Over five years ago, during construction along IH 35, signs that directed thousands of travelers to Lockhart were taken down, and when replaced, did not list Lockhart as a destination. 

Today, 1.6 million people come to Lockhart each year to eat BBQ.  Tourism generates $27.5 million in Caldwell County, supporting 210 jobs, and generating $253,400 in local taxes and $1.7 million in state taxes.

 "Especially during these difficult economic times, we must do everything we can to protect jobs in our community," said Rep. Rose.  "Tourists are critical to our local economy and these new signs will increase Lockhart’s visibility along the IH-35 corridor."

Concerned with the impact the lack of signage would have on tourism to the area, Rep. Rose, the City of Lockhart , the Lockhart Chamber of Commerce, the Economic Development Corporation, the Caldwell County Hispanic Chamber of Commerce joined forces to get the signs reinstalled.

 "These new signs will guide tourists to Lockhart and allow for our economic development dollars to be spent in other ways to continue to grow our local economy," said Mayor Jimmy Bertram. 

 Two years ago, the Chambers of Commerce, local businesses and the Economic Development Corporation came together to lease a billboard along IH 35 in San Marcos to direct people to Lockhart, at a cost of $18,635 per year.  The 10 highway signs that will be installed by the Texas Department of Transportation will replace the billboard.

 "We know that good transportation services and precise highway signing is important for rapidly growing regions, especially for an area that has a large number of tourists and visitors," said Carlos Lopez, District Engineer of TxDOT’s Austin District which includes Lockhart and Caldwell County.  "As the Bar-B-Que capital of the state, we know many visitors come to Lockhart.  And nobody wants to be delayed when they’re on the hunt for great BBQ!"

 Rep. Rose also thanked former Mayor Ray Sanders, Economic Development Director Sandra Mauldin, the City Council, both Chambers of Commerce and Sen. Glenn Hegar’s office for their work in making this day possible.

###

Over five years ago, during construction along IH 35, signs that directed thousands of travelers to Lockhart were taken down, and when replaced, did not list Lockhart as a destination.

Today, 1.6 million people come to Lockhart each year to eat BBQ. Tourism generates $27.5 million in Caldwell County, supporting 210 jobs, and generating $253,400 in local taxes and $1.7 million in state taxes.

“Especially during these difficult economic times, we must do everything we can to protect jobs in our community,” said Rep. Rose. “Tourists are critical to our local economy and these new signs will increase Lockhart’s visibility along the IH-35 corridor.”

Concerned with the impact the lack of signage would have on tourism to the area, Rep. Rose, the City of Lockhart , the Lockhart Chamber of Commerce, the Economic Development Corporation, the Caldwell County Hispanic Chamber of Commerce joined forces to get the signs reinstalled.

“These new signs will guide tourists to Lockhart and allow for our economic development dollars to be spent in other ways to continue to grow our local economy,” said Mayor Jimmy Bertram.

Two years ago, the Chambers of Commerce, local businesses and the Economic Development Corporation came together to lease a billboard along IH 35 in San Marcos to direct people to Lockhart, at a cost of $18,635 per year. The 10 highway signs that will be installed by the Texas Department of Transportation will replace the billboard.

“We know that good transportation services and precise highway signing is important for rapidly growing regions, especially for an area that has a large number of tourists and visitors,” said Carlos Lopez, District Engineer of TxDOT’s Austin District which includes Lockhart and Caldwell County. “As the Bar-B-Q capital of the state, we know many visitors come to Lockhart. And nobody wants to be delayed when they’re on the hunt for great BBQ!”

Rep. Rose also thanked former Mayor Ray Sanders, Economic Development Director Sandra Mauldin, the City Council, both Chambers of Commerce and Sen. Glenn Hegar’s office for their work in making this day possible.

###

A Blanco County Grand Jury indicted two people Wednesday on three felony charges resulting from an Attorney General’s investigation into unlawful conduct at the Pedernales Electric Cooperative (PEC).

Jerry Strickland, spokesman for the Texas Attorney General’s Office, said the names of the accused could not be released at this time.

The Austin American-Statesman is reporting that the indicted are former PEC General Manager Bennie Fuelberg and Walter Demond, who worked for PEC’s former law firm.

“Because it is a grand jury case, we cannot release any names until they have been served,” Strickland said. “We are unable to confirm any names at this time. It would be illegal for us to do so.”

The grand jury charged both defendants with misapplication of fiduciary property in excess of $200,000, theft of property in excess of $200,000, and money laundering between $100,000 and $200,000.

The charges leveled on misapplication of fiduciary property and theft of property are both first-degree felonies punishable with up to 99 years or life in prison and penalties of up to $10,000. The money laundering charge constitutes a second-degree felony that can bring about a sentence of up to 20 years and a fine amounting up to $10,000.

“The (Attorney General’s) investigation is ongoing and additional information concerning the indictments handed down today will become public once the defendants have been served,” Strickland said.

State Representative Patrick Rose (D-Dripping Springs), who represents Hays, Blanco and Caldwell Counties, praised the Attorney General’s actions. Rose has been among the ring leaders in trying to bring about reforms at PEC, where allegations of widespread mismanagement have forced change for the last two years.

“The Attorney General has acted swiftly and effectively,” Rose said. “I appreciate his leadership on behalf of PEC’s members. The Grand Jury’s actions today will allow all of PEC’s employees, who honorably serve their customers, the ability to move forward and continue to provide reliable and affordable energy. These indictments only heighten the need for legislation that guarantees democratic elections and open governance for all Texans served by co-ops.”

Earlier this week, the PEC board of directors authorized attorney Jimmy Williamson to work with PEC General Manager Juan Garza in settlement of claims against its former law firm, Clark, Thomas & Winters, where Demond was a partner.

“Discussions have reached a critical point,” PEC General Manager Juan Garza said, “and I remain committed to upholding our fiduciary responsibility to the membership while pursuing actions that will allow us to focus on our core business: providing safe, reliable electric service at the fairest rates possible.”

The board unanimously ratified the action through a resolution authorizing Williamson to: “… settle any claims Pedernales Electric Cooperative, Inc. may have against Clark, Thomas & Winters, including former partner Walter Demond, on such terms as have been set forth by the Board with final settlement documentation to be approved and executed by General Manager, Juan Garza, as the authorized representative of Pedernales Electric Cooperative, Inc.”

Said Williamson, “I have received my instructions and will work vigorously to obtain a result in the best interest of the cooperative.”

Williamson, principal of Houston law firm Williamson & Rusnak, was retained by PEC in January to lead a formal investigation of questionable payments made by Clark, Thomas & Winters while the firm served as the cooperative’s legal counsel.

Williamson has focused on alleged improper payments made by Clark, Thomas & Winters to Curtis Fuelberg, a Texas lobbyist and brother of former PEC general manager Bennie Fuelberg, and attorney William Price, son of former Board Director E.B. Price. The allegations arose following the December 2008 release of the PEC-commissioned investigative report by Navigant Consulting, Inc.

Starting in the summer of 2007, co-op members have led an effort to democratize PEC’s board elections process and to stop fraudulent spending and mismanagement by the cooperative’s leadership. Amid the furor, Bennie Fuelberg and former PEC President W.W. Burnett retired.

Since then, PEC has eliminated its self-perpetuating nominating committee for directors elections, as well as it’s proxy voting system.

In February, the PEC board rescinded a supplemental retirement package for Burnett, who retired in November 2007. A former board had approved the package for $4,895.05 per month in 2001.

PEC is the nation’s largest electric cooperative, serving more than 200,000 customers over 8,000 square miles in the Texas Hill Country.

The cooperative is holding its annual meeting Saturday at its headquarters in Johnson City. At the meeting, 11 candidates are up for three seats on the board. Locally, Patrick Cox of Wimberley is unopposed in his bid for re-election to the seat for District 7.
 

News Release  

June 11, 2009                                    

SB 643 provides more oversight, protection for residents

 AUSTIN – Gov. Rick Perry today signed Senate Bill (SB) 643, which enacts emergency reforms for Texas’ state supported living centers (SSLC), formerly known as state schools, and provides more oversight and protection for the residents of the centers and those in community-based services. The governor declared reforms to the state school system an emergency legislative item in February.

 “Whether these Texans live in a state facility or in therapeutic community settings, we are obligated by basic human decency to provide them with a safe setting in which to live, learn and grow,” Gov. Perry said. “SB 643 improves oversight of the state school population with everything from increased penalties for wrongdoing, to increased use of monitoring technology in our facilities.”

 SB 643 enacts several protective measures for residents, including: establishing the Office of Independent Ombudsman and a new assistant commissioner who will oversee all state supported living center operations; enhancing abuse and neglect investigations by notifying and including the Health and Human Services’ Office of the Inspector General in criminal investigations; creating a hotline number that is linked to the SSLC Ombudsman’s office to report allegations of misconduct; requiring video surveillance cameras in all common areas to prevent, deter and detect abuse and neglect; and requiring FBI fingerprint background checks and random drug testing on employees. 

 “I was sad and angry to learn of the abuse and neglect that has occurred in many of our 13 state schools.  Texans with developmental disabilities should be treated with dignity and respect, and deserve our protection, oversight and compassion,” Sen. Jane Nelson said. “I am grateful that the Legislature approved this bill, which I firmly believe will improve the lives of Texans with disabilities and ensure they receive proper care.”

 Additionally, SB 643 increases penalties for employees who abuse or neglect residents, or fail to report abuse or neglect. It also requires the Department of Aging and Disability Services (DADS) to contract with an independent patient safety organization to conduct mortality assessments to determine if deaths could have been prevented. The bill will help ensure that the facilities are in compliance with the recent U.S. Department of Justice settlement agreement. 

 “Texas is making much progress today to protect its most vulnerable citizens. With the signing of this legislation, allegations of neglect will be investigated thoroughly, promptly and proactively in both state supported living centers and community based settings,” Rep. Patrick Rose said. “We are sending a clear message that abuse, neglect and exploitation of Texans with intellectual disabilities won’t be tolerated in our state.” 

 SB 643 renames the state schools to SSLCs to more accurately depict the residential care services provided to residents.  The bill also designates the Mexia State School as the forensic SSLC to house high-risk, court committed individuals.

 The governor was joined by bill authors Sen. Nelson and Rep. Rose, and DADS Commissioner Addie Horn for the signing.

 For more information about the 81^st Legislative Session, please visit www.governor.state.tx.us or

http://www.legis.state.tx.us/Home.aspx.

Governor’s Press Office: 512-463-1826

Allison Castle: allison.castle@governor.state.tx.us

Katherine Cesinger: kcesinger@governor.state.tx.us

State Rep. Patrick Rose’s measure would pressure Legislature to boost spending on higher education

By Ralph K.M. Haurwitz
AMERICAN-STATESMAN STAFF
Sunday, April 19, 2009

Like many members of the Texas Legislature, Rep. Patrick Rose says tuition has gone up too much since lawmakers gave public university governing boards the unfettered authority to set rates.

Unlike some colleagues who want to freeze tuition or sharply restrict future increases at a time when a tough economy makes such an approach politically popular, however, the Democrat from Dripping Springs favors a more nuanced approach.

His prescription for easing the pain of rising tuition essentially amounts to a dose of political pressure injected directly into the Legislature, coupled with a sliding scale of limits on governing boards.

To understand exactly how Rose’s proposal would work, it helps to examine the approach taken by nearly all of a dozen or so competing bills. These include a freeze at current rates, a four-year freeze for each class of entering freshmen and a temporary freeze followed by a 5 percent cap on annual increases.

All have pitfalls of one sort or another. Kent Hance, chancellor of the Texas Tech University System, said a freeze would punish Tech, whose governing board held rates steady last year while other boards were raising charges.

Under Rose’s plan, increases in tuition and mandatory fees would be limited by a formula that takes those charges into account as well as legislative appropriations. Here’s how it would play out at the University of Texas:

In the current fiscal year, UT-Austin is getting $323 million in appropriations and $491 million from tuition and fees, for a total of $814 million for the core academic enterprise.

Rose’s bill would allow the school’s governing board to raise tuition and fees no more than what would generate a

6 percent increase over the

$814 million. Six percent amounts to about $49 million.

So if lawmakers did not boost appropriations at all, the UT System Board of Regents would be free to raise tuition and fees by about $49 million, a 10 percent increase in those charges. But if lawmakers boosted the state’s outlay by, say, $20 million, tuition and fees at UT-Austin could rise no more than about $29 million, or 3.6 percent.

"I think we have to put the Legislature over the barrel," Rose said, adding that he’s not wedded to 6 percent and would consider a lower figure. "What we appropriate in the way of higher education has a direct impact on what tuition is tomorrow."

Rose, who voted for so-called tuition deregulation in 2003, said lawmakers have since provided small increases in appropriations, forcing schools to raise tuition to generate enough revenue to cover enrollment growth, inflation and other costs.

Average tuition and mandatory fees at the state’s 35 public universities have risen 86 percent, to $6,300 a year, since deregulation.

At UT-Austin, state appropriations have gone from $286 million in 2003 to $323 million this year, an increase of 13 percent. Revenue from tuition and fees, by comparison, has risen 90 percent, from $259 million to $491 million.

Sen. Judith Zaffirini, D-Laredo, also wants to link appropriations, tuition and fees. Under her Senate Bill 1443, tuition and fees could rise no more than 5 percent a year, and any increase in appropriations would be reflected in a smaller increase in tuition and fees. She said her bill is still a work in progress.

"We think both bills are a step in the right direction and a more rational approach to tuition," said Kevin Hegarty, vice president and chief financial officer for UT-Austin. "But we particularly like Rep. Rose’s bill, because it creates that direct relationship between accountability for those responsible for allocating general revenue and the institution’s responsibility for adjusting tuition and fees."

Last week, at a hearing of the House Higher Education Committee, of which he is a member, Rose said that college affordability, while an important principle, shouldn’t trump quality.

"I would argue that we need to err on the side of excellence," he said.

His measure, along with the other House bills on tuition, was left pending in committee. Rose said he was hopeful but realistic about the prospects, saying, "These are choppy political waters."

rhaurwitz@statesman.com; 445-3604

Austin American-Statesman, Editorial
Friday, February 20, 2009
State Sen. Troy Fraser, R-Horseshoe Bay, and state Rep. Patrick Rose, D-Dripping Springs, have applied lessons learned from the Pedernales co-op scandal in legislation they filed Wednesday. The proposed reforms in Senate Bill 921 and House Bill 1390 are much needed.

The fundamental problem at Pedernales Electric Cooperative Inc., based in Johnson City, was an insular, self-perpetuating group of board members, dominated by a long-serving and self-serving general manager, Bennie Fuelberg. The board and Fuelberg richly compensated each other and succeeded for years in stopping co-op members from learning details about the co-op’s finances, including their own pay and expenses.

The scandal at Pedernales has drawn a criminal investigation directed by Attorney General Greg Abbott. The co-op’s board and a new general manager, Juan Garza, have introduced major reforms.

The reforms proposed by Fraser and Rose would apply to the state’s 74 electric co-ops, though some are aimed solely at Pedernales.

In general, the Fraser-Rose reforms would require co-ops to conduct their business in open meetings and open co-op records to members. Appropriate safeguards are included for executive sessions, trade secrets and the like.

The reforms also would limit the ability of co-op boards to steer elections toward favored candidates or keep out challengers. They would require co-ops to adopt written policies on travel spending, expenses for board members, managers and employees, conflicts of interest and whistle-blower protections. And state legislative officials could order the Office of the State Auditor to audit a co-op.

In addition, co-op members would get the right to appeal to the Public Utility Commission for help with a grievance against a co-op board or management. If the commission could not resolve the issue, it could refer the dispute to the State Office of Administrative Hearings.

Pedernales co-op members who were denied information by the old regime had no place to go except court. Their lawsuit — and extensive reporting by the American-Statesman — succeeded in forcing the board and management to account for their actions, but the process has been enormously expensive.

Critics rightly warn that an administrative appeal process should not be allowed to bog down in continuous delays or block a lawsuit against a co-op. We agree — the courts should remain an option. But most co-op members probably couldn’t afford a lawsuit, and a well-designed administrative system could handle most complaints quickly, fairly and at far less expense.

Fraser and Rose expect stiff opposition to the legislation from many of the state’s co-ops, which are largely unregulated and will argue that they shouldn’t be punished because of one rogue and unusually large co-op, Pedernales.

But there’s nothing punitive about these reforms. In fact, they don’t really require anything that well-run co-ops shouldn’t be doing already or could do with little fuss.

Another argument is that co-ops are private corporations, not government agencies.

But co-ops are not for-profit companies operated on behalf of shareholders who put their own capital at risk voluntarily. They are nonprofit companies owned by their customer-members, and they operate with a state-sanctioned monopoly — members are not free to sell their interest in a co-op or switch to another utility provider if they suspect wrongdoing.

It’s important to note what these bills do not do: They do not regulate the electric rates charged by co-ops; a co-op’s elected board will still set those. The bills do not regulate the salaries or wages of co-op management or make them file financial reports with the state.

Few bills are not subject to improvement in the legislative process, but Fraser and Rose bring some hard-won wisdom to their proposals, and the Legislature ought to enact them.

Austin American-Statesman
Sunday, February 15, 2009

The change in leadership in the Texas House of Representatives’ majority party brought a breath of fresh air to the Capitol last week. Surprise Speaker Joe Straus, a Republican from San Antonio, set a bold new direction for the House with his committee appointments.

The new leadership is younger, more bipartisan and less rigidly ideological than it was under three-term speaker Tom Craddick, R-Midland. It’s an encouraging sign for Texas at a troubling time.

Austin and Central Texas are well-represented in the reconfigured House, with important leadership positions and committee assignments. Straus sent some of Craddick’s fiercest supporters and most conservative members into the wilderness, but he didn’t punish them like Craddick would have punished his opposition had he been re-elected speaker.

That change in tone is a sign that the House will be dramatically different under Straus and reflects the nearly even split of 76 Republicans and 74 Democrats. We expect less personal intervention in legislation and hope the committee configuration — 18 Republican and 16 Democratic committee chairs — will mean not only new blood but better representation.

Austin’s Mark Strama, a Democrat in only his third term in the House, was named chairman of the Technology, Economic Development and Workforce Committee, a real plus for Austin and the state. Strama is a smart political up-and-comer whose interests mesh with his committee assignment. He is also on the important Energy Resources Committee, another plum assignment for him.

Dripping Springs Democrat Patrick Rose kept his chairmanship of Human Services — one of only five chairs left over from Craddick’s 2007 session. Rose, like Strama, is a young Democrat with a bright future. He represents a conservative district, so he always has had to work in concert with the Republican leadership to be effective.

Rose, along with West Austin Democrat Donna Howard, is on the Higher Education Committee. That committee must deal with issues of vital importance to the University of Texas this session, such as possibly amending the top 10 percent admission rule and a move to modify tuition deregulation.

Rose and Howard will be important voices in those controversies and other issues that will come before the committee soon. Howard also was named vice chairman of the Culture, Recreation and Tourism Committee.

Dawnna Dukes, an Austin Democrat who supported Craddick, was sent to Coventry by Straus but kept her seat on the influential Appropriations committee because of her seniority. Dukes unwisely stuck with Craddick far too long and lost influence because of that.

Austin Democrat Elliott Naishtat kept his vice chairmanship but was switched from the County Affairs Committee to Public Health. That’s a good move for Naishtat, who is an important voice on human services legislation.

In a surprise appointment, freshman Diana Maldonado, a Democrat from Williamson County, was named to State Affairs, one of the busiest committees in the House. Maldonado won in a district that had elected Republicans for years but, like the House itself, is undergoing dramatic change.

In his first major decision since his surprise election as speaker last month, Straus demonstrated a wise bent toward bipartisan leadership that should greatly improve work in the House. It was a welcome change.

FOR IMMEDIATE RELEASE                                           

"We are outraged over the findings in the Navigant Report on the Pedernales Electric Cooperative (PEC) management practices. The allegations that Bennie Fuelberg, former general manager, ordered documents to be shredded, erased data from computers, and funneled over $500,000 in cooperative funds for questionable purposes through the Clark, Thomas & Winters law firm come as no surprise.

"These actions are consistent with Mr. Fuelberg’s management style and his long standing policy of keeping cooperative information from members. The inability of the members to elect anyone other than those hand-picked by the Board of Directors contributed to Mr. Fuelberg’s complete control of the cooperative.

"We have always believed that further misdeeds of the PEC Board of Directors and former General Manager would be uncovered. While the Navigant review is a good first step toward knowing what truly happened at PEC, we cannot close the door on finding the truth. It is imperative that the Office of the Attorney General continues to aggressively pursue its criminal case against the former leadership at PEC and we support General Greg Abbott in those efforts.

"Members want the whole truth. Unfortunately, Navigant was not able to subpoena uncooperative board members like R.B. Felps, the current board President. Mr. Felps was a board member during the entire 10 year period investigated by Navigant and it is unacceptable that he refused to answer questions.

"We need to get people under oath answering questions about what really went on at PEC headquarters. With a Grand Jury convened in Blanco County, we believe the right questions are now getting asked and answered. We know the Attorney General is working as fast as possible to get a successful resolution to this complex investigation.

"It is our cooperative and it is our money, and as cooperative members, we deserve to know how and why decisions are made. We must work together to get this entity back on track. The current PEC Board of Directors must be accountable to the members. We have called on the Board to make major changes to its management policies. And, while there have been changes toward openness and fair elections, there is still work to be done.

"We are strong supporters of electric cooperatives. The beauty of the electric cooperative system is that members can determine how best to run the system through the election of a board of directors.  If members do not like the policies set by the board of directors, they can and should vote them out of office.

"We are committed to ensuring that what happened at PEC does not happen again - at any electric cooperative. As members of the Texas Legislature, we will ensure that all cooperative members have a voice and have the ability to know how and why a board of directors is making decisions. We are working on legislation that would require electric cooperatives to hold open meetings, to have an open records policy, and to have open and fair elections."

#