SB1745

Regular Session

Relating to the name, rights, powers, and privileges of the Cedar Port Navigation and Improvement District.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Cedar Port Navigation and Improvement District

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025 (All invoices, legal notices, and filings must utilize the new entity name immediately upon this date).
Agency Rulemaking: No state-level rulemaking is required; however, the District will likely adopt new internal bylaws and enter into Project Partnership Agreements with the U.S. Army Corps of Engineers, which will define the scope of its new dredging authority.

Immediate Action Plan

Update ERP Systems: Flag "Chambers County Improvement District No. 1" in your vendor database for a name change effective 9/1/2025.
Audit Insurance: Issue a directive to your insurance broker to update the entity name on all Certificates of Insurance and endorsements.
Review Real Estate: If you are closing a land deal or recording an easement within the park after August 2025, ensure the title company uses the new District name.
Monitor Procurement: If you are a dredging or marine construction firm, register with the District immediately to capture upcoming federal-partnership project bids.

Operational Changes Required

Contracts

Name Amendments: You must audit all Master Service Agreements (MSAs), ground leases, and tax abatement agreements. While the statute preserves the validity of existing contracts, you must execute a "Notice of Name Change" or administrative amendment to ensure chain-of-title clarity and audit compliance.
Insurance Endorsements: Contact your broker to update "Additional Insured" endorsements. Policies listing "Chambers County Improvement District No. 1" may be technically deficient for claims occurring after September 1, 2025.

Hiring/Training

Procurement Eligibility: Construction and logistics firms seeking to bid on District projects must update their vendor registrations. The District now has authority to act as a nonfederal sponsor for dredging, meaning contractors must be prepared to meet federal (USACE) flow-down requirements in future solicitations.

Reporting & Record-Keeping

Vendor Master Files: Accounts Payable departments must update the vendor name in ERP systems to "Cedar Port Navigation and Improvement District" to prevent payment rejections or tax reporting errors.
Lien & Title Filings: Any mechanics liens or real property filings recorded after the effective date must use the new legal name to be enforceable.

Fees & Costs

No Statutory Fee Increases: The bill itself does not impose new fees.
New Revenue Streams: Be advised the District is now authorized to charge for maritime services and barge operations, which may appear as new line items in future logistics contracts if you utilize District-operated assets.

Strategic Ambiguities & Considerations

Extraterritorial Jurisdiction & Liability

The law authorizes the District to operate barges and dredge "on water that is not in the territory of the district" subject to federal authorization.

1. Scope of Operations: It is unclear how far the District’s maritime reach will extend into adjacent waterways. Businesses with private docks or competing logistics operations nearby should monitor District Board agendas for "Project Partnership Agreements."
2. Sovereign Immunity vs. Admiralty Law: By entering the maritime transport business, the District exposes itself to admiralty jurisdiction. If a District vessel damages your property, the standard Texas Tort Claims Act liability caps may be preempted by federal maritime law. This is a developing legal area; ensure your legal counsel assesses this risk if you contract for District maritime services.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsCedar Port Navigation & Improvement District Chambers County Improvement District No. 1 Special Districts & Authorities Special Districts & Authorities--miscellaneous Special Districts & Authorities--navigation & Ports

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 1745
89R8869 JTZ-F	By: Creighton
	Transportation
	3/20/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 1745 aims to update and modernize the sanctuary language governing the Cedar Port Navigation and Improvement District. It aligns the district's rights with other navigation districts under Chapter 60 of the Texas Water Code. This update is crucial for the district to qualify as a non-federal sponsor to secure congressional authorization for the Cedar Port Channel Feasibility Study and Environmental Impact Statement, supporting a major infrastructure project.

Overall, S.B. 1745 will modernize the Cedar Port District's governing laws, expand its operational powers, and enhance its role in advancing infrastructure improvements that are vital to economic growth.

As proposed, S.B. 1745 amends current law relating to the name, rights, powers, and privileges of the Cedar Port Navigation and Improvement District.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends the heading to Chapter 3854, Special District Local Laws Code, as follows:

CHAPTER 3854. CEDAR PORT NAVIGATION AND IMPROVEMENT DISTRICT

SECTION 2. Amends Section 3854.001(3), Special District Local Laws Code, to redefine "district."

SECTION 3. Amends Section 3854.002, Special District Local Laws Code, to redesignate the "Chambers County Improvement District No. 1" as the "Cedar Port Navigation and Improvement District" (district).

SECTION 4. Amends Section 3854.151, Special District Local Laws Code, as follows:

Sec. 3854.151. GENERAL POWERS (a) Creates this subsection from existing text. Provides that the district has:

(1) all the rights, powers, and privileges conferred by the general law of this state applicable to districts created under certain chapters, including Chapter 49 (Provisions Applicable to All Districts), Water Code;

(2) the rights, powers, and privileges granted to districts by Chapter 60 (Navigation Districts--General Provisions), Water Code, rather than Subchapters E (Powers of Districts for Improvement of Port Facilities) and M (Tax Bonds, Revenue Bonds, And Combination Tax and Revenue Bonds), Chapter 60, Water Code, and by Sections 61.116 (Lease of State Owned Lands and Flats) and 62.118 (Cooperation With United States), Water Code, rather than Section 61.116, Water Code; and

(3) makes no changes to this subdivision;

(b) Provides that Section 60.033 (Use of Equipment), Water Code, does not apply to the district.

SECTION 5. Amends Section 3854.153, Special District Local Laws Code, to authorize the district to acquire any interest in land in accordance with Chapter 49, 54, or 60, Water Code. Makes a nonsubstantive change.

SECTION 6. Provides that all requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

SECTION 7. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Charles CreightonRepublican · Primary Author

Coauthors (1)

Brent Hagenbuch (R)

House Sponsors

Rep. William MetcalfRepublican · Primary Sponsor

Joint Sponsors

Terri Leo-Wilson (R)

Cosponsors (1)

Jared Patterson (R)

Bill Text(with markup)

S.B. No. 1745

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the name, rights, powers, and privileges of the Cedar
	Port Navigation and Improvement District.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. The heading to Chapter 3854, Special District
	Local Laws Code, is amended to read as follows:
	CHAPTER 3854. CEDAR PORT NAVIGATION AND IMPROVEMENT DISTRICT
	[~~CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 1~~]
	SECTION 2. Section 3854.001(3), Special District Local Laws
	Code, is amended to read as follows:
	(3) "District" means the Cedar Port Navigation and
	Improvement District [~~Chambers County Improvement District No. 1~~].
	SECTION 3. Section 3854.002, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 3854.002. NATURE OF DISTRICT. A special district
	known as the "Cedar Port Navigation and Improvement District"
	[~~"Chambers County Improvement District No. 1"~~] is a political
	subdivision of this state.
	SECTION 4. Section 3854.151, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 3854.151. GENERAL POWERS. The district has:
	(1) all the rights, powers, and privileges conferred
	by the general law of this state applicable to districts created
	under:
	(A) Chapter 375, Local Government Code;
	(B) Chapter 172, Transportation Code, or Chapter
	623, Acts of the 67th Legislature, Regular Session, 1981 (former
	Article 6550c, Vernon's Texas Civil Statutes);
	(C) Chapter 441, Transportation Code; and
	(D) Chapters 49 and [~~Chapter~~] 54, Water Code;
	(2) the rights, powers, and privileges granted to
	districts by:
	(A) [~~Subchapters E and M,~~] Chapter 60, Water
	Code; and
	(B) Sections [~~Section~~] 61.116 and 62.118, Water
	Code; and
	(3) all the powers granted to municipal management
	districts under Sections 375.092 and 375.111, Local Government
	Code, to provide any services or for any project the district is
	authorized to acquire, construct, or improve under this chapter.
	SECTION 5. Subchapter D, Chapter 3854, Special District
	Local Laws Code, is amended by adding Section 3854.1515 to read as
	follows:
	Sec. 3854.1515. ACTING AS NONFEDERAL SPONSOR. If
	authorized by the United States, notwithstanding Section 60.033,
	Water Code, or any other state law, the district may exercise all
	rights, powers, and privileges necessary to allow the district to
	act as a nonfederal sponsor under a federal project partnership
	agreement, including by operating barges, engaging in dredging, and
	engaging in related maritime operations on water that is not in the
	territory of the district.
	SECTION 6. Section 3854.153, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 3854.153. AUTHORITY TO ACQUIRE INTEREST IN LAND. The
	district may acquire any interest in land in accordance with
	Chapter 49, [~~Chapter~~] 54, or 60, Water Code.
	SECTION 7. (a) The legal notice of the intention to
	introduce this Act, setting forth the general substance of this
	Act, has been published as provided by law, and the notice and a
	copy of this Act have been furnished to all persons, agencies,
	officials, or entities to which they are required to be furnished
	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
	Government Code.
	(b) The governor, one of the required recipients, has
	submitted the notice and Act to the Texas Commission on
	Environmental Quality.
	(c) The Texas Commission on Environmental Quality has filed
	its recommendations relating to this Act with the governor, the
	lieutenant governor, and the speaker of the house of
	representatives within the required time.
	(d) All requirements of the constitution and laws of this
	state and the rules and procedures of the legislature with respect
	to the notice, introduction, and passage of this Act are fulfilled
	and accomplished.
	SECTION 8. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 20, 2025

TO:	Honorable Robert Nichols, Chair, Senate Committee on Transportation

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1745 by Creighton (Relating to the name, rights, powers, and privileges of the Cedar Port Navigation and Improvement District.), As Introduced

No fiscal implication to the State is anticipated.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

LBB Staff:

JMc, AAL, BC, CWi

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Frequently Asked Questions

Common questions about SB1745

What does Texas SB1745 do?

SB1745 formally renames the "Chambers County Improvement District No. 1" to the "Cedar Port Navigation and Improvement District" and grants it significant new authority to engage in maritime operations, dredging, and barge transport. This legislation impacts all tenants within the Cedar Port Industrial Park, vendors servicing the District, and maritime logistics companies operating in Chambers County, requiring immediate administrative updates to legal entities and insurance policies.

Who authored SB1745?

SB1745 was authored by Texas Senator Charles Creighton during the Regular Session.

When was SB1745 signed into law?

SB1745 was signed into law by Governor Greg Abbott on May 19, 2025.

Which agencies enforce SB1745?

SB1745 is enforced by Cedar Port Navigation and Improvement District.

How urgent is compliance with SB1745?

The compliance urgency for SB1745 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB1745?

The cost impact of SB1745 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB1745 address?

SB1745 addresses topics including cedar port navigation & improvement district, chambers county improvement district no. 1, special districts & authorities, special districts & authorities--miscellaneous and special districts & authorities--navigation & ports.

Legislative data provided by LegiScanLast updated: November 25, 2025

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