By:  Duncan                                           S.B. No. 1539
         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     related to the powers of Lubbock Reese Redevelopment Authority.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 396.005(c), Local Government Code, is
 1-5     amended to read as follows:
 1-6                 (1)  Notwithstanding any provision of this subchapter,
 1-7     the authority shall continue to be served by the current provider
 1-8     of electricity and related services to the authority until
 1-9     [September 1, 2001] a delegation of the provision of electric
1-10     services is made by the authority under Subsections (a)(19) and
1-11     (c)(3).
1-12                 (2)  [Before September 1, 2001, the Public Utility
1-13     Commission of Texas shall study the electric utility infrastructure
1-14     of the authority and determine a reasonable purchase price for the
1-15     infrastructure.  The authority shall reimburse the commission for
1-16     the cost of hiring a consultant to prepare and present a study of a
1-17     reasonable purchase price for the infrastructure, if the commission
1-18     determines that a consultant is necessary] It has been determined
1-19     that the electrical system infrastructure in place at what was
1-20     formally known as Reese Air Force Base, is not able to supply
1-21     electricity of sufficient quality and reliability within the
1-22     boundaries of the authority.  This inadequacy has inhibited the
1-23     authority from exercising its power pursuant to Subsection (a)(17)
 2-1     to expand economic development and commercial activity.
 2-2                 (3)  [Any delegation of the exercise of power and the
 2-3     provision of electric services provided for in Subsection (a)(19)
 2-4     shall be effected through a competitive sealed proposal procedure.
 2-5     The delegation must be awarded to the responsible offeror whose
 2-6     proposal is determined to be the most advantageous to the authority
 2-7     after considering the relative importance of price and other
 2-8     evaluation factors included in the request for proposals.  The
 2-9     authority may include as an evaluation factor any criteria the
2-10     board determines to be relevant to the delegation.  The authority
2-11     may reject any and all proposals.  The authority may not accept a
2-12     proposal for the acquisition of the electric utility infrastructure
2-13     of the authority in which the offered amount is less than the
2-14     reasonable purchase price determined by the Public Utility
2-15     Commission of Texas.  The provisions of Chapter 252, including
2-16     Section 253.042(b) and related provisions of this code, shall
2-17     control procedures where not otherwise inconsistent with the
2-18     provisions herein] Because of the condition of the electrical
2-19     system infrastructure, any delegation of the exercise of power and
2-20     the provision of electric services provided for in Subsection
2-21     (a)(19) shall only be given to those neighboring municipalities or
2-22     other utility providers that agree to undertake the steps necessary
2-23     to upgrade the existing electrical system infrastructure so that
2-24     the authority will be able to carry out its purpose in conducting
2-25     eligible projects and be able to exercise its power to expand
2-26     economic development and commercial activity.  The authority shall
 3-1     determine the criteria to be used to determine the level of
 3-2     upgrading required to be conducted in order to allow the authority
 3-3     to adequately exercise its power pursuant to Subsection (a)(17).
 3-4     Such delegation shall be accomplished without the need for other
 3-5     state regulatory approval.
 3-6                 (4)  The authority shall have the power to contract to
 3-7     convey the real and personal property related to the supply and
 3-8     distribution of electrical power within the authority's boundaries
 3-9     to any neighboring municipality or other utility providers that
3-10     require such conveyance as a condition to such upgrades as
3-11     discussed in Subsection (c)(3).
3-12           SECTION 2.  This Act takes effect immediately if it receives
3-13     a vote of two-thirds of all the members elected to each house, as
3-14     provided by Section 39, Article III, Texas Constitution.  If this
3-15     Act does not receive the vote necessary for immediate effect, this
3-16     Act takes effect September 1, 2001.