80R5604 PAM-F
 
  By: Morrison H.B. No. 1749
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of political subdivisions to negotiate
  contracts for electricity.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 304, Local Government Code, is amended
  by adding Section 304.0015 to read as follows:
         Sec. 304.0015.  CONTRACT TERMS; AUTHORITY TO DELEGATE. (a)
  A contract between a political subdivision and a political
  subdivision corporation described by Section 304.001 for the
  purchase of electricity, in whole or in part, authorized under
  Subchapter A, Chapter 271:
               (1)  may be for a term not to exceed 30 years;
               (2)  is a security agreement within the meaning of
  Section 1208.001, Government Code; and
               (3)  is exempt from Chapter 252 or 262, as appropriate,
  or other law that establishes a competitive purchasing process
  that, otherwise, would apply to the contract.
         (b)  In authorizing a political subdivision corporation to
  negotiate a contract, the governing body of each political
  subdivision that forms the political subdivision corporation may:
               (1)  authorize the maximum amount of any payment and
  the maximum rate of interest under the contract;
               (2)  authorize the maximum amount of electricity to be
  purchased under the contract; and
               (3)  delegate to any officer or employee of the
  political subdivision the authority to:
                     (A)  determine the payment terms of the contract;
                     (B)  determine the specific amount of electricity
  purchased; and
                     (C)  complete and execute the contract.
         (c)  In exercising the authority delegated under Subsection
  (b)(3), the officer or employee may establish the terms to complete
  and execute the contract, including:
               (1)  the form of the contract;
               (2)  the payment terms of the contract, including the
  price paid, payment amounts, and interest rate under the contract;
               (3)  the relevant contract dates, including payment
  dates;
               (4)  the redemption or prepayment provisions; and
               (5)  any other details relating to completing and
  executing the contract specified by the governing body of the
  political subdivision in a proceeding authorizing the contract.
         (d)  A finding or determination made by an officer or
  employee exercising the authority delegated under Subsection
  (b)(3) has the same force and effect as a finding or determination
  made by the governing body of the political subdivision.
         (e)  A political subdivision that enters into a contract
  under this section has the same contracting authority as a
  municipality contracting with a utility system under Section
  1502.002, Government Code.
         (f)  A political subdivision that enters into a contract
  under this section is not required to submit the contract to a
  public official of this state, including the attorney general, for
  review and approval. A political subdivision may submit the
  contract to a public official for review and approval if authorized
  by law. A contract under this section may not be contested after
  the contract is executed and delivered except for fraud or forgery.
         SECTION 2.  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, 2007.