| 1 | 1 | | 88R25413 JXC-D |
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| 2 | 2 | | By: Troxclair, Dean, Patterson, Goldman, H.B. No. 4208 |
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| 3 | 3 | | Hefner |
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| 4 | 4 | | Substitute the following for H.B. No. 4208: |
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| 5 | 5 | | By: Smithee C.S.H.B. No. 4208 |
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| 6 | 6 | | |
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| 7 | 7 | | |
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| 8 | 8 | | A BILL TO BE ENTITLED |
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| 9 | 9 | | AN ACT |
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| 10 | 10 | | relating to the management and control of certain municipal |
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| 11 | 11 | | electric utility systems. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter G, Chapter 552, Local Government |
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| 14 | 14 | | Code, is amended by adding Section 552.1225 to read as follows: |
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| 15 | 15 | | Sec. 552.1225. TRANSFER OF MANAGEMENT AND CONTROL OF |
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| 16 | 16 | | ELECTRIC UTILITY SYSTEM OF CERTAIN MUNICIPALITIES. (a) A |
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| 17 | 17 | | municipality with a population of more than 750,000 that did not |
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| 18 | 18 | | transfer management and control of the municipality's electric |
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| 19 | 19 | | utility system to a board of trustees under this subchapter before |
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| 20 | 20 | | September 1, 2023, shall transfer management and control of the |
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| 21 | 21 | | municipality's electric utility system to a board of trustees |
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| 22 | 22 | | appointed by the municipality's governing body, except as provided |
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| 23 | 23 | | by Subsection (d). |
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| 24 | 24 | | (b) The board of trustees must include seven members who |
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| 25 | 25 | | serve staggered five-year terms. A person may not serve more than |
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| 26 | 26 | | two terms on the board of trustees. |
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| 27 | 27 | | (c) To serve as a member of the board of trustees, a person |
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| 28 | 28 | | must have at least 10 years of experience: |
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| 29 | 29 | | (1) in the administration of business or government; |
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| 30 | 30 | | (2) as a practicing attorney or certified public |
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| 31 | 31 | | accountant; or |
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| 32 | 32 | | (3) as a professional engineer in a field related to |
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| 33 | 33 | | electrical, nuclear, industrial, agricultural, architectural, |
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| 34 | 34 | | petroleum-related, chemical, power generation, or energy |
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| 35 | 35 | | transmission and distribution work. |
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| 36 | 36 | | (d) If the service territory of the municipal electric |
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| 37 | 37 | | utility includes at least four municipalities, the mayor of the |
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| 38 | 38 | | municipality in the service territory that has the greatest number |
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| 39 | 39 | | of retail customers is entitled to appoint four members to the board |
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| 40 | 40 | | of trustees, and the mayors of the remaining municipalities in the |
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| 41 | 41 | | service territory are entitled jointly to appoint the remaining |
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| 42 | 42 | | three members. The mayor of the municipality in the service |
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| 43 | 43 | | territory that has the greatest number of retail customers may |
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| 44 | 44 | | serve as a board member. Subsection (c) does not apply to that |
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| 45 | 45 | | mayor. |
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| 46 | 46 | | (e) The proceedings of the municipality may specify the |
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| 47 | 47 | | powers and duties of the board of trustees, the manner of exercising |
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| 48 | 48 | | those powers and duties, and any matter relating to the |
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| 49 | 49 | | organization and duties of the board. On any matter not covered by |
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| 50 | 50 | | the proceedings, the board of trustees is governed by the laws and |
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| 51 | 51 | | rules governing the governing body of the municipality in the |
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| 52 | 52 | | service territory that has the greatest number of retail customers, |
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| 53 | 53 | | to the extent applicable. |
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| 54 | 54 | | SECTION 2. This Act takes effect September 1, 2023. |
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