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.