(a)(1) Notwithstanding any other law to the contrary, when a municipal utility provides
electric service in multiple counties and one (1) of the counties outside of the county
in which the principal office of the utility is located has in excess of sixty percent
(60%) of the customers residing in it, then such municipal utility shall create and
install two (2) additional board members from the county that has in excess of sixty
percent (60%) of the utility customers. The county mayor of the county that has in excess of sixty percent (60%) of the
customers shall recommend persons to fill the new board member positions. The city council or chief legislative body of the city that owns the municipal utility
shall accept or reject the recommendation or recommendations at a public meeting by
a simple majority vote. If the recommended person or persons are not accepted or rejected within thirty
(30) days following the date of the recommendation, the person or persons shall be
deemed accepted. If rejected, the county mayor shall recommend another person or persons until the
city council or chief legislative body of the city accepts the recommendation or recommendations. Such board members shall not be considered city council persons or employees of
the municipality, nor shall they receive any insurance benefits. The terms of such board members shall be four (4) years and each shall serve until
their successor is selected and assumes office. In the event a vacancy occurs, the county mayor shall initiate the procedure described
in this section to appoint a successor to fill the vacancy for the remainder of the
(2) For implementation purposes, one (1) board member shall assume office on July
1, 2005, and the other shall assume office on July 1, 2006.
(3) Such appointees shall be customers of the municipal utility for not less than
one (1) year and shall not be an employee or board member of any other utility.
(4) This section shall in no way affect or change the in lieu of tax payment procedure
or recipient in effect prior to May 17, 2005, and further ratifies such procedure.
(b) This section shall only apply to municipal utilities that are wholly located within
the state and otherwise subject to this section.
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