By Saunders, Dukes, Black, Uher, Kuempel              H.B. No. 1981
       74R5677 JJT-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to community assistance and economic development program
    1-3  activities of certain river authorities; validating certain actions
    1-4  and instruments of the river authorities.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 3, Chapter 245, Acts of the 67th
    1-7  Legislature, Regular Session, 1981 (Article 717p, Vernon's Texas
    1-8  Civil Statutes), as added by Section 2, Chapter 1140, Acts of the
    1-9  71st Legislature, Regular Session, 1989, is amended to read as
   1-10  follows:
   1-11        Sec. 3.  (a)  This section applies only to a <Any> river
   1-12  authority that <which> is engaged in the distribution and sale of
   1-13  electric energy to the public.
   1-14        (b)  A river authority may sponsor and participate in an
   1-15  economic development program intended to strengthen the economic
   1-16  base and further the economic development of the state.  The
   1-17  program may be within the territorial boundaries of the river
   1-18  authority or within the river authority's electric or water service
   1-19  areas.
   1-20        (c)  Each program must be established by formal action of the
   1-21  governing body of the river authority.  The governing body of the
   1-22  river authority shall:
   1-23              (1)  establish the goals of the program;
   1-24              (2)  impose requirements on persons participating in
    2-1  and receiving the benefits of the program; and
    2-2              (3)  provide restrictions, procedures, and budget
    2-3  limits the governing body determines are necessary to ensure that
    2-4  the governmental purposes of this section and the program are
    2-5  achieved.
    2-6        (d)  A program under this section may involve grants or loans
    2-7  of money, services, or property to a person engaged in an economic
    2-8  development activity, including a public fire-fighting
    2-9  organization, governmental body, nonprofit corporation, local or
   2-10  regional development council, or other nonprofit or noncommercial
   2-11  organization.
   2-12        (e)  The river authority may employ staff and expend its
   2-13  resources to further an economic development program except the
   2-14  river authority may not use money received from an ad valorem tax
   2-15  or a general appropriation to further a program.  The river
   2-16  authority may apply for and receive money, grants, or other
   2-17  assistance from any source to carry out an economic development
   2-18  program under this section.
   2-19        (f)  The river authority and any other public or private
   2-20  person may enter an agreement with respect to an economic
   2-21  development program.
   2-22        (g)  A river authority that provides scholarships, grants,
   2-23  loans, or financial assistance to a public fire-fighting
   2-24  organization shall adopt guidelines for the determination of:
   2-25              (1)  eligibility for the assistance;
   2-26              (2)  the amount of loans, grants, or other assistance
   2-27  the river authority may make available to a fire-fighting
    3-1  organization; and
    3-2              (3)  the types of equipment, facilities, education, or
    3-3  training for which the assistance may be used.
    3-4        (h)  A determination by the governing body of the river
    3-5  authority that a program is intended and expected to carry out the
    3-6  program's stated purposes is conclusive with respect to whether the
    3-7  purposes of this section are satisfied.
    3-8        (i)  In this section, an economic development program
    3-9  includes any program designed to:
   3-10              (1)  encourage economic diversification;
   3-11              (2)  contribute to the health and development of a
   3-12  community to improve the attractiveness of the community to public
   3-13  and private enterprises; or
   3-14              (3)  improve the quality or quantity of services
   3-15  essential for the development of viable communities and economic
   3-16  growth, including services related to:
   3-17                    (A)  education;
   3-18                    (B)  transportation;
   3-19                    (C)  public safety;
   3-20                    (D)  recreation;
   3-21                    (E)  health care;
   3-22                    (F)  training;
   3-23                    (G)  community planning; or
   3-24                    (H)  employment <employ staff and expend
   3-25  resources to encourage economic development>.
   3-26        (j)  A river authority may not use an economic development
   3-27  program authorized by this section to:
    4-1              (1)  promote fuel switching or the substitution of
    4-2  electric power for another fuel or energy source; or
    4-3              (2)  provide an economic or other incentive to use
    4-4  electric power to preferentially market the use of electric power
    4-5  over another fuel or energy source.
    4-6        (k)  Subsection (j) does not limit a power granted a river
    4-7  authority by any other law, including other sections of this Act.
    4-8        (l)  For purposes of this section, an economic development
    4-9  program does not include the promotion of retail wheeling of
   4-10  electric power and energy.
   4-11        SECTION 2.  The legislature finds that the economic
   4-12  development programs authorized by Section 3, Chapter 245, Acts of
   4-13  the 67th Legislature, Regular Session, 1981 (Article 717p, Vernon's
   4-14  Texas Civil Statutes), as amended by this Act, are a specific
   4-15  public purpose and governmental function of the specified river
   4-16  authorities in accordance with:
   4-17              (1)  Section 52-a, Article III, Texas Constitution; and
   4-18              (2)  to the extent that the programs provide assistance
   4-19  to public fire-fighting organizations, Section 51-a-1, Article III,
   4-20  Texas Constitution.
   4-21        SECTION 3.  All proceedings, governmental acts, resolutions,
   4-22  orders, bonds, contracts, and instruments relating to economic
   4-23  development programs, as defined by Section 3, Chapter 245, Acts of
   4-24  the 67th Legislature, Regular Session, 1981 (Article 717p, Vernon's
   4-25  Texas Civil Statutes), as amended by this Act, of a river authority
   4-26  engaged in the distribution and sale of electric energy to the
   4-27  public that were adopted, approved, executed, issued, or ratified
    5-1  by the river authority before the effective date of this Act are
    5-2  validated, ratified, approved, and confirmed.
    5-3        SECTION 4.  The importance of this legislation and the
    5-4  crowded condition of the calendars in both houses create an
    5-5  emergency and an imperative public necessity that the
    5-6  constitutional rule requiring bills to be read on three several
    5-7  days in each house be suspended, and this rule is hereby suspended,
    5-8  and that this Act take effect and be in force from and after its
    5-9  passage, and it is so enacted.