Texas Senate Bill SB1960

Texas 2009 - 81st Regular

• Out of Senate Committee: 5/8/09
• Voted on by Senate: 5/18/09
• Out of House Committee: 5/21/09

Caption

Relating to increased oversight, openness, transparency, and accountability for water supply or sewer service corporations.

Impact

This legislation will significantly impact state laws governing water supply and sewer service corporations by introducing more stringent requirements for corporate governance. The bill mandates the establishment of a formal procedure for nominating directors, conducting elections, and employing an independent election auditor to oversee the voting process. This measure is expected to improve transparency in the governance of these corporations by ensuring that elections are fair and that directors are held accountable to their shareholders or members. Furthermore, it reinforces the need for proper verification and validation of votes, which is a critical aspect of ensuring public trust in these entities.

Summary

SB1960 focuses on enhancing the oversight, transparency, and accountability of water supply and sewer service corporations in Texas. The bill stipulates that municipal governments will have exclusive original jurisdiction over the rates and services of these corporations, allowing municipalities to regulate them like other utilities. This shift aims to ensure that the rate structures are fair and equitable, and that services provided meet community standards. Overall, the bill seeks to increase scrutiny over the management of crucial public resources such as water and sewage services.

Contention

Notable points of contention around SB1960 may arise from the implications of municipalities taking over regulatory powers. Some stakeholders might argue that such a move could lead to increased regulations that could stifle competition and drive up costs for consumers. Furthermore, corporations might resist the introduction of an independent election auditor, viewing it as an unnecessary intrusion into their operations. The effectiveness of these proposed changes in truly enhancing the accountability of water and sewer services without imposing undue burdens on corporations remains a pivotal discussion point among lawmakers and community advocates.