Texas 2023 - 88th Regular

Texas Senate Bill SB1188 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	S.B. No. 1188
2	2
3	3
4	4	AN ACT
5	5	relating to receivership of the Agua Special Utility District and
6	6	requirements for directors of the Agua Special Utility District.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 7201.055(b), Special District Local Laws
9	9	Code, is amended to read as follows:
10	10	(b) A candidate for a position on the board must:
11	11	(1) reside in the subdistrict represented by that
12	12	position; [and]
13	13	(2) be eligible to hold office under Section 141.001,
14	14	Election Code;
15	15	(3) file a campaign treasurer appointment form
16	16	described by Chapter 252, Election Code, with the Texas Ethics
17	17	Commission; and
18	18	(4) file each report required under Title 15, Election
19	19	Code, with the Texas Ethics Commission and the board.
20	20	SECTION 2. Section 7201.058, Special District Local Laws
21	21	Code, is amended by amending Subsection (a) and adding Subsections
22	22	(c), (d), and (e) to read as follows:
23	23	(a) A director may be removed from the board by a majority of
24	24	the other directors if the director:
25	25	(1) does not have at the time of appointment the
26	26	qualifications required by Section 7201.055(b) or is disqualified
27	27	from serving under Section 7201.059;
28	28	(2) does not complete the education program required
29	29	by Section 7201.054;
30	30	(3) does not meet the eligibility requirements under
31	31	Section 7201.072;
32	32	(4) fails to comply with Section 7201.071; [or]
33	33	(5) misses one-half or more of the regularly scheduled
34	34	meetings during the preceding 12 months;
35	35	(6) repeatedly fails to file an affidavit under
36	36	Section 553.002, Government Code, disclosing an interest in
37	37	property to be acquired with public money;
38	38	(7) repeatedly fails to file a conflicts disclosure
39	39	statement under Section 176.003, Local Government Code;
40	40	(8) fails to comply with Section 171.004, Local
41	41	Government Code;
42	42	(9) does not file the financial statement required of
43	43	state officers under Section 7201.056; or
44	44	(10) does not file a campaign treasurer appointment
45	45	form or a required report under Section 7201.055.
46	46	(c) A director shall be removed from the board by the other
47	47	remaining directors if the director has been convicted of or has
48	48	pleaded guilty or nolo contendere to a civil or criminal offense of:
49	49	(1) bribery;
50	50	(2) embezzlement, extortion, or other theft of public
51	51	money;
52	52	(3) perjury;
53	53	(4) coercion of a public servant or voter;
54	54	(5) tampering with a governmental record;
55	55	(6) misuse of official information;
56	56	(7) abuse of official capacity; or
57	57	(8) conspiracy to commit or an attempted commission of
58	58	an offense described by Subdivisions (1)-(7).
59	59	(d) The board shall begin the process of notice and public
60	60	hearing for the removal of a director not later than the 30th day
61	61	after the date the board receives notice of a violation under this
62	62	section. If the removal of a director is based on a violation
63	63	described by Subsection (a), the remaining directors shall make a
64	64	determination on whether the violation occurred on or before the
65	65	60th day after the date of the public hearing.
66	66	(e) Not later than the 30th day after the date the board
67	67	removes a director, the board shall begin the process of filling the
68	68	vacancy in accordance with Section 49.105, Water Code.
69	69	SECTION 3. Subchapter B, Chapter 7201, Special District
70	70	Local Laws Code, is amended by adding Sections 7201.059 and
71	71	7201.060 to read as follows:
72	72	Sec. 7201.059. DISQUALIFICATION OF DIRECTORS. A director
73	73	is disqualified from serving as a director if:
74	74	(1) the director is a member or is appointed or elected
75	75	as a member of the governing body of another political subdivision;
76	76	(2) the director does not:
77	77	(A) meet the eligibility requirements under
78	78	Section 7201.072;
79	79	(B) file a campaign treasurer appointment form
80	80	required under Section 7201.055(b)(3); or
81	81	(C) file each report required under Section
82	82	7201.055(b)(4); or
83	83	(3) the board determines a relationship or employment
84	84	exists to which Section 49.052, Water Code, applies.
85	85	Sec. 7201.060. AUTOMATIC RESIGNATION OF DIRECTOR ON
86	86	CANDIDACY FOR OTHER ELECTIVE OFFICE. If a director announces the
87	87	director's candidacy or becomes a candidate in any general,
88	88	special, or primary election for any elective office other than the
89	89	office of director for the district, that announcement or candidacy
90	90	constitutes an automatic resignation of the office of the director.
91	91	SECTION 4. Subchapter B-1, Chapter 7201, Special District
92	92	Local Laws Code, is amended by adding Section 7201.075 to read as
93	93	follows:
94	94	Sec. 7201.075. PUBLIC ACCESS TO DIRECTOR REPORTS. (a) The
95	95	district shall post to the district's Internet website and make
96	96	publicly available each report required to be filed with the Texas
97	97	Ethics Commission under Title 15, Election Code, by:
98	98	(1) a director;
99	99	(2) a candidate for the board; or
100	100	(3) a specific-purpose committee responsible for
101	101	supporting, opposing, or assisting a director or candidate for the
102	102	board.
103	103	(b) The district shall make available a report under
104	104	Subsection (a) not later than the fifth business day after the date
105	105	the report is filed with the board.
106	106	(c) This section may not be construed to limit public access
107	107	to information in a report described by Subsection (a) through
108	108	other electronic or print distribution.
109	109	(d) The district may remove the address of a person, except
110	110	for the city, state, and zip code, listed as having made a political
111	111	contribution to the director, candidate, or committee before
112	112	posting a report on the district's Internet website. The
113	113	information must remain available in a copy of the report
114	114	maintained in the district's office.
115	115	SECTION 5. Chapter 7201, Special District Local Laws Code,
116	116	is amended by adding Subchapter E to read as follows:
117	117	SUBCHAPTER E. RECEIVERSHIP OF DISTRICT; ENFORCEMENT
118	118	Sec. 7201.301. DEFINITIONS. In this subchapter:
119	119	(1) "Agent" means an individual who exercises
120	120	discretion in the planning, recommending, selecting, or
121	121	contracting of a vendor or contractor for the sale, lease, or
122	122	purchase of real property, goods, or services on behalf of the
123	123	district.
124	124	(2) "Commission" means the Texas Commission on
125	125	Environmental Quality.
126	126	Sec. 7201.302. APPOINTMENT OF RECEIVER. (a) At the request
127	127	of the commission, the attorney general shall bring an action for
128	128	the appointment of a receiver to collect the assets and carry on the
129	129	business of the district if the district:
130	130	(1) received three consecutive audit reports with
131	131	anything other than an unqualified or clean opinion;
132	132	(2) completed five consecutive fiscal years at a net
133	133	loss;
134	134	(3) has defaulted on more than one financial debt
135	135	obligation;
136	136	(4) has a director or agent who has been convicted of
137	137	or has pleaded guilty or nolo contendere to a civil or criminal
138	138	offense related to the management or governance of the district; or
139	139	(5) violates a final judgment issued by a district
140	140	court in an action brought by the attorney general under:
141	141	(A) this chapter;
142	142	(B) Chapter 7, 13, 49, or 65, Water Code;
143	143	(C) Chapter 341, Health and Safety Code;
144	144	(D) laws governing the selection, monitoring, or
145	145	review and evaluation of professional services, vendors, or
146	146	contractors for construction or improvement projects; or
147	147	(E) a rule adopted or order issued under any
148	148	statute listed in this subdivision.
149	149	(b) The court shall appoint a receiver if an appointment is
150	150	necessary to:
151	151	(1) guarantee the collection of assessments, fees,
152	152	penalties, or interest;
153	153	(2) guarantee continuous and adequate service to the
154	154	customers of the district; or
155	155	(3) prevent continued or repeated violations of a
156	156	court order or final commission order.
157	157	Sec. 7201.303. POWERS AND DUTIES OF RECEIVER. (a) The
158	158	receiver shall execute a bond in an amount to be set by the court to
159	159	ensure the proper performance of the receiver's duties.
160	160	(b) After appointment and execution of bond, the receiver
161	161	shall take possession of the assets of the district specified by the
162	162	court.
163	163	(c) Until discharged by the court, the receiver shall
164	164	perform the duties that the court directs to preserve the assets and
165	165	carry on the business of the district and shall strictly observe the
166	166	final order involved.
167	167	(d) The receiver has the powers and duties necessary to
168	168	ensure the continued operation of the district and the provision of
169	169	continuous and adequate services, including:
170	170	(1) meter reading;
171	171	(2) billing for services;
172	172	(3) collecting revenue;
173	173	(4) disbursing funds;
174	174	(5) accessing all system components; and
175	175	(6) requesting rate increases.
176	176	Sec. 7201.304. DISSOLUTION OF RECEIVERSHIP. The court may
177	177	dissolve the receivership and order the assets and control of the
178	178	business returned to the district if the district shows good cause
179	179	for the dissolution of the receivership.
180	180	Sec. 7201.305. EFFECT ON COMMISSION ENFORCEMENT AUTHORITY.
181	181	This subchapter does not affect the authority of the commission to
182	182	pursue an enforcement action against the district or an affiliated
183	183	person.
184	184	SECTION 6. Not later than the 30th day after the effective
185	185	date of this Act, the board of directors of the Agua Special Utility
186	186	District shall adopt or update procedures for the removal of a
187	187	director under Section 7201.058, Special District Local Laws Code,
188	188	as amended by this Act.
189	189	SECTION 7. This Act takes effect September 1, 2023.
190	190	______________________________ ______________________________
191	191	President of the Senate Speaker of the House
192	192	I hereby certify that S.B. No. 1188 passed the Senate on
193	193	April 17, 2023, by the following vote: Yeas 31, Nays 0;
194	194	May 16, 2023, Senate refused to concur in House amendment and
195	195	requested appointment of Conference Committee; May 17, 2023, House
196	196	granted request of the Senate; May 22, 2023, Senate adopted
197	197	Conference Committee Report by the following vote: Yeas 31,
198	198	Nays 0.
199	199	______________________________
200	200	Secretary of the Senate
201	201	I hereby certify that S.B. No. 1188 passed the House, with
202	202	amendment, on May 9, 2023, by the following vote: Yeas 125,
203	203	Nays 17, two present not voting; May 17, 2023, House granted
204	204	request of the Senate for appointment of Conference Committee;
205	205	May 24, 2023, House adopted Conference Committee Report by the
206	206	following vote: Yeas 129, Nays 14, one present not voting.
207	207	______________________________
208	208	Chief Clerk of the House
209	209	Approved:
210	210	______________________________
211	211	Date
212	212	______________________________
213	213	Governor