HBA-MPA H.B. 630 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 630 By: Gallego State Affairs 2/8/1999 Introduced BACKGROUND AND PURPOSE Cooperatives provide electric power and telecommunication service to the same people who created the cooperative. In many cases, cooperatives are established in remote, rural areas which do not enjoy the services larger metropolitan areas do, such as water and sewer, and Internet services. Cooperatives have recently indicated that they encounter statutory problems when trying to provide these services. H.B. 630 explicitly states what functions cooperatives can perform, facilitates the provision of these services, and allows cooperatives to mobilize more quickly when the need for such services arises. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 161, Utilities Code, by adding Section 161.126, as follows: Sec. 161.126. ADDITIONAL PURPOSES AND POWERS OF ELECTRIC COOPERATIVE SERVING BORDER COUNTIES. (a) Provides that this section applies only to an electric cooperative that serves retail customers in a county contiguous to an international border. (b) Authorizes an electric cooperative that complies with all requirements of a public utility under Chapter 13, Water Code (Water Rates and Services), to provide directly or through an affiliate, within any portion of its service area: rural utility and utility-related services, including water and sewer services, Internet services, telephone answering services, or electricity, but not including telecommunication services governed by Subtitle C, Title 2, Utility Code (Telecommunication Utilities); management or operating services to or for another electric cooperative or another entity engaged in purposes authorized by Section 161.122, Utility Code (Provision of Rural Electrification); and economic and industrial development promotion through participation as a borrower or lender under a federal program. (c) Provides that the electric cooperative has all powers, including the power to borrow money, necessary or appurtenant to the purposes and powers provided by Subsection (b). SECTION 2. Emergency clause. Effective date: upon passage.