H.B. No. 2180         AN ACT   relating to the Sulphur River Basin 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  Section 1A(a), Chapter 3, Acts of the 69th   Legislature, 1st Called Session, 1985, as repealed by Chapter 938   (H.B. 3123), Acts of the 84th Legislature, Regular Session, 2015,   and amended by Chapter 1148 (S.B. 523), Acts of the 84th   Legislature, Regular Session, 2015, is reenacted and 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, 2029 [2017], and every 12th year after   that year.          SECTION 2.  Section 2(11), Chapter 3, Acts of the 69th   Legislature, 1st Called Session, 1985, is amended to read as   follows:                (11)  "Waste" means sewage, industrial waste,   municipal waste, recreational waste, agricultural waste, or waste   heat[, solid waste, or any other waste].          SECTION 3.  Section 3(a), Chapter 3, Acts of the 69th   Legislature, 1st Called Session, 1985, is amended to read as   follows:          (a)  The authority is composed of the territory in each   county in Texas, other than Fannin County, that is located in whole   or in part within the watershed of the Sulphur River and its   tributaries with confluences with the Sulphur River upstream from   the eastern boundary of Texas, as those watersheds and tributaries   are defined by maps now on file with the development board [Texas   Department of Water Resources].          SECTION 4.  Section 4, Chapter 3, Acts of the 69th   Legislature, 1st Called Session, 1985, is amended to read as   follows:          Sec. 4.  AUTHORITY PURPOSES. The purpose of this Act is to   authorize the authority to provide for the conservation and   development of the state's natural resources within the basin of   Sulphur River, including:                (1)  the control, storage, preservation, and   distribution of the state's water for domestic and municipal uses,   industrial uses, irrigation, mining and recovery of minerals, stock   raising, underground water recharge, electric power generation,   navigation, [recreation and pleasure,] and other beneficial uses   and purposes;                (2)  the reclamation and irrigation of land needing   irrigation;                (3)  the reclamation and drainage of overflowed land   and other land needing drainage;                (4)  the maintenance and enhancement of the quality of   the water;                (5)  the conservation and development of the [forests,]   water[, and hydroelectric power];                (6)  the navigation of inland water; and                (7)  the provision of systems, facilities, and   procedures for the collection, transportation, handling,   treatment, and disposal of waste [of all types].          SECTION 5.  Section 6, Chapter 3, Acts of the 69th   Legislature, 1st Called Session, 1985, is amended by amending   Subsections (a), (b), (c), and (i) and adding Subsection (j) to read   as follows:          (a)  The authority shall be governed by a board of directors   composed of seven [six] members. The members of the board shall be   appointed by the governor with the advice and consent of the senate.   One member of the board shall be appointed to represent the   authority at large.  Two members of the board shall be appointed   from each of the following regions:                (1)  Region 1: Bowie and Red River counties;                (2)  Region 2: Cass, Franklin, Hunt, Morris, and Titus   counties; and                (3)  Region 3: Delta, Hopkins, and Lamar counties.          (b)  Each member of the board must be a qualified elector. A   member of the board appointed to represent a region under   Subsection (a) must be [and] a resident of a county in the region   for which the member [he] is appointed.          (c)  Each [Except for the initial members of the board, each]   member of the board shall serve for a term of six years and until the   member's [his] successor has qualified. [Of the six initial   members appointed by the governor, the governor shall designate two   members to serve for terms that expire on February 1, 1987, two   members to serve for terms that expire on February 1, 1989, and two   members to serve for terms that expire on February 1, 1991.]          (i)  The governor shall designate a member of the board as   the presiding officer of the board to serve in that capacity at the   pleasure of the governor.          (j)  The board shall elect [a president,] one or more   vice-presidents, a secretary, a treasurer, and other officers as   the members of the board consider necessary.  The presiding officer   [president] and vice-president must be members of the board, but   other officers are not required to be members of the board.  The   offices of the secretary and treasurer may be combined, and the   offices of assistant secretary and assistant treasurer may be   combined.          SECTION 6.  Chapter 3, Acts of the 69th Legislature, 1st   Called Session, 1985, is amended by adding Sections 6A and 6B to   read as follows:          Sec. 6A.  BOARD MEMBER TRAINING.  (a)  A person who is   appointed to and qualifies for office as a member of the board 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   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 scope of and limitations on the rulemaking   authority of the authority;                (4)  the results of the most recent formal audit of the   authority;                (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   board 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 board shall create a training manual that includes   the information required by Subsection (b). The board shall   distribute a copy of the training manual annually to each member of   the board. On receipt of the training manual, each member of the   board shall sign a statement acknowledging receipt of the training   manual.          Sec. 6B.  USE OF ALTERNATIVE RULEMAKING AND DISPUTE   RESOLUTION.  (a) The board shall develop a policy to encourage the   use of:                (1)  negotiated rulemaking procedures under Chapter   2008, Government Code, for the adoption of authority rules; and                (2)  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);                (2)  provide training as needed to implement the   procedures for negotiated rulemaking or alternative dispute   resolution; and                (3)  collect data concerning the effectiveness of those   procedures.          SECTION 7.  Section 8, Chapter 3, Acts of the 69th   Legislature, 1st Called Session, 1985,  is amended by adding   Subsection (c) to read as follows:          (c)  A director's compensation may be increased as   authorized by Section 49.060, Water Code, by resolution adopted by   the board in accordance with Subsection (e) of that section on or   after September 1, 1995.          SECTION 8.  Chapter 3, Acts of the 69th Legislature, 1st   Called Session, 1985, is amended by adding Sections 10A and 13A to   read as follows:          Sec. 10A.  SEPARATION OF POLICYMAKING AND MANAGEMENT   FUNCTIONS. The board shall develop and implement policies that   clearly separate the policymaking responsibilities of the board and   the management responsibilities of the executive director and staff   of the authority.          Sec. 13A.  COMPLAINTS.  (a) The authority shall maintain a   system to promptly and efficiently act on complaints filed with the   authority.  The authority 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 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.          SECTION 9.  Sections 17(b) and (d), Chapter 3, Acts of the   69th Legislature, 1st Called Session, 1985, are amended to read as   follows:          (b)  The authority may exercise the powers of control and use   of the state's water in the manner and for the following purposes:                (1)  to provide for the control and coordination of   water use in the basin as a unit;                (2)  to provide by adequate organization and   administration for the preservation of the rights of the people of   the different sections of the basin in the beneficial use of water;                (3)  to provide for conserving storm water, floodwater,   and unappropriated flow of the basin, including the storage,   control, transportation, treatment, and distribution of that   water, and the prevention of the escape of water without the maximum   of public service and for the prevention of devastation of land from   recurrent overflows, and the protection of life and property in the   river basin from uncontrolled floodwater;                (4)  to provide for the conservation of water essential   for domestic and other water uses of the people of the basin,   including necessary water supplies for cities, towns, and   industrial districts;                (5)  to provide for the irrigation of land in the basin   where irrigation is required for agricultural purposes or is   considered helpful to more profitable agricultural production and   for the equitable distribution of storm water, floodwater, and   unappropriated flow water to the regional potential requirements   for all uses;                (6)  to provide for the encouragement and development   of drainage systems and provisions for drainage of land in the   valleys of the basin needing drainage for profitable agricultural   and livestock production and industrial activities, and other   drainage of land for the most advantageous use;                (7)  to provide for the conservation of soil against   destructive erosion, thereby preventing the increased flood menace   incident to erosion;                (8)  to control and make available for use storm water,   floodwater, and unappropriated flow water as authorized by the   commission, in the development of commercial and industrial   enterprises in all sections of the watershed area of the authority;                (9)  [to provide for the control, storage, and use of   storm water, floodwater, and unappropriated flow water in the   development and distribution of hydroelectric power, where this use   may be economically coordinated with other and superior uses, and   subordinated to the uses declared by law to be superior;                [(10)]  to provide for each purpose and use for which   storm water, floodwater, and unappropriated flow water when   controlled and conserved may be used in the performance of a useful   service as contemplated and authorized by the provisions of the   constitution and laws of this state;                (10) [(11)]  to control, store, and preserve the water   of the basin inside the boundaries of the authority for any useful   purpose;                (11) [(12)]  to use, distribute, and sell water for any   beneficial purpose inside and outside the authority; and                (12) [(13)]  to acquire water and water rights inside   and outside the authority.          (d)  The authority shall adopt and implement a program of   water conservation consistent with rules and criteria duly adopted   and enforceable by the commission and development board    [department] for similarly situated authorities.  A program of   water conservation means the use of practices, techniques, and   technologies that will reduce the consumption of water, reduce the   loss or waste of water, improve efficiency in the use of water, or   increase the recycling and reuse of water so that a water supply is   made available for future uses.          SECTION 10.  Sections 20 and 23, Chapter 3, Acts of the 69th   Legislature, 1st Called Session, 1985, are amended to read as   follows:          Sec. 20.  WATER QUALITY CONTROL. The authority is a river   authority for the purposes and definitions of Chapter 30, Water   Code, and the Clean Air Financing Act (Article 4477-5a, Vernon's   Texas Civil Statutes)[, and the Solid Waste Resource Recovery   Financing Act (Article 4477-7a, Vernon's Texas Civil Statutes)] as   they apply to the authority.  If a provision of the Clean Air   Financing Act [one of those Acts] conflicts with this Act, this Act   prevails.          Sec. 23.  PERMITS AND LICENSES. (a) The authority shall   apply for any permits, licenses, [franchises,] and other grants of   authority required from the commission.          (b)  The authority may apply for any permits, licenses,   [franchises,] and financial assistance it may need from [the   department or] any federal, state, or local governmental agency.          (c)  Before voting on a proposed project for which the board   will seek a permit, the board shall obtain advice on the proposed   project from the county judge of each county in which the proposed   project is proposed to be located.          SECTION 11.  Section 24(a), Chapter 3, Acts of the 69th   Legislature, 1st Called Session, 1985, is amended to read as   follows:          (a)  The authority may enter into service contracts and may   adopt resolutions and orders establishing rates and providing for   the collection of fees and charges for the sale or use of water, the   services of water transmission, treatment, and storage facilities,   [solid and] liquid waste collection, treatment and disposal   facilities and services, [the use of park and recreational   facilities,] the sale of power and electric energy, and any other   services or facilities sold, furnished, or supplied by the   authority.          SECTION 12.  Sections 29(b) and (c), Chapter 3, Acts of the   69th Legislature, 1st Called Session, 1985, are amended to read as   follows:          (b)  Notwithstanding any other law, the authority may:                (1)  undertake and carry out any activities that are   related to or necessary in carrying out or performing any power or   function of the authority;                (2)  [,] enter into contracts, loan agreements, leases,   or installment sales agreements;[, and]                (3)  acquire, purchase, construct, own, operate,   maintain, repair, improve, or extend, and loan, lease, sell, or   otherwise dispose of, including by such methods as loan payments,   rentals, sales, and installment sales, as the parties may agree,   any facilities, plants, buildings, structures, equipment, and   appliances and [,] property or any interest in property;[,] and                (4)  use any or all money or proceeds of bonds and other   obligations. [This may be accomplished by such methods as loan   payments, rentals, sales, and installment sales.]          (c)  All persons are authorized to contract with the   authority in any manner authorized by this Act, Chapter 30, Water   Code, and the Clean Air Financing Act (Article 4477-5a, Vernon's   Texas Civil Statutes)[, and the Solid Waste Resource Recovery   Financing Act (Article 4477-7a, Vernon's Texas Civil Statutes),]   with respect to water, waste, pollution control, or any other   facilities and any services provided by the authority. A public   agency also may enter into and execute such a contract with the   authority and may determine, agree, and pledge that all or any part   of its payments under the contract is payable from the source   described in Section 30.030(c), Water Code, subject only to the   authorization of the contract, pledge, and payments by the   governing body of the public agency. A public agency also may use   and pledge any other available revenues or resources for payment of   amounts due under those contracts, as an additional source or   sources of payment or as the sole source or sources of payment.          SECTION 13.  Section 37, Chapter 3, Acts of the 69th   Legislature, 1st Called Session, 1985, is amended to read as   follows:          Sec. 37.  WORK WITH DEVELOPMENT BOARD. (a) The authority   has and may exercise all the powers vested in political   subdivisions under Title 2, Water Code.          (b)  The authority has and may exercise[, including] the   powers necessary to enable the authority to participate in the   programs administered by the development board [department] for the   acquisition and development of facilities, the sale or lease of   facilities, financial assistance to political subdivisions, and   other programs administered by the development board.          SECTION 14.  The following sections of Chapter 3, Acts of the   69th Legislature, 1st Called Session, 1985, are repealed:                (1)  Section 2(5);                (2)  Section 18;                (3)  Section 21; and                (4)  Section 22.          SECTION 15.  (a)  The terms of the members of the board of   directors of the Sulphur River Basin Authority serving on the   effective date of this Act expire on September 1, 2017.          (b)  Not later than September 2, 2017, the governor shall   make the appointments required by Section 6, Chapter 3, Acts of the   69th Legislature, 1st Called Session, 1985, as amended by this Act.          (c)  Notwithstanding Section 6(c), Chapter 3, Acts of the   69th Legislature, 1st Called Session, 1985, as amended by this Act,   of the seven initial members appointed by the governor under that   section, the governor shall designate two members to serve for   terms that expire on February 1, 2019, two members to serve for   terms that expire on February 1, 2021, and three members to serve   for terms that expire on February 1, 2023.          (d)  The governor may appoint to the board of directors under   Subsection (b) of this section a member whose term expires under   Subsection (a) of this section.          SECTION 16.  (a)  Notwithstanding Section 6A, Chapter 3,   Acts of the 69th Legislature, 1st Called Session, 1985, as added by   this Act, a person serving on the board of directors of the Sulphur   River Basin Authority may vote, deliberate, and be counted as a   director in attendance at a meeting of the board until December 1,   2017.          (b)  This section expires January 1, 2018.          SECTION 17.  (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 18.  This Act takes effect September 1, 2017.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 2180 was passed by the House on May 2,   2017, by the following vote:  Yeas 144, Nays 2, 1 present, not   voting.     ______________________________   Chief Clerk of the House                 I certify that H.B. No. 2180 was passed by the Senate on May   19, 2017, by the following vote:  Yeas 31, Nays 0.     ______________________________   Secretary of the Senate       APPROVED:  _____________________                      Date                           _____________________                    Governor