1-1     By:  Duncan                                           S.B. No. 1539
 1-2           (In the Senate - Filed March 9, 2001; March 14, 2001, read
 1-3     first time and referred to Committee on Veteran Affairs and
 1-4     Military Installations; April 3, 2001, reported adversely, with
 1-5     favorable Committee Substitute by the following vote:  Yeas 5, Nays
 1-6     0; April 3, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1539                  By:  Fraser
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the powers of the Lubbock Reese Redevelopment
1-11     Authority.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subsections (a) and (c), Section 396.005, Local
1-14     Government Code, are amended to read as follows:
1-15           (a)  The authority may exercise, on approval by and in
1-16     coordination with the governor, all the powers necessary or
1-17     convenient to carry out a purpose of this subchapter, including the
1-18     power to:
1-19                 (1)  sue and be sued to the extent permitted by law,
1-20     and plead and be impleaded, in its own name;
1-21                 (2)  adopt an official seal and alter it as considered
1-22     advisable;
1-23                 (3)  adopt and enforce bylaws and rules for the conduct
1-24     of its affairs that are not inconsistent with this subchapter;
1-25                 (4)  acquire, hold, own, and dispose of its revenues,
1-26     income, receipts, funds, and money from every source;
1-27                 (5)  select its depository;
1-28                 (6)  set the fiscal year for the authority;
1-29                 (7)  establish a complete system of accounts for the
1-30     authority;
1-31                 (8)  invest funds in accordance with Chapter 2256,
1-32     Government Code;
1-33                 (9)  acquire, use, own, rent, lease, accept, hold, or
1-34     dispose of any property, or licenses, patents, rights, and other
1-35     interest in that property, by purchase, exchange, gift, assignment,
1-36     condemnation, sale, lease, or any other means, including
1-37     rights-of-way or easements, and hold, manage, operate, or improve
1-38     that property, to perform a duty or exercise a power under this
1-39     subchapter;
1-40                 (10)  sell, assign, lease, encumber, mortgage, or
1-41     otherwise dispose of any property comprising the base property, or
1-42     any interest in that property, release or relinquish any right,
1-43     title, claim, lien, interest, easement, or demand, however
1-44     acquired, and, notwithstanding any other law, conduct any
1-45     transaction authorized by this subdivision by public or private
1-46     sale;
1-47                 (11)  lease or rent any land or buildings, structures,
1-48     or facilities located on the base property to any person to carry
1-49     out the purposes of this subchapter;
1-50                 (12)  request and accept any appropriations, grants,
1-51     allocations, subsidies, guaranties, aid, contributions, services,
1-52     labor, materials, gifts, donations, or money from the federal
1-53     government, the state, any public agency or political subdivision,
1-54     or any other source;
1-55                 (13)  operate and maintain an office;
1-56                 (14)  appoint and determine the duties, tenure,
1-57     qualifications, compensation, and removal of officers, employees,
1-58     agents, professional advisors, and counselors, including financial
1-59     consultants, accountants, attorneys, architects, engineers,
1-60     appraisers, and financing experts, as considered necessary or
1-61     advisable by the board;
1-62                 (15)  borrow money as necessary to acquire, improve, or
1-63     operate facilities on the base property, not to exceed an amount
1-64     determined by the governing body of the municipality;
 2-1                 (16)  fix, revise, charge, and collect rents, rates,
 2-2     fees, and charges for its facilities and services;
 2-3                 (17)  exercise the powers granted to municipalities
 2-4     under Chapter 380 for expansion of economic development and
 2-5     commercial activity;
 2-6                 (18)  adopt an annual operating budget for all major
 2-7     expenditures before the beginning of the fiscal year; and
 2-8                 (19)  exercise those powers granted to general law
 2-9     districts in Chapter 49, Water Code, and to municipal utility
2-10     districts in Chapter 54, Water Code, and provide all other utility
2-11     services that may be provided by a utility, as that term is defined
2-12     by Section 182.001, Utilities Code, on an immediate basis without
2-13     the need for other state regulatory approvals and has the
2-14     unrestricted right to delegate the exercise of these powers and the
2-15     provision of these services to a neighboring municipality, a
2-16     municipally owned utility, a cooperative corporation, or other
2-17     utility providers as may be necessary and appropriate to carry out
2-18     the purposes for which the authority was established.
2-19           (c)(1)  Notwithstanding any provision of this subchapter, the
2-20     authority shall continue to be served by the current provider of
2-21     electricity and related services to the authority until the
2-22     authority delegates the provision of electric services under
2-23     Subsection (a)(19) [September 1, 2001].
2-24                 (2)  [Before September 1, 2001, the Public Utility
2-25     Commission of Texas shall study the electric utility infrastructure
2-26     of the authority and determine a reasonable purchase price for the
2-27     infrastructure.  The authority shall reimburse the commission for
2-28     the cost of hiring a consultant to prepare and present a study of a
2-29     reasonable purchase price for the infrastructure, if the commission
2-30     determines that a consultant is necessary.]
2-31                 [(3)]  Any delegation of the exercise of power and the
2-32     provision of electric services provided for in Subsection (a)(19)
2-33     may be given only to a neighboring municipality or other utility
2-34     provider, including a municipally owned electric utility or
2-35     electric cooperative, that agrees to upgrade the existing
2-36     electrical system infrastructure so that the authority can carry
2-37     out its intended purpose.  The authority shall determine the
2-38     criteria to be used for determining the level of infrastructure
2-39     improvements necessary to encourage the expansion of economic
2-40     development and commercial activity, as provided by Subsection
2-41     (a)(17).  The authority may delegate the provision of electric
2-42     services without other state regulatory approval.
2-43                 (3)  The authority may contract to convey the real and
2-44     personal property related to the supply and distribution of
2-45     electrical power within the authority's boundaries to any
2-46     neighboring municipality or other utility provider, including a
2-47     municipally owned electric utility or electric cooperative, that
2-48     requires the conveyance as a condition to an upgrade prescribed by
2-49     Subdivision (2) [shall be effected through a competitive sealed
2-50     proposal procedure.  The delegation must be awarded to the
2-51     responsible offeror whose proposal is determined to be the most
2-52     advantageous to the authority after considering the relative
2-53     importance of price and other evaluation factors included in the
2-54     request for proposals.  The authority may include as an evaluation
2-55     factor any criteria the board determines to be relevant to the
2-56     delegation.  The authority may reject any and all proposals.  The
2-57     authority may not accept a proposal for the acquisition of the
2-58     electric utility infrastructure of the authority in which the
2-59     offered amount is less than the reasonable purchase price
2-60     determined by the Public Utility Commission of Texas.  The
2-61     provisions of Chapter 252, including Section 252.042(b) and related
2-62     provisions of this code, shall control procedures where not
2-63     otherwise inconsistent with the provisions herein].
2-64           SECTION 2.  The heading to Subchapter A, Chapter 396, Local
2-65     Government Code, is amended to read as follows:
2-66                 SUBCHAPTER A.  LUBBOCK REESE REDEVELOPMENT
2-67                           [DEVELOPMENT] AUTHORITY
2-68           SECTION 3.  This Act takes effect immediately if it receives
2-69     a vote of two-thirds of all the members elected to each house, as
 3-1     provided by Section 39, Article III, Texas Constitution.  If this
 3-2     Act does not receive the vote necessary for immediate effect, this
 3-3     Act takes effect September 1, 2001.
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