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.