GEC H.B. 2759 75(R)BILL ANALYSIS


BUSINESS & INDUSTRY
H.B. 2759
By: Walker
4-9-97
Committee Report (Unamended)



BACKGROUND 

Lea County Electric COOP, located in New Mexico, serves approximately
3,500 electric consumers in portions of three counties in Texas. The
cooperative periodically returns a percentage of margins earned in years
past to the consumers in the form of cash payments based on the amount of
electricity used in the year the margins were generated.   

Sometimes, a former member of the cooperative or the former member's
estate cannot be located and the checks are returned to the cooperative.
Under the laws of New Mexico, the cooperative is permitted to retain these
unclaimed moneys for use in a scholarship fund.   

This bill would make it clear that unclaimed capital credits  from the Lea
County COOP, related to consumers' accounts in Texas, could be used for
scholarships.   It is estimated that the total amount of  unclaimed
capital credits attributable to Texas consumers affected by this bill
averages $10,000 to $15,000 per year.  

PURPOSE

This bill allows an electric cooperative corporation incorporated in
another state that provides electric service to consumers residing in
Texas counties to use escheated funds for the sole purpose of
scholarships. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

Section 1: Amends Section 74.3013. of the Property Code by allowing an
electric cooperative corporation incorporated in another state that
borders Texas to divert escheated funds into a scholarship program for
Texas students.  

Section 2: Effective date: September 1, 1997.

Section 3: Emergency clause.