By: Kuempel H.B. No. 3603

A BILL TO BE ENTITLED AN ACT relating to municipal power agencies.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION1. Section 163.051, Utilities Code, amended to read as follows:

Sec. 163.051. DEFINITIONS. In this subchapter and Subchapter E:

(1) "Agency" means a municipal power agency created under this subchapter.

(2) "Bond" includes a note, but does not include a nonnegotiable purchase money note issued under Section 163.067.

(3) "Concurrent ordinance" means an ordinance or order adopted under this subchapter by two or more public entities that relates to the creation or recreation of a municipal power agency.

(4) "Obligations" means revenue bonds or notes.

SECTION2. Section 163.054, Utilities Code, amended to read as follows.

Sec. 163.054. CREATION OF AGENCY. (a) Public entities may create an agency by concurrent ordinances subject to voter approval.

(b) A public entity may join in the creation of an agency under this subchapter only if on May 8, 1975, and at the time the concurrent ordinance is adopted, the entity was engaged in the authorized generation of electric energy for the sale to the public. This subsection does not prohibit a public entity from disposing any electric generating capabilities after creation of the agency.

(c) (b) An agency is a:

(1) separate municipal corporation;

(2) political subdivision of this state; and

(3) political entity and corporate body.

(d) (c) An agency may not impose a tax but has all the other powers relating to municipally owned utilities and provided by law to a municipality that owns a public utility.

SECTION3. Section 163.055, Utilities Code, is amended to read as follows:

Sec. 163.055. RE-CREATION OF AGENCY. (a) The public entities that create an agency may by concurrent ordinances re-create the agency by adding or deleting, or both, a public entity.

(b) The public entities may not re-create an agency if the re-creation will impair an agency obligation.

(c) Re-creation by adding a public entity is subject to voter approval in accordance with Section 163.058.

SECTION4. Section 163.058, Utilities Code, is amended to read as follows:

Sec. 163.058. ELECTION. (a) An agency may not be created unless the creationIf before the date tentatively set for passage of a concurrent ordinance creating an agency or if before such adoption, the secretary or clerk of the public entity receives a petition signed by at least five percent (5%) of the qualified voters of the public entity protesting the adoption of the concurrent ordinance, the public entity may not adopt the concurrent ordinance unless the creation is approved by a majority of the qualified voters of each public entity creating the agency at an election called and held for that purpose.

(b) An agency may not be re-created by addition of a public entityIf before the date tentatively set for passage of a concurrent ordinance recreating an agency or if before such adoption, the secretary or clerk of the public entity receives a petition signed by at least five percent (5%) of the qualified voters of the public entity protesting the adoption of the concurrent ordinance, the public entity may not adopt the concurrent ordinance unless the re-creation is approved by a majority of the qualified voters of the additional public entity at an election called and held for that purpose.

(c) Notice of an election under this section shall be given in accordance with Section 1251.003, Government Code. The election shall be called and held in accordance with:

(1) the Election Code;

(2) Chapter 1251, Government Code; and

(3) this subchapter.

SECTION5. Section 163.060, Utilities Code is amended to read as follows:

Sec. 163.060. POWERS. (a) An agency may not engage in the sale of electric energy to retail customers, or in any utility business other than the generation, transmission, purchase and sale or exchange of electric energy for resale to:

(1) a participating public entity; or

(2) a private entity that owns jointly with the agency an electric generating facility in this state.

(b) The agency may:

(1) perform any act necessary to the full exercise of the agency's powers;

(2) enter into a contract, lease, or agreement with or accept a grant or loan from a:

(A) department or agency of the United States;

(B) department, agency, or political subdivision of this state; or

(C) public or private person;

(3) sell, lease, convey, or otherwise dispose of any right, interest, or property the agency considers to be unnecessary for the efficient maintenance or operation of its electric facilities;

(4) use the uniform system of accounts prescribed for utilities and licenses by the Federal Energy Regulatory Commission; and

(5) adopt rules to govern the operation of the agency and its employees, facilities, and service.

SECTION6. Section 163.121, Utilities Code, amended to read as follows:

Sec. 163.121. CREATION. An electric cooperative corporation may join one or more public entities to create a joint powersan agency as if the corporation were also a public entity.

SECTION7. Section 163.122, Utilities Code, amended to read as follows:

Sec. 163.122. APPLICATION OF OPEN MEETINGS LAW. A joint powersAn agency created under this subchapter is a governmental body subject to Chapter 551, Government Code.

SECTION8. Section 163.123, Utilities Code, amended to read as follows:

Sec. 163.123. AUTHORITY OF PUBLIC UTILITY COMMISSION. A joint powersAn agency created under this subchapter is:

(1) subject to all applicable provisions of Title 2; and

(2) under the jurisdiction of the Public Utility Commission of Texas as provided by Title 2., to the same extent as an agency created under Subchapter C or Subchapter D.

SECTION9. 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.