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.