By Moffat H.B. No. 2187 75R6307 JJT-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the sale of electric generation and transmission assets 1-3 and related assets of river authorities. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. SALE OF ELECTRIC POWER ASSETS. Each river 1-6 authority in the state shall, as soon as practicable, sell all of 1-7 the authority's interest in: 1-8 (1) any electric power or energy-generating facility 1-9 or related asset, including all property acquired or constructed by 1-10 the authority used or useful for generating, producing, 1-11 transmitting, distributing, selling, or marketing electricity; and 1-12 (2) any other facility or asset related to energy 1-13 generation, production, transmission, distribution, delivery, sale, 1-14 or marketing, including all property acquired or constructed by the 1-15 authority used or useful for exploring for, refining, producing, 1-16 transmitting, distributing, selling, or marketing coal, oil, gas, 1-17 or natural gas or any product or derivative of coal, oil, gas, or 1-18 natural gas. 1-19 SECTION 2. SALE OF OTHER ENERGY ASSETS. (a) Money derived 1-20 from a sale under Section 1 of this Act shall be applied to payment 1-21 of the authority's debts and contractual obligations, including 1-22 payments necessary to retire bonds to which energy-related revenues 1-23 are pledged or to terminate a contract related to: 1-24 (1) electric energy generation, production, 2-1 transmission, distribution, or sales; or 2-2 (2) exploration for or the refining, production, 2-3 transmission, distribution, or sale of coal, oil, gas, or natural 2-4 gas or any product or derivative of coal, oil, gas, or natural gas. 2-5 (b) Any money derived from a sale under Section 1 of this 2-6 Act that remains after payments under Subsection (a) of this 2-7 section have been made shall be deposited to the credit of the 2-8 general revenue fund. 2-9 SECTION 3. TRANSITION. (a) Notwithstanding any other law, 2-10 on or after the effective date of this Act a river authority may 2-11 not: 2-12 (1) generate, produce, transmit, distribute, sell, or 2-13 market electric energy or other energy sources, including coal, 2-14 oil, gas, or natural gas or any product or derivative of coal, oil, 2-15 gas, or natural gas; or 2-16 (2) own any interest in an asset or facility used or 2-17 useful for: 2-18 (A) generating, producing, transmitting, 2-19 distributing, selling, or marketing electricity; or 2-20 (B) exploring for or refining, producing, 2-21 transmitting, distributing, or selling coal, oil, gas, or natural 2-22 gas or any product or derivative of coal, oil, gas, or natural gas. 2-23 (b) While an authority is preparing for sale the authority's 2-24 facilities and assets required to be sold under Section 1 of this 2-25 Act, or while the sale is pending, Subsection (a) of this section 2-26 does not apply to activities of the river authority that are in the 2-27 authority's normal course of business begun before the effective 3-1 date of this Act and related to: 3-2 (1) generating, producing, transmitting, distributing, 3-3 selling, or marketing electricity; or 3-4 (2) exploring for or refining, producing, 3-5 transmitting, distributing, or selling coal, oil, gas, or natural 3-6 gas or any product or derivative of coal, oil, gas, or natural gas. 3-7 SECTION 4. EFFECTIVE DATE. This Act takes effect September 3-8 1, 1997. 3-9 SECTION 5. EMERGENCY. The importance of this legislation 3-10 and the 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.