84R21162 KJE-F By: Krause H.B. No. 648 Substitute the following for H.B. No. 648: By: Larson C.S.H.B. No. 648 A BILL TO BE ENTITLED AN ACT relating to the selection of directors to the board of directors for the Viridian Municipal Management District. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 3861.051, Special District Local Laws Code, is amended to read as follows: Sec. 3861.051. GOVERNING BODY; TERMS. (a) Except as provided by Section 3861.0521, the [The] district is governed by a board of five directors as follows: (1) three directors appointed by the mayor and the governing body of the city as provided by Section 3861.052(a); and (2) two directors elected from the district at large as provided by Section 3861.052(b). (b) Directors [who] serve staggered terms of four years[, with two or three directors' terms expiring May 31 of each even-numbered year]. SECTION 2. Section 3861.052, Special District Local Laws Code, is amended to read as follows: Sec. 3861.052. APPOINTMENT OR ELECTION OF DIRECTORS [DATE]. (a) The mayor and members of the governing body of the city shall appoint three of the directors from persons recommended by the board. A person is appointed if a majority of members and the mayor vote to appoint that person. (b) The board shall hold an election to elect one director [elections for directors] on the uniform election date in May in each even-numbered year [years]. SECTION 3. Subchapter B, Chapter 3861, Special District Local Laws Code, is amended by adding Section 3861.0521 to read as follows: Sec. 3861.0521. REQUIREMENT TO ELECT ALL DIRECTORS. (a) Not later than January 1 of each year, the board shall conduct a review to determine what percentage of the developable acreage in the district has been developed. The board by rule shall establish criteria for determining whether certain acreage is developable. (b) If the board determines on conclusion of a review conducted under Subsection (a) that at least 90 percent of the developable acreage in the district has been developed, Section 3861.052 does not apply to the district and all five directors shall be selected by elections held on the uniform election date in May in even-numbered years. (c) If the board makes the determination described by Subsection (b), a director appointed to the board before the board makes that determination is entitled to serve the remainder of the director's unexpired term. (d) A vacancy on the board that occurs on or after the date the board makes the determination described by Subsection (b) shall be filled in the manner prescribed by Section 3861.054(b). SECTION 4. Section 3861.054, Special District Local Laws Code, is amended to read as follows: Sec. 3861.054. VACANCY. (a) If a vacancy occurs in the office of an appointed director, the mayor and members of the governing body of the city shall fill the vacancy for the remainder of the director's unexpired term in the same manner as the original appointment. (b) If a vacancy occurs in the office of an elected director, the [The] remaining directors shall fill the [a] vacancy [on the board] by appointing a person who meets the qualifications prescribed by Section 3861.053. [(b)] If there are fewer than three directors, the mayor and members of the governing body of the city shall appoint the necessary number of directors who meet the qualifications prescribed by Section 3861.053 to fill all board vacancies, regardless of whether the vacating directors were appointed or elected. SECTION 5. Section 3861.203, Special District Local Laws Code, is amended to read as follows: Sec. 3861.203. APPOINTMENT [ELECTION] OF DIRECTORS OF NEW DISTRICTS. (a) Not later than the 90th day after the date of an election in favor of the division of the district, the mayor and members of the governing body of the city [board] shall: (1) appoint [itself as] the board of the original district as the board of one of the new districts; and (2) appoint five directors for each of the other new districts in the manner prescribed by Section 3861.052(a). (b) Directors appointed under Subsection (a)(1) serve the remainder of the [staggered] terms to which they were appointed or elected in the original district. Notwithstanding Section 3861.053, a director appointed under Subsection (a)(1) is eligible to serve only if the director owns land inside the area described by the boundaries of the original district. Directors appointed under Subsection (a)(2) serve until May 31 of the first even-numbered year after the year in which the directors are appointed [the election for directors under Subsection (c)]. (c) On the uniform election date in May of the first even-numbered year after the year in which the directors are appointed, the appointed board shall hold an election to elect two [five] directors and the mayor and members of the governing body of the city shall appoint three directors in the manner prescribed by Section 3861.052(a) in each district for which directors were appointed under Subsection (a)(2). (d) Section 3861.0521 applies to a new district in the same manner as that section applies to the original district. [The directors shall draw lots to determine which two shall serve until the next regularly scheduled election of directors and which three shall serve until the second regularly scheduled election of directors.] SECTION 6. (a) A member of a board of directors who was elected under Section 3861.052 or 3861.203, Special District Local Laws Code, or appointed to fill a vacancy under Section 3861.054, Special District Local Laws Code, before the effective date of this Act shall continue to serve until the expiration of the member's term. As members' terms expire, the mayor and members of the governing body of the city shall fill an appropriate number of the vacancies by appointment so that the board consists of three appointed directors and two elected directors as required by Section 3861.052, Special District Local Laws Code, as amended by this Act. (b) The mayor and members of the governing body of the city may make the appointments permitted by Section 3861.052(a), Special District Local Laws Code, as amended by this Act, to fill a vacancy occurring on the board of directors on or after the effective date of this Act. SECTION 7. This Act takes effect September 1, 2015.