Regular Session
Government Affairs & Regulatory Compliance Analysis
SB2406 mandates a governance overhaul for the Sabine River Authority (SRA), imposing strict training requirements on Directors that carry a penalty of immediate voting disqualification. For vendors, municipalities, and bond issuers, this creates a critical "quorum risk" starting December 1, 2025, potentially freezing contract awards and bond authorizations if the Board lacks eligible voters.
Sen. Angela Paxton·Senate Bill·Regular Session
Office of the Attorney General (Receives removal notices) • Office of the Governor (Removal proceedings) • Sabine River Authority (Board and Manager)
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
Explore more bills from this author and on related topics
Common questions about SB2406
SB2406 mandates a governance overhaul for the Sabine River Authority (SRA), imposing strict training requirements on Directors that carry a penalty of immediate voting disqualification. For vendors, municipalities, and bond issuers, this creates a critical "quorum risk" starting December 1, 2025, potentially freezing contract awards and bond authorizations if the Board lacks eligible voters.
SB2406 was authored by Texas Senator Angela Paxton during the Regular Session.
SB2406 was signed into law by Governor Greg Abbott on June 20, 2025.
SB2406 is enforced by Office of the Attorney General (Receives removal notices), Office of the Governor (Removal proceedings) and Sabine River Authority (Board and Manager).
The regulatory priority for SB2406 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB2406 is estimated as "low". This may vary based on industry and implementation requirements.
SB2406 addresses topics including sabine river authority of texas, governor, special districts & authorities, special districts & authorities--river authorities and special districts & authorities--water & utility.
Key dates for SB2406: Effective date is 2025-09-01. Rulemaking: Must develop and implement policies providing the public a reasonable opportunity to appear/speak before the Board (Sec. 6B). (2025-09-01); Must develop and implement policies clearly separating policy-making responsibilities (Board) from management responsibilities (Staff) (Sec. 10A). (2025-09-01). Consult with legal counsel regardin
SB2406 establishes the following penalties: administrative penalty of Loss of voting rights/deliberation privileges for Director failure to complete required training program (Strict enforcement begins Dec 1, 2025 for existing members).; administrative penalty of Removal from office for Director absence from more than half of regularly scheduled meetings in a calendar year without approved excuse, or failure to maintain qualifications.. Consult with legal counsel for specific applicability to your situation.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
