84R6010 DDT-D By: Dale H.B. No. 3451 A BILL TO BE ENTITLED AN ACT relating to the election of directors of certain electric cooperatives. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 161, Utilities Code, is amended by adding Section 161.0721 to read as follows: Sec. 161.0721. ELECTION OF DIRECTORS IN CERTAIN LARGE COOPERATIVES. (a) This section applies only to an electric cooperative with more than 200,000 members that is partially located in a county with a population of more than one million and less than 1.5 million. (b) Directors may be elected only by district. The board shall establish single-member districts from which the directors are to be elected. In establishing the districts, the board shall ensure that directors represent geographic areas in which approximately equal numbers of members reside. (c) A member may vote for a director to represent a district only if the member resides in that district. (d) To be elected, a candidate must receive a majority of the total number of votes received in the candidate's district. (e) If no candidate for a particular district receives the vote necessary to be elected, a runoff election for that office is required. (f) A director serves a four-year term. (g) The first board of directors elected from the districts established under Subsection (b) may agree to establish a system of staggered terms by providing that approximately half of that first board of directors will serve initial terms of two years. (h) Elections must be held in November of an odd-numbered year. SECTION 2. (a) An electric cooperative to which Section 161.0721, Utilities Code, as added by this Act, applies shall establish single-member districts as required by that section as soon as practicable, and not later than October 1, 2015. (b) The electric cooperative shall hold an election as required by this Act on or before November 30, 2015. At that election, all board member positions will be up for election. The terms of all directors serving on the date of the election are terminated, and the terms of the newly elected directors begin, on January 31, 2016. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.