89R10558 SCR-F

By: Hinojosa of Hidalgo S.B. No. 1933

A BILL TO BE ENTITLED

AN ACT

relating to the appointment and qualifications of the board of directors of the Agua Special Utility District.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 7201.001, Special District Local Laws Code, is amended by adding Subdivision (1-a) to read as follows:

(1-a) "Commission" means the Texas Commission on Environmental Quality.

SECTION 2. Sections 7201.055(a), (c), and (d), Special District Local Laws Code, are amended to read as follows:

(a) The district is governed by a board of seven directors appointed by the commission as provided by Section 7201.0551[, each of whom occupies a numbered position on the board and represents a unique subdistrict containing, as near as practicable, one-seventh of the total number of residents in the district].

(c) The commission [district] shall fill a vacancy on the board in accordance with Section 7201.0551 [49.105, Water Code].

(d) Directors serve staggered terms of four years. A director [and] may not serve:

(1) more than two consecutive terms;

(2) more than eight years as a director; or

(3) a portion of a term if the service would result in the director serving as a director for more than eight years.

SECTION 3. Subchapter B, Chapter 7201, Special District Local Laws Code, is amended by adding Sections 7201.0551 and 7201.0552 to read as follows:

Sec. 7201.0551. APPOINTMENT PROCESS. (a) The commission shall establish and maintain a process for a person to apply to be appointed as a director. The application process must include:

(1) public notice of open director positions, the qualifications required to serve as a director, and submission deadlines for appointment applications;

(2) a standard application form for submitting to the commission information regarding an applicant's qualifications, experience, and relevant expertise; and

(3) a review process for evaluating applicants.

(b) For each director position, the commission shall appoint the person that is the most qualified applicant for that position based on the information submitted during the application process.

(c) Before the term of a director expires, the commission shall begin the application process to accept applications for the succeeding director position.

(d) If a vacancy occurs on the board, the commission shall appoint a director for the remainder of the unexpired term, not later than the 90th day after the vacancy occurs.

Sec. 7201.0552. QUALIFICATIONS FOR APPOINTMENT. Notwithstanding Section 65.102, Water Code, to be qualified to be appointed as a director, a person must:

(1) reside in the district;

(2) be eligible under Section 141.001, Election Code, including Section 141.001(a)(6), as if the director were elected; and

(3) demonstrate knowledge, skills, and experience relevant to water utility management, public service, finance, or environmental management.

SECTION 4. Section 7201.058, Special District Local Laws Code, is amended by amending Subsections (a) and (e) and adding Subsection (d-1) to read as follows:

(a) A director may be removed from the board by a majority of the other directors if the director:

(1) does not have at the time of appointment the qualifications required by Section 7201.0552 [7201.055(b)] or is disqualified from serving under Section 7201.059;

(2) does not complete the education program required by Section 7201.054;

(3) does not meet the eligibility requirements under Section 7201.072;

(4) fails to comply with Section 7201.071;

(5) misses one-half or more of the regularly scheduled meetings during the preceding 12 months;

(6) repeatedly fails to file an affidavit under Section 553.002, Government Code, disclosing an interest in property to be acquired with public money;

(7) repeatedly fails to file a conflicts disclosure statement under Section 176.003, Local Government Code;

(8) fails to comply with Section 171.004, Local Government Code; or

(9) does not file the financial statement required of state officers under Section 7201.056[; or

[(10) does not file a campaign treasurer appointment form or a required report under Section 7201.055].

(d-1) The board shall notify the commission of the removal of a director under this section on the date the director position becomes vacant.

(e) Not later than the 30th day after the date the board removes a director, the commission [board] shall begin the process of filling the vacancy in accordance with Section 7201.0551 [49.105, Water Code].

SECTION 5. Section 7201.059, Special District Local Laws Code, is amended to read as follows:

Sec. 7201.059. DISQUALIFICATION OF DIRECTORS. A director is disqualified from serving as a director if:

(1) the director is a member or is appointed or elected as a member of the governing body of another political subdivision;

(2) the director does not[:

[(A)] meet the eligibility requirements under Section 7201.072[;

[(B) file a campaign treasurer appointment form required under Section 7201.055(b)(3); or

[(C) file each report required under Section 7201.055(b)(4)]; or

(3) the board determines a relationship or employment exists to which Section 49.052, Water Code, applies.

SECTION 6. The following provisions of the Special District Local Laws Code are repealed:

(1) Section 7201.054(c);

(2) Section 7201.055(b); and

(3) Section 7201.0555.

SECTION 7. The changes in law made by this Act do not affect the term of a director of the board of directors of the Agua Special Utility District serving on the effective date of this Act. Directors appointed to fill vacancies occurring on or after the effective date of this Act must be appointed in accordance with Section 7201.0551, Special District Local Laws Code, as added by this Act.

SECTION 8. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code.

(b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality.

(c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, the lieutenant governor, and the speaker of the house of representatives within the required time.

(d) 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. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.