A utility system’s management may be placed with the municipality’s governing body or a municipality-appointed board of trustees, and trustee compensation is capped at 5% of the system’s gross receipts per year.
Sec. 1502.070. MANAGEMENT AND CONTROL OF UTILITY SYSTEM. (a) Management and control of a utility system may be vested in: (1) the municipality's governing body; or (2) a board of trustees named in the proceedings adopted by the municipality and consisting of not more than: (A) five members, one of whom must be the mayor of the municipality; (B) seven members, one of whom must be the mayor of the municipality, if the municipality is located in a county that: (i) contains a municipality with a population of at least 500,000; and (ii) is located on an international border; or (C) seven members, one of whom must be the mayor of the municipality, if the municipality is located in a county: (i) with a population of at least 375,000; (ii) that is located on an international border; and (iii) that borders the Gulf of Mexico. (b) The compensation of the trustees shall be specified by the proceedings. The compensation may not exceed five percent of the gross receipts of the utility system in any year. (c) The proceedings of the municipality may specify the terms of office of the board of trustees, their powers and duties, the manner of exercising those powers and duties, the election of successor trustees, and any matter relating to the organization and duties of the board. On any matter not covered by the proceedings, the board of trustees is governed by the laws and rules governing the municipality's governing body, to the extent applicable. Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Renumbered from Government Code Sec. 1502.071 and amended by Acts 1999, 76th Leg., ch. 1064, Sec. 22, eff. Sept. 1, 1999. Amended by: Acts 2009, 81st Leg., R.S., Ch. 124 (H.B. 4004), Sec. 1, eff. May 23, 2009. Acts 2011, 82nd Leg., R.S., Ch. 1163 (H.B. 2702), Sec. 30, eff. September 1, 2011. Acts 2013, 83rd Leg., R.S., Ch. 98 (S.B. 795), Sec. 1, eff. May 18, 2013. Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 57, eff. September 1, 2023.