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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation, re-creation, and powers of municipal |
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power agencies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 163.054, Utilities Code, is amended to |
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read as follows: |
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Sec. 163.054. CREATION OF AGENCY. (a) Public entities may |
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create an agency by concurrent ordinances [subject to voter
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approval]. |
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(b) [A public entity may join in the creation of an agency
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under this subchapter only if on May 8, 1975, and at the time the
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concurrent ordinance is adopted, the entity was engaged in the
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authorized generation of electric energy for sale to the public. |
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This subsection does not prohibit a public entity from disposing of
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its electric generating capabilities after creation of the agency.
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[(c)] An agency is a: |
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(1) separate municipal corporation; |
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(2) political subdivision of this state; and |
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(3) political entity and corporate body. |
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(c) [(d)] An agency may not impose a tax but has all the |
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other powers relating to municipally owned utilities and provided |
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by law to a municipality that owns a public utility. |
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SECTION 2. Subsection (a), Section 163.056, Utilities |
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Code, is amended to read as follows: |
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(a) If an election is called, the [The] governing body of |
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each public entity shall publish notice of its intention to create |
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an agency once a week for two consecutive weeks. |
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SECTION 3. Section 163.058, Utilities Code, is amended by |
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amending Subsections (a) and (b) and adding Subsection (d) to read |
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as follows: |
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(a) An agency may not be created unless the creation is |
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approved by a majority of the governing body [qualified voters] of |
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each public entity creating the agency at an election called and |
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held for that purpose. |
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(b) An agency may not be re-created by addition of a public |
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entity unless the re-creation is approved by a majority of the |
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governing body [qualified voters] of the additional public entity |
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[at an election called and held for that purpose]. |
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(d) A public entity may ask that the creation or re-creation |
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of an agency be confirmed by approval of a majority of qualified |
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voters. |
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SECTION 4. Subsection (a), Section 163.060, Utilities Code, |
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is amended to read as follows: |
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(a) An agency may not engage in any utility business other |
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than the generation, transmission, and sale or exchange of electric |
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energy for resale to: |
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(1) a participating public entity; or |
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(2) a private entity [that owns jointly with the
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agency an electric generating facility in this state]. |
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SECTION 5. Subsection (c), Section 163.055, Utilities Code, |
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is repealed. |
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SECTION 6. (a) The change in law made by this Act to |
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Sections 163.054, 163.055, 163.056, and 163.58, Utilities Code, |
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applies only to the creation or re-creation of a municipal power |
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agency occurring on or after the effective date of this Act. The |
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creation or re-creation of a municipal power agency occurring |
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before the effective date of this Act is covered by the law in |
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effect immediately before the effective date of this Act, and the |
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former law is continued in effect for that purpose. |
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SECTION 7. 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. |