Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Gallego                                      H.B. No. 3386

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the purposes of rural electric cooperatives serving

 1-3     border counties.

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

 1-5           SECTION 1.  Section 3 of Article 1528b, Texas Revised Civil

 1-6     Statutes, is amended to read as follows:

 1-7           Sec. 3.  (a)  Co-operative non-profit membership corporation,

 1-8     heretofore or hereafter organized under this Act are authorized to

 1-9     engage in rural electrification by on or more of the following

1-10     methods:

1-11                 (1)  The furnishing of electric energy to any person,

1-12     for delivery to any dwelling, structure, apparatus or pint of

1-13     delivery which is located in a rural are, and which is not

1-14     receiving central station service, notwithstanding the fact that

1-15     such person may be receiving central station service at other

1-16     points of delivery in a rural or nonrural area..

1-17                 (2)  If any area in which such corporation is

1-18     furnishing electric service to its members is annexed by an

1-19     incorporated city or town (whether rural or nonrural as defined in

1-20     this Act) in which central station service is supplied by such city

1-21     or town or by a public utility corporation, the co-operative

1-22     corporation is authorized to continue to furnish electric energy to

1-23     any dwelling, structure, apparatus or point of delivery to which

1-24     the co-operative corporation was delivering electric energy on the

 2-1     date the area became annexed and to which central station service

 2-2     is not available from the city or town or a public utility

 2-3     corporation, the co-operative corporation may thereafter furnish

 2-4     electric energy to such dwelling, structure, apparatus or point of

 2-5     delivery.

 2-6                 (3)  The furnishing of electric energy to persons

 2-7     desiring such service in any incorporated or unincorporated city or

 2-8     town (rural or nonrural) served by such corporation, and in which

 2-9     no central station service was available at the time such

2-10     corporation began furnishing electric energy to the citizens

2-11     thereof.

2-12                 (4)  The furnishing of electric energy to persons in

2-13     rural areas who are not receiving central station service.

2-14                 (5)  The words "central station service" as used in the

2-15     Act refer to electric service provided by a municipally owned

2-16     electric system or by a public utility corporation, as described in

2-17     Article 1435, Vernon's Revised Civil Statutes of Texas.

2-18                 (6)  Assisting in the wiring of the premises of persons

2-19     in rural areas or the acquisition, supply or installation of

2-20     electrical or plumbing equipment.

2-21                 (7)  The furnishing of electric energy, wiring

2-22     facilities, electrical or plumbing equipment or service to any

2-23     other corporation organized under this Act or to the members

2-24     thereof.

2-25           (b)  Co-operative, non-profit, membership corporations

2-26     heretofore or hereafter organized under this Act which serve retail

2-27     customers in any county that is contiguous to an international

2-28     border, in addition to the purposes set out in subsection (s) of

2-29     this section, are authorized to engage, directly or through an

2-30     affiliate, in the following services to any rural area:

 3-1                 (1)  Supplying or furnishing rural community utility

 3-2     and utility-related services other than electricity, including but

 3-3     not limited to water and sewer services, Internet services, and

 3-4     telephone answering services;

 3-5                 (2)  Providing management or operating service to or

 3-6     for any other cooperative or other entity engaged in purposes

 3-7     authorized by this section; and/or

 3-8                 (3)  Promoting economic and industrial development

 3-9     through participation both as a borrower and a lender in various

3-10     programs established by the Rural Utilities Services Administration

3-11     or other federal programs.

3-12           SECTION 2.  Section 4 of Article 1528b is amended to read as

3-13     follows:

3-14           Sec. 4.  (a)  Each corporation shall have power:

3-15                 (1)  To sue and be sued, complain and defend, in its

3-16     corporation name;

3-17                 (2)  To have a perpetual succession unless a limited

3-18     period of duration is stated in its articles of incorporation;

3-19                 (3)  To adopt a corporate seal which may be altered at

3-20     pleasure, and to use it, or a facsimile thereof, as required by

3-21     law;

3-22                 (4)  To generate, manufacture, purchase, acquire, and

3-23     accumulate electric energy and to transmit, distribute, sell,

3-24     furnish, and dispose of such electric energy to its members only,

3-25     and to construct, erect, purchase, lease as lessee and in any

3-26     manner acquire, own, hold, maintain, operate, sell, dispose of,

3-27     lease as lessor, exchange, and mortgage plants, buildings, works,

3-28     machinery, supplies, equipment, apparatus, and transmission and

3-29     distribution lines of systems necessary, convenient, or useful;

3-30                 (5)  To assist its members only to wire their premises

 4-1     and install therein electrical and plumbing fixtures, machinery,

 4-2     supplies, apparatus, and equipment of any and all kinds and

 4-3     character, and in connection therewith and for such purposes, to

 4-4     purchase, acquire, lease, sell, distribute, install, and repair

 4-5     electrical and plumbing fixtures, machinery, supplies, apparatus,

 4-6     and equipment of any and all kinds and character and to receive,

 4-7     acquire, endorse, pledge, hypothecate, and dispose of notes, bonds,

 4-8     and other evidences of indebtedness;

 4-9                 (6)  To furnish to other corporations organized under

4-10     this Act, or to the members thereof, electric energy, wiring

4-11     facilities, electrical and plumbing equipment, and services

4-12     convenient or useful;

4-13                 (7)  To acquire, own, hold, use, exercise, and, to the

4-14     extent permitted by law, to sell, mortgage, pledge, hypothecate,

4-15     and in any manner dispose of franchises, rights, privileges,

4-16     licenses, rights of way, and easements necessary, useful, or

4-17     appropriate;

4-18                 (8)  To purchase, receive, lease as lessee, or in any

4-19     other manner acquire, own, hold, maintain, sell, exchange, and use

4-20     any and all real and personal property or any interest therein;

4-21                 (9)  To borrow money and otherwise contract

4-22     indebtedness, to issue its obligations therefor, and to secure the

4-23     payment thereof by mortgage, pledge, or deed of trust of all or any

4-24     of its property, assets, franchises, revenues, or income;

4-25                 (10)  To sell and convey, mortgage, pledge, lease as

4-26     lessor, and otherwise dispose of all or any part of its property

4-27     and assets;

4-28                 (11)  To have and exercise the power of eminent domain

4-29     for the purpose and in the manner provided by the condemnation laws

4-30     of this State for acquiring private property for public use, such

 5-1     right to be paramount except as to property of the State, or of any

 5-2     political subdivision thereof;

 5-3                 (12)  To accept gifts or grants of money, services, or

 5-4     property, real or personal;

 5-5                 (13)  To make any and all contracts necessary or

 5-6     convenient for the exercise of the powers granted in this Act;

 5-7                 (14)  To fix, regulate, and collect rates, fees, rents,

 5-8     or other charges for electric energy and any other facilities,

 5-9     supplies, equipment, or services furnished by the corporation;

5-10                 (15)  To conduct its business, and have offices within

5-11     or without this State;

5-12                 (16)  To elect or appoint officers, agents, and

5-13     employees of the corporation, and to define their duties and fix

5-14     their compensation;

5-15                 (17)  To make and alter by-laws, not inconsistent with

5-16     the articles of incorporation or with the laws of this State for

5-17     the administration and regulation of the affairs of the

5-18     corporation;

5-19                 (18)  To do and perform, either for itself or its

5-20     members, or for any other corporation organized under this Act, or

5-21     for the members thereof, any and all acts and things, and to have

5-22     and exercise any and all powers as may be necessary, convenient, or

5-23     appropriate to effectuate the purpose for which the corporation is

5-24     organized.

5-25           (b)  Each corporation referred to in Section 3(b), in

5-26     addition to the powers set out in Subsection (a) of this section,

5-27     shall have all of power, including but not limited to the borrowing

5-28     of funds, necessary or appurtenant to the purposes authorized under

5-29     Section 3(b).

5-30           SECTION 3.  The importance of this legislation and the

 6-1     crowded condition of the calendars in both houses create an

 6-2     emergency and an imperative public necessity that the

 6-3     constitutional rule requiring bills to be read on three several

 6-4     days in each house be suspended, and this rule is hereby suspended.