SRC-JLB S.B. 687 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 687
By: West, Royce
Education
4/14/2003
As Filed


DIGEST 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.  As
proposed, 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

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 44.031(a), 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. 

SECTION 2.  Amends Section 304.001(a), Local Government Code, to redefine
"political subdivision" to include a school district. 

SECTION 3.  Effective date:  upon passage or September 1, 2003.