1-1                                   AN ACT
 1-2     relating to the powers of the Lubbock Reese Redevelopment
 1-3     Authority.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsections (a) and (c), Section 396.005, Local
 1-6     Government Code, are amended to read as follows:
 1-7           (a)  The authority may exercise, on approval by and in
 1-8     coordination with the governor, all the powers necessary or
 1-9     convenient to carry out a purpose of this subchapter, including the
1-10     power to:
1-11                 (1)  sue and be sued to the extent permitted by law,
1-12     and plead and be impleaded, in its own name;
1-13                 (2)  adopt an official seal and alter it as considered
1-14     advisable;
1-15                 (3)  adopt and enforce bylaws and rules for the conduct
1-16     of its affairs that are not inconsistent with this subchapter;
1-17                 (4)  acquire, hold, own, and dispose of its revenues,
1-18     income, receipts, funds, and money from every source;
1-19                 (5)  select its depository;
1-20                 (6)  set the fiscal year for the authority;
1-21                 (7)  establish a complete system of accounts for the
1-22     authority;
1-23                 (8)  invest funds in accordance with Chapter 2256,
1-24     Government Code;
1-25                 (9)  acquire, use, own, rent, lease, accept, hold, or
 2-1     dispose of any property, or licenses, patents, rights, and other
 2-2     interest in that property, by purchase, exchange, gift, assignment,
 2-3     condemnation, sale, lease, or any other means, including
 2-4     rights-of-way or easements, and hold, manage, operate, or improve
 2-5     that property, to perform a duty or exercise a power under this
 2-6     subchapter;
 2-7                 (10)  sell, assign, lease, encumber, mortgage, or
 2-8     otherwise dispose of any property comprising the base property, or
 2-9     any interest in that property, release or relinquish any right,
2-10     title, claim, lien, interest, easement, or demand, however
2-11     acquired, and, notwithstanding any other law, conduct any
2-12     transaction authorized by this subdivision by public or private
2-13     sale;
2-14                 (11)  lease or rent any land or buildings, structures,
2-15     or facilities located on the base property to any person to carry
2-16     out the purposes of this subchapter;
2-17                 (12)  request and accept any appropriations, grants,
2-18     allocations, subsidies, guaranties, aid, contributions, services,
2-19     labor, materials, gifts, donations, or money from the federal
2-20     government, the state, any public agency or political subdivision,
2-21     or any other source;
2-22                 (13)  operate and maintain an office;
2-23                 (14)  appoint and determine the duties, tenure,
2-24     qualifications, compensation, and removal of officers, employees,
2-25     agents, professional advisors, and counselors, including financial
2-26     consultants, accountants, attorneys, architects, engineers,
 3-1     appraisers, and financing experts, as considered necessary or
 3-2     advisable by the board;
 3-3                 (15)  borrow money as necessary to acquire, improve, or
 3-4     operate facilities on the base property, not to exceed an amount
 3-5     determined by the governing body of the municipality;
 3-6                 (16)  fix, revise, charge, and collect rents, rates,
 3-7     fees, and charges for its facilities and services;
 3-8                 (17)  exercise the powers granted to municipalities
 3-9     under Chapter 380 for expansion of economic development and
3-10     commercial activity;
3-11                 (18)  adopt an annual operating budget for all major
3-12     expenditures before the beginning of the fiscal year; and
3-13                 (19)  exercise those powers granted to general law
3-14     districts in Chapter 49, Water Code, and to municipal utility
3-15     districts in Chapter 54, Water Code, and provide all other utility
3-16     services that may be provided by an electric, gas, or water utility
3-17     on an immediate basis without the need for other state regulatory
3-18     approvals and has the unrestricted right to delegate the exercise
3-19     of these powers and the provision of these services to a
3-20     neighboring municipality, a municipally owned utility, a
3-21     cooperative corporation, or other utility providers as may be
3-22     necessary and appropriate to carry out the purposes for which the
3-23     authority was established.
3-24           (c)(1)  Notwithstanding any provision of this subchapter, the
3-25     authority shall continue to be served by the current provider of
3-26     electricity and related services to the authority until the
 4-1     authority delegates the provision of electric services under
 4-2     Subsection (a)(19) [September 1, 2001].
 4-3                 (2)  [Before September 1, 2001, the Public Utility
 4-4     Commission of Texas shall study the electric utility infrastructure
 4-5     of the authority and determine a reasonable purchase price for the
 4-6     infrastructure.  The authority shall reimburse the commission for
 4-7     the cost of hiring a consultant to prepare and present a study of a
 4-8     reasonable purchase price for the infrastructure, if the commission
 4-9     determines that a consultant is necessary.]
4-10                 [(3)]  Any delegation of the exercise of power and the
4-11     provision of electric services provided for in Subsection (a)(19)
4-12     may be given only to a neighboring municipality or other utility
4-13     provider, including a municipally owned electric utility or
4-14     electric cooperative, that agrees to upgrade the existing
4-15     electrical system infrastructure so that the authority can carry
4-16     out its intended purpose.  The authority shall determine the
4-17     criteria to be used for determining the level of infrastructure
4-18     improvements necessary to encourage the expansion of economic
4-19     development and commercial activity, as provided by Subsection
4-20     (a)(17).  The authority may delegate the provision of electric
4-21     services without other state regulatory approval.
4-22                 (3)  The authority may contract to convey the real and
4-23     personal property related to the supply and distribution of
4-24     electrical power within the authority's boundaries to any
4-25     neighboring municipality or other utility provider, including a
4-26     municipally owned electric utility or electric cooperative, that
 5-1     requires the conveyance as a condition to an upgrade prescribed by
 5-2     Subdivision (2) [shall be effected through a competitive sealed
 5-3     proposal procedure.  The delegation must be awarded to the
 5-4     responsible offeror whose proposal is determined to be the most
 5-5     advantageous to the authority after considering the relative
 5-6     importance of price and other evaluation factors included in the
 5-7     request for proposals.  The authority may include as an evaluation
 5-8     factor any criteria the board determines to be relevant to the
 5-9     delegation.  The authority may reject any and all proposals.  The
5-10     authority may not accept a proposal for the acquisition of the
5-11     electric utility infrastructure of the authority in which the
5-12     offered amount is less than the reasonable purchase price
5-13     determined by the Public Utility Commission of Texas.  The
5-14     provisions of Chapter 252, including Section 252.042(b) and related
5-15     provisions of this code, shall control procedures where not
5-16     otherwise inconsistent with the provisions herein].
5-17           SECTION 2.  The heading to Subchapter A, Chapter 396, Local
5-18     Government Code, is amended to read as follows:
5-19                 SUBCHAPTER A.  LUBBOCK REESE REDEVELOPMENT
5-20                           [DEVELOPMENT] AUTHORITY
5-21           SECTION 3.  This Act takes effect immediately if it receives
5-22     a vote of two-thirds of all the members elected to each house, as
5-23     provided by Section 39, Article III, Texas Constitution.  If this
5-24     Act does not receive the vote necessary for immediate effect, this
5-25     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1539 passed the Senate on
         April 20, 2001, by the following vote:  Yeas 28, Nays 0, one
         present, not voting; and that the Senate concurred in House
         amendment on May 17, 2001, by the following vote:  Yeas 30, Nays 0,
         one present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1539 passed the House, with
         amendment, on May 11, 2001, by the following vote:  Yeas 141,
         Nays 0, two present, not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor