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.