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.