Louisiana Senate Bill SB399

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 4/4/12
• Engrossed: 4/11/12
• Refer: 4/12/12
• Report Pass: 5/1/12
• Enrolled: 5/22/12
• Chaptered: 5/25/12
• Passed: 5/25/12

Caption

Provides relative to the powers and bylaws of electric cooperatives. (8/1/12)

Impact

The passing of SB 399 has the potential to streamline operations within electric cooperatives by allowing the board of directors augmented powers, especially concerning the adoption and amendment of bylaws without prior member consent in certain contexts. This could lead to more efficient decision-making processes and a quicker response to changes in the marketplace. However, it may also reduce member control over governance, sparking concerns about the balance of power within cooperatives, particularly in regards to significant decisions like property dispositions or major financial commitments.

Summary

Senate Bill 399 seeks to amend and reenact the regulations surrounding electric cooperatives in Louisiana. Specifically, the bill addresses the powers and bylaws of such cooperatives, including provisions for their perpetual existence under certain conditions. It lays out the conditions under which bylaws can be adopted, amended, or repealed, indicating a shift in the authority regarding cooperative governance from the members to the board of directors in certain situations. The implications of this legislation are substantial as they redefine the structural governance of electric cooperatives, impacting how member involvement and decision-making processes are conducted.

Sentiment

The sentiment surrounding SB 399 appears to be largely supportive among the legislative body, as evidenced by the unanimous Senate vote which recorded 35 yeas and no nays during its passage. Proponents argue that the bill modernizes cooperative governance structures, making them more adaptable and efficient in a rapidly changing energy landscape. Conversely, critics may highlight concerns about potential overreach by the board of directors at the cost of member rights, suggesting a divide in perspective about the ideal governance model for cooperatives.

Contention

Notable contention points could arise regarding the extent of the board's powers as outlined in the bill, particularly around decisions that could significantly affect the cooperative's members, such as the dissolution of the cooperative or the sale of substantial assets. Critics might argue that the new governance framework undermines the foundational principles of cooperatives, which traditionally emphasize member engagement and democratic control. Balancing efficient decision-making with protecting member rights remains a key dialogue in the legislative discourse surrounding SB 399.