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.