S.B. No. 2406

AN ACT

relating to the Sabine River Authority of Texas, following recommendations of the Sunset Advisory Commission; specifying term lengths and grounds for the removal of a member of the board of directors.

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

SECTION 1. Section 2A(a), Chapter 110, Acts of the 51st Legislature, Regular Session, 1949, is amended to read as follows:

(a) The district is subject to review under Chapter 325, Government Code (Texas Sunset Act), but may not be abolished under that chapter. The review shall be conducted under Section 325.025, Government Code, as if the district were a state agency scheduled to be abolished September 1, 2037 [2025], and every 12th year after that year.

SECTION 2. Section 3, Chapter 110, Acts of the 51st Legislature, Regular Session, 1949, is amended to read as follows:

Sec. 3. The management and control of all of the affairs of the district shall be vested in the Board of Directors, consisting of nine (9) members, each of whom shall be a freehold property taxpayer and a legal voter of the State of Texas. Such Board of Directors shall be appointed by the Governor of Texas [as soon as practicable after the passage of this Act] and confirmed by the Senate[; one-third of the members to be appointed for a term of two (2) years, one-third of the members to be appointed for a term of four (4) years, and the remaining members to be appointed for a term of six (6) years]. [Upon the expiration of the respective terms of said] Directors [the successors of each and all of them] shall be appointed [thereafter] for staggered terms [a term] of four [six (6)] years. Four members of the Board of Directors must each reside within a county located in the upper basin of the Sabine River, including Collin, Rockwall, Kaufman, Hunt, Rains, Van Zandt, Hopkins, Franklin, Wood, Smith, Upshur, Gregg, Harrison, and Rusk counties. Four members of the Board of Directors must each reside within a county located in the lower basin of the Sabine River, including Panola, Shelby, San Augustine, Sabine, Jasper, Newton, and Orange counties. One member of the Board of Directors must reside within any county situated wholly or partially within the watershed of the Sabine River. The Directors shall hold office after their appointment and qualification until their successors shall be appointed and qualified. Should any vacancy occur in the Board of Directors the same may be filled in like manner by the Governor of Texas for the unexpired term. The Directors appointed shall within fifteen (15) days after their appointment qualify by taking the official oath and filing a good and sufficient bond with the Secretary of State; the official bond of each Director to be in the sum of One Thousand Dollars ($1,000), and shall be payable to the district, shall be conditioned upon the faithful performance of official duties of such Director, and shall be subject to approval by the Secretary of State of the State of Texas.

SECTION 3. Section 4, Chapter 110, Acts of the 51st Legislature, Regular Session, 1949, is amended to read as follows:

Sec. 4. The Governor shall designate a Director as the President of the Board to serve in that capacity at the pleasure of the Governor. The Directors of the district shall organize by electing one of their members [President, one] Vice-President, one Secretary, and a Secretary pro tem. Five (5) Directors shall constitute a quorum at any meeting, and a concurrence of a majority of those present shall be sufficient in all matters pertaining to the business of the district, except the letting of construction contracts and the authorization of issuance of bonds, which shall require the concurrence of five (5) Directors. Warrants for the payment of money may be drawn and signed by two (2) officers or employees designated by resolution entered on the minutes of the Directors, when such accounts have been contracted and ordered paid by the Board of Directors.

SECTION 4. Chapter 110, Acts of the 51st Legislature, Regular Session, 1949, is amended by adding Sections 4A, 4B, 6A, and 6B to read as follows:

Sec. 4A. (a) It is a ground for removal from the Board of Directors that a Director:

(1) does not have at the time of taking office the qualifications required by Section 3 of this Act;

(2) does not maintain during service on the Board the qualifications required by Section 3 of this Act;

(3) violates Chapter 171, Local Government Code;

(4) cannot, because of illness or disability, discharge the Director's duties for a substantial part of the Director's term; or

(5) 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.

(b) 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) If the manager of the district has knowledge that a potential ground for removal exists, the manager shall notify the President of the Board of the potential ground. The President shall then notify the Governor and the Attorney General that a potential ground for removal exists. If the potential ground for removal involves the President, the manager shall notify the next highest ranking Director, who shall then notify the Governor and the Attorney General that a potential ground for removal exists.

Sec. 4B. (a) A person who is appointed to and qualifies for office as a Director may not vote, deliberate, or be counted as a Director in attendance at a meeting of the Board of Directors until the person completes a training program that complies with this section.

(b) The training program must provide the person with information regarding:

(1) the law governing district operations;

(2) the programs, functions, rules, and budget of the district;

(3) the scope of and limitations on the rulemaking authority of the Board of Directors;

(4) the results of the most recent formal audit of the district;

(5) the requirements of:

(A) laws relating to open meetings, public information, administrative procedure, and disclosing conflicts of interest; and

(B) other laws applicable to members of the governing body of a river authority in performing their duties; and

(6) any applicable ethics policies adopted by the district or the Texas Ethics Commission.

(c) A person appointed to the Board of Directors 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) The manager of the district shall create a training manual that includes the information required by Subsection (b) of this section. The manager shall distribute a copy of the training manual annually to each Director. Each Director shall sign and submit to the manager a statement acknowledging that the Director received and has reviewed the training manual.

Sec. 6A. (a) The district shall maintain a system to promptly and efficiently act on complaints filed with the district. The district shall 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 its disposition.

(b) The district shall make information available describing its procedures for complaint investigation and resolution.

(c) The district shall periodically notify the complaint parties of the status of the complaint until final disposition, unless the notice would jeopardize an investigation.

Sec. 6B. The Board of Directors shall 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 district.

SECTION 5. Section 10, Chapter 110, Acts of the 51st Legislature, Regular Session, 1949, is amended to read as follows:

Sec. 10. The Directors shall [may] employ a manager for the district, and may give the manager [him] full authority in the management and operation of the district affairs (subject only to the orders of the Board of Directors). Compensation to be paid such manager and all employees shall be fixed by the Board of Directors and all employees may be removed by the Board.

SECTION 6. Chapter 110, Acts of the 51st Legislature, Regular Session, 1949, is amended by adding Section 10A to read as follows:

Sec. 10A. The Board of Directors shall develop and implement policies that clearly separate the policy-making responsibilities of the Board and the management responsibilities of the manager and the employees of the district.

SECTION 7. (a) Notwithstanding the changes in law made by this Act in Section 3, Chapter 110, Acts of the 51st Legislature, Regular Session, 1949, and except as provided by Subsection (b) of this section, a director of the Sabine River Authority of Texas serving on the effective date of this Act shall continue in office until the member's successor is appointed and qualifies for office.

(b) At the first meeting of the board of directors of the Sabine River Authority of Texas that follows the effective date of this Act, the three directors of the Sabine River Authority of Texas whose terms would expire on July 6, 2031, shall draw lots to determine which two directors will serve terms that expire on July 6, 2029, and which director will serve a term that expires on July 6, 2027.

SECTION 8. (a) Except as provided by Subsection (b) of this section, Section 4B, Chapter 110, Acts of the 51st Legislature, Regular Session, 1949, as added by this Act, applies to a member of the board of directors of the Sabine River Authority of Texas appointed before, on, or after the effective date of this Act.

(b) Notwithstanding Section 4B, Chapter 110, Acts of the 51st Legislature, Regular Session, 1949, as added by this Act, a person serving on the board of directors of the Sabine River Authority of Texas may vote, deliberate, and be counted as a director in attendance at a meeting of the board until December 1, 2025. A director may not vote, deliberate, or be counted as a member 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 9. (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 10. This Act takes effect September 1, 2025.

______________________________ ______________________________

President of the Senate Speaker of the House

I hereby certify that S.B. No. 2406 passed the Senate on April 9, 2025, by the following vote: Yeas 30, Nays 0; and that the Senate concurred in House amendment on May 28, 2025, by the following vote: Yeas 31, Nays 0.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 2406 passed the House, with amendment, on May 24, 2025, by the following vote: Yeas 123, Nays 8, two present not voting.

______________________________ Chief Clerk of the House

Approved:

______________________________

Date

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Governor