Texas 2009 - 81st Regular

Texas House Bill HB4823 Compare Versions

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11 81R27854 SLB-D
22 By: Martinez Fischer H.B. No. 4823
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the Bexar Metropolitan Water District.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Section 8, Chapter 306, Acts of the 49th
1010 Legislature, Regular Session, 1945, is amended to read as follows:
1111 Sec. 8. (a) [.] The seven [five (5)] members of the Board of
1212 Directors are [shall hereafter be] elected to staggered two-year
1313 terms in an election held on the uniform election date in November.
1414 Directors shall be elected from numbered single-member districts
1515 established by the Board. The Board shall revise each
1616 single-member district after each decennial census to reflect
1717 population changes and to conform with state law, the federal
1818 Voting Rights Act of 1965 (42 U.S.C. Section 1973 et seq.), and any
1919 applicable court order [for a term of six (6) years each, provided
2020 that an election for two (2) Directors for a term of six (6) years
2121 shall be held on the first Tuesday in April, 1954; the terms of
2222 three (3) members of the present Board shall be, and are, hereby,
2323 extended to the first Tuesday in April, 1957; and the present
2424 Directors shall determine such three (3) by lot. Three (3)
2525 Directors shall be elected on the first Tuesday in April, 1957, and
2626 two (2) Directors and three (3) Directors, alternately, shall be
2727 elected each three (3) years thereafter on the first Tuesday in
2828 April as the six-year terms expire]. At an election of Directors,
2929 the candidate from each single-member district who receives [The
3030 two (2) or three (3) persons, respectively, receiving] the greatest
3131 number of votes shall be declared elected to represent that
3232 single-member district. Each Director shall hold office until his
3333 successor shall have been elected or appointed and shall have
3434 qualified. A Director may not serve more than three terms.[;]
3535 (b) Such [such] elections shall be called, conducted and
3636 canvassed in the manner provided by the Election Code. [Chapter 25,
3737 General Laws of the Thirty-ninth Legislature, Regular Session,
3838 1925, and any amendments thereto;]
3939 (c) The [the] Board of Directors shall fill all vacancies on
4040 the Board by appointment and such appointees shall hold office for
4141 the unexpired term for which they were appointed.[;]
4242 (d) Any four [any three] members of the Board shall
4343 constitute a quorum for the adoption of passage of any resolution or
4444 order or the transaction of any business of the District.[;]
4545 (e) A Director must [Directors succeeding the first Board,
4646 whether now or hereafter elected, shall] be a qualified voter of the
4747 single-member district from which the Director is elected [resident
4848 electors of Bexar County, Texas, and owners of taxable property
4949 within the area comprising said District, and shall organize in
5050 like manner].
5151 SECTION 2. Chapter 306, Acts of the 49th Legislature,
5252 Regular Session, 1945, is amended by adding Sections 8A, 8B, 8C, 9A,
5353 9B, 12A, 12B, 23A, 34, and 35 to read as follows:
5454 Sec. 8A. (a) To be eligible to be a candidate for or elected
5555 as a Director, a person must have:
5656 (1) resided continuously in the single-member
5757 district that the person seeks to represent for 12 months
5858 immediately preceding the date of the regular filing deadline for
5959 the candidate's application for a place on the ballot;
6060 (2) viewed the open government training video provided
6161 by the attorney general and provided to the Board a signed affidavit
6262 stating that the candidate viewed the video;
6363 (3) obtained 200 signatures from individuals living in
6464 the District; and
6565 (4) paid a filing fee of $500 or filed a petition in
6666 lieu of the filing fee that satisfies the requirements prescribed
6767 by Section 141.062, Election Code.
6868 (b) In this subsection, "political contribution" and
6969 "specific-purpose committee" have the meanings assigned by Section
7070 251.001, Election Code. A Director or a candidate for the office of
7171 Director may not knowingly accept political contributions from a
7272 person that in the aggregate exceed $500 in connection with each
7373 election in which the person is involved. For purposes of this
7474 subsection, a contribution to a specific-purpose committee for the
7575 purpose of supporting a candidate for the office of Director,
7676 opposing the candidate's opponent, or assisting the candidate as an
7777 officeholder is considered to be a contribution to the candidate.
7878 Sec. 8B. (a) A person who is elected or appointed to and
7979 qualifies for office as a Director on or after the effective date of
8080 this section may not vote, deliberate, or be counted as a member in
8181 attendance at a meeting of the Board until the person completes a
8282 training program on District management issues. The training
8383 program must provide information to the person regarding:
8484 (1) the enabling legislation that created the
8585 District;
8686 (2) the operation of the District;
8787 (3) the role and functions of the Board;
8888 (4) the rules of the Board;
8989 (5) the current budget for the Board;
9090 (6) the results of the most recent formal audit of the
9191 Board;
9292 (7) the requirements of the:
9393 (A) open meetings law, Chapter 551, Government
9494 Code;
9595 (B) open records law, Chapter 552, Government
9696 Code; and
9797 (C) administrative procedure law, Chapter 2001,
9898 Government Code;
9999 (8) the requirements of the conflict of interest laws
100100 and other laws relating to public officials; and
101101 (9) any applicable ethics policies adopted by the
102102 Board or the Texas Ethics Commission.
103103 (b) The Texas Commission on Environmental Quality may
104104 create an advanced training program designed for a person who has
105105 previously completed a training program described by Subsection (a)
106106 of this section. If the commission creates an advanced training
107107 program under this subsection, a person who completes that advanced
108108 training program is considered to have met the person's obligation
109109 under Subsection (a) of this section.
110110 (c) Each Director who is elected or appointed on or after
111111 the effective date of this section shall complete a training
112112 program described by Subsection (a) or (b) of this section at least
113113 once in each term the Director serves.
114114 (d) The Board shall adopt rules regarding the completion of
115115 the training program described by Subsection (a) or (b) of this
116116 section by a person who is elected or appointed to and qualifies for
117117 office as a Director before the effective date of this section. A
118118 Director described by this subsection who does not comply with
119119 Board rules shall be considered incompetent as to the performance
120120 of the duties of a Director in any action to remove the Director
121121 from office.
122122 (e) A Director may not:
123123 (1) accept or solicit a gift, favor, or service that:
124124 (A) might reasonably influence the Director in
125125 the discharge of an official duty; or
126126 (B) the Director knows or should know is being
127127 offered with the intent to influence the Director's official
128128 conduct;
129129 (2) accept other employment or engage in a business or
130130 professional activity that the Director might reasonably expect
131131 would require or induce the Director to disclose confidential
132132 information acquired by reason of the official position;
133133 (3) accept other employment or compensation that could
134134 reasonably be expected to impair the Director's independence of
135135 judgment in the performance of the Director's official duties;
136136 (4) make personal investments that could reasonably be
137137 expected to create a substantial conflict between the Director's
138138 private interest and the interest of the District;
139139 (5) intentionally or knowingly solicit, accept, or
140140 agree to accept any benefit for having exercised the Director's
141141 official powers or performed the Director's official duties in
142142 favor of another; or
143143 (6) have a personal interest in an agreement executed
144144 by the District.
145145 (f) Not later than April 30 each year, a Director shall file
146146 with the Bexar County clerk a verified financial statement
147147 complying with Sections 572.022, 572.023, 572.024, and 572.0252,
148148 Government Code. A copy of a financial statement filed under this
149149 section shall be kept in the main office of the District.
150150 Sec. 8C. (a) A Director may be recalled for:
151151 (1) incompetency or official misconduct as described
152152 by Section 21.022, Local Government Code;
153153 (2) conviction of a felony;
154154 (3) incapacity;
155155 (4) failure to file a financial statement as required
156156 by Section 8B(f) of this Act;
157157 (5) failure to complete a training program described
158158 by Section 8B(a) or (b) of this Act; or
159159 (6) failure to maintain residency in the District.
160160 (b) If at least 10 percent of the voters in the District
161161 submit a petition to the Board requesting the recall of a Director,
162162 the Board, not later than the 10th day after the date the petition
163163 is submitted, shall mail a written notice of the petition and the
164164 date of its submission to each registered voter in the District.
165165 (c) Not later than the 30th day after the date a petition
166166 requesting the recall of a Director is submitted, the Board shall
167167 order an election on the question of recalling the Director.
168168 (d) A recall election under this section may be held on any
169169 uniform election date.
170170 (e) If a majority of the District voters voting at an
171171 election held under this section favor the recall of the Director,
172172 the Director is recalled and ceases to be a member of the Board.
173173 (f) If a vacancy occurs on the Board after the recall of a
174174 Director under this section, the remaining members of the Board
175175 shall appoint a replacement. A Director appointed to fill a vacancy
176176 under this subsection serves until the next regularly scheduled
177177 Directors' election.
178178 Sec. 9A. (a) The Board shall employ a general manager of
179179 the District or contract with a person to perform the duties of a
180180 general manager. The Board shall delegate to the general manager or
181181 contractor full authority to manage and operate the affairs of the
182182 District subject only to orders of the Board.
183183 (b) The Board shall delegate to the general manager or
184184 contractor the authority to employ persons necessary for the proper
185185 handling of the business and operation of the District and to
186186 determine the compensation to be paid to employees, other than the
187187 general manager or contractor.
188188 (c) The general manager or contractor annually shall
189189 complete a training program on state and federal laws related to the
190190 administration of the District. The training program must provide
191191 information regarding:
192192 (1) nepotism;
193193 (2) conflicts of interest;
194194 (3) criminal penalties related to the conduct of
195195 elected officials;
196196 (4) financial disclosure requirements;
197197 (5) equal employment;
198198 (6) disability accommodation;
199199 (7) labor relations; and
200200 (8) the acquisition and sale of property.
201201 Sec. 9B. (a) The Board shall employ a chief financial
202202 officer of the District or contract with a person to perform the
203203 duties of a chief financial officer. The Board shall delegate to
204204 the chief financial officer or contractor the authority necessary
205205 to administer all financial affairs of the District, including:
206206 (1) maintaining the general accounting system for the
207207 District;
208208 (2) certifying the availability of funds for all
209209 proposed expenditures;
210210 (3) submitting to the Board a monthly statement of all
211211 receipts and disbursements in sufficient detail to show the
212212 financial condition of the District; and
213213 (4) preparing at the end of each fiscal year a complete
214214 financial statement and report.
215215 (b) The Board shall require the chief financial officer of
216216 the District to furnish good and sufficient bond, payable to the
217217 District, in an amount determined by the Board to be sufficient to
218218 safeguard the District. The bond shall be conditioned on the
219219 faithful performance of that person's duties and on accounting for
220220 all funds and property of the District. The bond shall be signed or
221221 endorsed by a surety company authorized to do business in the state.
222222 Sec. 12A. (a) All Board reimbursements and expenditures
223223 must be approved by the Board in a regularly scheduled meeting.
224224 (b) At each regularly scheduled meeting of the Board, the
225225 Board shall review all expenditures made by the general manager.
226226 Sec. 12B. (a) The Board shall adopt an annual budget.
227227 (b) The budget must contain:
228228 (1) a message explaining the budget;
229229 (2) an outline of the proposed financial policies of
230230 the District for the next fiscal year, including any major changes
231231 from the current fiscal year;
232232 (3) a comparison of the actual and estimated revenue
233233 and expenditures for the current fiscal year and actual and
234234 estimated revenue for the two preceding fiscal years;
235235 (4) a statement of the water rates and collections for
236236 the preceding five years; and
237237 (5) a complete financial statement, including a
238238 statement of:
239239 (A) the outstanding obligations of the District,
240240 with a schedule of payments and maturities;
241241 (B) the amount of cash on hand to the credit of
242242 each fund of the District;
243243 (C) the amount of money received by the District
244244 from all sources during the preceding fiscal year, with notations
245245 regarding each department, division, or office of the District;
246246 (D) the amount of money available to the District
247247 from all sources during the following fiscal year;
248248 (E) the amount of the balances expected at the
249249 end of the fiscal year for which the budget is being prepared;
250250 (F) the estimated amount of revenue and balances
251251 available to cover the proposed budget; and
252252 (G) the estimated revenue from fees that will be
253253 required.
254254 (c) The Board shall conduct two public hearings not later
255255 than the 30th day before the date of the public hearing at which the
256256 Board will adopt the budget. At least one of the public hearings
257257 must be held at a location other than the District office. Notice
258258 of the hearings must be included in a water or sewer service bill of
259259 each ratepayer mailed at least 30 days before the date of the first
260260 hearing.
261261 Sec. 23A. (a) The Board may not increase residential water
262262 or sewer service rates by more than 10 percent unless the Board
263263 holds a public hearing on the matter of the rate increase. The
264264 hearing must be attended by the Board and, if the District employs a
265265 general manager or chief financial officer, by the general manager
266266 and the chief financial officer.
267267 (b) The Board may increase residential rates by more than 10
268268 percent only if approved by a unanimous vote of the Board after the
269269 hearing held under Subsection (a).
270270 (c) A motion by a Director to increase residential water or
271271 sewer service rates by more than 10 percent must read as follows:
272272 "I move that we increase residential (water or sewer, as
273273 appropriate) rates by ___ percent. An average water bill in the
274274 District is $ ___ for ___ gallons. With this increase, the average
275275 residential water bill will be $ ___ for ___ gallons. We need to
276276 increase the rates because of the following: (insert justification
277277 for rate increase)."
278278 Sec. 34. (a) After September 1, 2014, the Board annually
279279 shall have an audit conducted of the District's books and records
280280 that covers all matters relating to the fiscal affairs of the
281281 District. The audit must be conducted by an independent auditor who
282282 does not:
283283 (1) otherwise maintain any District accounts;
284284 (2) act as a financial advisor to the District; or
285285 (3) have any financial interest in the District.
286286 (b) The Board may not select the same auditor for more than
287287 three consecutive annual audits.
288288 Sec. 35. (a) As soon as practicable after the effective
289289 date of this section, the Texas Commission on Environmental Quality
290290 shall appoint a five-member panel to review the actions of the
291291 Board. The commission by rule shall establish the qualifications
292292 for the panel members.
293293 (b) The District shall pay any costs reasonably incurred by
294294 the panel or by a member of the panel in the performance of a duty
295295 under this section.
296296 (c) The Texas Commission on Environmental Quality shall
297297 appoint one member of the panel as the presiding officer of the
298298 panel. The presiding officer may reverse decisions made by the
299299 Board or an employee of the District or act in the absence of action
300300 by the Board or an employee of the District if:
301301 (1) the matter is related to the administration of the
302302 District;
303303 (2) the action is not prohibited by other law; and
304304 (3) the presiding officer determines that the Board or
305305 an employee of the District is not in compliance with a request or
306306 recommendation of the panel.
307307 (d) Not later than June 1, 2010, the panel shall prepare a
308308 report evaluating the distinct water systems that make up the
309309 District and determine the following:
310310 (1) the District's basis in or the intrinsic value of
311311 the infrastructure associated with each water system;
312312 (2) the District's bonded debt and commercial paper
313313 reasonably associated with or allocable to the infrastructure in
314314 each water system;
315315 (3) the adequacy of the source of the water supply
316316 located in each water system's service area to supply the current
317317 and projected demands generated in that service area;
318318 (4) the adequacy of the water storage facilities
319319 located in each water system's service area to supply the current
320320 and projected demands generated in that service area;
321321 (5) the adequacy of the distribution system located in
322322 each water system's service area to supply the current and
323323 projected demands generated in that service area; and
324324 (6) the ability of the District to serve its customers
325325 in a particular service area or a specific part of the service area
326326 based on the infrastructure and capacity of the District in that
327327 area.
328328 (e) The panel shall submit the report to the governor, the
329329 lieutenant governor, the speaker of the house of representatives,
330330 the chair of each committee of the legislature having primary
331331 jurisdiction over water districts, and the Texas Commission on
332332 Environmental Quality.
333333 (f) The panel shall develop bylaws for the District that
334334 separate the administrative and technical functions of the
335335 District. The Board shall consider and adopt rules and bylaws
336336 consistent with the bylaws developed by the panel.
337337 (g) The panel shall examine the service delivery in the
338338 several service areas of the District to determine whether the
339339 District is financially and practically able to provide continuous
340340 quality service in each area at reasonable rates. For any area the
341341 panel determines the District's ability to serve is inadequate or
342342 impractical, the panel shall recommend that the District divest the
343343 utility assets in that area.
344344 (h) If the panel makes a recommendation under Subsection
345345 (g), the panel shall appoint an agent to carry out the sale of the
346346 utility assets in that area. The agent shall bring an action in a
347347 district court in Bexar County for a determination of the fair
348348 market value of the assets to be sold. The fair market value shall
349349 be determined by a judge who was elected to that court from
350350 competent evidence of the value introduced by the parties.
351351 Competent evidence of value may include:
352352 (1) expert opinion testimony;
353353 (2) comparable sales;
354354 (3) anticipated marketing time and holding costs;
355355 (4) cost of sale; and
356356 (5) the necessity and amount of any discount to be
357357 applied to the future sales price or the cash flow generated by the
358358 property to arrive at a fair market value as of the date of the sale.
359359 (i) After the fair market value is determined under
360360 Subsection (h), the agent shall sell the assets for not less than
361361 the determined fair market value to an appropriate entity. The
362362 agent shall conduct the sale in a manner consistent with the best
363363 interests of the ratepayers. Proceeds from the sale of the assets
364364 shall be applied to outstanding debt of the District, and if any
365365 proceeds remain after the retirement of all the District's debt,
366366 the remaining proceeds shall be distributed to the ratepayers as a
367367 rebate.
368368 (j) This section expires September 1, 2014.
369369 SECTION 3. (a) Subject to approval by the Legislative
370370 Audit Committee for inclusion in the annual audit plan, the state
371371 auditor shall conduct an annual audit of the Bexar Metropolitan
372372 Water District for the five years following the effective date of
373373 this Act. The scope of the audit shall be determined by the state
374374 auditor based on a risk assessment.
375375 (b) The district shall reimburse the state auditor for the
376376 cost of the audit.
377377 SECTION 4. (a) Section 8, Chapter 306, Acts of the 49th
378378 Legislature, Regular Session, 1945, as amended by this Act, applies
379379 only to a member of the board of directors of the Bexar Metropolitan
380380 Water District who is elected to the board on or after the effective
381381 date of this Act.
382382 (b) Section 8A, Chapter 306, Acts of the 49th Legislature,
383383 Regular Session, 1945, as added by this Act, applies only to a
384384 member of the board of directors of the Bexar Metropolitan Water
385385 District who is elected to the board on or after the effective date
386386 of this Act. A director who is elected before the effective date of
387387 this Act is governed by the law in effect when the director was
388388 elected, and the former law is continued in effect for that purpose.
389389 A director elected to a six-year term before the effective date of
390390 this Act shall serve out the term to which the director was elected.
391391 (c) For a numbered single-member district director's
392392 position that expires in 2010 or 2011, the district shall call and
393393 hold an election on a uniform election date in that year to elect
394394 the director for that position for a term that expires on the
395395 uniform election date in November 2013.
396396 SECTION 5. (a) The legal notice of the intention to
397397 introduce this Act, setting forth the general substance of this
398398 Act, has been published as provided by law, and the notice and a
399399 copy of this Act have been furnished to all persons, agencies,
400400 officials, or entities to which they are required to be furnished
401401 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
402402 Government Code.
403403 (b) The governor, one of the required recipients, has
404404 submitted the notice and Act to the Texas Commission on
405405 Environmental Quality.
406406 (c) The Texas Commission on Environmental Quality has filed
407407 its recommendations relating to this Act with the governor, the
408408 lieutenant governor, and the speaker of the house of
409409 representatives within the required time.
410410 (d) All requirements of the constitution and laws of this
411411 state and the rules and procedures of the legislature with respect
412412 to the notice, introduction, and passage of this Act are fulfilled
413413 and accomplished.
414414 SECTION 6. This Act takes effect immediately if it receives
415415 a vote of two-thirds of all the members elected to each house, as
416416 provided by Section 39, Article III, Texas Constitution. If this
417417 Act does not receive the vote necessary for immediate effect, this
418418 Act takes effect September 1, 2009.