S.B. No. 2185
  relating to restrictions on certain special districts.
         SECTION 1.  In this Act, "district" means the Hidalgo County
  Water Improvement District No. 3.
         SECTION 2.  GENERAL MANAGER. The general manager shall be an
  employee of the district. The general manager serves at the
  pleasure of and reports only to the board. The general manager may
  not serve as a director on the board of directors of the district.
         SECTION 3.  EDUCATION PROGRAM. (a)  The district's board of
  directors shall establish a program of education for the district's
  directors that includes information on:
               (1)  the history of the district;
               (2)  the district's statutory authority;
               (3)  laws applicable to the district, including the
  requirements of Chapters 551 and 552, Government Code;
               (4)  relevant legal developments related to water
  district governance;
               (5)  the duties and responsibilities of the district's
  board of directors;
               (6)  conflict of interest laws and other laws related
  to public officials;
               (7)  any applicable ethics policies adopted by the
  Texas Commission on Environmental Quality or the Texas Ethics
         (b)  The district shall pay any costs associated with the
  development of the education program from district revenue.
         (c)  The education program may include training provided by
  an organization offering courses that have been approved by the
  Texas Commission on Environmental Quality.
         (d)  The district's board of directors may adopt bylaws
  modifying the education program as necessary to meet district
         SECTION 4.  EDUCATION FOR DIRECTORS. (a)  Each director of
  the district shall complete the education program established under
  Section 3 of this Act before the first anniversary of the date on
  which the director was appointed or elected. A director serving on
  the district's board of directors on the effective date of this Act
  shall complete the education program not later than September 1,
         (b)  The district shall reimburse a director of the district
  for the reasonable expenses incurred by the director in attending
  the education program.
         (c)  A director of the district who is elected to serve a
  subsequent term shall fulfill the education requirements specified
  by district bylaws.
  EMPLOYEES. A director of the district or a district employee may
               (1)  accept or solicit any gift, favor, or service
                     (A)  might reasonably influence the director or
  employee in the discharge of an official duty; or
                     (B)  the director or employee knows or should know
  is offered with the intent to influence the director's or employee's
  official conduct;
               (2)  accept other employment or engage in a business or
  professional activity that the director or employee might
  reasonably expect would require or induce the director or employee
  to disclose confidential information acquired in the course of the
  director's or employee's duties under this chapter;
               (3)  accept other employment or compensation that could
  reasonably be expected to impair the director's or employee's
  independent judgment in the performance of the director's or
  employee's duties under this chapter;
               (4)  make personal investments that could reasonably be
  expected to create a substantial conflict between the director's or
  employee's private interest and the interest of the district;
               (5)  intentionally or knowingly solicit, accept, or
  agree to accept a benefit for the director's or employee's exercise
  of powers under this chapter or performance of duties under this
  chapter in favor of a third party; or
               (6)  have a personal interest in an agreement executed
  by the district.
  The district shall establish and post on the district's Internet
  website a database of district check register reports, including
  district expenditures and contracts. The database must include the
  amount, date, description, payor, and payee of the expenditures
  and, if applicable, parties to the contract.
         (b)  The district may not include in the database developed
  under Subsection (a) a district employee's salary or personal
  identifying information, as defined by Section 521.002, Business &
  Commerce Code.
         (c)  The district shall prominently display a link to the
  database established under this section on the district's Internet
  website. The information provided in the district check register
  reports must be updated monthly.
         (d)  The district shall keep in the database information
  required by this section related to an adopted budget until the
  third anniversary of the date the budget was adopted.
         SECTION 7.  CONDUCT OF ELECTIONS. The district shall
  publish once before each election to elect members of the board of
  directors of the district the procedure for conducting an election
  to elect members of the board of directors of the district in a
  newspaper of general circulation in each municipality or county in
  which the district or a portion of the district is located.
         SECTION 8.  Subchapter H, Chapter 49, Water Code, is amended
  by adding Section 49.2127 to read as follows:
  CERTAIN DISTRICTS. (a) In this section, "retail public utility"
  has the meaning assigned by Section 13.002.
         (b)  This section applies only to a district whose territory
  is located wholly or partly in a county:
               (1)  located on the Gulf of Mexico and an international
  border; or
               (2)  adjacent to a county described by Subdivision (1).
         (c)  Notwithstanding Section 49.002, this section prevails
  over a special law governing a district.
         (d)  A district may not impose on a retail public utility
  that proposes to construct a water or sewer pipeline or associated
  infrastructure in the district's service area:
               (1)  requirements for constructing the pipeline that
  are unduly burdensome; or
               (2)  a fee that is greater than the actual, reasonable,
  and documented costs incurred by the district for review, legal
  services, engineering services, inspection, construction, and
  repair associated with the retail public utility construction, and
  any other related costs incurred by the district in association
  with the retail public utility construction.
         SECTION 9.  This Act takes effect September 1, 2021.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 2185 passed the Senate on
  April 29, 2021, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendments on May 29, 2021, by the
  following vote: Yeas 29, Nays 1, one present not voting.
  Secretary of the Senate    
         I hereby certify that S.B. No. 2185 passed the House, with
  amendments, on May 26, 2021, by the following vote: Yeas 144,
  Nays 1, two present not voting.
  Chief Clerk of the House