By: Holland, et al. (Senate Sponsor - Paxton) H.B. No. 1540          (In the Senate - Received from the House May 1, 2023;   May 8, 2023, read first time and referred to Committee on Water,   Agriculture & Rural Affairs; May 15, 2023, reported adversely,   with favorable Committee Substitute by the following vote:  Yeas 8,   Nays 0; May 15, 2023, sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR H.B. No. 1540 By:  Hancock         COMMITTEE VOTE              YeaNayAbsentPNV          PerryX          HancockX          BlancoX          FloresX          GutierrezX          JohnsonX          KolkhorstX          SparksX          SpringerX     A BILL TO BE ENTITLED   AN ACT     relating to the San Jacinto River Authority, following   recommendations of the Sunset Advisory Commission; specifying   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 1A(a), Chapter 426, Acts of the 45th   Legislature, Regular Session, 1937, 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, 2035 [2023], and every 12th year after   that year.          SECTION 2.  Section 6, Chapter 426, Acts of the 45th   Legislature, Regular Session, 1937, is amended to read as follows:          Sec. 6.  The management and control of all the affairs of   said District shall be vested in, and the powers, rights,   privileges, and functions of the District shall be exercised by a   Board of Directors consisting of seven [six (6)] members, all of   whom shall be freehold property taxpayers and legal voters of the   State of Texas and four (4) of whom shall be residents of a county   wholly encompassed by the District.  Members of such Board of   Directors shall be appointed by the Governor for terms of four [six   (6)] years.  [Provided, the present Board of six (6) directors of   said District, appointed by the State Board of Water Engineers   under authority of House Bill No. 1094, Chapter 613, Acts of the   Regular Session of the Forty-seventh Legislature, amending Section   6 of Chapter 426, Acts of the Regular Session of the Forty-fifth   Legislature, as amended by House Bill No. 828, Chapter 480, Acts of   the Regular Session of the Forty-seventh Legislature, for terms of   two (2), four (4), and six (6) years, shall continue to serve as   such until the expiration of the respective terms for which they   were appointed.  Upon the expiration of the terms for which the   present members of the Board of Directors were appointed, the   successors of each and all of them shall be appointed by the   Governor for a term of six (6) years.]          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 shall be filled in like manner by the Governor for the   unexpired term.  The Directors appointed shall, within thirty (30)   days after their appointment, qualify by taking the official oath   required of County Commissioners, and shall execute bond in the sum   of Five Thousand Dollars ($5,000) payable to the District, the   sufficiency of which bond shall be determined by the Governor,   which bonds after being recorded in the official bond records of the   county in which the District maintains its office shall be   deposited with the depository selected and approved for the deposit   of the funds of the District.          The Governor shall designate a Director as the President of   the Board to serve in that capacity at the pleasure of the Governor.     The Board of Directors shall organize by electing one of its members   [President, one] Vice-President, one Secretary, and one Treasurer.     Four (4) members, including the President [presiding officer],   shall constitute a quorum to transact business.  The President   shall preside at all meetings of the Board and shall be the chief   executive officer of the District.  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 by the District and shall keep books and records   of 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.          The domicile of the District shall be in the City of Conroe,   in the County of Montgomery, Texas, where the District shall   maintain its principal office.  The Board of Directors shall have   authority to fix the time, place and number of meetings of such   Board by proper resolutions, regulations and bylaws passed by said   Board.  Said Board shall cause to be kept complete and accurate   accounts conforming to approved methods of bookkeeping. Said   accounts and all contracts, documents, and records of the District   shall be kept at said principal office, and same shall be open to   public inspection at all reasonable times.          SECTION 3.  Chapter 426, Acts of the 45th Legislature,   Regular Session, 1937, is amended by adding Sections 6A, 6B, 6C, 6D,   6E, and 6F to read as follows:          Sec. 6A.  (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 6 of this Act;                (2)  does not maintain during service on the Board the   qualifications required by Section 6 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. 6B.  (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 District;                (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 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 of the District 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 received and has reviewed   the training manual.          Sec. 6C.  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 general   manager and the staff of the District.          Sec. 6D.  (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. 6E.  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.          Sec. 6F.  The Board of Directors shall develop and implement   a comprehensive policy that provides a structure for public   engagement in advance of major actions and projects. The policy   must include a clear and detailed description of how the District   will seek to actively engage stakeholders, including the possible   use of:                (1)  advisory committees;                (2)  community panels;                (3)  town hall meetings;                (4)  surveys; and                (5)  other strategies on a recurring basis.          SECTION 4.  The member of the board of directors of the San   Jacinto River Authority whose term expires in November 2027 shall   continue in office until the member's successor is appointed to and   qualifies for a term of four years beginning in October 2027.          SECTION 5.    (a) Except as provided by Subsection (b) of   this section, Section 6B, Chapter 426, Acts of the 45th   Legislature, Regular Session, 1937, as added by this Act, applies   to a member of the board of directors of the San Jacinto River   Authority appointed before, on, or after the effective date of this   Act.          (b)  Notwithstanding Section 6B, Chapter 426, Acts of the   45th Legislature, Regular Session, 1937, as added by this Act, a   person serving on the board of directors of the San Jacinto River   Authority may vote, deliberate, and be counted as a director in   attendance at a meeting of the board until December 1, 2023. 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,   2023, until the member completes the training required by that   section.          SECTION 6.  (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 7.  This Act takes effect September 1, 2023.     * * * * *