Texas 2009 - 81st Regular

Texas House Bill HB1002 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R4465 TRH-D
2	2	By: Bolton H.B. No. 1002
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to access by the members of electric cooperatives to
8	8	meetings of the boards of directors and certain information of the
9	9	electric cooperatives.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 161.002, Utilities Code, is amended by
12	12	adding Subdivision (2-a) to read as follows:
13	13	(2-a) "Board meeting" means a deliberation between a
14	14	quorum of the voting board, or between a quorum of the voting board
15	15	and another person, during which electric cooperative business or
16	16	policy over which the board has responsibility is discussed or
17	17	considered, or during which the board takes formal action. The term
18	18	does not include the gathering of a quorum of the board at a social
19	19	function unrelated to the business of the cooperative, or the
20	20	attendance by a quorum of the board at a regional, state, or
21	21	national convention or workshop, ceremonial event, or press
22	22	conference, if formal action is not taken and any discussion of
23	23	cooperative business is incidental to the social function,
24	24	convention, workshop, ceremonial event, or press conference.
25	25	SECTION 2. Section 161.075, Utilities Code, is amended to
26	26	read as follows:
27	27	Sec. 161.075. BOARD MEETINGS. (a) The board shall hold a
28	28	regular or special board meeting at the place and on [the] notice as
29	29	provided by Section 161.0751 and [prescribed by] the bylaws.
30	30	Except as provided by Section 161.0752, each member of the electric
31	31	cooperative is entitled to attend a regular or special board
32	32	meeting.
33	33	(b) The attendance of a director at a board meeting
34	34	constitutes a waiver of notice to the director of the meeting unless
35	35	the director attends the meeting for the express purpose of
36	36	objecting to the transaction of business at the meeting because the
37	37	meeting is not lawfully called or convened.
38	38	(c) A notice or waiver of notice of a board meeting given to
39	39	a director is not required to specify the business to be transacted
40	40	at the meeting or the purpose of the meeting.
41	41	(d) The board shall keep a record of each regular or special
42	42	board meeting, in the form of written minutes or a taped recording
43	43	of the meeting. A record of a meeting must state the subject of each
44	44	deliberation and indicate each vote, order, decision, or other
45	45	action taken by the board. The board shall make meeting records
46	46	available to a member for public inspection and copying on the
47	47	member's written request to the board secretary or to a person the
48	48	secretary designates.
49	49	(e) A member attending a regular or special board meeting
50	50	may record all or part of the meeting by any means of audio or visual
51	51	reproduction, including a tape recorder or video camera.
52	52	(f) The board may adopt reasonable rules to maintain order
53	53	at a regular or special board meeting, including rules relating to
54	54	the location of recording equipment and the manner in which
55	55	recording may be conducted. A rule adopted by the board under this
56	56	section may not prevent or unreasonably impair a member from
57	57	exercising a right granted by this section.
58	58	SECTION 3. Subchapter B, Chapter 161, Utilities Code, is
59	59	amended by adding Sections 161.0751, 161.0752, 161.0753, 161.080,
60	60	and 161.081 to read as follows:
61	61	Sec. 161.0751. NOTICE OF BOARD MEETINGS. (a) The board
62	62	shall give members written notice of the date, hour, place, and
63	63	subject of a regular or special board meeting. Notice of a board
64	64	meeting must be posted at least 72 hours before the scheduled time
65	65	of the meeting:
66	66	(1) on a bulletin board in a place convenient to
67	67	members, at the electric cooperative's headquarters and at each
68	68	district office; and
69	69	(2) on the cooperative's Internet website, if the
70	70	cooperative maintains a website.
71	71	(b) If the board recesses a regular or special board meeting
72	72	to continue the following regular business day, the board is not
73	73	required to post notice of the continued meeting if the recess is
74	74	taken in good faith and not to circumvent this section and Section
75	75	161.075. If a regular or special board meeting is continued to the
76	76	following regular business day, and on that following day the board
77	77	continues the meeting to another day, the board shall give written
78	78	notice as required by this section of the meeting continued to that
79	79	other day.
80	80	(c) In the event of an emergency or urgent necessity that
81	81	requires immediate board action to meet a reasonably unforeseeable
82	82	situation, notice may be given in the manner prescribed by
83	83	Subsection (a) at least two hours before a regular or special board
84	84	meeting is convened, in order to:
85	85	(1) call an emergency board meeting; or
86	86	(2) add a subject to the agenda of a previously
87	87	scheduled board meeting.
88	88	(d) Notice under Subsection (c) shall clearly identify the
89	89	emergency or urgent necessity for which the notice is given. If the
90	90	board adds a subject to the agenda of a previously scheduled regular
91	91	or special board meeting, the board secretary or person the
92	92	secretary designates shall post a copy of the revised agenda on the
93	93	electric cooperative's Internet website, if the cooperative
94	94	maintains a website, and physically at the cooperative's
95	95	headquarters and each district office, not less than two hours
96	96	before the meeting convenes.
97	97	(e) If, at a regular or special board meeting, a member
98	98	makes an inquiry regarding a subject for which notice has not been
99	99	given as required by this section, the notice provisions of this
100	100	section do not apply to:
101	101	(1) a statement by the board of specific factual
102	102	information given in response to the inquiry; or
103	103	(2) a recitation of existing policy in response to the
104	104	inquiry.
105	105	(f) Any deliberation of or decision relating to the subject
106	106	of an inquiry made under Subsection (e) shall be limited to a
107	107	proposal to place the subject on the agenda for a subsequent board
108	108	meeting.
109	109	Sec. 161.0752. EXECUTIVE SESSIONS. (a) The board may hold
110	110	an executive session to which the members do not have access to
111	111	deliberate:
112	112	(1) anticipated or pending litigation, settlement
113	113	offers, or interpretations of the law with the electric
114	114	cooperative's legal counsel and with any other person the board
115	115	considers necessary;
116	116	(2) the purchase, exchange, lease, or value of real
117	117	property, if the board determines in good faith that deliberation
118	118	in an open board meeting may have a detrimental effect on the
119	119	electric cooperative;
120	120	(3) business and financial issues relating to the
121	121	negotiation of a contract, if the board determines in good faith
122	122	that deliberation in an open board meeting may have a detrimental
123	123	effect on the position of the electric cooperative;
124	124	(4) personnel issues, and complaints or charges
125	125	against a director or electric cooperative employee or consultant,
126	126	unless the director or employee who is the subject of the
127	127	deliberation requests a public hearing;
128	128	(5) utility-related matters and commercial
129	129	information that the board determines in good faith are related to
130	130	the electric cooperative's competitive activity and that, if
131	131	disclosed, could give an advantage to competitors or potential
132	132	competitors; or
133	133	(6) issues related to security of the electric
134	134	cooperative, including security personnel, security devices, and
135	135	security audits.
136	136	(b) Before the board calls an executive session, the board
137	137	shall convene in a regular or special board meeting for which notice
138	138	has been given as provided by Section 161.0751. During that board
139	139	meeting, the presiding director may call an executive session by
140	140	announcing that an executive session will be held to deliberate a
141	141	matter described by Subsection (a) and identifying the specific
142	142	subdivision of Subsection (a) under which the executive session
143	143	will be held.
144	144	(c) Except as provided by Subsection (d), a final action,
145	145	decision, or vote on a matter deliberated in an executive session
146	146	may only be made in a regular or special board meeting for which
147	147	notice has been given as provided by Section 161.0751.
148	148	(d) The board may take action in an executive session for
149	149	matters described by Subsections (a)(2), (4), and (5).
150	150	(e) The board secretary or a person the secretary designates
151	151	shall make and keep a written or audio record of each executive
152	152	session. The secretary shall preserve the record for at least two
153	153	years following the session. The record must include:
154	154	(1) a statement of the subject matter of each
155	155	deliberation;
156	156	(2) a record of any further action taken; and
157	157	(3) an announcement by the presiding director at the
158	158	beginning and end of the session indicating the date and time.
159	159	Sec. 161.0753. TRAINING FOR DIRECTORS AND CERTAIN
160	160	EMPLOYEES. (a) The general manager of an electric cooperative
161	161	shall make available a course of training regarding the
162	162	responsibilities of the board, directors, and employees with regard
163	163	to notice, open meetings, and open records. The course of training
164	164	shall be completed by a person who is:
165	165	(1) a director, advisory director, or advisory
166	166	director at large, not later than the 180th day after the date the
167	167	person assumes responsibilities as a director; or
168	168	(2) a general manager, assistant general manager, or
169	169	other staff member recommended by the general manager, not later
170	170	than the 180th day after the person's date of hire by the
171	171	cooperative.
172	172	(b) The failure of one or more directors to complete the
173	173	training required by this section does not affect the validity of an
174	174	action taken by the board.
175	175	Sec. 161.080. MEMBER'S RIGHT OF ACCESS TO RECORDS. (a)
176	176	Except as provided by Subsection (c), a member of an electric
177	177	cooperative may, at any reasonable time and on written request that
178	178	states the purpose of the request:
179	179	(1) inspect books and records of the cooperative
180	180	relevant to that purpose; and
181	181	(2) at the member's own expense, copy records the
182	182	member is entitled to inspect under this section.
183	183	(b) An electric cooperative may charge a reasonable fee to
184	184	the member if fulfilling the member's request will require a large
185	185	amount of employee time.
186	186	(c) An electric cooperative may reject or limit a member's
187	187	request to inspect its books and records if:
188	188	(1) the member refuses to warrant and furnish to the
189	189	electric cooperative, on the electric cooperative's request, an
190	190	affidavit that:
191	191	(A) the inspection is desired for a purpose
192	192	reasonably related to the business of the cooperative; or
193	193	(B) the member does not intend to sell or offer to
194	194	sell any list of members of the cooperative or assist another person
195	195	in obtaining a list of members for that purpose;
196	196	(2) the release of the information sought by the
197	197	member, such as individual member information or personnel
198	198	information, would unduly infringe on or invade the privacy of a
199	199	person;
200	200	(3) the inspection is sought for a dishonest purpose
201	201	or to gratify mere curiosity, or is otherwise opposed to the
202	202	interest of the electric cooperative, or is not reasonably germane
203	203	to the interest of the member; or
204	204	(4) the records sought to be inspected pertain to
205	205	trade secrets or information that is privileged, confidential, or
206	206	proprietary.
207	207	Sec. 161.081. REMEDY FOR INFRINGEMENT OF CERTAIN MEMBERS
208	208	RIGHTS. (a) A member aggrieved by an action of the board or by an
209	209	employee of the board or cooperative that the member alleges
210	210	infringes on a right of the member under Section 161.075, 161.0751,
211	211	or 161.080 may file a written complaint with the board. On
212	212	receiving a complaint under this subsection, the board shall:
213	213	(1) take corrective action requested by the member; or
214	214	(2) set a date for a hearing at which the member is
215	215	entitled to appear and give testimony and other evidence concerning
216	216	the grievance.
217	217	(b) If, after the hearing, the board determines that the
218	218	action complained of infringed on the member's right under the
219	219	relevant section of this chapter, the board shall take corrective
220	220	action.
221	221	(c) A member who is not satisfied with the result of a
222	222	hearing under Subsection (a) or who is denied a hearing under
223	223	Subsection (a) is entitled to have the matter arbitrated by the
224	224	office of public utility counsel in accordance with procedures
225	225	adopted by the office for this purpose. If the office determines
226	226	that the action complained of infringed on the member's right under
227	227	the relevant section of this chapter, the office may order the board
228	228	to take corrective action as the office specifies.
229	229	(d) A member who is not satisfied with the result of an
230	230	arbitration under Subsection (c) or who is denied arbitration under
231	231	Subsection (c) may file a petition for judicial review in a district
232	232	court of the district in which the cooperative's headquarters is
233	233	located. A board may file a petition for judicial review of an
234	234	order of the public utility counsel under Subsection (c) to a
235	235	district court of the district in which the cooperative's
236	236	headquarters is located.
237	237	(e) Judicial review under this section is by trial de novo.
238	238	If the court determines the action complained of by the member
239	239	infringes a right of the member under the relevant section of this
240	240	chapter, the court may order or award any appropriate relief,
241	241	including money damages, court costs, and reasonable and necessary
242	242	attorney's fees.
243	243	SECTION 4. (a) The changes in law made by Sections 161.075,
244	244	161.0751, and 161.0752, Utilities Code, as added by this Act, apply
245	245	only to a meeting convened on or after the effective date of this
246	246	Act. A meeting convened before the effective date of this Act is
247	247	subject to the law in effect on the date the meeting is held, and
248	248	that law is continued in effect for that purpose.
249	249	(b) The general manager of each electric cooperative shall
250	250	make available the first course of training required by Section
251	251	161.0753, Utilities Code, as added by this Act, not later than
252	252	October 1, 2009. A person who is employed by an electric
253	253	cooperative or serving an electric cooperative as a director on the
254	254	effective date of this Act and who is required by Section 161.0753
255	255	to complete training shall complete the training not later than
256	256	April 1, 2010.
257	257	(c) The changes in law made by Section 161.080, Utilities
258	258	Code, as added by this Act, apply only to a request to inspect
259	259	records submitted on or after the effective date of this Act. A
260	260	request submitted before the effective date of this Act is subject
261	261	to the law in effect on the date of the request, and that law is
262	262	continued in effect for that purpose.
263	263	(d) The changes in law made by Section 161.081, Utilities
264	264	Code, as added by this Act, apply only to a complaint filed by a
265	265	member of an electric cooperative concerning an action taken on or
266	266	after the effective date of this Act. A complaint filed by a member
267	267	of an electric cooperative concerning an action taken before the
268	268	effective date of this Act is subject to the law in effect on the
269	269	date of that action, and that law is continued in effect for that
270	270	purpose.
271	271	SECTION 5. This Act takes effect September 1, 2009.