Bill Text: TX HB648 | 2011-2012 | 82nd Legislature | Comm Sub
Bill Title: Relating to the appointment of a conservator for and authorizing the dissolution of the Bexar Metropolitan Water District; providing a penalty.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-05-12 - Placed on General State Calendar [HB648 Detail]
Download: Texas-2011-HB648-Comm_Sub.html
82R13447 SLB-F | |||
By: Menendez, Larson | H.B. No. 648 | ||
Substitute the following for H.B. No. 648: | |||
By: Martinez Fischer | C.S.H.B. No. 648 |
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relating to the appointment of a conservator for and authorizing | ||
the dissolution of the Bexar Metropolitan Water District; providing | ||
a penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
ARTICLE 1. CONSERVATORSHIP ESTABLISHED | ||
SECTION 1.01. Section 1, Chapter 306, Acts of the 49th | ||
Legislature, Regular Session, 1945, is amended to read as follows: | ||
Sec. 1. In obedience to the provisions of Article 16, | ||
Section 59 of the Constitution of Texas, there is hereby created | ||
Bexar Metropolitan Water District. [ |
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SECTION 1.02. Chapter 306, Acts of the 49th Legislature, | ||
Regular Session, 1945, is amended by adding Sections 1A, 34, 35, 36, | ||
37, 38, and 39 to read as follows: | ||
Sec. 1A. In this Act: | ||
(1) "Board" means the District's Board of Directors. | ||
(2) "Commission" means the Texas Commission on | ||
Environmental Quality. | ||
(3) "Committee" means the Bexar Metropolitan Water | ||
District Oversight Committee. | ||
(4) "Director" means a Board member. | ||
(5) "District" means the Bexar Metropolitan Water | ||
District. | ||
(6) "System" means a water utility owned by a | ||
municipality with a population of more than one million in the area | ||
served by the District. | ||
Sec. 34. (a) The Commission shall appoint as conservator | ||
for the District an individual who, at the time of the individual's | ||
appointment: | ||
(1) has demonstrated a high level of expertise in | ||
water utility management; | ||
(2) is not a Director; and | ||
(3) has no financial interest in the District or any | ||
entity that has a contract with the District or that is likely to | ||
develop a contractual relationship with the District. | ||
(b) The conservator's term expires on the date the | ||
Commission determines that the duties of the conservator under this | ||
Act have been discharged. | ||
Sec. 35. (a) The conservator shall use District staff to | ||
carry out the duties assigned to the conservator. The conservator | ||
may hire up to three additional persons who will report to and | ||
assist the conservator if: | ||
(1) assistance from District staff is not provided; or | ||
(2) the conservator needs special expertise from one | ||
or more of the persons. | ||
(b) A conservator appointed under Section 34 and any | ||
additional persons hired by the conservator under this section are | ||
entitled to receive a salary determined by the executive director | ||
of the Commission for performing those duties. | ||
(c) The District shall pay the compensation of the | ||
conservator and any additional persons hired by the conservator | ||
under this section. | ||
(d) The executive director of the Commission shall set the | ||
compensation of the conservator after considering the | ||
conservator's: | ||
(1) level of expertise in water utility management; | ||
and | ||
(2) certifications and education. | ||
Sec. 36. (a) A conservator appointed under Section 34 and | ||
the persons hired under Section 35 are entitled to reimbursement of | ||
the reasonable and necessary expenses incurred by the conservator | ||
or the persons hired under Section 35 in the course of performing | ||
duties under this Act. | ||
(b) The District shall pay the expenses incurred by the | ||
conservator and the persons hired under Section 35. The executive | ||
director of the Commission shall determine if an expense is | ||
reasonable and necessary after considering whether the expense is: | ||
(1) necessary to complete the duties of the | ||
conservator as assigned by law; | ||
(2) at or below the cost of a similar expense incurred | ||
by other utilities; | ||
(3) documented by an invoice, bill, or work order that | ||
includes details relating to the: | ||
(A) time spent on services; or | ||
(B) cost of supplies; and | ||
(4) in accordance with procedures used to minimize | ||
expenses, including comparing vendor rates or competitive bidding. | ||
Sec. 37. (a) The Board shall work cooperatively with the | ||
conservator to identify the policies, assets, liabilities, and | ||
resources of the District. | ||
(b) The conservator shall: | ||
(1) complete an inventory of and evaluate each | ||
distinct water system in the District to determine: | ||
(A) the District's basis in or the intrinsic | ||
value of the infrastructure associated with that water system; | ||
(B) the District's bonded debt and commercial | ||
paper reasonably associated with or allocable to the infrastructure | ||
in that water system; and | ||
(C) the adequacy of the water supply sources, | ||
water storage facilities, and distribution systems located in that | ||
water system's service area to supply current and projected demands | ||
in that service area; | ||
(2) identify any District assets whose transfer to | ||
another appropriate public water utility would be likely to | ||
improve: | ||
(A) service to the former customers of the | ||
District who would be served by that utility; or | ||
(B) the District's overall efficiency; | ||
(3) compile a list and copies of existing contracts to | ||
which the District is a party, including for each contract: | ||
(A) effective and termination dates; | ||
(B) general scope of the property and services | ||
involved; | ||
(C) obligations of the District, including | ||
financial obligations; | ||
(D) how the District benefits from the contract; | ||
and | ||
(E) whether the District has waived governmental | ||
immunity; | ||
(4) compile a list of the following in regard to the | ||
District: | ||
(A) property; | ||
(B) rights, including certificates of | ||
convenience and necessity, pumping rights, and any other rights; | ||
(C) staff; and | ||
(D) internal policies, including employment | ||
rules, benefits, and an evaluation of the usefulness and efficacy | ||
of each policy; | ||
(5) develop a comprehensive rehabilitation plan for | ||
the District that: | ||
(A) identifies strategies for restoring the | ||
District's financial integrity and developing a system of sound | ||
financial management; | ||
(B) describes a standard of ethics, | ||
professionalism, and openness expected of each Director and | ||
employee of the District; | ||
(C) provides a mechanism to enforce compliance | ||
with District policies, including procurement policies; | ||
(D) identifies ways to enhance the District's | ||
operational efficiency and improve the District's provision of | ||
redundancy in water services; and | ||
(E) provides for educating the Board and | ||
management personnel on improving management practices and | ||
complying with District policy and state and federal laws and | ||
regulations; and | ||
(6) assess the District's ability to provide reliable, | ||
cost-effective, quality service to customers, including an | ||
assessment of operations compared to the best management practices | ||
of modern utilities. | ||
Sec. 38. The conservator shall report to the Commission and | ||
the Committee quarterly on the progress the conservator has made in | ||
carrying out the duties under Section 37. | ||
Sec. 39. At the conservator's request, the state auditor's | ||
office may audit the District under Chapter 321, Government Code. | ||
The District shall reimburse the state auditor's office for the | ||
cost of the audit. | ||
SECTION 1.03. Not later than the 60th day after the | ||
effective date of this Act, the Texas Commission on Environmental | ||
Quality shall appoint a conservator for the Bexar Metropolitan | ||
Water District as required by Section 34, Chapter 306, Acts of the | ||
49th Legislature, Regular Session, 1945, as added by this Act. | ||
ARTICLE 2. ELECTION; EFFECTIVE DATE OF ARTICLES 3 AND 4 | ||
SECTION 2.01. (a) In this article: | ||
(1) "Commission" means the Texas Commission on | ||
Environmental Quality. | ||
(2) "District" means the Bexar Metropolitan Water | ||
District. | ||
(b) On the next uniform election date following the date of | ||
preclearance under Section 5 of the federal Voting Rights Act of | ||
1965 (42 U.S.C. Section 1973c) of all provisions of the Act enacting | ||
this section that are subject to that preclearance, the commission | ||
shall hold an election in the district on the question of dissolving | ||
the district and disposing of the district's assets and | ||
obligations. If the commission determines that preclearance under | ||
Section 5 of the federal Voting Rights Act of 1965 is not required, | ||
the commission shall hold the election on the next uniform election | ||
date after the date the commission makes that determination. | ||
(c) The Commission may contract with another entity to | ||
conduct the election. The District shall pay any cost of conducting | ||
the election. | ||
(d) The order calling the election must state: | ||
(1) the nature of the election, including the | ||
proposition to appear on the ballot; | ||
(2) the date of the election; | ||
(3) the hours during which the polls will be open; and | ||
(4) the location of the polling places. | ||
(e) The Commission shall give notice of an election under | ||
this section by publishing once a week for two consecutive weeks a | ||
substantial copy of the election order in a newspaper with general | ||
circulation in the District. The first publication of the notice | ||
must appear not later than the 35th day before the date of the | ||
election. | ||
(f) The ballot for an election under this section must be | ||
printed to permit voting for or against the proposition: "The | ||
dissolution of the Bexar Metropolitan Water District and the | ||
transfer of all the District's assets, obligations, and duties to | ||
the water utility of the municipality with the largest population | ||
in the area served by the District." | ||
(g) The Commission shall certify that a majority of the | ||
voters voting in the District have voted: | ||
(1) in favor of dissolution; or | ||
(2) not in favor of dissolution. | ||
SECTION 2.02. (a) Not later than the 20th day after the | ||
date on which the election results are officially declared, the | ||
commission shall certify that result to the secretary of state. | ||
(b) If the proposition is approved by a majority of the | ||
voters voting in the election: | ||
(1) Article 3 of this Act does not take effect; and | ||
(2) Article 4 of this Act takes effect on the date the | ||
results are officially declared. | ||
(c) If a majority of the voters voting in the election do not | ||
approve the proposition: | ||
(1) Article 3 of this Act takes effect on the date the | ||
results are officially declared; and | ||
(2) Article 4 of this Act does not take effect. | ||
ARTICLE 3. CHANGES TO THE BEXAR METROPOLITAN WATER DISTRICT IF | ||
VOTERS DO NOT DISSOLVE THE DISTRICT UNDER ARTICLE 2 | ||
SECTION 3.01. Section 8, Chapter 306, Acts of the 49th | ||
Legislature, Regular Session, 1945, is amended to read as follows: | ||
Sec. 8. (a) [ |
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Directors are [ |
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terms in an election held on the uniform election date in November. | ||
Directors are elected from numbered single-member districts | ||
established by the Board. The Board shall revise each | ||
single-member district after each decennial census to reflect | ||
population changes and to conform with state law, the federal | ||
Voting Rights Act of 1965 (42 U.S.C. Section 1973 et seq.), and any | ||
applicable court order [ |
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the candidate from each single-member district who receives [ |
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number of votes is [ |
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single-member district. Each Director shall hold office until his | ||
successor is [ |
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(a-1) A person is not eligible to serve as a Director for | ||
more than three terms or for more than a total of seven years of | ||
service.[ |
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(b) Such [ |
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canvassed in the manner provided by the Election Code. [ |
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(c) The [ |
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the Board by appointment and such appointees shall hold office | ||
until a successor elected at the next scheduled election date has | ||
qualified. [ |
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(d) Any four [ |
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resolution or order or the transaction of any business of the | ||
District.[ |
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(e) A Director must [ |
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single-member district from which the Director is elected [ |
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(f) A payment to a Director for fees of office under Section | ||
49.060, Water Code, may not be made for a meeting that occurs in a | ||
different fiscal year from the one in which the payment is made. | ||
SECTION 3.02. Section 33A, Chapter 306, Acts of the 49th | ||
Legislature, Regular Session, 1945, is amended by amending | ||
Subsection (c) and adding Subsection (g) to read as follows: | ||
(c) The oversight committee is comprised of seven [ |
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members appointed as follows [ |
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(1) two Senators who represent Senate districts that | ||
include territory within the Bexar Metropolitan Water District, | ||
[ |
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(2) two Representatives who represent [ |
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districts that include territory within the District, [ |
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Representatives; | ||
(3) one member with special expertise in the operation | ||
of public water utilities appointed by the Governor; | ||
(4) one member appointed by the Governor to represent | ||
the public; and | ||
(5) one [ |
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Court who represents a precinct in which customers of the District | ||
reside. | ||
(g) On or before December 31, 2012, the oversight committee | ||
shall provide a report under Subsection (e) of this section to the | ||
legislature. The committee is abolished and this section expires | ||
January 1, 2013. | ||
SECTION 3.03. Chapter 306, Acts of the 49th Legislature, | ||
Regular Session, 1945, is amended by adding Sections 8A, 8B, 8C, | ||
10A, and 10B to read as follows: | ||
Sec. 8A. (a) To be eligible to be a candidate for or to be | ||
elected or appointed as a Director, a person must have: | ||
(1) resided continuously in the single-member | ||
district that the person seeks to represent for 12 months | ||
immediately preceding the date of the regular filing deadline for | ||
the candidate's application for a place on the ballot; | ||
(2) viewed the open government training video provided | ||
by the attorney general and provided to the Board a signed affidavit | ||
stating that the candidate viewed the video; | ||
(3) obtained 200 signatures from individuals living in | ||
the District; and | ||
(4) paid a filing fee of $250 or filed a petition in | ||
lieu of the filing fee that satisfies the requirements prescribed | ||
by Section 141.062, Election Code. | ||
(b) In this subsection, "political contribution" and | ||
"specific-purpose committee" have the meanings assigned by Section | ||
251.001, Election Code. A Director or a candidate for the office of | ||
Director may not knowingly accept political contributions from a | ||
person that in the aggregate exceed $500 in connection with each | ||
election in which the person is involved. For purposes of this | ||
subsection, a contribution to a specific-purpose committee for the | ||
purpose of supporting a candidate for the office of Director, | ||
opposing the candidate's opponent, or assisting the candidate as an | ||
officeholder is considered to be a contribution to the candidate. | ||
Sec. 8B. (a) A person who is elected or appointed to and | ||
qualifies for office as a Director on or after the effective date of | ||
this section may not vote, deliberate, or be counted as a member in | ||
attendance at a meeting of the Board until the person completes a | ||
training program on District management issues. The training | ||
program must provide information to the person regarding: | ||
(1) the enabling legislation that created the | ||
District; | ||
(2) the operation of the District; | ||
(3) the role and functions of the Board; | ||
(4) the rules of the Board; | ||
(5) the current budget for the Board; | ||
(6) the results of the most recent formal audit of the | ||
Board; | ||
(7) the requirements of the: | ||
(A) open meetings law, Chapter 551, Government | ||
Code; | ||
(B) open records law, Chapter 552, Government | ||
Code; and | ||
(C) administrative procedure law, Chapter 2001, | ||
Government Code; | ||
(8) the requirements of the conflict of interest laws | ||
and other laws relating to public officials; and | ||
(9) any applicable ethics policies adopted by the | ||
Board or the Texas Ethics Commission. | ||
(b) The Texas Commission on Environmental Quality may | ||
create an advanced training program designed for a person who has | ||
previously completed a training program described by Subsection (a) | ||
of this section. If the commission creates an advanced training | ||
program under this subsection, a person who completes that advanced | ||
training program is considered to have met the person's obligation | ||
under Subsection (a) of this section. | ||
(c) Each Director who is elected or appointed on or after | ||
the effective date of this section shall complete a training | ||
program described by Subsection (a) or (b) of this section at least | ||
once in each term the Director serves. | ||
(d) The Board shall adopt rules regarding the completion of | ||
the training program described by Subsection (a) or (b) of this | ||
section by a person who is elected or appointed to and qualifies for | ||
office as a Director before the effective date of this section. A | ||
Director described by this subsection who does not comply with | ||
Board rules is considered incompetent as to the performance of the | ||
duties of a Director in any action to remove the Director from | ||
office. | ||
(e) A Director may not: | ||
(1) accept or solicit a gift, favor, or service, the | ||
value of which exceeds $50 per gift, favor, or service, that: | ||
(A) might reasonably influence the Director in | ||
the discharge of an official duty; or | ||
(B) the Director knows or should know is being | ||
offered with the intent to influence the Director's official | ||
conduct; | ||
(2) accept other employment or engage in a business or | ||
professional activity that the Director might reasonably expect | ||
would require or induce the Director to disclose confidential | ||
information acquired by reason of the official position; | ||
(3) accept other employment or compensation that could | ||
reasonably be expected to impair the Director's independence of | ||
judgment in the performance of the Director's official duties; | ||
(4) make personal investments that could reasonably be | ||
expected to create a substantial conflict between the Director's | ||
private interest and the interest of the District; | ||
(5) intentionally or knowingly solicit, accept, or | ||
agree to accept any benefit for having exercised the Director's | ||
official powers or performed the Director's official duties in | ||
favor of another; or | ||
(6) have a personal interest in an agreement executed | ||
by the District. | ||
(f) Not later than April 30 each year, a Director shall file | ||
with the Bexar County clerk a verified financial statement | ||
complying with Sections 572.022, 572.023, 572.024, and 572.0252, | ||
Government Code. The District shall keep a copy of a financial | ||
statement filed under this section in the main office of the | ||
District. | ||
Sec. 8C. (a) A Director may be recalled for: | ||
(1) incompetency or official misconduct as defined by | ||
Section 21.022, Local Government Code; | ||
(2) conviction of a felony; | ||
(3) incapacity; | ||
(4) failure to file a financial statement as required | ||
by Section 8B(f) of this Act; | ||
(5) failure to complete a training program described | ||
by Section 8B(a) or (b) of this Act; or | ||
(6) failure to maintain residency in the District. | ||
(b) If at least 10 percent of the registered voters in a | ||
single-member voting district of the District submit a petition to | ||
the Board requesting the recall of the Director who serves that | ||
single-member voting district, the Board, not later than the 10th | ||
day after the date the petition is submitted, shall mail a written | ||
notice of the petition and the date of its submission to each | ||
registered voter in the single-member voting district. | ||
(c) Not later than the 30th day after the date a petition | ||
requesting the recall of a Director is submitted, the Board shall | ||
order an election on the question of recalling the Director. | ||
(d) A recall election under this section may be held on any | ||
uniform election date. | ||
(e) If a majority of the voters of a single-member voting | ||
district voting at an election held under this section favor the | ||
recall of the Director who serves that single-member voting | ||
district, the Director is recalled and ceases to be a Director. | ||
Sec. 10A. All Board reimbursements and expenditures must be | ||
approved by the Board in a regularly scheduled meeting. | ||
Sec. 10B. The Board may not select the same auditor to | ||
conduct an audit required by Section 49.191, Water Code, for more | ||
than three consecutive annual audits. | ||
SECTION 3.04. Chapter 306, Acts of the 49th Legislature, | ||
Regular Session, 1945, is amended by adding Sections 40 and 41 to | ||
read as follows: | ||
Sec. 40. (a) If the conservator reports to the Commission | ||
that the District has been sufficiently rehabilitated to provide | ||
reliable, cost-effective, quality service to its customers, the | ||
Commission shall evaluate the condition of the District and | ||
determine whether: | ||
(1) the District has been sufficiently rehabilitated | ||
to enable the District to provide reliable, cost-effective, quality | ||
service to its customers; and | ||
(2) the conservatorship is no longer necessary. | ||
(b) Not later than the 60th day after the date the | ||
Commission receives a report under this section, the Commission | ||
shall issue an order dissolving the conservatorship if the | ||
Commission determines the conservatorship is no longer necessary. | ||
Sec. 41. (a) The conservator appointed under Section 34 | ||
continues to serve until the conservatorship is dissolved under | ||
Section 40. | ||
(b) The Commission may order the District to implement any | ||
part of the rehabilitation plan developed under Section 37. | ||
(c) If the District fails to comply with a Commission order, | ||
the Commission may assess a penalty against the District in the | ||
manner provided by Section 13.4151, Water Code. | ||
SECTION 3.05. (a) Section 8, Chapter 306, Acts of the 49th | ||
Legislature, Regular Session, 1945, as amended by this Act, applies | ||
only to a member of the board of directors of the Bexar Metropolitan | ||
Water District who is elected to the board on or after the effective | ||
date of this Act. | ||
(b) Section 8A, Chapter 306, Acts of the 49th Legislature, | ||
Regular Session, 1945, as added by this Act, applies only to a | ||
member of the board of directors of the Bexar Metropolitan Water | ||
District who is elected to the board on or after the effective date | ||
of this Act. A director who is elected before the effective date of | ||
this Act is governed by the law in effect when the director was | ||
elected, and the former law is continued in effect for that purpose. | ||
(c) For two of the numbered single-member district | ||
director's positions that expire in 2012, the district shall call | ||
and hold an election on a uniform election date in that year to | ||
elect the directors for those positions for terms that expire on the | ||
uniform election date in November 2013. For the other two | ||
director's positions that expire in 2012, the district shall call | ||
and hold an election on the same uniform election date in that year | ||
to elect the directors for those positions for terms that expire on | ||
the uniform election date in November 2014. The district shall | ||
determine by lot which single-member districts shall elect | ||
directors to serve one-year terms and which shall elect directors | ||
to serve two-year terms. | ||
ARTICLE 4. TRANSFER OF DISTRICT ASSETS AND LIABILITIES IF VOTERS | ||
DISSOLVE THE BEXAR METROPOLITAN WATER DISTRICT UNDER ARTICLE 2 | ||
SECTION 4.01. Chapter 306, Acts of the 49th Legislature, | ||
Regular Session, 1945, is amended by adding Sections 50, 51, 52, 53, | ||
54, 55, 56, and 57 to read as follows: | ||
Sec. 50. (a) The term of each person who is serving as a | ||
Director of the District on the date of the canvass of the election | ||
authorized by Article 2 of the Act enacting this section expires on | ||
that date. | ||
(b) Under the Commission's and Committee's oversight, the | ||
conservator shall transfer or assign to the System, beginning not | ||
later than the 60th day after the date the election results are | ||
certified the: | ||
(1) rights and duties of the District associated with | ||
the provision of water services, including existing contracts, | ||
assets, and obligations of the District; | ||
(2) files, records, and accounts of the District, | ||
including those that pertain to the control, finances, management, | ||
and operation of the District; and | ||
(3) permits, approvals, and certificates necessary to | ||
provide water services. | ||
(c) To the extent that the transfer of an item listed in | ||
Subsection (b) requires the approval of a state agency, the state | ||
agency shall grant approval without additional notice or hearing. | ||
(d) After the conservator has transferred the property, | ||
assets, and liabilities as prescribed by this section, the | ||
conservator shall file a written report with the Commission and the | ||
Committee summarizing the conservator's actions in dissolving the | ||
District. | ||
(e) Not later than the 60th day after the date the | ||
Commission receives the report and determines that the requirements | ||
of this section have been fulfilled, the Commission shall enter an | ||
order dissolving the District and releasing the conservator from | ||
any further duty or obligation. | ||
Sec. 51. This section expires on the fifth anniversary of | ||
the date the Commission enters an order dissolving the District. | ||
Sec. 52. (a) Not later than five years after the date the | ||
election results were certified in favor of dissolution under | ||
Article 2 of the Act enacting this section, the System shall | ||
integrate the services and infrastructure of the District into the | ||
System in a reasonable and orderly manner based on the | ||
consideration of relevant information, including: | ||
(1) the location and condition of the infrastructure; | ||
(2) debt obligations; | ||
(3) costs and revenue; and | ||
(4) potential impacts on the customers of the District | ||
and the System. | ||
(b) The System shall provide an annual report on the | ||
progress of integration to the Commission. The Commission for good | ||
cause may grant an extension to complete integration. If the System | ||
fails to comply with the requirements of this section, the | ||
Commission may assess a penalty against the System in the manner | ||
provided by Section 13.4151, Water Code. | ||
(c) Until the date specified in Subsection (a), the System | ||
may operate the former District as a special project under the | ||
System's existing senior lien revenue bond ordinances. | ||
(d) Once the conservator has transferred the assets, | ||
obligations, and duties to the System, and at least until the date | ||
specified in Subsection (a), the System shall provide affordable | ||
and reliable water services to all of the former ratepayers of the | ||
District. | ||
Sec. 53. (a) For a 24-month period following the transfer | ||
of the employment of any employee of the former District, the System | ||
may not terminate that employee, except for cause, if the employee: | ||
(1) is vested in the retirement program of the | ||
District on the effective date of this Act; and | ||
(2) earns an annual base salary of less than $50,000 on | ||
the effective date of the Act enacting this section. | ||
(b) An employee who qualifies under Subsection (a) and who | ||
is terminated by the System has the same opportunity for appeal as a | ||
person employed by the System who is not an employee of the former | ||
District. | ||
(c) The System is not required to employ an employee of the | ||
District if that person was formerly terminated from, or resigned | ||
in lieu of termination from the System. | ||
Sec. 54. From the effective date of the Act enacting this | ||
section until the date election results dissolving the District are | ||
certified to the Secretary of State, the attorney general may not | ||
approve any public security, as defined by Chapter 1201, Government | ||
Code, of the District unless: | ||
(1) the Commission consents in writing before | ||
approval; or | ||
(2) the District provides written evidence that | ||
issuing the public security represents a refunding of outstanding | ||
debt for the purpose of realizing debt service savings in each year | ||
that outstanding obligations are refunded and that results in a | ||
cumulative net present value savings of three percent compared to | ||
refunded debt service. | ||
Sec. 55. (a) From the effective date of the Act enacting | ||
this section until the date election results dissolving the | ||
District are certified to the Secretary of State, a contract or | ||
other agreement entered into during that period to which the | ||
District is a party must include a provision that the contract or | ||
other agreement is subject to: | ||
(1) review by the System; and | ||
(2) termination by the System at the System's sole | ||
discretion, including the termination of all rights, duties, | ||
obligations, and liabilities of the District or the System under | ||
the contract or other agreement, if the contract or other agreement | ||
is assumed by the System. | ||
(b) A person is not entitled to compensation for loss or | ||
other damages resulting from the termination of the contract or | ||
other agreement under Subsection (a)(2). | ||
Sec. 56. From the effective date of the Act enacting this | ||
section until the date the election results dissolving the District | ||
are certified to the Secretary of State, the District may not | ||
dispose of, sell, transfer, assign, impair, or restrict any of the | ||
District's rights or assets outside the normal and customary course | ||
of business. | ||
Sec. 57. A state agency at which an administrative or | ||
enforcement action is pending shall grant the District special | ||
consideration and reasonable extensions to identify and resolve the | ||
action in a manner satisfactory to the agency. | ||
ARTICLE 5. NOTICE; EFFECTIVE DATE OF ACT | ||
SECTION 5.01. (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 5.02. Except as otherwise provided by Article 2, | ||
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, 2011. |