By Bosse                                        H.B. No. 1660

      75R4052 JMC-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to training requirements for a director of a water

 1-3     district or a water supply corporation.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter D, Chapter 5, Water Code, is amended

 1-6     by adding Section 5.123 to read as follows:

 1-7           Sec. 5.123.  ASSISTANCE WITH TRAINING REQUIREMENTS FOR

 1-8     CERTAIN DIRECTORS.  (a)  The commission shall create reference

 1-9     manuals containing information relating to the training

1-10     requirements imposed on:

1-11                 (1)  a director of a water district under Section

1-12     49.0511; and

1-13                 (2)  a director of a water supply corporation under

1-14     Section 3A, Chapter 76, Acts of the 43rd Legislature, 1st Called

1-15     Session, 1933 (Article 1434a, Vernon's Texas Civil Statutes).

1-16           (b)  The reference manuals shall contain course outlines and

1-17     the names of professional associations and other organizations that

1-18     provide the required training.

1-19           (c)  The commission shall encourage professional associations

1-20     and other organizations to provide the required training at

1-21     locations throughout the state.

1-22           SECTION 2.  Subchapter C, Chapter 49, Water Code, is amended

1-23     by adding Section 49.0511 to read as follows:

1-24           Sec. 49.0511.  DIRECTOR TRAINING.  (a)  A director shall, not

 2-1     later than the first anniversary of the date on which the director

 2-2     was elected or appointed to a board, complete at least six hours of

 2-3     training provided by a professional association or other

 2-4     organization in the following areas:

 2-5                 (1)  the role and functions of the district;

 2-6                 (2)  district finances;

 2-7                 (3)  the duties and responsibilities of a director;

 2-8                 (4)  rules applicable to the district adopted by the

 2-9     commission;

2-10                 (5)  the requirements applicable to the district of

2-11     the:

2-12                       (A)  Public Funds Investment Act, Chapter 2256,

2-13     Government Code;

2-14                       (B)  open meetings law, Chapter 551, Government

2-15     Code; and

2-16                       (C)  open records law, Chapter 552, Government

2-17     Code;

2-18                 (6)  applicable ethics policies adopted by the

2-19     commission or the Texas Ethics Commission; and

2-20                 (7)  applicable tax, election, and local government

2-21     laws.

2-22           (b)  A district shall provide each incoming director with a

2-23     copy of the training reference manual created by the commission

2-24     under Section 5.123.

2-25           (c)  A professional association or other organization that

2-26     provides training to a director under Subsection (a) may, on

2-27     completion of at least six hours of training by a director, issue a

 3-1     certificate of completion to the director.

 3-2           (d)  A director shall submit the certificate of completion

 3-3     received under Subsection (c) or other comparable documentation to

 3-4     the board on which the director serves.

 3-5           (e)  The board shall notify a director who fails to comply

 3-6     with Subsection (a) that the director must complete the training

 3-7     not later than the 60th day after the date the director receives

 3-8     the notice.  If the director fails to complete the training by that

 3-9     date, the board by a majority vote may remove the director.

3-10           (f)  A district shall reimburse a director of the district

3-11     for reasonable expenses incurred in completing the training

3-12     required under Subsection (a).

3-13           SECTION 3.  Chapter 76, Acts of the 43rd Legislature, 1st

3-14     Called Session, 1933 (Article 1434a, Vernon's Texas Civil

3-15     Statutes), is amended by adding Section 3A to read as follows:

3-16           Sec. 3A.  DIRECTOR TRAINING.  (a)  A member of a board of

3-17     directors shall, not later than the first anniversary of the date

3-18     on which the director was elected or appointed to the board,

3-19     complete at least six hours of training provided by a professional

3-20     association or other organization in the following areas:

3-21                 (1)  the role and functions of the corporation;

3-22                 (2)  corporation finances;

3-23                 (3)  the duties and responsibilities of a director;

3-24                 (4)  rules applicable to the corporation adopted by the

3-25     Texas Natural Resource Conservation Commission;

3-26                 (5)  the requirements applicable to the corporation of

3-27     the:

 4-1                       (A)  Public Funds Investment Act, Chapter 2256,

 4-2     Government Code;

 4-3                       (B)  open meetings law, Chapter 551, Government

 4-4     Code; and

 4-5                       (C)  open records law, Chapter 552, Government

 4-6     Code;

 4-7                 (6)  applicable ethics policies adopted by the Texas

 4-8     Natural Resource Conservation Commission or the Texas Ethics

 4-9     Commission; and

4-10                 (7)  applicable tax, election, and local government

4-11     laws.

4-12           (b)  A board of directors shall provide each incoming

4-13     director with a copy of the training reference manual created by

4-14     the Texas Natural Resource Conservation Commission under Section

4-15     5.123, Water Code.

4-16           (c)  A professional association or other organization that

4-17     provides training to a director under Subsection (a) may, on

4-18     completion of at least six hours of training by a director, issue a

4-19     certificate of completion to the director.

4-20           (d)  A director shall submit the certificate of completion

4-21     received under Subsection (c) or other comparable documentation to

4-22     the board on which the director serves.

4-23           (e)  The board of directors shall notify a director who fails

4-24     to comply with Subsection (a) that the director must complete the

4-25     training not later than the 60th day after the date the director

4-26     receives the notice.  If the director fails to complete the

4-27     training by that date, the board by a majority vote may remove the

 5-1     director.

 5-2           (f)  A corporation shall reimburse a director of the

 5-3     corporation for reasonable expenses incurred in completing the

 5-4     training required under Subsection (a).

 5-5           SECTION 4.  This Act takes effect September 1, 1997, and

 5-6     applies only to a director elected or appointed to the board of a

 5-7     water district or a water supply corporation on or after September

 5-8     1, 1997.

 5-9           SECTION 5.  The importance of this legislation and the

5-10     crowded condition of the calendars in both houses create an

5-11     emergency and an imperative public necessity that the

5-12     constitutional rule requiring bills to be read on three several

5-13     days in each house be suspended, and this rule is hereby suspended.