Texas House Bill HB3640

Texas 2015 - 84th Regular

Caption

Relating to fees of office for the directors of a municipal utility district.

Impact

The implementation of HB 3640 is expected to streamline the compensation process for MUD directors and provide clarity about their financial remuneration. By formalizing the payment structure, the bill may also enhance accountability and incentivize directors to be more active in their roles, ultimately aiming for better governance and oversight of municipal utilities. Furthermore, setting clear limits on per diem payments could also help in avoiding potential abuse or mismanagement of public funds within these districts.

Summary

House Bill 3640 amends the Texas Water Code to address the compensation structure for directors of municipal utility districts (MUDs). Specifically, the bill establishes a per diem payment for directors who actively perform their duties. The per diem is set at a maximum of $100 per day, with an annual cap of $4,800. This legislation is aimed at clarifying and defining the compensation that directors can receive, ensuring that it falls within established limits and is fairly compensated for their service in overseeing local utilities.

Contention

While the bill aims to enhance transparency and fairness in MUD compensation, it may face scrutiny over the appropriateness of the maximum annual payment. Critics could argue that establishing a cap of $4,800 might not align with the workloads and responsibilities of directors, especially in larger districts where the demands may be higher. Additionally, there might be discussions regarding the impact of such fees on municipal resources and whether they are justified in light of public spending priorities.