S.B. 687 78(R)    BILL ANALYSIS


S.B. 687
By: West
Public Education
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, the Public Utility Regulatory Act provides that groups of
customers, including school districts and other local government entities,
may aggregate their electricity usage and seek electric service from a
retail provider for the aggregated electric load. The Education Code does
not explicitly list political subdivision corporations as a method for
school districts to procure contracts valued at $25,000 or more for the
purchase of electricity, and the attorney general concludes that school
districts are prohibited from participating in such arrangements. S.B. 687
amends the Education Code to include political subdivision corporations as
an additional method for school districts to receive the best value on
contracts valued at $25,000 or more. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department,
institution, or agency. 


ANALYSIS

S. B. 687 amends  the Education Code to require all school district
contracts, except contracts for the purchase of produce or vehicle fuel,
valued at $25,000 or more in the aggregate for each 12-month period to be
made by the method that provides the best value for the district,
including the formation of a political subdivision corporation under
Section 304.001, Local Government Code. 

The bill amends the Local Government Code to redefine "political
subdivision" to include a school district. 


EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.