78R7309 CBH-F

By:  Madden                                                       H.B. No. 2528



A BILL TO BE ENTITLED

AN ACT

relating to the purchase of electricity by a school district 
through the use of a political subdivision corporation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 304.001(a), Local Government Code, is 
amended to read as follows:
	(a)  In this chapter, "political subdivision" means a 
county, municipality, hospital district, school district, or any 
other political subdivision receiving electric service from an 
entity that has implemented customer choice, as defined in Section 
31.002, Utilities Code.
	SECTION 2.  Section 44.031, Education Code, is amended by 
adding Subsection (n) to read as follows:
	(n)  This section does not apply to a contract to purchase 
electricity if the electricity is purchased through the use of a 
political subdivision corporation formed by the school district and 
another political subdivision or subdivisions under Section 
304.001, Local Government Code.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.