Committee unanimously backs bill to remove trustee pay cap for small local entities with transparency steps

2249613 · February 7, 2025
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Summary

Senate Bill 50 would remove the $5,000 cap on compensation for trustees of limited‑purpose local government entities (special service districts), while requiring public notice and a public meeting before paying an individual or authorizing pay. The committee recommended the bill favorably without opposition.

Senator Musselman introduced Senate Bill 50 to remove the statutory cap on compensation for trustees of limited‑purpose local government entities (often called special service districts) and to require a public meeting before a district pays individual trustees for work.

The sponsor said many rural special service districts perform hands‑on work with small budgets and have historically set modest compensation caps; the bill would eliminate the arbitrary $5,000 cap and instead require transparency measures — specifically that any decision to pay a trustee be made in a public meeting and that the district budget be adopted separately in public proceedings. The sponsor also cited the state’s public‑pay transparency website as a backstop to prevent abuse.

Committee members and the sponsor said the bill strikes a balance between allowing districts to pay for necessary work and preserving public oversight. Representative Miller moved to recommend the bill favorably; the committee approved the recommendation unanimously.

Sponsor and supporters emphasized the bill’s accountability features: public meetings and existing public‑pay disclosure tools would enable citizens to review compensation decisions and reduce the risk of misuse.