Bill Text: TX SB2552 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the administration of the Agua Special Utility District; creating a criminal offense.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2019-06-10 - See remarks for effective date [SB2552 Detail]
Download: Texas-2019-SB2552-Enrolled.html
S.B. No. 2552 |
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relating to the administration of the Agua Special Utility | ||
District; creating a criminal offense. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 7201.0513(a), Special District Local | ||
Laws Code, is amended to read as follows: | ||
(a) Before the first election of directors [ |
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for directors that includes information on: | ||
(1) the history of the district; | ||
(2) the district's enabling legislation; | ||
(3) Chapters 49 and 65, Water Code, and other laws that | ||
apply to the district, including the requirements of the: | ||
(A) open meetings law, Chapter 551, Government | ||
Code; and | ||
(B) public information law, Chapter 552, | ||
Government Code; | ||
(4) relevant legal developments related to water | ||
district governance; | ||
(5) the duties and responsibilities of the board; | ||
(6) the requirements of conflict of interest laws and | ||
other laws relating to public officials; and | ||
(7) any applicable ethics policies adopted by the | ||
Texas Commission on Environmental Quality or the Texas Ethics | ||
Commission. | ||
SECTION 2. Subchapter B, Chapter 7201, Special District | ||
Local Laws Code, is amended by adding Section 7201.055 to read as | ||
follows: | ||
Sec. 7201.055. COMPOSITION OF BOARD; TERMS. (a) The | ||
district is governed by a board of seven directors, each of whom | ||
occupies a numbered position on the board and represents a unique | ||
subdistrict containing, as near as practicable, one-seventh of the | ||
total number of residents in the district. | ||
(b) A candidate for a position on the board must: | ||
(1) reside in the subdistrict represented by that | ||
position; and | ||
(2) be eligible to hold office under Section 141.001, | ||
Election Code. | ||
(c) The district shall fill a vacancy on the board in | ||
accordance with Section 49.105, Water Code. | ||
(d) Directors serve staggered terms of four years and may | ||
not serve more than two consecutive terms. | ||
(e) A person who has served as a member of the board of | ||
directors of the corporation is not eligible to serve as a district | ||
director. | ||
(f) If a director is an employee of another taxing entity | ||
within the district, the board may not employ as an employee, as a | ||
consultant, or on a contract basis: | ||
(1) an elected official of the other taxing entity | ||
that employs the director; or | ||
(2) a person related to that elected official in the | ||
third degree of consanguinity or affinity as determined under | ||
Chapter 573, Government Code. | ||
SECTION 3. Subchapter B, Chapter 7201, Special District | ||
Local Laws Code, is amended by adding Sections 7201.056, 7201.057, | ||
and 7201.058 to read as follows: | ||
Sec. 7201.056. FILING OF FINANCIAL STATEMENT BY DIRECTOR. | ||
(a) A director shall file the financial statement required of | ||
state officers under Subchapter B, Chapter 572, Government Code, | ||
with the Texas Ethics Commission. | ||
(b) Subchapter B, Chapter 572, Government Code: | ||
(1) applies to a director as if the director were a | ||
state officer; and | ||
(2) governs the contents, timeliness of filing, and | ||
public inspection of a statement filed under Subsection (a). | ||
(c) A director commits an offense if the director fails to | ||
file the statement required by Subsection (a). An offense under | ||
this subsection is a Class B misdemeanor. | ||
Sec. 7201.057. SUBSTANTIAL BUSINESS INTEREST. For purposes | ||
of Chapter 171, Local Government Code, a director, in connection | ||
with a vote or decision by the board, is considered to have a | ||
substantial interest in a business entity if a person related to the | ||
director within the third degree by consanguinity or affinity, as | ||
determined under Chapter 573, Government Code, has a substantial | ||
interest in the business entity. | ||
Sec. 7201.058. GROUNDS FOR REMOVAL. A director may be | ||
removed from the board if the director: | ||
(1) does not have at the time of appointment the | ||
qualifications required by Section 7201.055(b); | ||
(2) does not complete the initial board training | ||
required by Section 7201.0512; | ||
(3) does not complete the education program required | ||
by Section 7201.054; | ||
(4) does not meet the eligibility requirements under | ||
Section 7201.072; or | ||
(5) fails to comply with Section 7201.071. | ||
SECTION 4. Chapter 7201, Special District Local Laws Code, | ||
is amended by adding Subchapter B-1 to read as follows: | ||
SUBCHAPTER B-1. DISTRICT ADMINISTRATION | ||
Sec. 7201.071. PROHIBITED CONDUCT FOR DIRECTORS AND | ||
DISTRICT EMPLOYEES. A director or district employee may not: | ||
(1) accept or solicit any gift, favor, or service | ||
that: | ||
(A) might reasonably influence the director or | ||
employee in the discharge of an official duty; or | ||
(B) the director or employee knows or should know | ||
is offered with the intent to influence the director's or employee's | ||
official conduct; | ||
(2) accept other employment or engage in a business or | ||
professional activity that the director or employee might | ||
reasonably expect would require or induce the director or employee | ||
to disclose confidential information acquired in the course of the | ||
director's or employee's duties under this chapter; | ||
(3) accept other employment or compensation that could | ||
reasonably be expected to impair the director's or employee's | ||
independent judgment in the performance of the director's or | ||
employee's duties under this chapter; | ||
(4) make personal investments that could reasonably be | ||
expected to create a substantial conflict between the director's or | ||
employee's private interest and the interest of the district; | ||
(5) intentionally or knowingly solicit, accept, or | ||
agree to accept a benefit for the director's or employee's exercise | ||
of powers under this chapter or performance of duties under this | ||
chapter in favor of a third party; or | ||
(6) have a personal interest in an agreement executed | ||
by the district. | ||
Sec. 7201.072. ELIGIBILITY OF DIRECTOR AND GENERAL MANAGER. | ||
(a) A person is not eligible to serve as a director or general | ||
manager of the district if the person or the person's relative | ||
within the third degree by consanguinity or affinity, as determined | ||
by Chapter 573, Government Code: | ||
(1) received 10 percent or more of gross income for the | ||
previous year from a business entity or other organization, other | ||
than a governmental entity, that receives money from the district; | ||
(2) is employed by or participates in the management | ||
of a business entity or other organization, other than a | ||
governmental entity, that receives money from the district; | ||
(3) directly or indirectly owns or controls more than | ||
a 10 percent interest in the fair market value of a business or | ||
other organization that receives money from the district; | ||
(4) serves as a corporate officer or member of the | ||
board of directors of a business entity or other organization that | ||
receives money from the district; | ||
(5) is a creditor, debtor, or guarantor in an amount of | ||
$5,000 or more of a person or business entity that receives money | ||
from the district; | ||
(6) uses or receives a substantial amount of tangible | ||
goods, services, or money from the district other than compensation | ||
or reimbursement authorized by law; or | ||
(7) is required to register as a lobbyist under | ||
Chapter 305, Government Code, because of the person's activities | ||
for compensation on behalf of a profession related to the operation | ||
of the district. | ||
(b) A person applying to serve as general manager of the | ||
district shall disclose any potential violations of Subsection (a) | ||
before accepting the position of general manager. | ||
Sec. 7201.073. GENERAL MANAGER; DUTIES. (a) The board | ||
shall employ a person with prior experience and training as general | ||
manager. | ||
(b) The duties of the general manager include: | ||
(1) managing the overall strategy and operations of | ||
the district's projects, services, budget, finances, and community | ||
relations; | ||
(2) consulting with, advising, and supporting the | ||
board to efficiently accomplish the purposes of the district and to | ||
ensure compliance with all regulatory, financing, and legal | ||
requirements; | ||
(3) assisting the board in planning, developing, and | ||
implementing policies to accomplish the purposes of the district; | ||
(4) developing and implementing policies to improve | ||
the district's communication with the district's service community; | ||
(5) providing leadership and supervision to district | ||
employees; | ||
(6) creating and maintaining organizational charts to | ||
improve the district's effectiveness; | ||
(7) coordinating and developing short-term and | ||
long-term goals for the district; | ||
(8) monitoring current district projects and | ||
prioritizing future district projects; | ||
(9) evaluating contracts, grants, and commitments as | ||
authorized by the board; | ||
(10) planning, organizing, and directing district | ||
programs and services, evaluating the results of those programs and | ||
services, and recommending policies, procedures, and board actions | ||
based on that evaluation; | ||
(11) employing all persons necessary for the proper | ||
handling of the business and operation of the district and | ||
determining the compensation of those employees; and | ||
(12) performing other general responsibilities as | ||
determined by the board. | ||
(c) The board may assign the duties under Subsection (b) | ||
only to the general manager. The board may not assign the duties to | ||
any other person. | ||
(d) The general manager is an employee of the district. The | ||
general manager serves at the pleasure of and reports only to the | ||
board. | ||
(e) The board shall determine the compensation and terms of | ||
employment for the general manager. | ||
(f) The board may increase the compensation of the general | ||
manager in an amount not to exceed 10 percent of the amount of the | ||
general manager's compensation immediately before the effective | ||
date of the increase. | ||
(g) If the board enters into an employment contract with the | ||
general manager, the term of the contract may not exceed two years. | ||
(h) It is a ground for termination of the general manager if | ||
the general manager fails to disclose any potential violations of | ||
Section 7201.072 as required by that section. | ||
SECTION 5. Subchapter C, Chapter 7201, Special District | ||
Local Laws Code, is amended by adding Section 7201.104 to read as | ||
follows: | ||
Sec. 7201.104. SEARCHABLE DISTRICT EXPENDITURE DATABASE. | ||
(a) The district shall establish and post on the district's | ||
Internet website a database of district check register reports, | ||
including district expenditures and contracts. The database must | ||
include the amount, date, description, payor, and payee of the | ||
expenditures, and, if applicable, parties to the contract. | ||
(b) The district may not include in the database under | ||
Subsection (a) a district employee's salary or personal identifying | ||
information, as defined by Section 521.002, Business & Commerce | ||
Code. | ||
(c) The district shall prominently display a link to the | ||
database established under this section on the district's Internet | ||
website. The information provided in the district check register | ||
reports must be updated monthly. | ||
(d) The district shall keep in the database information | ||
required by this section related to an adopted budget until the | ||
third anniversary of the date the budget was adopted. | ||
SECTION 6. Section 7201.201, Special District Local Laws | ||
Code, is amended by adding Subsection (c) to read as follows: | ||
(c) Not later than the third day after the date the | ||
accountant finalizes the audit required by this section, the | ||
district shall publish the audit on the district's Internet | ||
website. | ||
SECTION 7. Section 7201.204, Special District Local Laws | ||
Code, is amended to read as follows: | ||
Sec. 7201.204. NEWSLETTER, WEBSITE, AND ANNUAL FINANCIAL | ||
INFORMATION. (a) The district shall maintain and update monthly | ||
an Internet website with current information concerning [ |
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revenues and expenses, and monthly [ |
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(b) Not later than 72 hours before a meeting held by the | ||
district, the district shall publish on the district's Internet | ||
website the agenda for the meeting. | ||
(c) Not later than 72 hours after the date the district | ||
adopts the minutes of a meeting held by the district, the district | ||
shall publish on the district's Internet website the minutes | ||
adopted by the district. | ||
(d) The district shall provide information, including | ||
summary financial information based on the preceding year's annual | ||
audit, to district customers at an annual meeting. | ||
SECTION 8. Effective December 31, 2019, Sections 7201.051 | ||
and 7201.052, Special District Local Laws Code, are repealed. | ||
SECTION 9. (a) Not later than December 31, 2019, the board | ||
of directors of the Agua Special Utility District shall determine | ||
each subdistrict in accordance with Section 7201.055, Special | ||
District Local Laws Code, as added by this Act, and in compliance | ||
with all applicable provisions of the Election Code. | ||
(b) The initial election for positions 1, 2, and 3 on the | ||
board shall be held on the uniform election date in May 2020. The | ||
initial election for positions 4 through 7 shall be held on the | ||
uniform election date in May 2022. | ||
SECTION 10. Not later than January 1, 2020: | ||
(1) a member of the board of directors of the Agua | ||
Special Utility District shall file a financial statement as | ||
required by Section 7201.056, Special District Local Laws Code, as | ||
added by this Act; and | ||
(2) the Agua Special Utility District shall establish | ||
and post on the district's Internet website a database of district | ||
check register reports as required by Section 7201.104, Special | ||
District Local Laws Code, as added by this Act. | ||
SECTION 11. (a) The changes in law made by this Act do not | ||
affect the entitlement of a member serving on the board of directors | ||
of the Agua Special Utility District immediately before the | ||
effective date of this Act to continue to serve as a member of the | ||
board for the remainder of the member's term. | ||
(b) A member described by Subsection (a) of this section may | ||
not serve more than two consecutive terms on the board even though | ||
one or more of those terms began before the effective date of this | ||
Act. | ||
SECTION 12. The changes in law made by this Act apply only | ||
to a general manager employed or whose employment contract is | ||
renewed or extended by the Agua Special Utility District on or after | ||
the effective date of this Act. A general manager employed or whose | ||
employment contract is renewed or extended before the effective | ||
date of this Act is governed by the law in effect on the date the | ||
general manager was employed, and the former law is continued in | ||
effect for that purpose. | ||
SECTION 13. (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 14. (a) Section 2 of this Act takes effect | ||
December 31, 2019. | ||
(b) Except as provided by Subsection (a) of this section, | ||
this Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 2552 passed the Senate on | ||
May 8, 2019, by the following vote: Yeas 31, Nays 0; and that the | ||
Senate concurred in House amendment on May 25, 2019, by the | ||
following vote: Yeas 28, Nays 2. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 2552 passed the House, with | ||
amendment, on May 22, 2019, by the following vote: Yeas 127, | ||
Nays 17, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |