H.B. No. 1540
AN ACT
relating to the San Jacinto River Authority, following
recommendations of the Sunset Advisory Commission; specifying
grounds for the removal of a member of the board of directors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1A(a), Chapter 426, Acts of the 45th
Legislature, Regular Session, 1937, is amended to read as follows:
(a) The District is subject to review under Chapter 325,
Government Code (Texas Sunset Act), but may not be abolished under
that chapter. The review shall be conducted under Section 325.025,
Government Code, as if the District were a state agency scheduled to
be abolished September 1, 2035 [2023], and every 12th year after
that year.
SECTION 2. Section 6, Chapter 426, Acts of the 45th
Legislature, Regular Session, 1937, is amended to read as follows:
Sec. 6. The management and control of all the affairs of
said District shall be vested in, and the powers, rights,
privileges, and functions of the District shall be exercised by a
Board of Directors consisting of seven [six (6)] members, all of
whom shall be freehold property taxpayers and legal voters of the
State of Texas and four (4) of whom shall be residents of a county
wholly encompassed by the District. Members of such Board of
Directors shall be appointed by the Governor for terms of four [six
(6)] years. [Provided, the present Board of six (6) directors of
said District, appointed by the State Board of Water Engineers
under authority of House Bill No. 1094, Chapter 613, Acts of the
Regular Session of the Forty-seventh Legislature, amending Section
6 of Chapter 426, Acts of the Regular Session of the Forty-fifth
Legislature, as amended by House Bill No. 828, Chapter 480, Acts of
the Regular Session of the Forty-seventh Legislature, for terms of
two (2), four (4), and six (6) years, shall continue to serve as
such until the expiration of the respective terms for which they
were appointed. Upon the expiration of the terms for which the
present members of the Board of Directors were appointed, the
successors of each and all of them shall be appointed by the
Governor for a term of six (6) years.]
The Directors shall hold office after their appointment and
qualification until their successors shall be appointed and
qualified. Should any vacancy occur in the Board of Directors, the
same shall be filled in like manner by the Governor for the
unexpired term. The Directors appointed shall, within thirty (30)
days after their appointment, qualify by taking the official oath
required of County Commissioners, and shall execute bond in the sum
of Five Thousand Dollars ($5,000) payable to the District, the
sufficiency of which bond shall be determined by the Governor,
which bonds after being recorded in the official bond records of the
county in which the District maintains its office shall be
deposited with the depository selected and approved for the deposit
of the funds of the District.
The Governor shall designate a Director as the President of
the Board to serve in that capacity at the pleasure of the Governor.
The Board of Directors shall organize by electing one of its members
[President, one] Vice-President, one Secretary, and one Treasurer.
Four (4) members, including the President [presiding officer],
shall constitute a quorum to transact business. The President
shall preside at all meetings of the Board and shall be the chief
executive officer of the District. The Vice-President shall act as
President in case of the absence or disability of the President.
The Secretary shall act as Secretary of the Board and shall be
charged with the duty of keeping a record of all proceedings and all
orders of the Board. The Treasurer shall receive and receipt for
all moneys received by the District and shall keep books and records
of all moneys received and expended. In case of the absence or
inability of the Secretary to act, a Secretary pro tem shall be
selected by the Directors.
The domicile of the District shall be in the City of Conroe,
in the County of Montgomery, Texas, where the District shall
maintain its principal office. The Board of Directors shall have
authority to fix the time, place and number of meetings of such
Board by proper resolutions, regulations and bylaws passed by said
Board. Said Board shall cause to be kept complete and accurate
accounts conforming to approved methods of bookkeeping. Said
accounts and all contracts, documents, and records of the District
shall be kept at said principal office, and same shall be open to
public inspection at all reasonable times.
SECTION 3. Chapter 426, Acts of the 45th Legislature,
Regular Session, 1937, is amended by adding Sections 6A, 6B, 6C, 6D,
6E, and 6F to read as follows:
Sec. 6A. (a) It is a ground for removal from the Board of
Directors that a Director:
(1) does not have at the time of taking office the
qualifications required by Section 6 of this Act;
(2) does not maintain during service on the Board the
qualifications required by Section 6 of this Act;
(3) is ineligible for directorship under Chapter 171,
Local Government Code;
(4) cannot, because of illness or disability,
discharge the Director's duties for a substantial part of the
Director's term; or
(5) is absent from more than half of the regularly
scheduled Board meetings that the Director is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the Board.
(b) The validity of an action of the Board is not affected by
the fact that it is taken when a ground for removal of a Director
exists.
(c) If the general manager has knowledge that a potential
ground for removal exists, the general manager shall notify the
President of the Board of the potential ground. The President shall
then notify the Governor and the Attorney General that a potential
ground for removal exists. If the potential ground for removal
involves the President, the general manager shall notify the next
highest ranking Director, who shall then notify the Governor and
the Attorney General that a potential ground for removal exists.
Sec. 6B. (a) A person who is appointed to and qualifies for
office as a Director may not vote, deliberate, or be counted as a
Director in attendance at a meeting of the Board of Directors until
the person completes a training program that complies with this
section.
(b) The training program must provide the person with
information regarding:
(1) the law governing District operations;
(2) the programs, functions, rules, and budget of the
District;
(3) the scope of and limitations on the rulemaking
authority of the District;
(4) the results of the most recent formal audit of the
District;
(5) the requirements of:
(A) laws relating to open meetings, public
information, administrative procedure, and disclosing conflicts of
interest; and
(B) other laws applicable to members of the
governing body of a river authority in performing their duties; and
(6) any applicable ethics policies adopted by the
District or the Texas Ethics Commission.
(c) A person appointed to the Board is entitled to
reimbursement for the travel expenses incurred in attending the
training program regardless of whether the attendance at the
program occurs before or after the person qualifies for office.
(d) The general manager of the District shall create a
training manual that includes the information required by
Subsection (b) of this section. The general manager shall
distribute a copy of the training manual annually to each Director.
Each Director shall sign and submit to the general manager a
statement acknowledging that the Director received and has reviewed
the training manual.
Sec. 6C. The Board of Directors shall develop and implement
policies that clearly separate the policy-making responsibilities
of the Board and the management responsibilities of the general
manager and the staff of the District.
Sec. 6D. (a) The District shall maintain a system to
promptly and efficiently act on complaints filed with the District.
The District shall maintain information about parties to the
complaint, the subject matter of the complaint, a summary of the
results of the review or investigation of the complaint, and its
disposition.
(b) The District shall make information available
describing its procedures for complaint investigation and
resolution.
(c) The District shall periodically notify the complaint
parties of the status of the complaint until final disposition,
unless the notice would jeopardize an investigation.
Sec. 6E. The Board of Directors shall develop and implement
policies that provide the public with a reasonable opportunity to
appear before the Board and to speak on any issue under the
jurisdiction of the District.
Sec. 6F. The Board of Directors shall develop and implement
a comprehensive policy that provides a structure for public
engagement in advance of major actions and projects. The policy
must include a clear and detailed description of how the District
will seek to actively engage stakeholders, including the possible
use of:
(1) advisory committees;
(2) community panels;
(3) town hall meetings;
(4) surveys; and
(5) other strategies on a recurring basis.
SECTION 4. The member of the board of directors of the San
Jacinto River Authority whose term expires in November 2027 shall
continue in office until the member's successor is appointed to and
qualifies for a term of four years beginning in October 2027.
SECTION 5. (a) Except as provided by Subsection (b) of
this section, Section 6B, Chapter 426, Acts of the 45th
Legislature, Regular Session, 1937, as added by this Act, applies
to a member of the board of directors of the San Jacinto River
Authority appointed before, on, or after the effective date of this
Act.
(b) Notwithstanding Section 6B, Chapter 426, Acts of the
45th Legislature, Regular Session, 1937, as added by this Act, a
person serving on the board of directors of the San Jacinto River
Authority may vote, deliberate, and be counted as a director in
attendance at a meeting of the board until December 1, 2023. A
director may not vote, deliberate, or be counted as a member in
attendance at a meeting of the board held on or after December 1,
2023, until the member completes the training required by that
section.
SECTION 6. (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 7. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1540 was passed by the House on April
28, 2023, by the following vote: Yeas 145, Nays 2, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1540 on May 25, 2023, by the following vote: Yeas 135, Nays 0,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1540 was passed by the Senate, with
amendments, on May 23, 2023, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor