Relating to the management and control of certain utility systems.
Impact
The primary impact of SB2391 is the standardization of governance structures for utility systems across municipalities in Texas. By allowing greater flexibility in how these boards are formed, the bill seeks not only to improve local management efficiencies but also to enhance accountability towards the residents served by these utilities. This could lead to improved utility services and infrastructure management in municipalities that opt for these boards, which may foster better community relations and operational transparency as governance becomes more localized.
Summary
SB2391 addresses the management and control of utility systems in Texas municipalities. The bill modifies existing governmental code provisions to outline a clearer structure for how utility systems can be governed. Under this legislation, the management of utility systems may be vested in the municipality's governing body or in a board of trustees. This board can consist of up to five members, including the mayor, or in larger counties with specific populations (≥600,000 and located on the international border), up to seven members are allowed, with one member still being the mayor.
Contention
While the bill may streamline utility governance, it also raises points of contention regarding local autonomy and governance diversity. Some local leaders may view the mandate for a board of trustees as an unwanted imposition on how municipal governments prefer to manage utilities. There are concerns that the population requirement for larger counties may create inequalities in governance structures, potentially favoring certain areas over others. Critics may argue that it constrains local innovation in governance by imposing a one-size-fits-all model that does not account for the unique needs of different municipalities.
Relating to the transfer of functions relating to the economic regulation of water and sewer service from the Public Utility Commission of Texas and the Office of Public Utility Counsel to the Water Public Utility Commission and the Office of Water Public Utility Counsel; creating a criminal offense.
Relating to the fiduciary responsibility of the governing body of the public retirement systems in this state and the investment managers and proxy advisors acting on behalf of those systems.
Relating to the continuation and functions of the Public Utility Commission of Texas and the Office of Public Utility Counsel, and the functions of the independent organization certified for the ERCOT power region; increasing an administrative penalty.