By:  Smith, Dalton                                     H.B. No. 682
       73R2963 ESH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the sale of certain assets owned by the Lower Colorado
    1-3  River Authority.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  The Lower Colorado River Authority Act (Article
    1-6  8280-107, Vernon's Texas Civil Statutes) is amended by adding
    1-7  Section 26 to read as follows:
    1-8        Sec. 26.  (a)  As soon as possible, the district shall sell:
    1-9              (1)  all electric power and energy generating
   1-10  facilities owned by the district;
   1-11              (2)  the district's interest in any jointly owned
   1-12  electric power and energy generating facilities;
   1-13              (3)  all water distribution facilities owned by the
   1-14  district;
   1-15              (4)  the district's interest in any jointly owned water
   1-16  distribution facilities;
   1-17              (5)  any other property acquired or constructed by the
   1-18  district and incidental to or used or useful in:
   1-19                    (A)  the generation, production, transmission,
   1-20  distribution, or sale of electric energy; or
   1-21                    (B)  the distribution or sale of water;
   1-22              (6)  all vehicles and other personal property owned by
   1-23  the district; and
   1-24              (7)  all real property owned by the district.
    2-1        (b)  The district shall complete the sale in such a way so as
    2-2  to avoid the impairment of any bond obligations incurred under this
    2-3  Act.
    2-4        (c)  The proceeds of the sale required by this section shall
    2-5  be used to retire bonds issued under this Act and to pay the
    2-6  principal of and interest on any legal debt created by the
    2-7  district.  However, the purchaser may agree to assume the
    2-8  district's debt obligation.
    2-9        (d)  Any amounts received by the district in excess of the
   2-10  amounts needed to retire bonds and pay debts of the district shall
   2-11  be deposited to the credit of the permanent school fund.
   2-12        (e)  If there is a conflict between this section and another
   2-13  provision of this Act, this section prevails.
   2-14        SECTION 2.  Section 15.01(a), Education Code, is amended to
   2-15  read as follows:
   2-16        (a)  The permanent school fund, which shall constitute a
   2-17  perpetual endowment for the public free schools of this state,
   2-18  shall consist of:
   2-19              (1)  all land appropriated for the public schools by
   2-20  the constitution and laws of Texas;
   2-21              (2)  all the unappropriated public domain remaining in
   2-22  Texas, including all land recovered by the state by suit or
   2-23  otherwise except pine forest land as defined in Section 88.111 of
   2-24  this code <12, Article 2613, Revised Civil Statutes of Texas, 1925,
   2-25  as amended>;
   2-26              (3)  all proceeds from the authorized sale of permanent
   2-27  school fund land, or any portion thereof, surveyed or unsurveyed;
    3-1              (4)  all proceeds from the lawful sale of any other
    3-2  properties belonging to the permanent school fund;
    3-3              (5)  all investments (authorized in Section 15.02 of
    3-4  this code) of properties belonging to the permanent school fund;
    3-5  <and>
    3-6              (6)  all income from the mineral development of land
    3-7  constituting the permanent school fund, including income from
    3-8  mineral development of riverbeds and other submerged land; and
    3-9              (7)  all proceeds from the sale of assets owned by the
   3-10  Lower Colorado River Authority, as provided by Section 26, Lower
   3-11  Colorado River Authority Act (Article 8280-107, Vernon's Texas
   3-12  Civil Statutes).
   3-13        SECTION 3.  The importance of this legislation and the
   3-14  crowded condition of the calendars in both houses create an
   3-15  emergency and an imperative public necessity that the
   3-16  constitutional rule requiring bills to be read on three several
   3-17  days in each house be suspended, and this rule is hereby suspended,
   3-18  and that this Act take effect and be in force from and after its
   3-19  passage, and it is so enacted.