85R14815 GRM-D By: Cyrier H.B. No. 3996 A BILL TO BE ENTITLED AN ACT relating to the sunset review of certain municipally owned water utilities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. SUNSET ACT. Chapter 325, Government Code, is amended by adding Section 325.027 to read as follows: Sec. 325.027. MUNICIPALLY OWNED WATER UTILITIES SUBJECT TO REVIEW. (a) The municipally owned water utility listed in Subsection (b) is subject to a limited review under this chapter as if it were a state agency but may not be abolished. (b) This section applies to the San Antonio Water System. (c) The limited review under this chapter must assess the municipally owned water utility's: (1) governance; (2) management; (3) operating structure; and (4) compliance with legislative requirements. (d) The municipally owned water utility reviewed by the commission under this section may not be required to conduct a management audit under Chapter 292, Title 30, Texas Administrative Code. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017.