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.