IMF H.B. 3386 75(R)BILL ANALYSIS


STATE AFFAIRS
H.B. 3386
By: Gallego
5-2-97
Committee Report (Substituted)



BACKGROUND 

Many areas along the border of Texas and Mexico have difficulty acquiring
basic utility services because of their remote locations.  Families who
live in these areas are often deprived of basic services like running
water, sewers.  Because rural electric cooperatives provide utilities to
these expansive areas they may be able to provide other utility-related
services in their areas. 

PURPOSE

As proposed, C.S.H.B. 3386 would allow electrical cooperatives services
areas along the border with Mexico to supply utility-related services
other than electricity, to provide management or operating services to
other cooperatives in the area, and promote economic and industrial
development as a borrower or lender under the federal Rural Utilities
Services Administration programs. 

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 the Electrical Cooperative Corporation Act (Article
1528b, V.T.C.S.)  by adding Section 4b as follows: 

Section 4B(a) states that this section only applies to an electrical
cooperative that serves retail customers in a county on the border with
Mexico. 

Section 4B(b) allows an electric cooperative serving a county on the
border with Mexico to provide, either directly or through an affiliate;
rural community utilities and utilityrelated services; management or
operating services for another entity providing utility services; and
economic and industrial development through participation as a borrower or
lender under a federal program. 

Section 4B(c) provides electrical cooperatives all necessary powers to
meet the requirements or allowances of this section. 

SECTION 2.  Emergency clause.  Effective date:  upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute amends a different section of the Electrical Cooperative
Corporation Act, limits the actions of cooperative organizations allowed
by this Act to the border of Texas and Mexico, and further restricts the
services named cooperative corporations may provide.