II

107TH CONGRESS

1ST SESSION S. 1288

To amend the Tennessee Valley Authority Act of 1933 to modify provisions

relating to the Board of Directors of the Tennessee Valley Authority,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

AUGUST 1, 2001

Mr. SHELBY (for himself and Mr. SESSIONS) introduced the following bill;

which was read twice and referred to the Committee on Environment and

Public Works

A BILL

To amend the Tennessee Valley Authority Act of 1933 to

modify provisions relating to the Board of Directors of

the Tennessee Valley Authority, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. CHANGE IN COMPOSITION, OPERATION, AND

4 DUTIES OF THE BOARD OF DIRECTORS OF

5 THE TENNESSEE VALLEY AUTHORITY.

6 (a) IN GENERAL.—The Tennessee Valley Authority

7 Act of 1933 (16 U.S.C. 831 et seq.) is amended by strik8 ing section 2 and inserting the following:
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1 ‘‘SEC. 2. MEMBERSHIP, OPERATION, AND DUTIES OF THE

2 BOARD OF DIRECTORS.

3 ‘‘(a) MEMBERSHIP.—

4 ‘‘(1) APPOINTMENT.—The Board of Directors

5 of the Corporation (referred to in this Act as the

6 ‘Board’) shall be composed of 14 members appointed

7 by the President by and with the advice and consent

8 of the Senate.

9 ‘‘(2) COMPOSITION.—The Board shall be com10 posed of 14 members, of whom—

11 ‘‘(A) 2 members shall be residents of Ala12 bama;

13 ‘‘(B) 2 members shall be residents of Geor14 gia;

15 ‘‘(C) 2 members shall be residents of Ken16 tucky;

17 ‘‘(D) 2 members shall be residents of Mis18 sissippi;

19 ‘‘(E) 2 members shall be residents of

20 North Carolina;

21 ‘‘(F) 2 members shall be residents of Ten22 nessee; and

23 ‘‘(G) 2 members shall be residents of Vir24 ginia.

25 ‘‘(b) QUALIFICATIONS.—
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1 ‘‘(1) IN GENERAL.—To be eligible to be ap2 pointed as a member of the Board, an individual—

3 ‘‘(A) shall be a citizen of the United

4 States;

5 ‘‘(B) shall not be an employee of the Cor6 poration;

7 ‘‘(C) shall have no substantial direct finan8 cial interest in—

9 ‘‘(i) any public-utility corporation en10 gaged in the business of distributing and

11 selling power to the public; or

12 ‘‘(ii) any business that may be ad13 versely affected by the success of the Cor14 poration as a producer of electric power;

15 and

16 ‘‘(D) shall profess a belief in the feasibility

17 and wisdom of this Act.

18 ‘‘(2) PARTY AFFILIATION.—Not more than 8 of

19 the 14 members of the Board may be affiliated with

20 a single political party.

21 ‘‘(c) TERMS.—

22 ‘‘(1) IN GENERAL.—A member of the Board

23 shall serve a term of 4 years except that in first

24 making appointments after the date of enactment of

25 this paragraph, the President shall appoint—
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1 ‘‘(A) 5 members to a term of 2 years;

2 ‘‘(B) 6 members to a term of 3 years; and

3 ‘‘(C) 3 members to a term of 4 years.

4 ‘‘(2) VACANCIES.—A member appointed to fill a

5 vacancy in the Board occurring before the expiration

6 of the term for which the predecessor of the member

7 was appointed shall be appointed for the remainder

8 of that term.

9 ‘‘(3) REAPPOINTMENT.—

10 ‘‘(A) IN GENERAL.—A member of the

11 Board that was appointed for a full term may

12 be reappointed for 1 additional term.

13 ‘‘(B) APPOINTMENT TO FILL VACANCY.—

14 For the purpose of subparagraph (A), a mem15 ber appointed to serve the remainder of the

16 term of a vacating member for a period of more

17 than 2 years shall be considered to have been

18 appointed for a full term.

19 ‘‘(d) QUORUM.—

20 ‘‘(1) IN GENERAL.—Eight members of the

21 Board shall constitute a quorum for the transaction

22 of business.

23 ‘‘(2) MINIMUM NUMBER OF MEMBERS.— A va24 cancy in the Board shall not impair the power of the
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1 Board to act, so long as there are 8 members in of2 fice.

3 ‘‘(e) COMPENSATION.—

4 ‘‘(1) IN GENERAL.—A member of the Board

5 shall be entitled to receive—

6 ‘‘(A) a stipend of $30,000 per year; and

7 ‘‘(B) travel expenses, including per diem in

8 lieu of subsistence, in the same manner as per9 sons employed intermittently in Government

10 service under section 5703 of title 5, United

11 States Code.

12 ‘‘(2) ADJUSTMENTS IN STIPENDS.—The

13 amount of the stipend under paragraph (1)(A) shall

14 be adjusted by the same percentage, at the same

15 time and manner, and subject to the same limita16 tions as are applicable to adjustments under section

17 5318 of title 5, United States Code.

18 ‘‘(f) CHIEF EXECUTIVE OFFICER.—

19 ‘‘(1) APPOINTMENT.—The President, by and

20 with the advice and consent of the Senate, shall ap21 point a person to serve as chief executive officer of

22 the Corporation.

23 ‘‘(2) QUALIFICATIONS.—To serve as chief exec24 utive officer of the Corporation, a person—
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1 ‘‘(A) shall be a citizen of the United

2 States;

3 ‘‘(B) shall have proven management expe4 rience in large, complex organizations;

5 ‘‘(C) shall not be a current member of the

6 Board or have served as a member of the Board

7 within 2 years before being appointed chief ex8 ecutive officer; and

9 ‘‘(D) shall have no substantial direct finan10 cial interest in—

11 ‘‘(i) any public-utility corporation en12 gaged in the business of distributing and

13 selling power to the public; or

14 ‘‘(ii) any business that may be ad15 versely affected by the success of the Cor16 poration as a producer of electric power;

17 and

18 ‘‘(3) TERM.—

19 ‘‘(A) IN GENERAL.—The chief executive of20 ficer shall serve for a term of 4 years.

21 ‘‘(B) REAPPOINTMENT.—The chief execu22 tive officer may be reappointed for additional

23 terms.

24 ‘‘(4) COMPENSATION.—
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1 ‘‘(A) IN GENERAL.—The chief executive of2 ficer shall be entitled to receive—

3 ‘‘(i) compensation at a rate that does

4 not exceed the annual rate of pay pre5 scribed under Level III of the Executive

6 Schedule under section 5315 of title 5,

7 United States Code; and

8 ‘‘(ii) reimbursement from the Cor9 poration for travel expenses, including per

10 diem in lieu of subsistence, while away

11 from home or regular place of business of

12 the chief executive officer in the perform13 ance of the duties of the chief executive of14 ficer.’’.

15 (b) CURRENT BOARD MEMBERS.—A member of the

16 board of directors of the Tennessee Valley Authority who

17 was appointed before the effective date of the amendment

18 made by subsection (a)—

19 (1) shall continue to serve as a member until

20 the date of expiration of the member’s current term;

21 and

22 (2) may not be reappointed.

23 SEC. 3. EFFECTIVE DATE.

24 The amendments made by this Act take effect, and

25 the additional members of the Board of the Tennessee
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1 Valley Authority and Chief Executive Officer shall be ap2 pointed so as to commence their terms on, the date that

3 is 90 days after the date of enactment of this Act.

Æ