Bill Text: TX SB627 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to the Red River Authority, following recommendations of the Sunset Advisory Commission.

Sponsorship: Slight Partisan Bill (Republican 4-2)

Status: (Passed) 2019-05-07 - Effective on 9/1/19 [SB627 Detail]

Download: Texas-2019-SB627-Enrolled.html

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S.B. No. 627

AN ACT
relating to the Red River Authority, following recommendations of
the Sunset Advisory Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1A(a), Chapter 279, Acts of the 56th
Legislature, Regular Session, 1959, is amended to read as follows:
(a) The Authority 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 Authority were a state agency scheduled
to be abolished September 1, 2031 [2019], and every 12th year after
that year.
SECTION 2. Chapter 279, Acts of the 56th Legislature,
Regular Session, 1959, is amended by adding Sections 4a and 4b to
read as follows:
Sec. 4a. (a) It is a ground for removal from the Board that
a director:
(1) does not have at the time of taking office the
qualifications required by Section 4 of this Act;
(2) does not maintain during service on the Board the
qualifications required by Section 4 of this Act;
(3) is ineligible for directorship under 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 general manager has knowledge that a potential
ground for removal exists, the general 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 general 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 Board meeting 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 Authority operations;
(2) the programs, functions, rules, and budget of the
Authority;
(3) the results of the most recent formal audit of the
Authority;
(4) the requirements of:
(A) laws relating to open meetings, public
information, administrative procedure, and disclosure of conflicts
of interest; and
(B) other laws applicable to members of the
governing body of a river authority in performing their duties; and
(5) any applicable ethics policies adopted by the
Authority or the Texas Ethics Commission.
(c) 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) The general manager shall create a training manual that
includes the information required by Subsection (b) of this
section. The general manager shall distribute a copy of the
training manual annually to each director. Each director shall
sign and submit to the general manager a statement acknowledging
that the director has received and reviewed the training manual.
SECTION 3. Sections 5, 7, 9, 10, and 11, Chapter 279, Acts
of the 56th Legislature, Regular Session, 1959, are amended to read
as follows:
Sec. 5. The directors of the Authority shall organize by
electing one director [of their members president, one]
vice-president, one secretary, and one treasurer. 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 warrants paying therefor, which shall require the concurrence of
seven (7) directors. Warrants for the payment of money may be drawn
and signed by two (2) officers or employees designated by standing
order entered in the minutes of the Authority when such accounts
have been contracted and ordered paid by the Board of Directors.
Sec. 7. The Governor shall designate a director of the Board
as the president of the Board to serve in that capacity at the
pleasure of the Governor. The president shall preside at all
meetings of the Board and shall be the chief executive officer of
the Authority. The vice-president shall act as president in case of
the absence or disability of the president. The secretary shall act
as secretary of the Board and shall be charged with the duty of
keeping a record of all proceedings and all orders of the Board.
The treasurer shall receive and receipt for all moneys received and
expended. In case of the absence or inability of the secretary to
act, a secretary pro tem shall be selected by the directors.
Sec. 9. A complete book of accounts shall be kept. The
account books and records of the Authority and of the depository of
the Authority shall be audited by a Certified Public Accountant
annually as soon as practicable after the end of the district's
fiscal year, such audit to cover a fiscal year ending September 30
of each year, and a report thereon shall be submitted to the first
regular meeting of the Board of Directors thereafter. A copy of the
[Said] report shall be [in quadruplicate, one copy being] filed [in
the office of the Authority, one with the depository of the
Authority, one] in the office of the auditor. The copy [and one
with the Texas Department of Water Resources, all of which] shall be
open to public inspection.
Sec. 10. (a) Unless the Board by resolution increases the
fee to an amount authorized by Section 49.060, Water Code, the [The]
directors shall receive as fees of office the sum of not to exceed
Twenty-Five ($25.00) Dollars per day for each day of service
necessary to the discharge of their duties, in addition to all
traveling expenses, provided the same is authorized by vote of the
Board of Directors, they shall file with the secretary on the last
day of each month, or as soon thereafter as practicable, a verified
statement showing the actual amount due and warrants shall be
issued therefor.
(b) In all areas of conflict with Subsection (a) of this
section, Section 49.060, Water Code, takes precedence.
Sec. 11. The directors may employ a general manager for the
Authority and may give him full authority in the management and
operation of the Authority's affairs (subject only to the orders of
the Board of Directors). The term of office and 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. A director
may not be employed as general manager [and at such compensation as
may be fixed by a majority of the other directors, and when so
employed he shall continue to perform the duties of a director, but
shall receive no compensation as such director].
SECTION 4. Chapter 279, Acts of the 56th Legislature,
Regular Session, 1959, is amended by adding Section 11a to read as
follows:
Sec. 11a. The Board shall develop and implement policies
that clearly separate the policymaking responsibilities of the
Board and the management responsibilities of the general manager
and staff of the Authority.
SECTION 5. Section 14a, Chapter 279, Acts of the 56th
Legislature, Regular Session, 1959, is amended to read as follows:
Sec. 14a. (1) In addition to other purposes heretofore
authorized by law, the Authority shall have and is vested with all
the powers of the state of Texas under Section 59, Article XVI,
Constitution of the State of Texas, and shall likewise, have and is
vested with all powers, rights, privileges, and functions conferred
upon navigation districts by General Law. The Authority is
governed by and subject to Chapters 49, 60, and 62, Water Code, but
in all areas of conflict, Chapter 62 takes precedence. The [Without
limitation of the generality of the foregoing, the] Authority shall
have and is hereby authorized to exercise the following powers,
rights and privileges, and functions;
(2) to promote, construct, maintain and operate or aid
and encourage, the construction, maintenance and operation of
navigable canals or waterways and all navigational systems or
facilities auxiliary thereto using the natural bed and banks of the
Red River, where practicable and thence traversing such route as
may be found by the Authority to be more feasible and practicable to
connect Red River in Texas with any new navigation canals to be
constructed in the lower reaches of Red River or to connect Red
River with the intercoastal canal. The Authority is empowered to
construct or cause to be constructed a system of artificial
waterways and canals, together with all locks and other works,
structures and artificial facilities as may be necessary and
convenient for the construction, maintenance and operation of
navigation canals or waterways and all navigational systems and
facilities auxiliary thereto;
(3) the right, power, and authority to acquire,
purchase, improve, extend, take over, construct, maintain, repair,
operate, develop and regulate ports, levees, wharves, docks, locks,
warehouses, grain elevators, dumping facilities, belt railways,
lands, and all other facilities or aids to navigation or aids
necessary to the operation or development of ports, or waterways
within the Red River Basin in Texas, provided, the powers conferred
on the Authority under the provisions of this subdivision extend to
a facility or aid authorized under this subdivision only if the
facility or aid is situated in a county or counties included as part
of said Authority;
(4) to acquire by gift or purchase any and all
properties of any kind, including lighters, tugs, barges and other
floating equipment of any nature, real, personal or mixed, or any
interest therein within or outside of the boundaries of the
Authority necessary to the exercise of the powers, rights,
privileges and functions conferred upon it by this Act and by
condemnation in the manner provided in Section 18 of the Act
creating the Authority, provided that the Authority shall not be
required to give bond for appeal or bond for costs in any judicial
proceedings;
(5) to control, develop, store and use the natural
flow and floodwaters of the Red River and its tributaries for the
purpose of operating and maintaining said navigable canals or
waterways and all navigational systems or facilities auxiliary
thereto, provided, however, that such navigational use shall be
subordinate to consumptive use of water, and navigation shall be
incidental thereto;
(6) to effectuate the construction, maintenance and
operation of bank stabilization facilities and[,] channel
rectification or alignment in order[,] to prevent and aid in
preventing devastation of lands from recurrent over-flows and the
protection of life and property in the watershed of the Red River in
Texas or any tributaries thereof within the Authority from
uncontrolled flood waters; to store and conserve to the greatest
beneficial use the storm, flood and unappropriated waters of the
Red River in Texas or any tributaries thereof within the Authority,
so as to prevent the escape of any water without maximum beneficial
use either within or without the boundaries of the Authority;
(7) if [in the event] the construction or maintenance
and operation of navigable canals or waterways and all navigational
systems or facilities auxiliary thereto on the Red River in Texas is
taken over or performed by the Federal Government or any agency of
the Federal Government, then [and in such event] the Authority may:
(A) [shall be fully authorized to make and] enter
into [any such] contracts that [as] may be [lawfully] required by
the Federal Government, including [such] assignments and transfers
of property, [and rights of] property rights, [and] easements, and
privileges; and
(B) take any [and all] other action [lawful
things and acts may be necessary and] required by [in order to meet
the requirements of] the Federal Government or any agency of the
Federal Government [in taking over the construction or maintenance
and operation of said navigable canals or waterways and all
navigational systems or facilities auxiliary thereto];
(8) the Authority shall have the power to acquire
additional land adjacent to any permanent improvement heretofore or
hereafter constructed within the Authority for the purpose of
developing public parks and recreational facilities; the power to
acquire necessary right-of-way for public ingress and egress to
such areas. The Authority may provide recreational facilities and
services, and may enter into contracts and agreements with the
Federal Government or any agency thereof; the Parks and Wildlife
Department of the State of Texas, any county, municipality,
municipal corporation, person, firm or nonprofit organization for
the construction, operation and maintenance of such park or
recreational facility. It is legislative intent that the Authority
will coordinate the development of any public parks and
recreational facilities with the Parks and Wildlife Department for
conformity with the land and water resources conservation and
recreation plan. ['State Comprehensive Outdoor Recreation Plan.']
The Authority may perform all functions necessary to qualify for
state or federal recreational grants and loans;
(9) in addition to other purposes heretofore
authorized by law and as a necessary aid to the conservation,
control, preservation, and distribution of such water for
beneficial use, the Authority is authorized to purchase, construct,
improve, repair, operate and maintain works and facilities
necessary for the collection, transportation, treatment and
disposal of sewage and industrial waste and effluent and to issue
negotiable bonds for such purposes, and the Authority may make
contracts with cities and others under which the Authority will
collect, transport, treat and dispose of sewage from such cities or
other entities. The Authority may also make contracts with any city
for the use of any collection, transportation, treatment or
disposal facilities owned by such city or by the Authority;
(10) the bonds which may be issued under this Section,
shall be payable from revenues under any contract or contracts
described herein or from other income of the Authority. Such bonds
shall be in the form and shall be issued in the manner prescribed by
law for other revenue bonds and as provided in Sections 26, 27, 28
and 29, Article 8280-228.
SECTION 6. Chapter 279, Acts of the 56th Legislature,
Regular Session, 1959, is amended by adding Section 14e to read as
follows:
Sec. 14e. (a) In this section, "system" means a system for
the:
(1) provision of water to the public for human
consumption; or
(2) collection and treatment of wastewater.
(b) The Authority shall adopt an asset management plan by:
(1) preparing an asset inventory that identifies the
assets of each system and the condition of the assets;
(2) developing criteria to prioritize assets for
repair or replacement, including:
(A) the date by which the asset will need to be
repaired or replaced;
(B) the importance of the asset in providing safe
drinking water and complying with regulatory standards;
(C) the importance of the asset to the effective
operation of the system; and
(D) other criteria as determined by the
Authority;
(3) estimating asset repair and replacement costs;
(4) identifying and evaluating potential financing
options; and
(5) prioritizing systems that are not in compliance
with federal or state regulatory standards, including water quality
standards.
(c) The Authority shall review and revise the plan as
necessary to account for regulatory changes and other developments.
(d) The Board shall approve the plan annually as part of its
budgeting process.
SECTION 7. Sections 17 and 20, Chapter 279, Acts of the 56th
Legislature, Regular Session, 1959, are amended to read as follows:
Sec. 17. (a) The Authority may seek and accept
contributions to its funds from any source for [For] the purpose of
funding:
(1) [providing funds requisite to secure the]
necessary studies;
(2) [,] engineering and other services; and
(3) [which may be necessary,] the collection and
computation of data respecting regional and general conditions that
influence [influencing] the character and extent of the
improvements necessary to effect the purposes of the [creation of
this] Authority to the greatest public advantage[, it is hereby
provided that the Authority may solicit, seek and accept
contributions to its funds from any other district, authority or
municipality, the Federal Government or the State of Texas, or from
any other source].
(b) Any and all grants and gratuities shall be strictly
accounted for and shall be subject to the same rules, regulations
and orders as are other funds handled or disbursed by the Authority.
Sec. 20. The Authority shall establish and collect rates
and other charges for the sale or use of water or for its services
sold, furnished or supplied which fees and charges shall be
reasonable and nondiscriminatory but sufficient to produce
revenues adequate to pay the expenses of the Authority in carrying
out its functions for which it is created and to fulfill the terms
of any agreements made with the holders of any of its obligations.
Provided, however, that the rates and charges for the sale or use of
water shall be subject to review by the Public Utility Commission of
Texas [State Board of Water Engineers], as provided by general law.
SECTION 8. Chapter 279, Acts of the 56th Legislature,
Regular Session, 1959, is amended by adding Sections 20a and 20b to
read as follows:
Sec. 20a. (a) In this section and Section 20b, "affected
person" has the meaning assigned by Section 13.002, Water Code.
(b) The Board shall establish a process to ensure that,
before the Authority makes a significant change to a rate or charge
for the sale and use of water, affected persons are provided:
(1) notice of proposed change; and
(2) an opportunity to provide to the Board comments
regarding the proposed change.
(c) The process established under Subsection (b) must
include:
(1) the provision of notice of a proposed change:
(A) on the Authority's website; and
(B) in an affected person's utility bills; and
(2) appropriate informational meetings or rate
hearings that provide affected persons the opportunity to provide
public comments about the proposed change to be held:
(A) before sending a statement of intent required
under Chapter 13, Water Code;
(B) in locations as necessary to enable affected
persons to attend; and
(C) after the provision of notice under
Subdivision (1) of this subsection.
(d) The Board by rule shall establish a percentage change in
a rate or charge such that a change greater than or equal to that
percentage is considered significant for purposes of Subsection (b)
of this section.
Sec. 20b. (a) The Authority shall notify affected persons
of their right to appeal changes to rates:
(1) in any notices related to changes to rates;
(2) in utility bills sent before the deadline for
initiating an appeal under Chapter 13, Water Code; and
(3) on the Authority's website.
(b) The notice required by Subsection (a) of this section
must include descriptions of:
(1) the appeals process;
(2) the requirements for an appeal, including the
number of signatures needed on a petition; and
(3) the methods available for obtaining additional
information related to rates.
SECTION 9. Section 22, Chapter 279, Acts of the 56th
Legislature, Regular Session, 1959, is amended to read as follows:
Sec. 22. The Authority may:
(1) [shall] make bylaws for the management and
regulation of its affairs;
(2) [to adopt and] use a corporate seal;
(3) [to] appoint officers, attorneys, agents, and
employees, [and to] prescribe their duties, and fix their
compensation;
(4) [to] make [such] other contracts and execute
instruments necessary or convenient to the exercise of the [its]
powers, rights, privileges and functions conferred on the Authority
[upon it] by this Act and the general laws of the state pertaining
to water control and improvement districts;
(5) [to] borrow money for its corporate purposes [and
without limitation of the generality of the foregoing]; and
(6) [to] borrow money and accept grants from the
United States of America, [or] the State of Texas, or any other
source, and in connection with any such loan or grant,[; to] enter
into [such] agreements and assume [such] obligations as may be
required.
SECTION 10. Chapter 279, Acts of the 56th Legislature,
Regular Session, 1959, is amended by adding Sections 33, 34, 35, and
36 to read as follows:
Sec. 33. (a) The Board shall develop a policy to encourage
the use of appropriate alternative dispute resolution procedures
under Chapter 2009, Government Code, to assist in the resolution of
internal and external disputes under the Authority's jurisdiction.
(b) The Authority's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The Authority shall:
(1) coordinate the implementation of the policy
adopted under Subsection (a) of this section;
(2) provide training as needed to implement the
procedures for alternative dispute resolution; and
(3) collect data concerning the effectiveness of those
procedures.
Sec. 34. (a) The Board 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 Authority.
(b) At each regular meeting of the Board, the Board shall
include public testimony as a meeting agenda item and allow members
of the public to comment on other agenda items and other matters
under the jurisdiction of the Authority. The Board may not
deliberate on or decide a matter not included in the meeting agenda,
except that the Board may discuss including the matter on the agenda
for a subsequent meeting.
Sec. 35. (a) The Authority shall maintain a system to
promptly and efficiently act on complaints filed with the
Authority. The Authority shall maintain information about the
parties to and 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) The Authority shall make information available
describing its procedures for complaint investigation and
resolution.
(c) The Authority shall periodically notify the complaint
parties of the status of the complaint until final disposition.
Sec. 36. (a) The state auditor shall conduct an audit of
the Authority to evaluate whether the Authority has addressed the
operational challenges identified in the report on the Authority by
the Sunset Advisory Commission presented to the 86th Legislature.
(b) The state auditor may not begin the audit required by
Subsection (a) of this section before December 1, 2021, and shall
prepare and submit a report of the findings of the audit to the
chairman and executive director of the Sunset Advisory Commission
not later than December 1, 2022.
(c) The state auditor shall include the auditor's duties
under this section in each audit plan under Section 321.013,
Government Code, that governs the auditor's duties for the period
specified by Subsection (b) of this section.
(d) This section expires January 1, 2023.
SECTION 11. Section 13, Chapter 279, Acts of the 56th
Legislature, Regular Session, 1959, is repealed.
SECTION 12. (a) The term of the president of the board of
directors of the Red River Authority serving on the effective date
of this Act expires September 1, 2019. The director serving as
president on the effective date of this Act may continue to serve on
the board of directors until the director's successor is appointed
and has qualified.
(b) Not later than September 2, 2019, the governor shall
designate a director as president of the board of directors of the
Red River Authority as required by Section 7, Chapter 279, Acts of
the 56th Legislature, Regular Session, 1959, as amended by this
Act.
SECTION 13. (a) Notwithstanding Section 4b(a), Chapter
279, Acts of the 56th Legislature, Regular Session, 1959, as added
by this Act, a person serving on the board of directors of the Red
River Authority may vote, deliberate, and be counted as a director
in attendance at a meeting of the board until December 1, 2019.
(b) This section expires January 1, 2020.
SECTION 14. (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 15. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 627 passed the Senate on
April 9, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 627 passed the House on
April 26, 2019, by the following vote: Yeas 137, Nays 0,
three present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor