80R14896 SGA-F
 
  By: Flores H.B. No. 3438
 
Substitute the following for H.B. No. 3438:
 
  By:  Puente C.S.H.B. No. 3438
 
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the Rio Grande Regional Water
Authority and the establishment of a member conference.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 1.01, Chapter 385, Acts of the 78th
Legislature, Regular Session, 2003, is amended by adding
Subdivisions (4-a) and (6) through (8) to read as follows:
             (4-a)  "Conference" means the conference under Section
1A.01 of this Act.
             (6)  "Municipal class entity" means one of the
following entities that is located in the authority:
                   (A)  a municipality;
                   (B)  a municipal utility district operating under
Chapter 54, Water Code; or
                   (C)  a special utility district operating under
Chapter 65, Water Code.
             (7)  "Water supply corporation" means a nonprofit water
supply corporation operating under Chapter 67, Water Code.
             (8)  "Watermaster" means the watermaster appointed by
the commission under Subchapter G, Chapter 11, Water Code, for the
segment of the Rio Grande basin inside the boundaries of the
authority.
       SECTION 2.  Chapter 385, Acts of the 78th Legislature,
Regular Session, 2003, is amended by adding Article IA to read as
follows:
ARTICLE IA. CONFERENCE
       Sec. 1A.01.  CONFERENCE MEMBERSHIP. (a) Subject to
Subsection (b) of this section, each county, municipal class
entity, water supply corporation, and irrigation district or other
water district in the authority is a member of the conference.
       (b)  The board may determine whether a prospective member is
qualified to become a member of the conference.
       Sec. 1A.02.  ADVISORY COMMITTEE. The board may appoint an
advisory committee composed of representatives of the conference
members to advise the board in administering this Act.
       Sec. 1A.03.  IRRIGATION DISTRICTS COMMITTEE. (a) The
irrigation districts that are members of the conference shall
convene as a committee to prepare a list of nominees for director
positions under Section 2.01(b)(1) of this Act at least 60 days
before directors' terms are scheduled to expire or whenever a
vacancy occurs in those positions. The committee shall provide the
list to the governor not later than the 21st day after the date on
which the committee convenes.
       (b)  The irrigation district conference members may select a
presiding officer to conduct committee meetings and represent the
entire committee.
       SECTION 3.  Section 2.01, Chapter 385, Acts of the 78th
Legislature, Regular Session, 2003, is amended by amending
Subsections (a), (b), (c), and (f) and adding Subsections (c-1),
(h), and (i) to read as follows:
       (a)  The board consists of 18 [15] directors.
       (b)  Twelve [Nine] directors are appointed by the governor,
with the advice and consent of the senate, as follows:
             (1)  nine [six] directors who represent irrigation
districts that are members of the conference from a list of nominees
submitted by the committee of irrigation districts convened under
Section 1A.03 of this Act;
             (2)  one director who represents the public;
             (3)  one director who represents municipal class
entities that are members of the conference [water utilities]; and
             (4)  one director who represents water supply
corporations that are members of the conference [municipalities].
       (c)  One director is appointed from each of the six counties
in the authority by majority vote of the commissioners court of that
county. In January of a year in which a director's term expires,
the commissioners court of the appropriate county shall appoint a
director for a four-year [two-year] term beginning February 1 of
that year. In addition to meeting the requirements of Subsection
(c-1) of this section, if applicable, a [A] director appointed as
provided by this subsection must:
             (1)  be a registered voter;
             (2)  reside in the county from which the director is
appointed; and
             (3)  work in a water-related field or have special
knowledge of water issues [be certified to the board by the county
judge of the county from which the director is appointed].
       (c-1)  A director appointed under Subsection (c) of this
section must reside in the most populous municipality in the county
from which the director is appointed if the county:
             (1)  does not hold water rights;
             (2)  does not have a certificate of convenience and
necessity to provide water service; and
             (3)  is not a water service provider.
       (f)  Directors [Permanent directors] appointed under
Subsection (b) or (c) of this section serve staggered four-year
terms.  [Permanent directors appointed under Subsection (c) of this
section serve staggered two-year terms.]
       (h)  In making an appointment under Subsection (b)(1) of this
section, the governor may reject one or more of the nominees on a
list submitted by the committee of  irrigation districts and
request a new list of different nominees.  The second list of
nominees must be submitted to the governor not later than the 14th
day after the date of the governor's request for a new list. If the
governor rejects one or more of the nominees on the second list, the
governor may request a third, final list of nominees, that must be
submitted to the governor not later than the 14th day after the date
of the governor's request for the third list. If the governor
rejects one or more of the nominees on the third list, the governor
may select any person who represents an irrigation district that is
a member of the conference to serve as a director.
       (i)  The watermaster serves as a nonvoting advisor to the
board.
       SECTION 4.   Chapter 385, Acts of the 78th Legislature,
Regular Session, 2003, is amended by adding Section 2.035 to read as
follows:
       Sec. 2.035.  REMOVAL FROM OFFICE.  It is a ground for removal
from the board that a director is absent from more than half of the
regularly scheduled board meetings that the director is eligible to
attend during a calendar year without an excuse approved by a
majority vote of the board.
       SECTION 5.  Section 2.06(b), Chapter 385, Acts of the 78th
Legislature, Regular Session, 2003, is amended to read as follows:
       (b)  The president is the chief executive officer of the
authority. The president may not vote at a board meeting except to
break a tie vote.
       SECTION 6.  Section 3.07, Chapter 385, Acts of the 78th
Legislature, Regular Session, 2003, is amended to read as follows:
       Sec. 3.07.  COURT-APPOINTED RECEIVER. The authority may
serve as the court-appointed receiver in a matter determined by a
court concerning the disposition of assets of any political
subdivision, municipally owned utility, or water supply
corporation [district authorized by Section 59, Article XVI, Texas
Constitution].
       SECTION 7.  Chapter 385, Acts of the 78th Legislature,
Regular Session, 2003, is amended by adding Section 3.08 to read as
follows:
       Sec. 3.08.  DETERMINATION OF WATER RIGHTS. (a) Not later
than September 1 of each year, the watermaster shall provide to the
board a list of all water rights held inside the boundaries of the
authority and the authorized use for each right.
       (b)  The board shall timely review and certify each list.
       (c)  Not later than December 1 of each even-numbered year,
the board shall provide in writing to the governor and to each
member of the legislature whose legislative district is located
wholly or partly inside the boundaries of the authority:
             (1)  the most current list certified by the board under
this section; and
             (2)  a summary of the authorized uses for the water
rights on the most current list, including irrigation, municipal,
and industrial uses.
       SECTION 8.  Chapter 385, Acts of the 78th Legislature,
Regular Session, 2003, is amended by adding Section 4.04 to read as
follows:
       Sec. 4.04.  FEES AND ASSESSMENTS; AUTHORIZED CONTRIBUTIONS.
(a) The authority may impose a fee or assessment on a member of the
conference or another water user to pay authorized expenses of the
authority.
       (b)  Each fiscal year, the board shall determine the amount
of the fee or assessment based on the water rights held by the
affected entity.
       (c)  To determine the number of water rights, the board:
             (1)  shall, for a domestic, municipal, or industrial
water right, multiply by two the number of water rights certified by
the board under Section 3.08 of this Act; or
             (2)  shall, for any other water right, use the number of
water rights certified by the board under Section 3.08 of this Act.
       (d)  An initial fee or assessment imposed under this section
may not exceed five cents for each water right held by the affected
entity.
       (e)  The board may adopt standardized forms and procedures to
implement this section.
       (f)  The affected entity may charge any fee or assessment
paid to the authority to the operation and maintenance fund of the
entity or raise and pay the fee or assessment in any other
authorized manner.
       (g)  Any county in the authority, as authorized by the
commissioners court of the county, may contribute county money to
support the operations, projects, or other authorized expenses of
the authority.  A county's contribution must be made as part of a
contract with the authority, and the contract must make clear how
the contribution serves a public purpose of the county.
       SECTION 9.  On or after the 90th day after the effective date
of this Act, and not later than one year after the effective date of
this Act, the watermaster appointed by the Texas Commission on
Environmental Quality under Subchapter G, Chapter 11, Water Code,
for the segment of the Rio Grande basin inside the boundaries of the
Rio Grande Regional Water Authority shall determine the number of
water rights held by each member of the conference of the Rio Grande
Regional Water Authority.
       SECTION 10.  (a)  The terms of the members of the Board of
Directors of the Rio Grande Regional Water Authority serving on the
effective date of this Act expire on the date a majority of the
members required to be appointed under Subsection (c) of this
section qualify to serve.
       (b)  Not later than September 21, 2007, the committee of
irrigation districts shall convene as provided by Section 1A.03,
Chapter 385, Acts of the 78th Legislature, Regular Session, 2003,
as added by this Act, and submit to the governor an initial list of
nominees for the director positions under Section 2.01(b)(1) of
that chapter, as amended by this Act.
       (c)  Except as provided by Subsection (d) of this section,
not later than September 30, 2007:
             (1)  the governor shall appoint 12 members of the Board
of Directors of the Rio Grande Regional Water Authority as provided
by Section 2.01(b), Chapter 385, Acts of the 78th Legislature,
Regular Session, 2003, as amended by this Act; and
             (2)  the Commissioners Courts of Cameron, Hidalgo,
Starr, Webb, Willacy, and Zapata Counties shall each appoint a
member of the Board of Directors of the Rio Grande Regional Water
Authority as provided by Section 2.01(c), Chapter 385, Acts of the
78th Legislature, Regular Session, 2003, as amended by this Act.
       (d)  Appointments to the Board of Directors of the Rio Grande
Regional Water Authority under Subsection (c)(1) of this section
required to be made on or before September 30, 2007, are not:
             (1)  required to be made from the list of nominees
submitted by the committee of irrigation districts convened under
Section 1A.03, Chapter 385, Acts of the 78th Legislature, Regular
Session, 2003, as added by this Act; or
             (2)  subject to senate confirmation.
       (e)  At the first meeting of the Board of Directors of the Rio
Grande Regional Water Authority after directors are appointed under
Subsection (c) of this section, the directors shall draw lots to
determine their terms so that nine directors serve terms expiring
February 1, 2009, and nine directors serve terms expiring February
1, 2011.
       SECTION 11.  Sections 1.07, 2.01(d), and 3.03, Chapter 385,
Acts of the 78th Legislature, Regular Session, 2003, are repealed.
       SECTION 12.  This Act takes effect September 1, 2007.