[Watchdogs] PEC4u Candidate Questionaire
Carlos Higgins
PECmem at sbcglobal.net
Tue May 5 00:24:00 CDT 2009
By: Swinford H.B. No. 3820
A BILL TO BE ENTITLED AN ACT
relating to the governance and disclosure requirements of electric
cooperative corporations and the review of complaints of electric
cooperative corporation members by the Office of the Attorney General.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 161.072, Utilities Code, is amended by adding
Subsections (c) through (h) to read as follows:
(c) Notwithstanding Section 161.070, if the bylaws provide for voting by
proxy:
(1) a director who is standing for reelection to the board may not serve
on a committee established under the bylaws for the purpose of casting, or
being authorized to cast, the proxy vote of a member in a director
election; and
(2) a member's proxy vote may be cast by a committee described by
Subdivision (1) in a director election only if:
(A) a proxy form is sent by regular mail to each member of record not later
than the 30th day before the date of the meeting at which proxy votes are
counted;
(B) the proxy form lists:
(i) the names of all qualified candidates and, if the cooperative nominates
or elects directors by district, the district the member seeks to represent,
or
(ii) the slate of candidates nominated at the district meeting, if
applicable;
(C) the proxy form designates each candidate who is an incumbent director;
(D) an exact copy of the proxy form is posted on the cooperative's Internet
website, if the cooperative maintains a website;
(E) the proxy form includes information describing the process by which
proxy votes are authorized and cast, including:
(i) the name of each member of the committee established under the bylaws
for the purpose of casting proxy votes in a director election;
(ii) the process prescribed in the bylaws for selecting members to serve
on the committee; and
(iii) the districts represented by each committee member, if applicable;
and
(F) the proxy form contains the following statements, in bold type:
(i) "If you grant the committee your proxy, you are giving the committee
full authority to vote your proxy for the candidates you selected, or, if
you did not select any candidates, to vote your proxy for candidates the
committee selects";
(ii) "You may rescind your proxy at any time before votes are cast at the
meeting to elect directors"; and
(iii) "State law prohibits any person from using incentives or other
enticements to encourage you to provide your proxy in any board election."
(d) Subsection (c) may not be construed as limiting the right of an
individual member to collect or cast the proxy vote of another member in a
director election, if allowed by the bylaws.
(e) This section may not be construed as limiting the use of a proxy as
provided by Section 161.069 to establish a quorum to transact business other
than the election of a director.
(f) A person may not use an incentive or other enticement to encourage a
member to authorize another person to cast the member's proxy vote in a
director election.
(g) If the bylaws of a cooperative allow a committee of members to
nominate qualified members as candidates in a director election, the bylaws
must also:
(1) allow nominations to be made through one or more written petitions by
members;
(2) specify the number of printed names and dated signatures a petition
nominating a candidate must contain;
(3) specify the time period within which the names and dated signatures
may be collected; and
(4) specify the deadline by which a petition nominating a candidate must be
submitted to the cooperative.
(h) A petition submitted under Subsection (g) must provide on the petition
the name and address of the member seeking nomination and, if the
cooperative nominates or elects directors by district, the district the
member seeks to represent.
SECTION 2. Section 161.075, Utilities Code, is amended by amending
Subsection (a) and adding Subsections (d) through (g) to read as follows:
(a) The board shall hold a regular or special board meeting at the place
and time specified in [on] the notice prescribed by Subsection (d) and the
bylaws.
(d) The board shall give members notice of the date, hour, place, and
planned agenda of a regular or special board meeting. Notice of a board
meeting must be given at least three days before the scheduled time of the
meeting by posting the notice in a prominent place convenient to members at
the cooperative's main office and each district office, and on the
cooperative's Internet website, if the cooperative maintains a website.
The board shall provide on request a copy of the notice to a member of the
cooperative.
(e) In the event of an emergency or urgent matter, notice may be given in
the manner prescribed by Subsection (d) less than three days before a
regular or special board meeting is convened.
(f) An action taken by the board at a meeting for which notice was provided
less than three days before a regular or special board meeting is convened
must be ratified by the board at the next board meeting.
(g) A member of the electric cooperative is entitled to attend a regular or
special board meeting for the duration of the period specified in the
meeting notice for member comments and to have a reasonable opportunity to
comment on any matter on the meeting agenda or related to cooperative
business. Only a member of the electric cooperative is entitled to attend a
regular or special board meeting for the duration of the period specified in
the meeting notice for member comments.
SECTION 3. Subchapter B, Chapter 161, Utilities Code, is amended by adding
Sections 161.080 and 161.081 to read as follows:
Sec. 161.080. ANNUAL FINANCIAL AUDIT. (a) The board annually, at the
electric cooperative's expense, shall have an independent financial audit
made of the cooperative's books and records.
(b) The audit must be performed by a qualified, independent, professional
entity.
(c) The board shall make the results of the audit available to any member
of the cooperative upon request.
Sec. 161.081. MEMBER'S RIGHT OF ACCESS TO INFORMATION. (a) A member of an
electric cooperative may, at any reasonable time and on written request that
states a proper purpose, inspect and copy the books and records of the
cooperative relevant to that purpose.
(b) The cooperative may charge the member for the cost of providing the
information.
(c) An electric cooperative may not limit or deny a member's request to
inspect its books and records unless the member:
(1) does not meet the requirements of Subsection (a);
(2) seeks information the release of which would unduly infringe on or
invade the privacy of a person;
(3) seeks information related to a trade secret;
(4) seeks personnel information the disclosure of which would violate the
law or constitute a clearly unwarranted invasion of personal privacy;
(5) seeks information related to:
(A) pending or reasonably anticipated litigation;
(B) real estate transactions for projects that have not been formally
announced or for which contracts have not been formally awarded;
(C) the cooperative's competitive activity, including commercial
information and utility-related matters, that would, if disclosed, give
advantage to competitors or prospective competitors; or
(D) the security of the electrical system; or
(6) seeks information that is confidential, privileged, or proprietary.
SECTION 4. Subchapter C, Chapter 161, Utilities Code, is amended by adding
Section 161.126 to read as follows:
Sec. 161.126. NOTIFICATION OF INVESTMENT IN CERTAIN BUSINESS ENTITIES. If
an electric cooperative or an affiliate of the cooperative enters into a
transaction in which the cooperative creates or acquires an interest in a
business entity that does not generate, transmit, or distribute electricity,
the cooperative shall, not later than the 30th day following the completion
of the transaction, provide a notice to members that contains:
(1) the name of the entity;
(2) a description of the entity;
(3) the reasons for the decision to enter into the transaction;
(4) a description of the cost and method of financing the transaction; and
(5) a description of the anticipated effect the transaction will have on
the cooperative's electricity rates.
SECTION 5. Chapter 161, Utilities Code, is amended by adding Subchapter G
to read as follows:
SUBCHAPTER G. ATTORNEY GENERAL REVIEW
Sec. 161.301. MEMBER COMPLAINTS. (a) A member may file a written
complaint with an electric cooperative that the cooperative or an officer or
agent of the cooperative failed or refused to follow Section 161.072,
161.075, 161.080, 161.081, or 161.126.
(b) If the electric cooperative does not resolve the complaint to the
member's satisfaction before the 21st day after the date the complaint is
received by the cooperative, the member may file a written complaint with
the consumer protection division of the office of the attorney general. The
complaint must identify the name and address of the electric cooperative,
describe the problem in detail, and provide copies of documents relevant to
the complaint, including any request the member provided to the cooperative,
the written complaint the member filed with the cooperative, and any
response from the cooperative.
(c) The consumer protection division of the office of the attorney general
may review a complaint filed by a member under this subchapter for purposes
of determining if the electric cooperative or an officer or agent of the
cooperative failed or refused to follow Section 161.072, 161.075, 161.080,
161.081, or 161.126.
(d) The consumer protection division may request from the cooperative
additional information about the complaint. The division must identify in
the request the persons authorized by the division to receive, inspect, or
copy the information.
(e) The electric cooperative shall cooperate fully with the consumer
protection division and shall provide to the authorized employee of the
division information to assist in resolving the complaint within the time
specified by the division.
Sec. 161.302. USE OF INFORMATION ACQUIRED BY ATTORNEY GENERAL. (a) No
information provided in response to a request under Section 161.301, unless
otherwise ordered by a court for good cause shown, may be produced for
inspection or copying by, nor may its contents be disclosed to, any person
other than an authorized employee of the consumer protection division
without the consent of the electric cooperative that provided the
information.
(b) The consumer protection division may use the information or copies of
the information as necessary to resolve a complaint filed under this
subchapter, including presentation before any court in a suit filed under
Section 161.303. Confidential or sensitive information shall not be
presented except with approval of the court in which the action is pending
after adequate notice to the electric cooperative. If no suit is filed
under Section 161.303, any confidential or sensitive information shall be
returned to the electric cooperative upon request after the complaint is
closed.
Sec. 161.303. INJUNCTIVE RELIEF. (a) If the consumer protection division
determines that it is in the public interest, the attorney general may file
suit against an electric cooperative to prevent or restrain by temporary
restraining order, temporary injunction, or permanent injunction a violation
of Section 161.072, 161.075, 161.080, 161.081, or 161.126.
(b) A suit filed under this section must be filed not later than one year
after the date the member of the electric cooperative filed the complaint
with the consumer protection division, and may be brought in a district
court in Travis County or in a county in which any part of the violation
occurs.
(c) If the attorney general files suit against an electric cooperative
under this section and a temporary or permanent injunction is granted
against the cooperative or an officer or agent of the cooperative, the
attorney general may recover reasonable expenses, court costs, investigative
costs, and attorney's fees.
SECTION 6. (a) The change in law made to Section 161.072, Utilities Code,
as amended by this Act, applies only to a director election held on or after
the effective date of this Act. A director election held before the
effective date of this Act is subject to the law in effect on the date the
election is held, and that law is continued in effect for that purpose.
(b) The change in law made by Section 161.075, Utilities Code, as amended
by this Act, applies only to a meeting convened on or after the effective
date of this Act. A meeting convened before the effective date of this Act
is subject to the law in effect on the date the meeting is held, and that
law is continued in effect for that purpose.
(c) The change in law made by Section 161.081, Utilities Code, as added by
this Act, applies only to a request to inspect records submitted on or after
the effective date of this Act. A request submitted before the effective
date of this Act is subject to the law in effect on the date of the request,
and that law is continued in effect for that purpose.
(d) The change in law made by Section 161.126, Utilities Code, as added by
this Act, applies only to a transaction that is completed on or after the
effective date of this Act. A transaction that is completed before the
effective date of this Act is subject to the law in effect on that date, and
that law is continued in effect for that purpose.
(e) The change in law made by Subchapter G, Chapter 161, Utilities Code, as
added by this Act, applies only to a complaint filed by a member of an
electric cooperative regarding an action that occurs on or after the
effective date of this Act. An action that is completed before the effective
date of this Act is subject to the law in effect on that date, and that law
is continued in effect for that purpose.
SECTION 7. This Act takes effect September 1, 2009.
_________________________________________
By: Fraser S.B. No. 921 (Identical to HB 1390 by Rose)
A BILL TO BE ENTITLED AN ACT
relating to access by the members of electric cooperatives to meetings of
the boards of directors and certain information of the electric
cooperatives.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 161.002, Utilities Code, is amended by adding
Subdivision (2-a) to read as follows:
(2-a) "Board meeting" means a deliberation between a quorum of the voting
board, or between a quorum of the voting board and another person, during
which electric cooperative business or policy over which the board has
responsibility is discussed or considered, or during which the board takes
formal action. The term does not include the gathering of a quorum of the
board at a social function unrelated to the business of the cooperative, or
the attendance by a quorum of the board at a regional, state, or national
convention or workshop, ceremonial event, or press conference, if formal
action is not taken and any discussion of cooperative business is incidental
to the social function, convention, workshop, ceremonial event, or press
conference.
SECTION 2. Subsection (b), Section 161.064, Utilities Code, is amended to
read as follows:
(b) The bylaws may contain any provision for the regulation and management
of the affairs of the electric cooperative that is consistent with the
articles of incorporation and this chapter.
SECTION 3. Section 161.072, Utilities Code, is amended by adding
Subsections (c) through (m) to read as follows:
(c) Director elections shall be conducted in a manner that is fair and open
to all members of the electric cooperative.
(d) A board committee of a cooperative with more than 170,000 members may
not cast a member's proxy vote in a director election.
(e) A director who is standing for reelection to the board of a cooperative
with not more than 170,000 members may not serve on a committee established
under the bylaws for the purpose of casting, or being authorized to cast,
the proxy vote of a member in a director election.
(f) A member's proxy vote may be cast in a director election only if:
(1) a proxy form is sent by regular mail to each member of record not later
than the 30th day before the date of the meeting at which proxy votes are
counted;
(2) the proxy form designates each candidate who is an incumbent director;
(3) an exact copy of the proxy form is posted on the cooperative's Internet
website, if the cooperative maintains a website;
(4) the proxy form includes information describing the process by which
proxy votes are authorized and cast, including:
(A) the name of each member of the committee, if any, established under the
bylaws for the purpose of casting proxy votes in a director election;
(B) the process prescribed in the bylaws for selecting members to serve on
the committee; and
(C) the districts represented by each committee member, if applicable; and
(5) the proxy form contains the following statements, in bold type:
(A) "If you grant the committee your proxy, you are giving the committee
full authority to vote your proxy for the candidates you selected, or, if
you did not select any candidates, to vote your proxy for candidates the
committee selects";
(B) "You may rescind your proxy at any time before votes are cast at the
meeting to elect directors"; and
(C) "State law prohibits any person from using incentives or other
enticements to encourage you to provide your proxy in any board election."
(g) Subsections (d) and (f) may not be construed as limiting the right of
an individual member to collect or cast the proxy votes of another member in
a director election, if allowed by the bylaws.
(h) This section may not be construed as limiting the use of a proxy as
provided by Section 161.069 to establish a quorum to transact business other
than the election of a director.
(i) A person may not use an incentive or other enticement to encourage a
member to authorize another person to cast the member's proxy vote in a
director election.
(j) A cooperative with more than 170,000 members may elect directors only
by district. A member may vote for a director to represent a district only
if the member resides in that district.
(k) A cooperative with more than 170,000 members may nominate qualified
members as candidates in a director election only through a written petition
by members. The bylaws must:
(1) specify the number of printed names and dated signatures a petition
nominating a candidate must contain;
(2) specify a period within which a petition nominating a candidate must be
submitted to the cooperative; and
(3) specify that only members residing in a district may sign a petition
for the nomination of a candidate to represent that district.
(l) If the bylaws of a cooperative with not more than 170,000 members allow
a committee of members to nominate qualified members as candidates in a
director election, the bylaws must also:
(1) allow nominations to be made through one or more written petitions by
members;
(2) specify the number of printed names and dated signatures a petition
nominating a candidate must contain; and
(3) specify a period within which a petition nominating a candidate must be
submitted to the cooperative.
(m) A petition submitted under Subsection (l) must provide on the petition
the name and address of the member seeking nomination and, if the
cooperative nominates or elects directors by district, the district the
member seeks to represent.
SECTION 4. Section 161.075, Utilities Code, is amended to read as follows:
Sec. 161.075. BOARD MEETINGS. (a) The board shall hold a regular or
special board meeting at the place and on [the] notice as provided by
Section 161.0751 and [prescribed by] the bylaws. Except as provided by
Section 161.0752, each member of the electric cooperative is entitled to
attend a regular or special board meeting.
(b) The attendance of a director at a board meeting constitutes a waiver of
notice to the director of the meeting unless the director attends the
meeting for the express purpose of objecting to the transaction of business
at the meeting because the meeting is not lawfully called or convened.
(c) A notice or waiver of notice of a board meeting given to a director is
not required to specify the business to be transacted at the meeting or the
purpose of the meeting.
(d) The board shall keep a record of each regular or special board meeting,
in the form of written minutes or a taped recording of the meeting. A
record of a meeting must state the subject of each deliberation and indicate
each vote, order, decision, or other action taken by the board. The board
shall make meeting records available to a member for inspection and copying
on the member's written request to the board secretary or to a person the
secretary designates.
(e) The board may adopt reasonable rules to maintain order at a regular or
special board meeting. A rule adopted by the board under this section may
not prevent or unreasonably impair a member from exercising a right granted
by this section.
SECTION 5. Subchapter B, Chapter 161, Utilities Code, is amended by adding
Sections 161.0751 and 161.0752 to read as follows:
Sec. 161.0751. NOTICE OF BOARD MEETINGS. (a) The board shall give members
written notice of the date, hour, place, and subject of a regular or special
board meeting. Notice of a board meeting must be given at least 72 hours
before the scheduled time of the meeting by:
(1) posting a notice on a bulletin board in a place convenient to members
at the electric cooperative's headquarters and at each district office;
(2) posting a notice on the cooperative's Internet website, if the
cooperative maintains a website.
(b) If the board recesses a regular or special board meeting to continue
the following regular business day, the board is not required to post notice
of the continued meeting if the recess is taken in good faith and not to
circumvent this section and Section 161.075. If a regular or special board
meeting is continued to the following regular business day, and on that
following day the board continues the meeting to another day, the board
shall give written notice as required by this section of the meeting
continued to that other day.
(c) In the event of an emergency or urgent necessity that requires
immediate board action to meet a reasonably unforeseeable situation, notice
may be given in the manner prescribed by Subsection (a) at least two hours
before a regular or special board meeting is convened, in order to:
(1) call an emergency board meeting; or
(2) add a subject to the agenda of a previously scheduled board meeting.
(d) Notice under Subsection (c) shall clearly identify the emergency or
urgent necessity for which the notice is given. If the board adds a subject
to the agenda of a previously scheduled regular or special board meeting,
the board secretary or person the secretary designates shall post a copy of
the revised agenda on the electric cooperative's Internet website, if the
cooperative maintains a website, and physically at the cooperative's
headquarters and each district office, not less than two hours before the
meeting convenes.
(e) If, at a regular or special board meeting, a member makes an inquiry
regarding a subject for which notice has not been given as required by this
section, the notice provisions of this section do not apply to:
(1) a statement by the board of specific factual information given in
response to the inquiry; or
(2) a recitation of existing policy in response to the inquiry.
(f) Any deliberation of or decision relating to the subject of an inquiry
made under Subsection (e) shall be limited to a proposal to place the
subject on the agenda for a subsequent board meeting.
Sec. 161.0752. EXECUTIVE SESSIONS. (a) Before the board calls an
executive session, the board shall convene in a regular or special board
meeting for which notice has been given as provided by Section 161.0751.
During that board meeting, the presiding director may call an executive
session by announcing that an executive session will be held to deliberate a
matter described by Subsection (d) and identifying the specific subdivision
of Subsection (d) under which the executive session will be held.
(b) Except as provided by Subsection (c), a final action, decision, or vote
on a matter deliberated in an executive session may only be made in a
regular or special board meeting for which notice has been given as provided
by Section 161.0751.
(c) The board may take action in an executive session for matters described
by Subsections (d)(2), (4), and (5).
(d) The board may hold an executive session to which the members do not
have access to deliberate:
(1) anticipated or pending litigation, settlement offers, or
interpretations of the law with the electric cooperative's legal counsel and
with any other person the board considers necessary;
(2) the purchase, exchange, lease, or value of real property, if the board
determines in good faith that deliberation in an open board meeting may have
a detrimental effect on the electric cooperative;
(3) business and financial issues relating to the negotiation of a
contract, if the board determines in good faith that deliberation in an open
board meeting may have a detrimental effect on the position of the electric
cooperative;
(4) personnel issues, and complaints or charges against a director or
electric cooperative employee or consultant, unless the director or employee
who is the subject of the deliberation requests a public hearing;
(5) utility-related matters and commercial information that the board
determines in good faith are related to the electric cooperative's
competitive activity but only to the extent the board specifically
determines that disclosure of the information could give an advantage to
competitors or potential competitors; or
(6) issues related to security of the electric cooperative, including
security personnel, security devices, and security audits.
(e) The board secretary or a person the secretary designates shall make and
keep a written or audio record of each executive session. The secretary
shall preserve the record for at least two years following the session. The
record must include:
(1) a statement of the subject matter of each deliberation;
(2) a record of any further action taken; and
(3) an announcement by the presiding director at the beginning and end of
the session indicating the date and time.
SECTION 6. Section 161.077, Utilities Code, is amended by adding Subsection
(d) to read as follows:
(d) The provisions of this chapter that apply to the board also apply to
the executive committee.
SECTION 7. Subchapter B, Chapter 161, Utilities Code, is amended by adding
Sections 161.080, 161.081, 161.082, and 161.083 to read as follows:
Sec. 161.080. MEMBER'S RIGHT OF ACCESS TO RECORDS. (a) Except as provided
by Subsection (c), a member of an electric cooperative may, at any
reasonable time and on written request that states the purpose of the
request:
(1) inspect books and records of the cooperative relevant to that purpose;
and
(2) at the member's own expense, copy records the member is entitled to
inspect under this section.
(b) An electric cooperative may charge a reasonable fee to the member if
fulfilling the member's request will require a large amount of employee
time.
(c) An electric cooperative may reject or limit a member's request to
inspect its books and records if:
(1) the member refuses to warrant and furnish to the electric cooperative,
on the electric cooperative's request, an affidavit that:
(A) the inspection is desired for a purpose reasonably related to the
business of the cooperative; or
(B) the member does not intend to sell or offer to sell any list of members
of the cooperative or assist another person in obtaining a list of members
for that purpose;
(2) the release of the information sought by the member, such as individual
member information or personnel information, would unduly infringe on or
invade the privacy of a person;
(3) the inspection is sought for a dishonest purpose; or
(4) the records sought to be inspected pertain to trade secrets or
information that is privileged, confidential, or proprietary.
Sec. 161.081. POLICIES AND AUDITS. (a) The board shall adopt written
policies relating to:
(1) travel expenditures for board members, officers, and employees;
(2) reimbursement of expenses for board members, officers, and employees;
(3) conflicts of interest for board members, officers, and employees;
(4) whistleblower protections;
(5) criteria and procedures for the selection, monitoring, review, and
evaluation of outside vendors or contracted professional services;
(6) budgets for use in planning and controlling costs; and
(7) the creation of a committee that audits the actions of the board.
(b) An electric cooperative shall provide for an independent financial
audit, to be performed annually by an unaffiliated entity that is
professionally qualified to perform such an audit.
(c) Upon approval of the Legislative Audit Committee, the state auditor may
audit the financial transactions and operations of a cooperative, at the
cooperative's expense.
Sec. 161.082. COMPLAINTS BY MEMBERS. (a) In this section, "commission"
means the Public Utility Commission of Texas.
(b) A member may file a written complaint with the general manager of the
electric cooperative if the member is aggrieved by an action of the board or
by an employee of the board or of the cooperative that the member alleges
infringes on a right of the member under this chapter.
(c) Not later than the 20th day after the date the general manager receives
a complaint under Subsection (b), the general manager shall take corrective
action regarding the complaint, if the general manager determines that the
action complained of infringed on the member's rights under this chapter.
(d) If the general manager determines that the action complained of did not
infringe on the member's rights under this chapter, or if the general
manager otherwise fails to resolve the member's complaint to the member's
satisfaction before the 21st day after the general manager receives the
member's complaint, the member may file a written complaint with the
commission. A complaint filed with the commission under this subsection
must:
(1) identify the electric cooperative by name and address;
(2) describe in detail the nature of the member's complaint; and
(3) include copies of documents relevant to the member's complaint,
including:
(A) any relevant written request made by the member to the cooperative;
(B) the written complaint made by the member to the general manager under
Subsection (b); and
(C) any relevant response from the cooperative regarding a request or
complaint.
(e) In reviewing a member's complaint under this section, the commission
may request that the cooperative provide to the commission any information
relevant to the complaint. The commission must give a cooperative a
reasonable opportunity to inspect and copy the requested information before
providing the information to the commission. The commission shall designate
an employee of the commission to be the person responsible for receiving,
inspecting, or copying information received under this subsection.
(f) An electric cooperative shall cooperate with a request for information
under Subsection (e) and promptly provide the requested information to the
commission's designated employee. The commission may not disclose to any
person information provided by a cooperative in response to the request
unless:
(1) the commission is required by a court to provide the information to the
person;
(2) the person is an authorized employee of the commission; or
(3) the cooperative that provided the information consents to the
disclosure.
(g) The commission shall give a cooperative notice before using information
provided in response to a request under Subsection (e) in a contested case
hearing. On objection by the cooperative that the information is
confidential or sensitive, the administrative judge presiding over the
contested case hearing shall determine whether the information is admissible
in the hearing.
(h) The commission shall return to a cooperative any information provided
under this section that is confidential or sensitive to the cooperative.
Sec. 161.083. ALTERNATIVE DISPUTE RESOLUTION. The Public Utility
Commission of Texas may refer a complaint made under Section 161.082(d) to
the State Office of Administrative Hearings as provided by Section 14.0025
for alternative dispute resolution if the commission determines a referral
is in the public interest.
SECTION 8. Subchapter C, Chapter 161, Utilities Code, is amended by adding
Sections 161.126 and 161.127 to read as follows:
Sec. 161.126. PROHIBITION ON ACQUISITION OF GENERATOR CAPACITY BY CERTAIN
ELECTRIC COOPERATIVES. An electric cooperative with more than 170,000
members that provides retail electric service may not acquire equipment
capable of generating electricity for sale unless the Public Utility
Commission of Texas first approves of the acquisition. The commission by
rule shall establish the standards and procedures by which it will approve
an electric cooperative's acquisition of electric generation capacity.
Sec. 161.127. NOTIFICATION OF CERTAIN INVESTMENTS. Not later than the 30th
day following the completion of a transaction that results in an electric
cooperative or an affiliate of the cooperative creating, acquiring, or
receiving an interest in an entity that does not generate, transmit, or
distribute electricity, the cooperative shall provide a notice to members
that contains:
(1) the name of the entity;
(2) a description of the entity;
(3) the reasons for the decision to enter into the transaction;
(4) a description of the costs associated with the transaction, and the
method of financing for those costs; and
(5) a description of the anticipated effect the transaction will have on
the cooperative's electric energy rates or prices.
SECTION 9. (a) The changes in law made to Section 161.072, Utilities Code,
as amended by this Act, apply only to a director election held on or after
the effective date of this Act. A director election held before the
effective date of this Act is subject to the law in effect on the date the
election is held, and that law is continued in effect for that purpose.
(b) The changes in law made by Section 161.075, Utilities Code, as amended
by this Act, and by Sections 161.0751 and 161.0752, Utilities Code, as added
by this Act, apply only to a meeting convened on or after the effective date
of this Act. A meeting convened before the effective date of this Act is
subject to the law in effect on the date the meeting is held, and that law
is continued in effect for that purpose.
(c) The changes in law made by Sections 161.080, 161.082, and 161.083,
Utilities Code, as added by this Act, apply only to a request to inspect
records submitted on or after the effective date of this Act. A request
submitted before the effective date of this Act is subject to the law in
effect on the date of the request, and that law is continued in effect for
that purpose.
(d) The changes in law made by Section 161.127, Utilities Code, as added by
this Act, apply only to a transaction that is completed on or after the
effective date of this Act. A transaction that is completed before the
effective date of this Act is subject to the law in effect on that date, and
that law is continued in effect for that purpose.
SECTION 10. This Act takes effect September 1, 2009.
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