81R27854 SLB-D
By: Martinez Fischer H.B. No. 4823
A BILL TO BE ENTITLED
AN ACT
relating to the Bexar Metropolitan Water District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 8, Chapter 306, Acts of the 49th
Legislature, Regular Session, 1945, is amended to read as follows:
Sec. 8. (a) [.] The seven [five (5)] members of the Board of
Directors are [shall hereafter be] elected to staggered two-year
terms in an election held on the uniform election date in November.
Directors shall be elected from numbered single-member districts
established by the Board. The Board shall revise each
single-member district after each decennial census to reflect
population changes and to conform with state law, the federal
Voting Rights Act of 1965 (42 U.S.C. Section 1973 et seq.), and any
applicable court order [for a term of six (6) years each, provided
that an election for two (2) Directors for a term of six (6) years
shall be held on the first Tuesday in April, 1954; the terms of
three (3) members of the present Board shall be, and are, hereby,
extended to the first Tuesday in April, 1957; and the present
Directors shall determine such three (3) by lot. Three (3)
Directors shall be elected on the first Tuesday in April, 1957, and
two (2) Directors and three (3) Directors, alternately, shall be
elected each three (3) years thereafter on the first Tuesday in
April as the six-year terms expire]. At an election of Directors,
the candidate from each single-member district who receives [The
two (2) or three (3) persons, respectively, receiving] the greatest
number of votes shall be declared elected to represent that
single-member district. Each Director shall hold office until his
successor shall have been elected or appointed and shall have
qualified. A Director may not serve more than three terms.[;]
(b) Such [such] elections shall be called, conducted and
canvassed in the manner provided by the Election Code. [Chapter 25,
General Laws of the Thirty-ninth Legislature, Regular Session,
1925, and any amendments thereto;]
(c) The [the] Board of Directors shall fill all vacancies on
the Board by appointment and such appointees shall hold office for
the unexpired term for which they were appointed.[;]
(d) Any four [any three] members of the Board shall
constitute a quorum for the adoption of passage of any resolution or
order or the transaction of any business of the District.[;]
(e) A Director must [Directors succeeding the first Board,
whether now or hereafter elected, shall] be a qualified voter of the
single-member district from which the Director is elected [resident
electors of Bexar County, Texas, and owners of taxable property
within the area comprising said District, and shall organize in
like manner].
SECTION 2. Chapter 306, Acts of the 49th Legislature,
Regular Session, 1945, is amended by adding Sections 8A, 8B, 8C, 9A,
9B, 12A, 12B, 23A, 34, and 35 to read as follows:
Sec. 8A. (a) To be eligible to be a candidate for or elected
as a Director, a person must have:
(1) resided continuously in the single-member
district that the person seeks to represent for 12 months
immediately preceding the date of the regular filing deadline for
the candidate's application for a place on the ballot;
(2) viewed the open government training video provided
by the attorney general and provided to the Board a signed affidavit
stating that the candidate viewed the video;
(3) obtained 200 signatures from individuals living in
the District; and
(4) paid a filing fee of $500 or filed a petition in
lieu of the filing fee that satisfies the requirements prescribed
by Section 141.062, Election Code.
(b) In this subsection, "political contribution" and
"specific-purpose committee" have the meanings assigned by Section
251.001, Election Code. A Director or a candidate for the office of
Director may not knowingly accept political contributions from a
person that in the aggregate exceed $500 in connection with each
election in which the person is involved. For purposes of this
subsection, a contribution to a specific-purpose committee for the
purpose of supporting a candidate for the office of Director,
opposing the candidate's opponent, or assisting the candidate as an
officeholder is considered to be a contribution to the candidate.
Sec. 8B. (a) A person who is elected or appointed to and
qualifies for office as a Director on or after the effective date of
this section may not vote, deliberate, or be counted as a member in
attendance at a meeting of the Board until the person completes a
training program on District management issues. The training
program must provide information to the person regarding:
(1) the enabling legislation that created the
District;
(2) the operation of the District;
(3) the role and functions of the Board;
(4) the rules of the Board;
(5) the current budget for the Board;
(6) the results of the most recent formal audit of the
Board;
(7) the requirements of the:
(A) open meetings law, Chapter 551, Government
Code;
(B) open records law, Chapter 552, Government
Code; and
(C) administrative procedure law, Chapter 2001,
Government Code;
(8) the requirements of the conflict of interest laws
and other laws relating to public officials; and
(9) any applicable ethics policies adopted by the
Board or the Texas Ethics Commission.
(b) The Texas Commission on Environmental Quality may
create an advanced training program designed for a person who has
previously completed a training program described by Subsection (a)
of this section. If the commission creates an advanced training
program under this subsection, a person who completes that advanced
training program is considered to have met the person's obligation
under Subsection (a) of this section.
(c) Each Director who is elected or appointed on or after
the effective date of this section shall complete a training
program described by Subsection (a) or (b) of this section at least
once in each term the Director serves.
(d) The Board shall adopt rules regarding the completion of
the training program described by Subsection (a) or (b) of this
section by a person who is elected or appointed to and qualifies for
office as a Director before the effective date of this section. A
Director described by this subsection who does not comply with
Board rules shall be considered incompetent as to the performance
of the duties of a Director in any action to remove the Director
from office.
(e) A Director may not:
(1) accept or solicit a gift, favor, or service that:
(A) might reasonably influence the Director in
the discharge of an official duty; or
(B) the Director knows or should know is being
offered with the intent to influence the Director's official
conduct;
(2) accept other employment or engage in a business or
professional activity that the Director might reasonably expect
would require or induce the Director to disclose confidential
information acquired by reason of the official position;
(3) accept other employment or compensation that could
reasonably be expected to impair the Director's independence of
judgment in the performance of the Director's official duties;
(4) make personal investments that could reasonably be
expected to create a substantial conflict between the Director's
private interest and the interest of the District;
(5) intentionally or knowingly solicit, accept, or
agree to accept any benefit for having exercised the Director's
official powers or performed the Director's official duties in
favor of another; or
(6) have a personal interest in an agreement executed
by the District.
(f) Not later than April 30 each year, a Director shall file
with the Bexar County clerk a verified financial statement
complying with Sections 572.022, 572.023, 572.024, and 572.0252,
Government Code. A copy of a financial statement filed under this
section shall be kept in the main office of the District.
Sec. 8C. (a) A Director may be recalled for:
(1) incompetency or official misconduct as described
by Section 21.022, Local Government Code;
(2) conviction of a felony;
(3) incapacity;
(4) failure to file a financial statement as required
by Section 8B(f) of this Act;
(5) failure to complete a training program described
by Section 8B(a) or (b) of this Act; or
(6) failure to maintain residency in the District.
(b) If at least 10 percent of the voters in the District
submit a petition to the Board requesting the recall of a Director,
the Board, not later than the 10th day after the date the petition
is submitted, shall mail a written notice of the petition and the
date of its submission to each registered voter in the District.
(c) Not later than the 30th day after the date a petition
requesting the recall of a Director is submitted, the Board shall
order an election on the question of recalling the Director.
(d) A recall election under this section may be held on any
uniform election date.
(e) If a majority of the District voters voting at an
election held under this section favor the recall of the Director,
the Director is recalled and ceases to be a member of the Board.
(f) If a vacancy occurs on the Board after the recall of a
Director under this section, the remaining members of the Board
shall appoint a replacement. A Director appointed to fill a vacancy
under this subsection serves until the next regularly scheduled
Directors' election.
Sec. 9A. (a) The Board shall employ a general manager of
the District or contract with a person to perform the duties of a
general manager. The Board shall delegate to the general manager or
contractor full authority to manage and operate the affairs of the
District subject only to orders of the Board.
(b) The Board shall delegate to the general manager or
contractor the authority to employ persons necessary for the proper
handling of the business and operation of the District and to
determine the compensation to be paid to employees, other than the
general manager or contractor.
(c) The general manager or contractor annually shall
complete a training program on state and federal laws related to the
administration of the District. The training program must provide
information regarding:
(1) nepotism;
(2) conflicts of interest;
(3) criminal penalties related to the conduct of
elected officials;
(4) financial disclosure requirements;
(5) equal employment;
(6) disability accommodation;
(7) labor relations; and
(8) the acquisition and sale of property.
Sec. 9B. (a) The Board shall employ a chief financial
officer of the District or contract with a person to perform the
duties of a chief financial officer. The Board shall delegate to
the chief financial officer or contractor the authority necessary
to administer all financial affairs of the District, including:
(1) maintaining the general accounting system for the
District;
(2) certifying the availability of funds for all
proposed expenditures;
(3) submitting to the Board a monthly statement of all
receipts and disbursements in sufficient detail to show the
financial condition of the District; and
(4) preparing at the end of each fiscal year a complete
financial statement and report.
(b) The Board shall require the chief financial officer of
the District to furnish good and sufficient bond, payable to the
District, in an amount determined by the Board to be sufficient to
safeguard the District. The bond shall be conditioned on the
faithful performance of that person's duties and on accounting for
all funds and property of the District. The bond shall be signed or
endorsed by a surety company authorized to do business in the state.
Sec. 12A. (a) All Board reimbursements and expenditures
must be approved by the Board in a regularly scheduled meeting.
(b) At each regularly scheduled meeting of the Board, the
Board shall review all expenditures made by the general manager.
Sec. 12B. (a) The Board shall adopt an annual budget.
(b) The budget must contain:
(1) a message explaining the budget;
(2) an outline of the proposed financial policies of
the District for the next fiscal year, including any major changes
from the current fiscal year;
(3) a comparison of the actual and estimated revenue
and expenditures for the current fiscal year and actual and
estimated revenue for the two preceding fiscal years;
(4) a statement of the water rates and collections for
the preceding five years; and
(5) a complete financial statement, including a
statement of:
(A) the outstanding obligations of the District,
with a schedule of payments and maturities;
(B) the amount of cash on hand to the credit of
each fund of the District;
(C) the amount of money received by the District
from all sources during the preceding fiscal year, with notations
regarding each department, division, or office of the District;
(D) the amount of money available to the District
from all sources during the following fiscal year;
(E) the amount of the balances expected at the
end of the fiscal year for which the budget is being prepared;
(F) the estimated amount of revenue and balances
available to cover the proposed budget; and
(G) the estimated revenue from fees that will be
required.
(c) The Board shall conduct two public hearings not later
than the 30th day before the date of the public hearing at which the
Board will adopt the budget. At least one of the public hearings
must be held at a location other than the District office. Notice
of the hearings must be included in a water or sewer service bill of
each ratepayer mailed at least 30 days before the date of the first
hearing.
Sec. 23A. (a) The Board may not increase residential water
or sewer service rates by more than 10 percent unless the Board
holds a public hearing on the matter of the rate increase. The
hearing must be attended by the Board and, if the District employs a
general manager or chief financial officer, by the general manager
and the chief financial officer.
(b) The Board may increase residential rates by more than 10
percent only if approved by a unanimous vote of the Board after the
hearing held under Subsection (a).
(c) A motion by a Director to increase residential water or
sewer service rates by more than 10 percent must read as follows:
"I move that we increase residential (water or sewer, as
appropriate) rates by ___ percent. An average water bill in the
District is $ ___ for ___ gallons. With this increase, the average
residential water bill will be $ ___ for ___ gallons. We need to
increase the rates because of the following: (insert justification
for rate increase)."
Sec. 34. (a) After September 1, 2014, the Board annually
shall have an audit conducted of the District's books and records
that covers all matters relating to the fiscal affairs of the
District. The audit must be conducted by an independent auditor who
does not:
(1) otherwise maintain any District accounts;
(2) act as a financial advisor to the District; or
(3) have any financial interest in the District.
(b) The Board may not select the same auditor for more than
three consecutive annual audits.
Sec. 35. (a) As soon as practicable after the effective
date of this section, the Texas Commission on Environmental Quality
shall appoint a five-member panel to review the actions of the
Board. The commission by rule shall establish the qualifications
for the panel members.
(b) The District shall pay any costs reasonably incurred by
the panel or by a member of the panel in the performance of a duty
under this section.
(c) The Texas Commission on Environmental Quality shall
appoint one member of the panel as the presiding officer of the
panel. The presiding officer may reverse decisions made by the
Board or an employee of the District or act in the absence of action
by the Board or an employee of the District if:
(1) the matter is related to the administration of the
District;
(2) the action is not prohibited by other law; and
(3) the presiding officer determines that the Board or
an employee of the District is not in compliance with a request or
recommendation of the panel.
(d) Not later than June 1, 2010, the panel shall prepare a
report evaluating the distinct water systems that make up the
District and determine the following:
(1) the District's basis in or the intrinsic value of
the infrastructure associated with each water system;
(2) the District's bonded debt and commercial paper
reasonably associated with or allocable to the infrastructure in
each water system;
(3) the adequacy of the source of the water supply
located in each water system's service area to supply the current
and projected demands generated in that service area;
(4) the adequacy of the water storage facilities
located in each water system's service area to supply the current
and projected demands generated in that service area;
(5) the adequacy of the distribution system located in
each water system's service area to supply the current and
projected demands generated in that service area; and
(6) the ability of the District to serve its customers
in a particular service area or a specific part of the service area
based on the infrastructure and capacity of the District in that
area.
(e) The panel shall submit the report to the governor, the
lieutenant governor, the speaker of the house of representatives,
the chair of each committee of the legislature having primary
jurisdiction over water districts, and the Texas Commission on
Environmental Quality.
(f) The panel shall develop bylaws for the District that
separate the administrative and technical functions of the
District. The Board shall consider and adopt rules and bylaws
consistent with the bylaws developed by the panel.
(g) The panel shall examine the service delivery in the
several service areas of the District to determine whether the
District is financially and practically able to provide continuous
quality service in each area at reasonable rates. For any area the
panel determines the District's ability to serve is inadequate or
impractical, the panel shall recommend that the District divest the
utility assets in that area.
(h) If the panel makes a recommendation under Subsection
(g), the panel shall appoint an agent to carry out the sale of the
utility assets in that area. The agent shall bring an action in a
district court in Bexar County for a determination of the fair
market value of the assets to be sold. The fair market value shall
be determined by a judge who was elected to that court from
competent evidence of the value introduced by the parties.
Competent evidence of value may include:
(1) expert opinion testimony;
(2) comparable sales;
(3) anticipated marketing time and holding costs;
(4) cost of sale; and
(5) the necessity and amount of any discount to be
applied to the future sales price or the cash flow generated by the
property to arrive at a fair market value as of the date of the sale.
(i) After the fair market value is determined under
Subsection (h), the agent shall sell the assets for not less than
the determined fair market value to an appropriate entity. The
agent shall conduct the sale in a manner consistent with the best
interests of the ratepayers. Proceeds from the sale of the assets
shall be applied to outstanding debt of the District, and if any
proceeds remain after the retirement of all the District's debt,
the remaining proceeds shall be distributed to the ratepayers as a
rebate.
(j) This section expires September 1, 2014.
SECTION 3. (a) Subject to approval by the Legislative
Audit Committee for inclusion in the annual audit plan, the state
auditor shall conduct an annual audit of the Bexar Metropolitan
Water District for the five years following the effective date of
this Act. The scope of the audit shall be determined by the state
auditor based on a risk assessment.
(b) The district shall reimburse the state auditor for the
cost of the audit.
SECTION 4. (a) Section 8, Chapter 306, Acts of the 49th
Legislature, Regular Session, 1945, as amended by this Act, applies
only to a member of the board of directors of the Bexar Metropolitan
Water District who is elected to the board on or after the effective
date of this Act.
(b) Section 8A, Chapter 306, Acts of the 49th Legislature,
Regular Session, 1945, as added by this Act, applies only to a
member of the board of directors of the Bexar Metropolitan Water
District who is elected to the board on or after the effective date
of this Act. A director who is elected before the effective date of
this Act is governed by the law in effect when the director was
elected, and the former law is continued in effect for that purpose.
A director elected to a six-year term before the effective date of
this Act shall serve out the term to which the director was elected.
(c) For a numbered single-member district director's
position that expires in 2010 or 2011, the district shall call and
hold an election on a uniform election date in that year to elect
the director for that position for a term that expires on the
uniform election date in November 2013.
SECTION 5. (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 6. 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, 2009.