2007S0683-1 03/08/07

By: Wentworth S.B. No. 1810

A BILL TO BE ENTITLED

AN ACT

relating to the creation, re-creation, and powers of municipal power agencies.

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

SECTION 1. Section 163.054, Utilities Code, is 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 sale to the public. This subsection does not prohibit a public entity from disposing of its electric generating capabilities after creation of the agency.

[(c)] An agency is a:

(1) separate municipal corporation;

(2) political subdivision of this state; and

(3) political entity and corporate body.

(c) [(d)] 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.

SECTION 2. Subsection (a), Section 163.056, Utilities Code, is amended to read as follows:

(a) If an election is called, the [The] governing body of each public entity shall publish notice of its intention to create an agency once a week for two consecutive weeks.

SECTION 3. Section 163.058, Utilities Code, is amended by amending Subsections (a) and (b) and adding Subsection (d) to read as follows:

(a) An agency may not be created unless the creation is approved by a majority of the governing body [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 entity unless the re-creation is approved by a majority of the governing body [qualified voters] of the additional public entity [at an election called and held for that purpose].

(d) A public entity may ask that the creation or re-creation of an agency be confirmed by approval of a majority of qualified voters.

SECTION 4. Subsection (a), Section 163.060, Utilities Code, is amended to read as follows:

(a) An agency may not engage in any utility business other than the generation, transmission, 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].

SECTION 5. Subsection (c), Section 163.055, Utilities Code, is repealed.

SECTION 6. (a) The change in law made by this Act to Sections 163.054, 163.055, 163.056, and 163.58, Utilities Code, applies only to the creation or re-creation of a municipal power agency occurring on or after the effective date of this Act. The creation or re-creation of a municipal power agency occurring before the effective date of this Act is covered by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose.

SECTION 7. 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.