79R6245 SGA-D

By:  Fraser                                                       S.B. No. 1232


A BILL TO BE ENTITLED
AN ACT
relating to certain powers of river authorities engaged in the distribution and sale of electric energy to the public, including the Lower Colorado River Authority. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 222.001(b), Water Code, is amended to read as follows: (b) The authority is created under and is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution, including the control, storing, preservation, and distribution of the waters of the Colorado River and its tributaries within the boundaries of the authority for irrigation, generation of electric energy and power, and other useful purposes; the reclamation and irrigation of arid, semiarid, and other lands needing irrigation; the management [development] of existing parks on lands owned or acquired by the authority; and the conservation and development of the forests, water, and electric power in this state. SECTION 2. Section 222.004(s), Water Code, is amended to read as follows: (s) The authority may [develop and] manage existing parks, recreational facilities, and natural science laboratories and may promote the preservation of fish and wildlife within the boundaries of the authority. The authority may negotiate contracts with any county, municipality, municipal corporation, person, firm, corporation, nonprofit organization, or state or federal agency for the operation and maintenance of any such park, recreational facility, or natural science laboratory. The preservation of fish and wildlife shall be in accordance with the rules of the Parks and Wildlife Commission. Notwithstanding any other provisions of this chapter, the board may charge and collect reasonable entrance, gate, or use fees for the [development,] management[,] and use of existing parks and recreational facilities developed in whole or in part by the authority. SECTION 3. Section 222.020(b), Water Code, is amended to read as follows: (b) Nothing in this chapter shall be construed as authorizing the sale of any property or interest by the authority or by any receiver of any of its properties or through any court proceeding or otherwise, unless, by the affirmative vote of three-fourths of its statutory membership, the board has determined that the property or interest is not necessary or convenient or of beneficial use to the business of the authority and has approved the terms of the sale. Except by sale as expressly authorized in this section, authority property or interest may not come into the ownership or control, directly or indirectly, of any person, firm, or corporation other than a public authority created under the laws of this state [or a nonprofit corporation created by the authority under Chapter 152]. SECTION 4. Section 222.022, Water Code, is amended to read as follows: Sec. 222.022. PROPERTY USEFUL IN THE PRODUCTION OR UTILIZATION OF ELECTRIC ENERGY. This chapter does not prohibit or restrict the sale, lease, or other disposition, to an electric cooperative, municipality, [nonprofit corporation created by the authority under Chapter 152,] or other governmental agency or body politic and corporate of this state, of any property acquired or constructed by the authority and incidental to or used or useful in the generation, production, transmission, distribution, or sale of electric energy. The authority may pledge the proceeds of a sale under this section to the same extent and in the same manner in which it is authorized to pledge its revenues. SECTION 5. Chapter 152, Water Code, is repealed. SECTION 6. (a) A corporation created by a river authority under Section 152.051, Water Code, shall be dissolved not later than November 1, 2005. Any corporate assets shall be transferred to the river authority and any corporate liabilities shall be assumed by the river authority. The river authority shall ensure the orderly dissolution of the corporation. The river authority is substituted for the corporation in any contract to which the corporation is a party. This subsection does not apply if the corporation is authorized under other law applicable to the river authority. (b) The repeal of Chapter 152, Water Code, by this Act does not diminish or impair the rights of a holder of a revenue bond, note, or other obligation of a corporation or river authority issued under that chapter before the effective date of this Act. (c) A river authority that provides electric transmission services under the authority of Subchapter G, Chapter 152, Water Code, shall, unless those services are authorized by another law, divest itself of any electric transmission facilities and arrange for the orderly transfer of the accounts of any electric transmission customers and service to those customers to another provider not later than the first anniversary of the effective date of this Act. (d) Notwithstanding Subsection (c) of this section, if a river authority has issued revenue bonds, notes, or other obligations in connection with the authority's electric transmission facilities, the authority may not transfer the facilities until the obligations have been paid off unless the provider to whom the facilities are transferred assumes the obligations or the holders of the obligations approve the transfer. SECTION 7. Section 222.004, Water Code, as amended by this Act, regarding the authority of the Lower Colorado River Authority to develop a park, recreational facility, or natural science laboratory, applies only to a park, recreational facility, or natural science laboratory for which actual construction has not yet begun on the effective date of this Act. The Lower Colorado River Authority may complete the development of any park, recreational facility, or natural science laboratory for which actual construction began before the effective date of this Act. SECTION 8. This Act takes effect September 1, 2005.