By Danburg                                            H.B. No. 2506
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of local governments to purchase
 1-3     electricity and energy services on behalf of citizens.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 303.002, Local Government Code, is amended
 1-6     to read as follows:
 1-7           Sec. 303.002.  Aggregation by Political Subdivision for
 1-8     Citizens. (a)  A political subdivision aggregator may negotiate for
 1-9     the purchase of electricity and energy services on behalf of the
1-10     citizens of the political subdivision.  [The citizens must
1-11     affirmatively request to be included in the aggregation services by
1-12     the political subdivision aggregator.]
1-13           (b)  If a political subdivision adopts an ordinance or
1-14     resolution specifying that aggregation of electricity and energy
1-15     services purchased under Subsection (a) will automatically occur,
1-16     the question of authority to purchase electricity and energy
1-17     services on behalf of the citizens of the political subdivision
1-18     must be submitted to the voters of the political subdivision.  If
1-19     authorized by a majority of the vote of the citizens of the
1-20     political subdivision, the citizens of the political subdivision
1-21     must:
1-22                 (1)  be notified by mail of the automatic enrollment
 2-1     for aggregation services; and
 2-2                 (2)  affirmatively request not to be included in the
 2-3     aggregation services by the political subdivision aggregator if the
 2-4     citizens do not want to participate.
 2-5           (c) [(b)]  A political subdivision may contract with a third
 2-6     party or another aggregator to administer the aggregation of
 2-7     electricity and energy services purchased under Subsection (a).
 2-8           (d) [(c)]  Except as provided in Subsection (b), the citizens
 2-9     must affirmatively request to be included in the aggregation
2-10     services by the political subdivision aggregator.  The political
2-11     subdivision aggregator may use any mailing from the subdivision to
2-12     invite participation by its citizens.
2-13           SECTION 2.  This Act takes effect immediately if it receives
2-14     a vote of two-thirds of all the members elected to each house, as
2-15     provided by Section 39, Article III, Texas Constitution.  If this
2-16     Act does not receive the vote necessary for immediate effect, this
2-17     Act takes effect September 1, 2001.