By Stiles                                             H.B. No. 2919

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the powers and the board of directors of the Lower

 1-3     Neches Valley Authority.

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

 1-5           SECTION 1.  Section 3, Chapter 63, Acts of the 43rd

 1-6     Legislature, 1st Called Session, 1933 (Article 8280-103, Vernon's

 1-7     Texas Civil Statutes), is amended to read as follows:

 1-8           Sec. 3.  The management and control of all the affairs of

 1-9     such district shall be vested in a Board of Directors, consisting

1-10     of nine (9) members, all of whom shall be freehold property

1-11     taxpayers and legal voters of the State of Texas.  The governor

1-12     [Texas Water Development Board] shall appoint, with the advice and

1-13     consent of the senate, the directors of the district.  Directors of

1-14     the district hold office for staggered terms of six years.  Five

1-15     directors shall be residents of Jefferson County, two of Hardin

1-16     County, and two of Tyler County.  The directors shall hold office

1-17     after their appointment and qualification until their successors

1-18     shall be appointed and qualify, unless sooner removed by [majority

1-19     vote of] the governor [Texas Water Development Board].  Should any

1-20     vacancy occur in the Board of Directors, the vacancy shall be

1-21     filled for the unexpired term in the same manner as provided for

1-22     appointments for a full term.  The directors appointed shall within

1-23     fifteen (15) days after their appointment qualify by taking the

1-24     official oath and filing a good and sufficient bond with the

 2-1     secretary of state [Texas Water Development Board]; the official

 2-2     bond of each director, to be in the sum of Five Thousand Dollars

 2-3     ($5,000), shall be payable to the district, shall be conditioned

 2-4     upon the faithful performance of their duties as such directors,

 2-5     and shall be subject to approval by the secretary of state [Texas

 2-6     Water Development Board].  The directors shall employ a [A director

 2-7     may be employed as] general manager [and] at such compensation as

 2-8     may be fixed by the majority of the [other] directors[, and when so

 2-9     employed he shall continue to perform the duties of a director, but

2-10     shall receive no compensation as such director].

2-11           SECTION 2.  Section 13(one), Chapter 63, Acts of the 43rd

2-12     Legislature, 1st Called Session, 1933 (Article 8280-103, Vernon's

2-13     Texas Civil Statutes), is redesignated as Section 13A.

2-14           SECTION 3.  Chapter 63, Acts of the 43rd Legislature, 1st

2-15     Called Session, 1933 (Article 8280-103, Vernon's Texas Civil

2-16     Statutes), is amended by adding Section 13B to read as follows:

2-17           Sec. 13B.  (a) The district may sponsor and participate in an

2-18     economic development program within the areas served by the

2-19     district intended to strengthen the economic base and further the

2-20     economic development of the state.  The program may not be outside

2-21     the areas served by the district unless the district has entered

2-22     into an interlocal agreement with an entity under Subsection (c) of

2-23     this section.

2-24           (b)  Each program must be established by formal action of the

2-25     Board of Directors of the district.  The Board of Directors shall:

2-26                 (1)  establish the goals of the program;

2-27                 (2)  impose requirements on persons participating in

 3-1     and receiving the benefits of the program; and

 3-2                 (3)  provide restrictions, procedures, and budget

 3-3     limits that the Board of Directors determines are necessary to

 3-4     ensure that the governmental purposes of this section and the

 3-5     program are achieved.

 3-6           (c)  A program under this section may involve grants or loans

 3-7     of money, services, or equipment to a person engaged in an economic

 3-8     development activity, including a public fire-fighting

 3-9     organization, governmental body, nonprofit corporation, local or

3-10     regional development council, or other nonprofit or noncommercial

3-11     organization.  The district may provide assistance to a for-profit

3-12     entity if the assistance is necessary or appropriate to carry out

3-13     an economic development program consistent with the purposes of

3-14     this section.

3-15           (d)  The district may employ staff and expend its resources

3-16     to further an economic development program under this section,

3-17     except that the district may not use money received from an ad

3-18     valorem tax or a general appropriation to further a program.  The

3-19     district may apply for and receive money, grants, or other

3-20     assistance from any source to carry out an economic development

3-21     program under this section.

3-22           (e)  The district and any other public or private person may

3-23     enter into an agreement with respect to an economic development

3-24     program.

3-25           (f)  If the district provides scholarships, grants, loans, or

3-26     financial assistance to a public fire-fighting organization, the

3-27     district shall adopt guidelines to determine:

 4-1                 (1)  eligibility for the assistance;

 4-2                 (2)  the amount of loans, grants, or other assistance

 4-3     the district may make available to a fire-fighting organization;

 4-4     and

 4-5                 (3)  the type of equipment, education, or training for

 4-6     which the assistance may be used.

 4-7           (g)  A determination by the Board of Directors that a program

 4-8     is intended and expected to carry out the program's stated purposes

 4-9     is conclusive with respect to whether the purposes of this section

4-10     are satisfied.

4-11           (h)  In this section, an economic development program

4-12     includes a community assistance program, privatization program, or

4-13     any other program designed to:

4-14                 (1)  encourage economic diversification;

4-15                 (2)  maintain or expand employment;

4-16                 (3)  train persons;

4-17                 (4)  eliminate conditions detrimental to the public

4-18     health, safety, or welfare;

4-19                 (5)  improve the quality or quantity of services

4-20     essential for the development of viable communities and economic

4-21     growth, including services related to:

4-22                       (A)  education;

4-23                       (B)  transportation;

4-24                       (C)  public safety;

4-25                       (D)  recreation;

4-26                       (E)  health care;

4-27                       (F)  water and wastewater treatment; or

 5-1                       (G)  rural water and sewer development; or

 5-2                 (6)  contribute to the health and development of a

 5-3     community to improve the attractiveness of the community to public

 5-4     and private enterprises.

 5-5           SECTION 4.  The legislature finds that the economic

 5-6     development programs authorized by Section 13B, Chapter 63, Acts of

 5-7     the 43rd Legislature, 1st Called Session, 1933 (Article 8280-103,

 5-8     Vernon's Texas Civil Statutes), as added by this Act, are a

 5-9     specific public purpose and governmental function of the Lower

5-10     Neches Valley Authority in accordance with:

5-11                 (1)  Section 52-a, Article III, Texas Constitution; and

5-12                 (2)  to the extent that the programs provide assistance

5-13     to public fire-fighting organizations, Section 51-a-1, Article III,

5-14     Texas Constitution.

5-15           SECTION 5.  The changes in law made by Section 1 of this Act

5-16     relating to appointment of directors to the board of the Lower

5-17     Neches Valley Authority apply only to appointments made on or after

5-18     the effective date of that section and do not affect the

5-19     entitlement of a director serving on the board on May 1, 1997, to

5-20     continue to hold office for the remainder of the term for which the

5-21     person was appointed.  The governor shall appoint directors to the

5-22     board as vacancies occur after the effective date of Section 1 of

5-23     this Act.

5-24           SECTION 6.  Except as provided by Section 7, this Act takes

5-25     effect September 1, 1997.

5-26           SECTION 7.  Section 3, Chapter 63, Acts of the 43rd

5-27     Legislature, 1st Called Session, 1933 (Article 8280-103, Vernon's

 6-1     Texas Civil Statutes), as amended by this Act, takes effect

 6-2     immediately.

 6-3           SECTION 8.  The importance of this legislation and the

 6-4     crowded condition of the calendars in both houses create an

 6-5     emergency and an imperative public necessity that the

 6-6     constitutional rule requiring bills to be read on three several

 6-7     days in each house be suspended, and this rule is hereby suspended,

 6-8     and that this Act take effect and be in force according to its

 6-9     terms, and it is so enacted.