HBA-DMH S.B. 1539 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1539 By: Duncan State, Federal & International Relations 5/4/2001 Committee Report (Amended) BACKGROUND AND PURPOSE The Lubbock Reese Redevelopment Authority (authority) serves as the governing body for the Reese Technology Center (center), also known as the former Reese Air Force Base. The enabling statute creating the authority was amended by the 76th Legislature to provide for more effective administration and maintenance of utilities and other infrastructure on the property. Certain provisions required the Public Utility Commission of Texas, by September 1, 2001, to perform an electric utility infrastructure value assessment of the center. Such a value, as determined by the assessment, was to serve as a required minimum value for the purposes of considering any bids for the sale of the electricity infrastructure. It has since been estimated by the authority and certain business entities operating or considering establishing operations at the center that, because of the deteriorating condition of the infrastructure and the technologically advanced focus of several of the entities at the center, the market value of the infrastructure will likely be much lower than any book value assigned to it. Senate Bill 1539 authorizes the authority to contract to convey property relating to the supply and distribution of electrical power within the authority's boundaries to any neighboring municipality or other utility provider that require such conveyance as a condition to upgrade the electric utility infrastructure. 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. ANALYSIS Senate Bill 1539 amends the Local Government Code to require the Lubbock Reese Redevelopment Authority (authority) to continue to be served by the current provider of electricity and related services until the authority delegates the provision of electric services, rather than September 1, 2001. The bill authorizes the authority to contract to convey property relating to the supply and distribution of electrical power within the authority's boundaries to any neighboring municipality or other utility provider, including municipally owned electric utilities or electric cooperatives, that requires such conveyance as a condition to upgrade the electric utility infrastructure. The bill authorizes any delegation of the exercise of power and the provision of electric services to only be given to those neighboring municipalities or other utility providers, including municipally owned electric utilities or electric cooperatives, that agree to upgrade the existing electrical system infrastructure so that the authority can carry out its intended purpose. The bill requires the authority to determine the criteria to be used for determining the level of infrastructure improvements necessary to encourage the expansion of economic development and commercial activity. The bill authorizes the authority to delegate the provisions of electrical services without other state regulatory approval. The bill deletes the provision requiring the authority to use a competitive sealed proposal procedure when delegating the provision of electric services and deletes the provision requiring the Public Utility Commission of Texas to conduct a study before September 1, 2001. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. EXPLANATION OF AMENDMENTS Committee Amendment No. 1 removes the authorization of the Lubbock Reese Redevelopment Authority to provide telephone utility service.