By Moffat                                        H.B. No. 741

      75R4115 ESH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the sale of certain assets owned by the Lower Colorado

 1-3     River Authority.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  The Lower Colorado River Authority Act (Article

 1-6     8280-107, Vernon's Texas Civil Statutes) is amended by adding

 1-7     Section 27 to read as follows:

 1-8           Sec. 27.  (a)  As soon as possible, the district shall sell:

 1-9                 (1)  all electric power and energy generating

1-10     facilities owned by the district;

1-11                 (2)  the district's interest in any jointly owned

1-12     electric power and energy generating facilities;

1-13                 (3)  all water distribution facilities owned by the

1-14     district;

1-15                 (4)  the district's interest in any jointly owned water

1-16     distribution facilities;

1-17                 (5)  any other property acquired or constructed by the

1-18     district and incidental to or used or useful in:

1-19                       (A)  the generation, production, transmission,

1-20     distribution, or sale of electric energy; or

1-21                       (B)  the distribution or sale of water;

1-22                 (6)  all vehicles and other personal property owned by

1-23     the district; and

1-24                 (7)  all real property owned by the district.

 2-1           (b)  The district shall complete the sale in such a way so as

 2-2     to avoid the impairment of any bond obligations incurred under this

 2-3     Act.

 2-4           (c)  The proceeds of the sale required by this section shall

 2-5     be used to retire bonds issued under this Act and to pay the

 2-6     principal of and interest on any legal debt created by the

 2-7     district.  However, the purchaser may agree to assume the

 2-8     district's debt obligation.

 2-9           (d)  Any amounts received by the district in excess of the

2-10     amounts needed to retire bonds and pay debts of the district shall

2-11     be deposited to the credit of the permanent school fund.

2-12           (e)  If there is a conflict between this section and another

2-13     provision of this Act, this section prevails.

2-14           SECTION 2.  Section 43.001(a), Education Code, is amended to

2-15     read as follows:

2-16           (a)  The permanent school fund, which is a perpetual

2-17     endowment for the public schools of this state, consists of:

2-18                 (1)  all land appropriated for the public schools by

2-19     the constitution and laws of this state;

2-20                 (2)  all of the unappropriated public domain remaining

2-21     in this state, including all land recovered by the state by suit or

2-22     otherwise except pine forest land as defined by Section 88.111;

2-23                 (3)  all proceeds from the authorized sale of permanent

2-24     school fund land;

2-25                 (4)  all proceeds from the lawful sale of any other

2-26     properties belonging to the permanent school fund;

2-27                 (5)  all investments authorized by Section 43.003 of

 3-1     properties belonging to the permanent school fund; [and]

 3-2                 (6)  all income from the mineral development of

 3-3     permanent school fund land, including income from mineral

 3-4     development of riverbeds and other submerged land; and

 3-5                 (7)  all proceeds from the sale of assets owned by the

 3-6     Lower Colorado River Authority, as provided by Section 27, Lower

 3-7     Colorado River Authority Act (Article 8280-107, Vernon's Texas

 3-8     Civil Statutes).

 3-9           SECTION 3.  The importance of this legislation and the

3-10     crowded condition of the calendars in both houses create an

3-11     emergency and an imperative public necessity that the

3-12     constitutional rule requiring bills to be read on three several

3-13     days in each house be suspended, and this rule is hereby suspended,

3-14     and that this Act take effect and be in force from and after its

3-15     passage, and it is so enacted.