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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of political subdivisions to negotiate |
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contracts for electricity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 304, Local Government Code, is amended |
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by adding Section 304.0015 to read as follows: |
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Sec. 304.0015. CONTRACT TERMS; AUTHORITY TO DELEGATE. (a) |
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A contract between a political subdivision and a political |
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subdivision corporation described by Section 304.001 for the |
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purchase of electricity, in whole or in part, authorized under |
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Subchapter A, Chapter 271: |
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(1) may be for a term not to exceed 30 years; |
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(2) is a security agreement within the meaning of |
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Section 1208.001, Government Code; and |
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(3) is exempt from Chapter 252 or 262, as appropriate, |
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or other law that establishes a competitive purchasing process |
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that, otherwise, would apply to the contract. |
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(b) In authorizing a political subdivision corporation to |
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negotiate a contract, the governing body of each political |
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subdivision that forms the political subdivision corporation may: |
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(1) authorize the maximum amount of any payment and |
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the maximum rate of interest under the contract; |
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(2) authorize the maximum amount of electricity to be |
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purchased under the contract; and |
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(3) delegate to any officer or employee of the |
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political subdivision the authority to: |
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(A) determine the payment terms of the contract; |
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(B) determine the specific amount of electricity |
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purchased; and |
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(C) complete and execute the contract. |
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(c) In exercising the authority delegated under Subsection |
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(b)(3), the officer or employee may establish the terms to complete |
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and execute the contract, including: |
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(1) the form of the contract; |
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(2) the payment terms of the contract, including the |
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price paid, payment amounts, and interest rate under the contract; |
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(3) the relevant contract dates, including payment |
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dates; |
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(4) the redemption or prepayment provisions; and |
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(5) any other details relating to completing and |
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executing the contract specified by the governing body of the |
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political subdivision in a proceeding authorizing the contract. |
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(d) A finding or determination made by an officer or |
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employee exercising the authority delegated under Subsection |
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(b)(3) has the same force and effect as a finding or determination |
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made by the governing body of the political subdivision. |
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(e) A political subdivision that enters into a contract |
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under this section has the same contracting authority as a |
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municipality contracting with a utility system under Section |
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1502.002, Government Code. |
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(f) A political subdivision that enters into a contract |
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under this section is not required to submit the contract to a |
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public official of this state, including the attorney general, for |
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review and approval. A political subdivision may submit the |
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contract to a public official for review and approval if authorized |
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by law. A contract under this section may not be contested after |
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the contract is executed and delivered except for fraud or forgery. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |