82R22598 SLB-D
By: Uresti, et al. S.B. No. 341
(Menendez, Larson)
Substitute the following for S.B. No. 341: No.
A BILL TO BE ENTITLED
AN ACT
relating to authorizing the dissolution of the Bexar Metropolitan
Water District; providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. FINANCIAL AND OPERATIONAL AUDITS
SECTION 1.01. Section 1, Chapter 306, Acts of the 49th
Legislature, Regular Session, 1945, is amended to read as follows:
Sec. 1. In obedience to the provisions of Article 16,
Section 59 of the Constitution of Texas, there is hereby created
Bexar Metropolitan Water District.[, hereinafter in this Act
sometimes called the "District."]
SECTION 1.02. Chapter 306, Acts of the 49th Legislature,
Regular Session, 1945, is amended by adding Sections 1A, 34, 35, 36,
37, 38, 39, 40, 41, 42, and 43 to read as follows:
Sec. 1A. In this Act:
(1) "Board" means the District's Board of Directors.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Committee" means the Bexar Metropolitan Water
District Oversight Committee.
(4) "Director" means a Board member.
(5) "District" means the Bexar Metropolitan Water
District.
(6) "System" means a water utility owned by a
municipality with a population of more than one million in the area
served by the District.
Sec. 34. (a) Not later than the 30th day after the
effective date of the Act enacting this section, the Commission
shall begin an on-site evaluation of the District. The evaluation
must include:
(1) a complete inventory and evaluation of each
distinct water system in the District to determine:
(A) the District's basis in, or the intrinsic
value of, the infrastructure associated with that water system;
(B) the District's bonded debt and commercial
paper reasonably associated with or allocable to the infrastructure
in that water system; and
(C) the adequacy of the water supply sources,
water storage facilities, and distribution systems located in that
water system's service area to supply current and projected demands
in that service area;
(2) a list of any District assets whose transfer to
another appropriate public water utility would be likely to
improve:
(A) service to the former customers of the
District who would be served by that utility; or
(B) the District's overall efficiency;
(3) a list and copies of existing contracts to which
the District is a party, including for each contract:
(A) effective and termination dates;
(B) the general scope of the property and
services involved;
(C) obligations of the District, including
financial obligations;
(D) how the District benefits from the contract;
and
(E) whether the District has waived governmental
immunity;
(4) a list of the following in regard to the District:
(A) property;
(B) rights, including certificates of
convenience and necessity, pumping rights, and any other rights;
(C) staff; and
(D) internal policies, including employment
rules, benefits, and an evaluation of the usefulness and efficacy
of each policy;
(5) a comprehensive rehabilitation plan for the
District that:
(A) identifies strategies for restoring the
District's financial integrity and developing a system of sound
financial management;
(B) describes a standard of ethics,
professionalism, and openness expected of each Director and
employee of the District;
(C) provides a mechanism to enforce compliance
with District policies, including procurement policies;
(D) identifies ways to enhance the District's
operational efficiency and improve the District's provision of
redundancy in water services; and
(E) provides for educating the Board and
management personnel on improving management practices and
complying with District policy and state and federal laws and
regulations;
(6) an assessment of the District's ability to provide
reliable, cost-effective, quality service to customers, including
an assessment of operations compared to the best management
practices of modern utilities;
(7) a study of the District's current infrastructure
improvements, including:
(A) personnel for the improvements, including
staffing levels of engineers, capital improvement program
personnel, and mains and services personnel; and
(B) contracts related to any capital
improvements; and
(8) a financial audit of the District.
(b) On commencement of the evaluation, the Commission shall
notify the District in writing that the Commission has begun the
evaluation and shall specify a time period for completion of the
evaluation. The Commission may extend the specified time period
for good cause. The District shall cooperate and provide
assistance and access to all necessary records, confidential or
not, to the Commission.
(c) The Commission may contract with utility management
consultants, accountants, and other persons as necessary to conduct
the evaluation.
(d) The Commission may require the District to reimburse the
Commission for the reasonable cost of conducting the evaluation.
(e) The Commission shall file copies of the completed
evaluation with:
(1) the committee;
(2) the Board; and
(3) the lieutenant governor, the speaker of the house
of representatives, and the chairs of the house and senate
committees with primary oversight over the District.
Sec. 35. At the Commission's request, the state auditor's
office may audit the District under Chapter 321, Government Code.
The District shall reimburse the state auditor's office for the
cost of the audit.
Sec. 36. The Commission may employ or contract with a person
to carry out the duties described by Section 34 of this Act who, at
the time of the person's hire:
(1) has demonstrated a high level of expertise in
utility management;
(2) is not a Director; and
(3) has no financial interest in the District or any
entity that has a contract with the District or that is likely to
develop a contractual relationship with the District.
Sec. 37. (a) The Commission may employ or contract with
additional persons who will report to and assist the Commission if:
(1) assistance from District staff is not provided; or
(2) the Commission needs special expertise from one or
more of the persons.
(b) A person employed or contracted with under Section 36 of
this Act and any additional persons employed or contracted with
under this section are entitled to receive a salary determined by
the executive director of the Commission for performing those
duties.
(c) The District shall pay the compensation of any persons
employed or contracted with under this section or Section 36 of this
Act.
(d) The executive director of the Commission shall set the
compensation of the person employed or contracted with under this
section or Section 36 of this Act after considering the person's:
(1) level of expertise in utility management; and
(2) certifications and education.
Sec. 38. (a) A person employed or contracted with under
Section 36 or 37 of this Act is entitled to reimbursement of the
reasonable and necessary expenses incurred by that person in the
course of performing duties under this Act.
(b) The District shall pay the expenses incurred by the
persons employed or contracted with under Section 36 or 37 of this
Act. The executive director of the Commission shall determine if an
expense is reasonable and necessary after considering whether the
expense is:
(1) necessary to complete the duties assigned by this
Act;
(2) at or below the cost of a similar expense incurred
by other utilities;
(3) documented by an invoice, bill, or work order that
includes details relating to the:
(A) time spent on services; or
(B) cost of supplies; and
(4) in accordance with procedures used to minimize
expenses, including comparing vendor rates or competitive bidding.
Sec. 39. The executive director of the Commission may
employ or contract with a person to carry out any purpose described
by this Act. The District shall reimburse the Commission for all
related expenses.
Sec. 40. (a) The Commission shall evaluate the condition of
the District and determine whether the District has been
sufficiently rehabilitated to enable the District to provide
reliable, cost-effective, quality service to its customers.
(b) If the Commission finds that the District has not been
rehabilitated, the Commission may order the District to implement
any part of the rehabilitation plan developed under Section 34.
(c) If the District fails to comply with a Commission order,
the Commission may assess a penalty against the District in the
manner provided by Section 13.4151, Water Code.
Sec. 41. From the effective date of the Act enacting this
section until the date election results are certified to the
Secretary of State, the attorney general may not approve any public
security, as defined by Chapter 1201, Government Code, of the
District unless:
(1) the Commission consents in writing before
approval; or
(2) the District provides written evidence that
issuing the public security represents a refunding of outstanding
debt for the purpose of realizing debt service savings in each year
that outstanding obligations are refunded and that results in a
cumulative net present value savings of at least three percent
compared to refunded debt service.
Sec. 42. (a) From the effective date of the Act enacting
this section until the date election results are certified to the
Secretary of State, a contract or other agreement entered into,
amended, or renewed during that period to which the District is a
party must include a provision that the contract or other agreement
is subject to:
(1) review by the System; and
(2) termination by the System at the System's sole
discretion, including the termination of all rights, duties,
obligations, and liabilities of the District or the System under
the contract or other agreement, if the contract or other agreement
is assumed by the System.
(b) A person or entity is not entitled to compensation for
loss or other damages resulting from the termination of the
contract or other agreement under Subsection (a)(2) of this
section.
Sec. 43. From the effective date of the Act enacting this
section until the date the election results are certified to the
Secretary of State, the District may not dispose of, sell,
transfer, assign, impair, or restrict any of the District's rights
or assets outside the normal and customary course of business.
ARTICLE 2. ELECTION; EFFECTIVE DATE OF ARTICLES 3 AND 4
SECTION 2.01. (a) In this article:
(1) "Board" means the board of directors of the
district.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "District" means the Bexar Metropolitan Water
District.
(b) On the next uniform election date the board, after
consultation with the secretary of state, shall hold an election in
the district on the question of dissolving the district and
disposing of the district's assets and obligations. The board shall
call the election not later than the 90th day before the date the
election is to be held.
(c) The order calling the election must state:
(1) the nature of the election, including the
proposition to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(d) The board shall give notice of an election under this
section by publishing once a week for two consecutive weeks a
substantial copy of the election order in a newspaper with general
circulation in the district. The first publication of the notice
must appear not later than the 35th day before the date of the
beginning of early voting for the election.
(e) The ballot for an election under this section must be
printed to permit voting for or against the proposition: "The
dissolution of the Bexar Metropolitan Water District and the
transfer of all the district's assets, obligations, and duties to
the water utility owned by the municipality with the largest
population in the area served by the district."
(f) The board shall certify that a majority of the voters
voting in the district have voted:
(1) in favor of dissolution; or
(2) not in favor of dissolution.
(g) If the board fails to call an election on or before the
90th day before the date the election is to be held, the commission
or its executive director shall file a writ of mandamus and pursue
all other legal and equitable remedies available to compel the
board to call the election.
SECTION 2.02. (a) Not later than the 20th day after the
date on which the election results are officially declared, the
board shall certify that result to the secretary of state.
(b) If the proposition is approved by a majority of the
voters voting in the election:
(1) Article 3 of this Act does not take effect; and
(2) Article 4 of this Act takes effect on the date the
results are certified.
(c) If a majority of the voters voting in the election do not
approve the proposition:
(1) Article 3 of this Act takes effect on the date the
results are certified; and
(2) Article 4 of this Act does not take effect.
ARTICLE 2A. ALTERNATE ELECTION PROCEDURES IF ARTICLE 2 ELECTION IS
IN VIOLATION
SECTION 2A.01. It is the intent of the legislature that the
preferred method of election be the method described by Section
2.01 of this Act. This article provides an alternate means of
conducting the election on the question of dissolving the Bexar
Metropolitan Water District if the method described in Section 2.01
of this Act cannot be used due to a final, unappealable
administrative or judicial decision. It is the intent of the
legislature to comply fully with the requirements of the federal
Voting Rights Act of 1965 (42 U.S.C. Section 1973 et seq.). It is
not the intent of the legislature to influence any preclearance
decision made by the U.S. Department of Justice relating to the Act
creating this section.
SECTION 2A.02. (a) In this article:
(1) "Board" means the board of directors of the
district.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "District" means the Bexar Metropolitan Water
District.
(4) "Voting district" means a subdivision of the
district created to elect the district's board of directors.
(b) On the next uniform election date following the date of
a final, unappealable administrative or judicial decision that any
portion of this Act is in violation of the federal Voting Rights Act
of 1965 (42 U.S.C. Section 1973 et seq.) or United States
Constitution, the board, after consultation with the secretary of
state, shall hold an election as provided by this section in the
district on the question of dissolving the district and disposing
of the district's assets and obligations. The board shall call the
election not later than the 90th day before the date the election is
to be held.
(c) The order calling the election must state:
(1) the nature of the election, including the
proposition to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(d) The board shall give notice of an election under this
section by publishing once a week for two consecutive weeks a
substantial copy of the election order in a newspaper with general
circulation in the district. The first publication of the notice
must appear not later than the 35th day before the date of the
beginning of early voting for the election.
(e) The ballot for an election under this section must be
printed to permit voting for or against the proposition: "The
dissolution of the Bexar Metropolitan Water District and the
transfer of all the district's assets, obligations, and duties to
the water utility owned by the municipality with the largest
population in the area served by the district."
(f) The election shall be held in numbered voting districts
established by the board. The board shall draw each voting district
to reflect population changes from the latest decennial census 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.
(g) The board shall certify the election results for each
voting district. The board shall then certify that a majority of
the voting districts have voted:
(1) in favor of dissolution; or
(2) not in favor of dissolution.
(h) If the board fails to call an election on or before the
90th day before the date the election is to be held, the commission
or its executive director shall file a writ of mandamus and pursue
all other legal and equitable remedies available to compel the
board to call the election.
SECTION 2A.03. (a) Not later than the 20th day after the
date on which the election results are officially declared, the
board shall certify that result to the secretary of state.
(b) If the proposition is approved by a majority of the
voting districts in the election:
(1) Article 3 of this Act does not take effect; and
(2) Article 4 of this Act takes effect on the date the
results are certified.
(c) If a majority of the voting districts in the election do
not approve the proposition:
(1) Article 3 of this Act takes effect on the date the
results are certified; and
(2) Article 4 of this Act does not take effect.
ARTICLE 3. CHANGES TO THE BEXAR METROPOLITAN WATER DISTRICT IF
VOTERS DO NOT DISSOLVE THE DISTRICT UNDER ARTICLE 2
SECTION 3.01. 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 are 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 is [shall be declared] elected to represent that
single-member district. Each Director shall hold office until his
successor is [shall have been] elected or appointed and has [shall
have] qualified.
(a-1) A person is not eligible to serve as a Director for
more than three terms or for more than a total of seven years of
service.[;]
(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
until a successor elected at the next scheduled election date has
qualified. [for the unexpired term for which they were appointed;]
(d) Any four [any three] members of the Board are [shall
constitute] a quorum for the adoption or [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].
(f) A payment to a Director for fees of office under Section
49.060, Water Code, may not be made for a meeting that occurs in a
different fiscal year from the one in which the payment is made.
SECTION 3.02. Section 33A, Chapter 306, Acts of the 49th
Legislature, Regular Session, 1945, is amended by amending
Subsection (c) and adding Subsection (g) to read as follows:
(c) The oversight committee is comprised of seven [5]
members appointed as follows [to represent the following members]:
(1) two Senators who represent Senate districts that
include territory within the Bexar Metropolitan Water District,
[the Senator sponsor of this Act, or, in the event this Senator
cannot serve, a Senator] appointed by the Lieutenant Governor, who
shall also designate one of the Senators as co-chair;
(2) two Representatives who represent [the] House
districts that include territory within the District, [author of
this Act, or, in the event this Representative cannot serve, a
Representative] appointed by the Speaker of the Texas House of
Representatives, who shall also designate one of the
Representatives as co-chair;
(3) one member with special expertise in the operation
of public water utilities appointed by the Governor;
(4) one member appointed by the Governor to represent
the public; and
(5) one [a] member of the Bexar County Commissioners
Court who represents a precinct in which customers of the District
reside.
(g) On or before December 31, 2012, the oversight committee
shall provide a report under Subsection (e) of this section to the
legislature. The committee is abolished and this section expires
January 1, 2013.
SECTION 3.03. Chapter 306, Acts of the 49th Legislature,
Regular Session, 1945, is amended by adding Sections 8A, 8B, 8C,
10A, and 10B to read as follows:
Sec. 8A. (a) To be eligible to be a candidate for or to be
elected or appointed 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 $250 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 or organization that in the aggregate exceed $500 in
connection with each election in which the candidate 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) public information 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 Commission 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 is 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, the
value of which exceeds $50 per 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. The District shall keep a copy of a financial
statement filed under this section in the main office of the
District.
Sec. 8C. (a) A Director may be recalled for:
(1) incompetency or official misconduct as defined 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 registered voters in a
single-member voting district of the District submit a petition to
the Board requesting the recall of the Director who serves that
single-member voting district, 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 single-member voting 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 voters of a single-member voting
district voting at an election held under this section favor the
recall of the Director who serves that single-member voting
district, the Director is recalled and ceases to be a Director.
Sec. 10A. All Board reimbursements and expenditures must be
approved by the Board in a regularly scheduled meeting.
Sec. 10B. The Board may not select the same auditor to
conduct an audit required by Section 49.191, Water Code, for more
than three consecutive annual audits.
SECTION 3.04. (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.
(c) For two of the numbered single-member district
director's positions that expire in 2012, the Bexar Metropolitan
Water District shall call and hold an election on a uniform election
date in that year to elect the directors for those positions for
terms that expire on the uniform election date in November 2013.
For the other two director's positions that expire in 2012, the
district shall call and hold an election on the same uniform
election date in that year to elect the directors for those
positions for terms that expire on the uniform election date in
November 2014. The district shall determine by lot which
single-member districts shall elect directors to serve one-year
terms and which shall elect directors to serve two-year terms.
ARTICLE 4. TRANSFER OF DISTRICT ASSETS AND LIABILITIES IF VOTERS
DISSOLVE THE BEXAR METROPOLITAN WATER DISTRICT UNDER ARTICLE 2
SECTION 4.01. Chapter 306, Acts of the 49th Legislature,
Regular Session, 1945, is amended by adding Sections 50, 51, 52, 53,
54, and 55 to read as follows:
Sec. 50. (a) The term of each person who is serving as a
Director of the District on the date the election results are
certified to the Secretary of State as authorized by Article 2 of
the Act enacting this section expires on that date.
(b) On the date the election results are certified to the
Secretary of State, the System assumes control of the operation and
management of the District, subject to Sections 52 and 53 of this
Act and other law applicable to the System.
(c) Not later than the 90th day after the date the election
results are certified to the Secretary of State, the Commission, in
consultation with the committee, shall transfer or assign all:
(1) rights and duties of the District, including
existing contracts, duties, assets, and obligations of the
District;
(2) files, records, and accounts of the District,
including those that pertain to the control, finances, management,
and operation of the District; and
(3) permits, approvals, and certificates necessary to
provide water services.
(d) To the extent that the transfer of an item listed in
Subsection (c) of this section requires the approval of a state
agency, the state agency shall grant approval without additional
notice or hearing.
(e) After the Commission has transferred the property,
assets, and liabilities as prescribed by this section, the
Commission shall enter an order dissolving the District.
Sec. 51. (a) This Act does not enhance or harm the position
of a contracting party.
(b) No law or charter provision may be construed to limit
the System's performance of an obligation under a contract
transferred or assigned to the System as a result of the dissolution
of the District, if revenue from the contract was pledged wholly or
partly to pay debt service on revenue bonds approved by the attorney
general.
Sec. 52. (a) Not later than five years after the date the
election results were certified in favor of dissolution under
Article 2 of the Act enacting this section, the System shall
integrate the services and infrastructure of the District into the
System in a reasonable and orderly manner. The Commission for good
cause may grant an extension to complete integration of not more
than three additional years. The System shall base the integration
on the consideration of relevant information, including:
(1) the location and condition of the infrastructure;
(2) debt obligations;
(3) prudent utility practices and fiscal policies;
(4) costs and revenue; and
(5) potential impacts on the customers of the District
and the System.
(b) During the integration period described by Subsection
(a) of this section, the System shall provide an annual report on
the progress of integration to the Commission, including the status
of any relevant contract provision.
(c) Until the date specified in Subsection (a) of this
section, the System may operate the former District as a special
project under the System's existing senior lien revenue bond
ordinances.
(d) Once the Commission has transferred the assets,
obligations, and duties to the System, the System shall provide
affordable and reliable water services to all of the former
ratepayers of the District under the System's certificate of
convenience and necessity.
(e) After the integration described by Subsection (a) of
this section is complete, the System shall provide water service to
former ratepayers of the District in the same manner the System
provides water service to other ratepayers of the System. The
integration is considered complete if:
(1) the areas of service located in the former
District are no longer operated as a special project within the
System;
(2) the ratepayers of the former District pay the same
rates for services provided by the System as other similarly
situated ratepayers of the System; and
(3) the ratepayers of the former District receive
water service that meets the requirements of the Commission.
(f) If the System fails to integrate the services and
infrastructure of the District into the System in accordance with
Subsection (a) of this section, the Commission may find the System
in violation of the obligation under the System's certificate of
convenience and necessity to provide continuous and adequate
service. The Commission may bring an enforcement action against
the System, including the imposition of an administrative penalty
under Section 13.4151, Water Code.
Sec. 53. (a) For a 24-month period following the transfer
of the employment of any employee of the former District, the System
may not terminate that employee, except for cause, as defined by the
System's standards of conduct for all employees, if the employee:
(1) is vested in the retirement program of the
District on the effective date of this Act; and
(2) earns an annual base salary of less than $50,000 on
the effective date of the Act enacting this section.
(b) For a five-year period following the transfer of the
employment of any employee of the former District, the System may
not terminate that employee, except for cause, as defined by the
System's standards of conduct for all employees, if:
(1) the employee meets the requirements of Subsections
(a)(1) and (2) of this section; and
(2) the sum of the years of service of the employee and
the employee's age is equal to or greater than 80.
(c) An employee who qualifies under Subsection (a) or (b) of
this section and who is terminated by the System has the same
opportunity for appeal as a person employed by the System who is not
an employee of the former District.
(d) The System is not required to employ an employee of the
District if that person was formerly terminated from, or resigned
in lieu of termination from, the System.
Sec. 54. A state agency at which an administrative or
enforcement action is pending against the District shall grant the
System special consideration and reasonable extensions to identify
and resolve the action in a manner satisfactory to the agency.
Sec. 55. (a) In this section, "advisory committee" means a
committee appointed under Subsection (b) of this section.
(b) Not later than the 60th day after the date the District
is dissolved under Section 50 of this Act, the System shall work
cooperatively with the commissioners court of each county in which
the former District was wholly or partly located to establish an
advisory committee to advise the System regarding the integration
of the services and infrastructure of the former District,
including service integration issues and the delivery of water
services by the System, in specific areas or water systems located
in the area outside the corporate boundaries of the largest
municipality served by the System.
(c) The advisory committee shall include at least one
representative from each county served by the System who resides in
the boundaries of the former District or the owner or operator of a
business located in the boundaries of the former District.
(d) Until the integration described by Section 52 of this
Act is complete, the board of directors of the System shall:
(1) consult with the advisory committee about the
matters described by Subsection (b) of this section at least
quarterly, during a regularly scheduled or specially called board
meeting of the System; and
(2) on request by the advisory committee chair,
provide members of the advisory committee an opportunity to address
the System's board of trustees on matters relating to the duties of
the advisory committee.
ARTICLE 5. DEADLINES; NOTICE; EFFECTIVE DATE OF ACT
SECTION 5.01. If a deadline established in Articles 1
through 4 of this Act cannot be met because of a requirement imposed
by the federal Voting Rights Act of 1965 (42 U.S.C. Section 1973c or
any other provisions of that act), the deadline is the next
available date after the requirement is met.
SECTION 5.02. (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 5.03. Except as otherwise provided by Article 2 of
this Act, this Act takes effect immediately if it receives a vote of
two-thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution. If this Act does not
receive the vote necessary for immediate effect, this Act takes
effect September 1, 2011.