BILL ANALYSIS C.S.S.B. 219 By: Armbrister Natural Resources 03-15-95 Committee Report (Substituted) BACKGROUND Current law authorizes the legislature to provide for the creation of programs and for loans and grants of public money for the development and diversification of the state's economy. River authorities engaged in the distribution and sale of electricity to the public are authorized to employ staff and expend resources to encourage participation in economic development activities. PURPOSE As proposed, C.S.S.B. 219 authorizes the formation of economic development programs by river authorities that distribute and sell electricity to the public; authorizes the programs to involve grants or loans of money, services, or equipment to persons or certain organizations involved in economic development activities. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 3, Article 717p, V.T.C.S., as follows: Sec. 3. (a) Provides that this section applies only to a river authority that is engaged in the distribution and sale of electric energy to the public. (b) Authorizes any river authority engaged in the distribution and sale of electricity to the public to sponsor and participate in an economic development program to strengthen the economic base of the state. Requires the program to be within the territorial boundaries of the river authority or within the river authority's electric or water service areas. Prohibits participation in the program from being conditioned on receiving electric service from the authority. (c) Requires the governing body of the river authority to follow certain requirements when establishing the economic development program by a formal act. (d) Authorizes the program to involve grants or loans of money or equipment to a public person or organization engaged in an economic development program. (e) Authorizes the river authority to further an economic development program by employing staff and expending resources except those received from an ad valorem tax or a general appropriation to further a program. Authorizes a river authority to apply for and receive assistance to carry out the program. (f) Authorizes a river authority and any other public or private person to enter into an agreement concerning an economic development program. (g) Requires a river authority that provides scholarships, grants, loans, or financial assistance to a public fire-fighting organization to adopt certain guidelines. (h) Provides that a determination by the governing body of the river authority that a program is intended to carry out its stated purpose is conclusive in respect to whether the purposes of this section are satisfied. (i) Prohibits a river authority from making receiving electric service from the authority a condition for participation in or receiving a benefit from an economic development program. Prohibits a river authority from using an economic development program for promoting electric energy use or providing economic incentives for using electric energy. (j) Provides that Subsection (i) does not limit a power granted to a river authority by any other law, including other sections of this Act. (k) Provides that, for purposes of this section, an economic development program does not include the promotion of the retail wheeling of electric power and energy. (l) Sets forth the types of programs included as economic development programs. SECTION 2. Provides that the economic development programs are a specific public purpose and governmental function of the specified river authorities. SECTION 3. Validates all activities before the effective date of this Act relating to economic development programs of a river authority that distributes and sells electricity to the public. SECTION 4. Emergency clause. Effective date: upon passage.