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