Relating to the Lower Neches Valley Authority, following recommendations of the Sunset Advisory Commission; specifying term length grounds for the removal of a member of the board of directors, the official text

S.B. No. 2407

AN ACT

relating to the Lower Neches Valley Authority, following

recommendations of the Sunset Advisory Commission; specifying term

length 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 8504.0021(a), Special District Local

Laws Code, 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, 2037 [2025], and every 12th year after

that year.

SECTION 2. Section 8504.052, Special District Local Laws

Code, is amended to read as follows:

Sec. 8504.052. TERMS. Directors hold office for staggered

terms of four [six] years.

SECTION 3. Subchapter B, Chapter 8504, Special District

Local Laws Code, is amended by adding Sections 8504.0555, 8504.058,

8504.059, 8504.060, 8504.061, and 8504.062 to read as follows:

Sec. 8504.0555. BOARD PRESIDENT. The governor shall

designate a member of the board as the board president to serve in

that capacity at the pleasure of the governor.

Sec. 8504.058. SEPARATION OF POLICYMAKING AND MANAGEMENT

FUNCTIONS. The board 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 authority.

Sec. 8504.059. REMOVAL. (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 Sections 8504.051(b) and (c);

(2) does not maintain during service on the board

qualifications required by Sections 8504.051(b) and (c);

(3) violates 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

board president of the potential ground. The board 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. 8504.060. REQUIRED TRAINING. (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 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 board;

(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

authority or by 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 authority shall create a

training manual that includes the information required by

Subsection (b). 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. 8504.061. PUBLIC TESTIMONY. 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.

Sec. 8504.062. COMPLAINTS; DUTY TO RESPOND. (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,

unless the notice would jeopardize an investigation.

SECTION 4. (a) Except as provided by Subsection (b) of

this section, Section 8504.060, Special District Local Laws Code,

as added by this Act, applies to a member of the board of directors

of the Lower Neches Valley Authority appointed before, on, or after

the effective date of this Act.

(b) Notwithstanding Section 8504.060, Special District

Local Laws Code, as added by this Act, a member of the board of

directors of the Lower Neches Valley Authority may vote,

deliberate, and be counted as a director in attendance at a meeting

of the board until December 1, 2025. A member of the board may not

vote, deliberate, or be counted as a member in attendance at a

meeting of the board held on or after December 1, 2025, until the

member completes the training required by that section.

SECTION 5. At the first meeting of the board of the Lower

Neches Valley Authority that follows the effective date of this

Act, the three directors of the Lower Neches Valley Authority whose

terms would expire on July 28, 2031, shall draw lots to determine

which two of those directors will serve terms that expire on July

28, 2029, and which one of those directors will serve a term

expiring on July 28, 2027. The three directors with terms expiring

on July 28, 2027, and the three directors with terms expiring on

July 28, 2029, will serve terms that expire on those dates.

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, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 2407 passed the Senate on

April 9, 2025, by the following vote: Yeas 30, Nays 0; and that

the Senate concurred in House amendment on May 30, 2025, by the

following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2407 passed the House, with

amendment, on May 24, 2025, by the following vote: Yeas 132,

Nays 0, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor