Texas House Bill HB1390

Texas 2009 - 81st Regular

Caption

Relating to access by the members of electric cooperatives to meetings of the boards of directors and certain information of the electric cooperatives.

Impact

The impact of HB 1390 is substantial for electric cooperatives. It mandates that director elections must be fair and transparent, limiting the power of boards and their committees in casting proxy votes in certain situations. This aims to increase member involvement in cooperative governance, particularly in larger cooperatives with over 210,000 members. Furthermore, the bill requires cooperatives to maintain a record of board meetings and make them available for member inspection, enhancing operational transparency and member rights.

Summary

House Bill 1390 addresses the governance and operational transparency of electric cooperatives in Texas by mandating enhanced access for cooperative members to board meetings and relevant information. This legislation explicitly defines 'board meetings' and establishes rights for members regarding attendance and participation in these meetings. The bill emphasizes that meetings must be appropriately noticed to members to foster engagement and maintain accountability within the cooperative management framework.

Contention

While proponents argue that the bill strengthens democratic practices and safeguards member interests, there are concerns regarding its implementation and potential burden on cooperatives, particularly smaller ones. Opponents of the bill may cite that the heightened transparency and member access requirements could complicate governance and lead to inefficiencies. Debates may arise over specific provisions such as the restrictions on proxy voting and the obligations to report on board meeting records, which could impose additional administrative responsibilities.