes by the

district.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.004. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.005. GENERAL WATER DISTRICT LAW NOT APPLICABLE. Chapter

49 does not apply to a district.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.053. USE OF CERTAIN DEPARTMENT OF TRANSPORTATION

PROPERTY FOR SHIP CHANNEL SECURITY. (a) In this section,

"department" means the Texas Department of Transportation.

(b) Use of the department's facilities or property to serve a

project aiding security in a ship channel security district

created under this chapter serves a transportation purpose. A

ship channel security district or a county whose commissioners

court has created a ship channel security district may enter into

an agreement with the department to provide for use of the

department's facilities or property to aid security in the

district.

(c) A county that has entered into an agreement with the

department for use of the department's fiber optic network for

transportation purposes may use the fiber optic network to serve

a project aiding security in a ship channel security district

created under this chapter in the same manner as other

transportation purposes unless the agreement precludes the use of

the fiber optic network for that purpose.

Added by Acts 2009, 81st Leg., R.S., Ch.

4, Sec. 1, eff. April 29, 2009.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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).

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.158. QUORUM. For purposes of determining whether a

quorum of the board is present, a vacant board position is not

counted.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.203. RULES. The district may adopt rules to govern the

operation of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.204. NAME CHANGE. A board by resolution may change a

district's name.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.205. CONTRACTS; GENERALLY. A district may contract with

any person for any district purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.211. SUITS. A district may sue and be sued.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.212. NO EMINENT DOMAIN POWER. A district may not

exercise the power of eminent domain.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.252. PAYMENT OF EXPENSES. A district may provide for

payment of all expenses incurred in its establishment,

administration, and operation.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.253. TAXES PROHIBITED. A district may not impose any

tax, including a property tax or a sales and use tax.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

Sec. 68.254. BONDS PROHIBITED. A district may not issue bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

SUBCHAPTER G. ASSESSMENTS

Sec. 68.301. AUTHORITY TO IMPOSE ASSESSMENT. The board may

impose an assessment against facilities for any district purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

913, Sec. 1, eff. June 15, 2007.