Regular Session
Government Affairs & Regulatory Compliance Analysis
SB 2407 enacts strict governance reforms for the Lower Neches Valley Authority (LNVA), imposing a "hard stop" on Board voting privileges contingent upon mandatory training and redefining the separation of powers between the Board and General Manager. Entities holding water rights, permits, or vendor contracts with the LNVA face a risk of administrative paralysis in late 2025 if Board members fail to meet these new statutory requirements.
Sen. Kevin Sparks·Senate Bill·Regular Session
Lower Neches Valley Authority (General Manager & Board) • Office of the Attorney General • Office of the Governor • Sunset Advisory Commission
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.
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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.
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This bill's path through the Texas Legislature
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Common questions about SB2407
SB 2407 enacts strict governance reforms for the Lower Neches Valley Authority (LNVA), imposing a "hard stop" on Board voting privileges contingent upon mandatory training and redefining the separation of powers between the Board and General Manager. Entities holding water rights, permits, or vendor contracts with the LNVA face a risk of administrative paralysis in late 2025 if Board members fail to meet these new statutory requirements.
SB2407 was authored by Texas Senator Kevin Sparks during the Regular Session.
SB2407 was signed into law by Governor Greg Abbott on June 20, 2025.
SB2407 is enforced by Lower Neches Valley Authority (General Manager & Board), Office of the Attorney General, Office of the Governor and Sunset Advisory Commission.
The regulatory priority for SB2407 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB2407 is estimated as "low". This may vary based on industry and implementation requirements.
SB2407 addresses topics including lower neches valley authority, governor, special districts & authorities, special districts & authorities--water & utility and sunset.
Key dates for SB2407: Effective date is 2025-09-01. Rulemaking: Must develop and implement policies clearly separating policymaking responsibilities of the Board from management responsibilities of the General Manager and staff. (2025-09-01); Must develop and implement policies providing the public reasonable opportunity to appear and speak on issues under Authority jurisdiction. (2025-09-01). Con
SB2407 establishes the following penalties: administrative penalty of Removal from Office for Director absence from more than half of regularly scheduled meetings in a calendar year without approved excuse.; administrative penalty of Prohibition on Voting/Deliberating for Director failure to complete required training program by December 1, 2025 (or upon appointment).; administrative penalty of Removal from Office for Director failure to maintain qualifications (residency/taxpayer status) or violation of Chapter 171 (Conflicts of Interest).. 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.
