SRC-BWC S.B. 1539 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1539
By: Duncan
Veteran Affairs & Military Installations
3/27/2001
As Filed


DIGEST AND PURPOSE 

The Lubbock Reese Redevelopment Authority (authority) serves as the
governing body for the Reese Technology 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 a more effective
administration and maintenance of utilities and other infrastructure on the
property.  Certain provisions required the Public Utility Commission (PUC),
by September 1, 2001, to perform an electric utility infrastructure value
assessment of the authority.  Such a value, as determined by the
assessment, was to serve as a required minimum value for the purposes of
considering any bids for sale of the electricity infrastructure.  It has
since been estimated by the authority and certain business entities
operating or considering establishing operations at the Reese Technology
Center that, because of the deteriorating condition of the infrastructure
and the technologically advanced focus of the several entities at the
center, the market value of such infrastructure likely will be much less
than any book value assigned to it.  As proposed, S.B. 1539 removes the
requirement for the infrastructure value assessment and further deletes
language requiring the authority to reimburse the PUC for related, incurred
expenses.  The bill also removes the requirement for a competitive, sealed
bid process for delegation of the provision of electric services and
instead provides for the authority to delegate the provision of electric
services only to entities willing to undertake steps necessary to upgrade
the existing electric infrastructure.  Additionally, S.B. 1539 provides
that the authority may contract or sale real and personal electric
infrastructure property to any such entity.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 396.005(c), Local Government Code, as follows:

 _Requires the Lubbock Reese Redevelopment Authority (authority),
notwithstanding any provision of this subchapter, to continue to be served
by the current provider of electricity and related services to the
authority until a delegation of the provision of electric services is made
by the authority under Subsections (a) (19) and (c) (3), rather than until
September 1, 2001. 

 _Provides that it has been determined that the electrical system
infrastructure in place at what was formally known as Reese Air Force Base,
is not able to supply electricity of sufficient quality and reliability
within the boundaries of the authority.  Provides that this inadequacy has
inhibited the authority from exercising its power pursuant to Subsection
(a) (17) to expand economic development and commercial activity.  Deletes
text that requires the Public Utility Commission of Texas (commission) to
study the electric utility infrastructure of the authority and that
requires for the authority to reimburse the commission for the cost of
hiring a consultant for the study. 

  _ Requires any delegation of the exercise of power and the provision of
electric services provided for in Subsection (a) (19), because of the
condition of the electrical system infrastructure, to only be given to
those neighboring municipalities or other utility providers that agree to
undertake the steps necessary to upgrade the existing electrical system
infrastructure so that the authority will be able to carry out its purpose
in conducting eligible projects and be able to exercise its power to expand
economic development and commercial activity.  Requires the authority to
determine the criteria to be used to determine the level of upgrading
required to be conducted in order to allow the authority to adequately
exercise its power pursuant to Subsection (a) (17). Requires such
delegation to be accomplished without the need for other state regulatory
approval.  Deletes text that requires the delegation of the exercise of
power and the provision of electric services to be effected through a
competitive sealed proposal procedure. 

 _Requires the authority to have the power to contract to convey the real
and personal property related to the supply and distribution of electrical
power within the authority's boundaries to any neighboring municipality or
other utility providers that require such conveyance as a condition to such
upgrades as discussed in Subsection (c) (3). 

SECTION 2.  Effective date: upon passage or September 1, 2001.