By Stiles                                             H.B. No. 2919

         75R7932 JMC-F                           

                                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

2-18     an economic development program intended to strengthen the economic

2-19     base and further the economic development of the state.  The

2-20     program may be within or outside the areas served by the district.

2-21           (b)  Each program must be established by formal action of the

2-22     Board of Directors of the district.  The Board of Directors shall:

2-23                 (1)  establish the goals of the program;

2-24                 (2)  impose requirements on persons participating in

2-25     and receiving the benefits of the program; and

2-26                 (3)  provide restrictions, procedures, and budget

2-27     limits that the Board of Directors determines are necessary to

 3-1     ensure that the governmental purposes of this section and the

 3-2     program are achieved.

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

 3-4     of money, services, or equipment to a person engaged in an economic

 3-5     development activity, including a public fire-fighting

 3-6     organization, governmental body, nonprofit corporation, local or

 3-7     regional development council, or other nonprofit or noncommercial

 3-8     organization.  The district may provide assistance to a for-profit

 3-9     entity if the assistance is necessary or appropriate to carry out

3-10     an economic development program consistent with the purposes of

3-11     this section.

3-12           (d)  The district may employ staff and expend its resources

3-13     to further an economic development program under this section,

3-14     except that the district may not use money received from an ad

3-15     valorem tax or a general appropriation to further a program.  The

3-16     district may apply for and receive money, grants, or other

3-17     assistance from any source to carry out an economic development

3-18     program under this section.

3-19           (e)  The district and any other public or private person may

3-20     enter into an agreement with respect to an economic development

3-21     program.

3-22           (f)  If the district provides scholarships, grants, loans, or

3-23     financial assistance to a public fire-fighting organization, the

3-24     district shall adopt guidelines to determine:

3-25                 (1)  eligibility for the assistance;

3-26                 (2)  the amount of loans, grants, or other assistance

3-27     the district may make available to a fire-fighting organization;

 4-1     and

 4-2                 (3)  the type of equipment, education, or training for

 4-3     which the assistance may be used.

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

 4-5     is intended and expected to carry out the program's stated purposes

 4-6     is conclusive with respect to whether the purposes of this section

 4-7     are satisfied.

 4-8           (h)  In this section, an economic development program

 4-9     includes a community assistance program, privatization program, or

4-10     any other program designed to:

4-11                 (1)  encourage economic diversification;

4-12                 (2)  maintain or expand employment;

4-13                 (3)  train persons;

4-14                 (4)  eliminate conditions detrimental to the public

4-15     health, safety, or welfare;

4-16                 (5)  improve the quality or quantity of services

4-17     essential for the development of viable communities and economic

4-18     growth, including services related to:

4-19                       (A)  education;

4-20                       (B)  transportation;

4-21                       (C)  public safety;

4-22                       (D)  recreation;

4-23                       (E)  health care;

4-24                       (F)  water and wastewater treatment; or

4-25                       (G)  rural water and sewer development; or

4-26                 (6)  contribute to the health and development of a

4-27     community to improve the attractiveness of the community to public

 5-1     and private enterprises.

 5-2           SECTION 4.  The legislature finds that the economic

 5-3     development programs authorized by Section 13B, Chapter 63, Acts of

 5-4     the 43rd Legislature, 1st Called Session, 1933 (Article 8280-103,

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

 5-6     specific public purpose and governmental function of the Lower

 5-7     Neches Valley Authority in accordance with:

 5-8                 (1)  Section 52-a, Article III, Texas Constitution; and

 5-9                 (2)  to the extent that the programs provide assistance

5-10     to public fire-fighting organizations, Section 51-a-1, Article III,

5-11     Texas Constitution.

5-12           SECTION 5.  The changes in law made by Section 1 of this Act

5-13     relating to appointment of directors to the board of the Lower

5-14     Neches Valley Authority apply only to appointments made on or after

5-15     the effective date of that section and do not affect the

5-16     entitlement of a director serving on the board on May 1, 1997, to

5-17     continue to hold office for the remainder of the term for which the

5-18     person was appointed.  The governor shall appoint directors to the

5-19     board as vacancies occur after the effective date of Section 1 of

5-20     this Act.

5-21           SECTION 6.  Except as provided by Section 7, this Act takes

5-22     effect September 1, 1997.

5-23           SECTION 7.  Section 3, Chapter 63, Acts of the 43rd

5-24     Legislature, 1st Called Session, 1933 (Article 8280-103, Vernon's

5-25     Texas Civil Statutes), as amended by this Act, takes effect

5-26     immediately.

5-27           SECTION 8.  The importance of this legislation and the

 6-1     crowded condition of the calendars in both houses create an

 6-2     emergency and an imperative public necessity that the

 6-3     constitutional rule requiring bills to be read on three several

 6-4     days in each house be suspended, and this rule is hereby suspended,

 6-5     and that this Act take effect and be in force according to its

 6-6     terms, and it is so enacted.

 6-7                          COMMITTEE AMENDMENT NO. 1

 6-8           Amend SECTION 3, Subsection 13B(a) of HB 2919 to read as

 6-9     follows:

6-10           "The district may sponsor and participate in an economic

6-11     development program within the areas served by the district

6-12     intended to strengthen the economic base and further the economic

6-13     development of the state.  The program may not be outside the areas

6-14     served by the district unless the district has intered into an

6-15     interlocal agreement with an entity under Subsection (c) of this

6-16     section."

6-17                                                         Lewis of Orange