BILL ANALYSIS

 

 

Senate Research Center

H.B. 1520

89R23110 SCR-D

By: Kitzman (Blanco)

 

Local Government

 

5/7/2025

 

Engrossed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

First established in 1935 as the Sabine-Neches Conservation District, the Angelina and Neches River Authority (ANRA) primarily provides water and wastewater services to rural communities. ANRA, which is not subject to abolishment under the Texas Sunset Act, acquires, rehabilitates, and operates these systems at the wholesale and retail level. ANRA also monitors water quality in the Neches River basin, issues permits for on-site sewage facilities, and operates a composting facility. Overall, the Sunset Advisory Commission identified good governance standards and best practices that would strengthen ANRA's operations. H.B. 1520 seeks to implement those standards and practices for ANRA and provide for its next sunset review in 2037.

 

H.B. 1520 amends current law relating to the Angelina and Neches River Authority, following recommendations of the Sunset Advisory Commission, and specifies grounds for the removal of a member of the board of directors.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 8501.0015(a), Special District Local Laws Code, to require that a certain review conducted on the Angelina and Neches River Authority (authority) be conducted under Section 325.025 (River Authorities Subject to Review), Government Code, as if the authority were a state agency scheduled to be abolished September 1, 2037, rather than September 1, 2025, and every 12th year after that year.

 

SECTION 2. Amends Subchapter C, Chapter 8501, Special District Local Laws Code, by adding Section 8501.1011, as follows:

 

Sec. 8501.1011. TRAINING REQUIRED FOR BOARD MEMBERS. (a) Prohibits a person who is appointed to and qualifies for office as a director from voting, deliberating, or being counted as a director in attendance at a meeting of the board of directors of the authority (board) until the person completes a training program that complies with this section.

 

(b) Requires that the training program provide the person with information regarding certain requirements and information.

 

(c) Provides that a person appointed to the board is entitled to reimbursement for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office.

 

(d) Requires the general manager of the authority to create a training manual that includes the information required by Subsection (b). Requires the general manager to distribute a copy of the training manual annually to each director. Requires each director to sign and submit to the general manager a statement acknowledging that the director received and has reviewed the training manual.

 

SECTION 3. Amends Section 8501.102, Special District Local Laws Code, to provide that directors are appointed for staggered terms of four, rather than six, years with four or five, rather than one-third, of the directors' terms expiring every two years as appropriate.

 

SECTION 4. Amends Sections 8501.107(a) and (c), Special District Local Laws Code, as follows:

 

(a) Requires the governor to designate, rather than the board to elect, one of the directors as president of the board to serve in that capacity at the pleasure of the governor. Requires the board to elect one director as vice president and one as secretary-treasurer. Makes nonsubstantive changes.

 

(c) Requires the vice president to act as president if the president is absent or unable to act, rather than disabled.

 

SECTION 5. Amends Subchapter C, Chapter 8501, Special District Local Laws Code, by adding Sections 8501.1071, 8501.1081, 8501.1082, 8501.1083, and 8501.114, as follows:

 

Sec. 8501.1071. REMOVAL OF DIRECTOR. (a) Provides that it is a ground for removal from the board that a director commits certain violations or actions.

 

(b) Provides that the validity of an action of the board is not affected by the fact that it is taken when a ground for removal of a director exists.

 

(c) Requires the general manager, if the general manager has knowledge that a potential ground for removal exists, to notify the president of the board of the potential ground. Requires the president of the board to then notify the governor and the attorney general that a potential ground for removal exists. Requires the general manager, if the potential ground for removal involves the president of the board, to notify the next highest ranking director, who is then required to notify the governor and the attorney general that a potential ground for removal exists.

 

Sec. 8501.1081. PUBLIC TESTIMONY. Requires the board to develop and implement policies that provide the public with a reasonable opportunity to appear before the board and to speak on any issue under the jurisdiction of the authority.

 

Sec. 8501.1082. GENERAL MANAGER. Requires the board to employ a general manager.

 

Sec. 8501.1083. SEPARATION OF POLICY-MAKING AND STAFF FUNCTIONS. Requires the board to develop and implement policies that clearly separate the policy-making responsibilities of the board and the management responsibilities of the general manager and the employees of the authority.

 

Sec. 8501.114. COMPLAINT SYSTEM. (a) Requires the authority to maintain a system to promptly and efficiently act on complaints filed with the authority. Requires the authority to maintain information about parties to the complaint, the subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and the disposition of the complaint.

 

(b) Requires the authority to make information available describing its procedures for complaint investigation and resolution.

 

(c) Requires the authority to periodically notify the complaint parties of the status of the complaint until final disposition, unless the notice would jeopardize an investigation.

 

SECTION 6. (a) Provides that of Section 8501.1011, Special District Local Laws Code, as added by this Act, except as provided by Subsection (b) of this section, applies to a member of the board of directors of the authority appointed before, on, or after the effective date of this Act.

 

(b) Authorizes a member of the board of directors of the authority, notwithstanding Section 8501.1011, Special District Local Laws Code, as added by this Act, to vote, deliberate, and be counted as a director in attendance at a meeting of the board until December 1, 2025. Prohibits a member of the board from voting, deliberating, or being counted as a director in attendance at a meeting of the board held on or after December 1, 2025, until the member completes the training required by that section.

 

SECTION 7. (a) Requires a director of the authority serving on the effective date of this Act, notwithstanding the changes in law made by this Act in Section 8501.102 (Terms), Special District Local Laws Code, and except as provided by Subsection (c) of this section, to continue in office until the director's successor is appointed and qualifies for office.

 

(b) Provides that a director of the authority appointed to succeed a director whose term expires after the effective date of this Act serves a four-year term.

 

(c) Requires the three directors whose terms expire September 5, 2029, at the first meeting of the board of directors of the authority that follows the effective date of this Act, to draw lots to determine which of those directors will serve a term that expires September 5, 2027.

 

SECTION 8. Provides that all requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

 

SECTION 9. Effective date: September 1, 2025.