1-1     By:  Stiles (Senate Sponsor - Galloway)               H.B. No. 2919

 1-2           (In the Senate - Received from the House April 23, 1997;

 1-3     April 24, 1997, read first time and referred to Committee on

 1-4     Natural Resources; May 15, 1997, reported favorably by the

 1-5     following vote:  Yeas 6, Nays 0; May 15, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the powers and the board of directors of the Lower

 1-9     Neches Valley Authority.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 3, Chapter 63, Acts of the 43rd

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

1-13     Texas Civil Statutes), is amended to read as follows:

1-14           Sec. 3.  The management and control of all the affairs of

1-15     such district shall be vested in a Board of Directors, consisting

1-16     of nine (9) members, all of whom shall be freehold property

1-17     taxpayers and legal voters of the State of Texas.  The governor

1-18     [Texas Water Development Board] shall appoint, with the advice and

1-19     consent of the senate, the directors of the district.  Directors of

1-20     the district hold office for staggered terms of six years.  Five

1-21     directors shall be residents of Jefferson County, two of Hardin

1-22     County, and two of Tyler County.  The directors shall hold office

1-23     after their appointment and qualification until their successors

1-24     shall be appointed and qualify, unless sooner removed by [majority

1-25     vote of] the governor [Texas Water Development Board].  Should any

1-26     vacancy occur in the Board of Directors, the vacancy shall be

1-27     filled for the unexpired term in the same manner as provided for

1-28     appointments for a full term.  The directors appointed shall within

1-29     fifteen (15) days after their appointment qualify by taking the

1-30     official oath and filing a good and sufficient bond with the

1-31     secretary of state [Texas Water Development Board]; the official

1-32     bond of each director, to be in the sum of Five Thousand Dollars

1-33     ($5,000), shall be payable to the district, shall be conditioned

1-34     upon the faithful performance of their duties as such directors,

1-35     and shall be subject to approval by the secretary of state [Texas

1-36     Water Development Board].  The directors shall employ a [A director

1-37     may be employed as] general manager [and] at such compensation as

1-38     may be fixed by the majority of the [other] directors[, and when so

1-39     employed he shall continue to perform the duties of a director, but

1-40     shall receive no compensation as such director].

1-41           SECTION 2.  Section 13(one), Chapter 63, Acts of the 43rd

1-42     Legislature, 1st Called Session, 1933 (Article 8280-103, Vernon's

1-43     Texas Civil Statutes), is redesignated as Section 13A.

1-44           SECTION 3.  Chapter 63, Acts of the 43rd Legislature, 1st

1-45     Called Session, 1933 (Article 8280-103, Vernon's Texas Civil

1-46     Statutes), is amended by adding Section 13B to read as follows:

1-47           Sec. 13B.  (a) The district may sponsor and participate in an

1-48     economic development program within the areas served by the

1-49     district intended to strengthen the economic base and further the

1-50     economic development of the state.  The program may not be outside

1-51     the areas served by the district unless the district has entered

1-52     into an interlocal agreement with an entity under Subsection (c) of

1-53     this section.

1-54           (b)  Each program must be established by formal action of the

1-55     Board of Directors of the district.  The Board of Directors shall:

1-56                 (1)  establish the goals of the program;

1-57                 (2)  impose requirements on persons participating in

1-58     and receiving the benefits of the program; and

1-59                 (3)  provide restrictions, procedures, and budget

1-60     limits that the Board of Directors determines are necessary to

1-61     ensure that the governmental purposes of this section and the

1-62     program are achieved.

1-63           (c)  A program under this section may involve grants or loans

1-64     of money, services, or equipment to a person engaged in an economic

 2-1     development activity, including a public fire-fighting

 2-2     organization, governmental body, nonprofit corporation, local or

 2-3     regional development council, or other nonprofit or noncommercial

 2-4     organization.  The district may provide assistance to a for-profit

 2-5     entity if the assistance is necessary or appropriate to carry out

 2-6     an economic development program consistent with the purposes of

 2-7     this section.

 2-8           (d)  The district may employ staff and expend its resources

 2-9     to further an economic development program under this section,

2-10     except that the district may not use money received from an ad

2-11     valorem tax or a general appropriation to further a program.  The

2-12     district may apply for and receive money, grants, or other

2-13     assistance from any source to carry out an economic development

2-14     program under this section.

2-15           (e)  The district and any other public or private person may

2-16     enter into an agreement with respect to an economic development

2-17     program.

2-18           (f)  If the district provides scholarships, grants, loans, or

2-19     financial assistance to a public fire-fighting organization, the

2-20     district shall adopt guidelines to determine:

2-21                 (1)  eligibility for the assistance;

2-22                 (2)  the amount of loans, grants, or other assistance

2-23     the district may make available to a fire-fighting organization;

2-24     and

2-25                 (3)  the type of equipment, education, or training for

2-26     which the assistance may be used.

2-27           (g)  A determination by the Board of Directors that a program

2-28     is intended and expected to carry out the program's stated purposes

2-29     is conclusive with respect to whether the purposes of this section

2-30     are satisfied.

2-31           (h)  In this section, an economic development program

2-32     includes a community assistance program, privatization program, or

2-33     any other program designed to:

2-34                 (1)  encourage economic diversification;

2-35                 (2)  maintain or expand employment;

2-36                 (3)  train persons;

2-37                 (4)  eliminate conditions detrimental to the public

2-38     health, safety, or welfare;

2-39                 (5)  improve the quality or quantity of services

2-40     essential for the development of viable communities and economic

2-41     growth, including services related to:

2-42                       (A)  education;

2-43                       (B)  transportation;

2-44                       (C)  public safety;

2-45                       (D)  recreation;

2-46                       (E)  health care;

2-47                       (F)  water and wastewater treatment; or

2-48                       (G)  rural water and sewer development; or

2-49                 (6)  contribute to the health and development of a

2-50     community to improve the attractiveness of the community to public

2-51     and private enterprises.

2-52           SECTION 4.  The legislature finds that the economic

2-53     development programs authorized by Section 13B, Chapter 63, Acts of

2-54     the 43rd Legislature, 1st Called Session, 1933 (Article 8280-103,

2-55     Vernon's Texas Civil Statutes), as added by this Act, are a

2-56     specific public purpose and governmental function of the Lower

2-57     Neches Valley Authority in accordance with:

2-58                 (1)  Section 52-a, Article III, Texas Constitution; and

2-59                 (2)  to the extent that the programs provide assistance

2-60     to public fire-fighting organizations, Section 51-a-1, Article III,

2-61     Texas Constitution.

2-62           SECTION 5.  The changes in law made by Section 1 of this Act

2-63     relating to appointment of directors to the board of the Lower

2-64     Neches Valley Authority apply only to appointments made on or after

2-65     the effective date of that section and do not affect the

2-66     entitlement of a director serving on the board on May 1, 1997, to

2-67     continue to hold office for the remainder of the term for which the

2-68     person was appointed.  The governor shall appoint directors to the

2-69     board as vacancies occur after the effective date of Section 1 of

 3-1     this Act.

 3-2           SECTION 6.  Except as provided by Section 7, this Act takes

 3-3     effect September 1, 1997.

 3-4           SECTION 7.  Section 3, Chapter 63, Acts of the 43rd

 3-5     Legislature, 1st Called Session, 1933 (Article 8280-103, Vernon's

 3-6     Texas Civil Statutes), as amended by this Act, takes effect

 3-7     immediately.

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

 3-9     crowded condition of the calendars in both houses create an

3-10     emergency and an imperative public necessity that the

3-11     constitutional rule requiring bills to be read on three several

3-12     days in each house be suspended, and this rule is hereby suspended,

3-13     and that this Act take effect and be in force according to its

3-14     terms, and it is so enacted.

3-15                                  * * * * *