TITLE: Relating to the appointment of a conservator for and authorizing the dissolution of the Bexar Metropolitan Water District; providing a penalty.

SUMMARY: Relating to the appointment of a conservator for and authorizing the dissolution of the Bexar Metropolitan Water District; providing a penalty.

FULL TEXT:
AN ACT 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.[ hereinafter in this Act sometimes called the "District."] 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 of this Act 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 of this Act are entitled to reimbursement of the reasonable and necessary expenses incurred by the conservator or the persons hired under Section 35 of this Act 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 of this Act. 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, or as requested by the Commission or Committee, on the progress the conservator has made in carrying out the duties under Section 37 of this Act. 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 ARTICLE 3 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 the commission, after consultation with the secretary of state, shall hold an election in the district on the question of dissolving the district and disposing of the district's assets and obligations. (c) The commission may contract with one or more entities 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 beginning of early voting for 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 owned by 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, Article 3 of this Act takes effect on the date the results are certified.