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AN ACT
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relating to the administration of the Agua Special Utility |
 
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District; creating a criminal offense. |
 
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             BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
 
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             SECTION  1.    Section 7201.0513(a), Special District Local |
 
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Laws Code, is amended to read as follows: |
 
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             (a)    Before the first election of directors [under Section
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7201.052], the initial board shall establish a program of education |
 
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for directors that includes information on: |
 
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                         (1)    the history of the district; |
 
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                         (2)    the district's enabling legislation; |
 
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                         (3)    Chapters 49 and 65, Water Code, and other laws that |
 
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apply to the district, including the requirements of the: |
 
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                                     (A)    open meetings law, Chapter 551, Government |
 
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Code; and |
 
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                                     (B)    public information law, Chapter 552, |
 
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Government Code; |
 
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                         (4)    relevant legal developments related to water |
 
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district governance; |
 
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                         (5)    the duties and responsibilities of the board; |
 
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                         (6)    the requirements of conflict of interest laws and |
 
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other laws relating to public officials; and |
 
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                         (7)    any applicable ethics policies adopted by the |
 
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Texas Commission on Environmental Quality or the Texas Ethics |
 
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Commission. |
 
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             SECTION  2.    Subchapter B, Chapter 7201, Special District |
 
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Local Laws Code, is amended by adding Section 7201.055 to read as |
 
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follows: |
 
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             Sec.  7201.055.    COMPOSITION OF BOARD; TERMS. (a)    The |
 
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district is governed by a board of seven directors, each of whom |
 
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occupies a numbered position on the board and represents a unique |
 
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subdistrict containing, as near as practicable, one-seventh of the |
 
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total number of residents in the district. |
 
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             (b)    A candidate for a position on the board must: |
 
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                         (1)    reside in the subdistrict represented by that |
 
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position; and |
 
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                         (2)    be eligible to hold office under Section 141.001, |
 
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Election Code. |
 
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             (c)    The district shall fill a vacancy on the board in |
 
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accordance with Section 49.105, Water Code. |
 
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             (d)    Directors serve staggered terms of four years and may |
 
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not serve more than two consecutive terms. |
 
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             (e)    A person who has served as a member of the board of |
 
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directors of the corporation is not eligible to serve as a district |
 
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director. |
 
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             (f)    If a director is an employee of another taxing entity |
 
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within the district, the board may not employ as an employee, as a |
 
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consultant, or on a contract basis: |
 
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                         (1)    an elected official of the other taxing entity |
 
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that employs the director; or |
 
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                         (2)    a person related to that elected official in the |
 
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third degree of consanguinity or affinity as determined under |
 
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Chapter 573, Government Code. |
 
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             SECTION  3.    Subchapter B, Chapter 7201, Special District |
 
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Local Laws Code, is amended by adding Sections 7201.056, 7201.057, |
 
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and 7201.058 to read as follows: |
 
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             Sec.  7201.056.    FILING OF FINANCIAL STATEMENT BY DIRECTOR. |
 
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(a)    A director shall file the financial statement required of |
 
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state officers under Subchapter B, Chapter 572, Government Code, |
 
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with the Texas Ethics Commission. |
 
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             (b)    Subchapter B, Chapter 572, Government Code: |
 
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                         (1)    applies to a director as if the director were a |
 
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state officer; and |
 
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                         (2)    governs the contents, timeliness of filing, and |
 
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public inspection of a statement filed under Subsection (a). |
 
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             (c)    A director commits an offense if the director fails to |
 
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file the statement required by Subsection (a). An offense under |
 
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this subsection is a Class B misdemeanor. |
 
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             Sec.  7201.057.    SUBSTANTIAL BUSINESS INTEREST. For purposes |
 
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of Chapter 171, Local Government Code, a director, in connection |
 
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with a vote or decision by the board, is considered to have a |
 
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substantial interest in a business entity if a person related to the |
 
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director within the third degree by consanguinity or affinity, as |
 
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determined under Chapter 573, Government Code, has a substantial |
 
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interest in the business entity. |
 
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             Sec.  7201.058.    GROUNDS FOR REMOVAL. A director may be |
 
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removed from the board if the director: |
 
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                         (1)    does not have at the time of appointment the |
 
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qualifications required by Section 7201.055(b); |
 
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                         (2)    does not complete the initial board training |
 
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required by Section 7201.0512; |