HBA-DMD S.B. 1427 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1427 By: Duncan State, Federal, & International Relations 5/7/1999 Engrossed BACKGROUND AND PURPOSE The Lubbock Reese Redevelopment Authority (authority) was created by the 75th Legislature. Since the closure of Reese Air Force Base the authority has been responsible for overseeing the transition of the base from a military operation to a variety of uses. S.B. 1427 creates the authority in order to undertake certain eligible projects. This bill authorizes the authority to exercise certain powers granted to general law districts and to certain municipal utility districts and to provide all other utility services on an immediate basis without the need for other state regulatory approvals. It requires the Public Utility Commission of Texas (commission), before September 1, 2001, to study the electric utility infrastructure of the authority and to determine a reasonable purchase price for the infrastructure. In addition, this bill requires any delegation of the exercise of power and the provision of electric services to be effected through a competitive sealed proposal procedure. S.B. 1427 prohibits the authority from accepting a proposal for the acquisition of the electric utility infrastructure of the authority if the offered amount is less than the reasonable purchase price determined by the commission. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 396.001, Local Government Code, by adding Subdivision (6), to define "eligible project." SECTION 2. Amends Section 2311.001, Government Code, by adding Subdivision (6), to define "eligible project." SECTION 3. Amends Section 396.004, Local Government Code, by adding Subsection (e), to create the Lubbock Reese Redevelopment Authority (authority) to undertake eligible projects as defined in Section 396.001(6), Local Government Code. SECTION 4. Amends Section 2311.021, Government Code, by adding Subsection (e), to create the authority to undertake eligible projects as defined in Section 2311.001(6), Government Code. SECTION 5. Amends Section 396.005, Local Government Code, by amending Subsection (a) and adding Subsection (c), as follows: (a) Includes among other enumerated powers of the authority, the authority to exercise those powers granted to general law districts in Chapter 49 (Provisions Applicable to All Districts), Water Code, and to municipal utility districts in Chapter 54 (Municipal Utility Districts), Water Code, and to provide all other utility services on an immediate basis without the need for other state regulatory approvals and specifies that the authority has the unrestricted right to delegate the exercise of these powers and the provision of these services to a neighboring municipality or other utility providers as may be necessary and appropriate in order to carry out the purposes for which the authority was established. (c)(1) Requires the authority, notwithstanding any provision of this subchapter, to continue to be served by the current provider of electricity and related services to the authority until September 1, 2001. (2) Requires the Public Utility Commission of Texas (commission), before September 1, 2001, to study the electric utility infrastructure of the authority and to determine a reasonable purchase price for the infrastructure. Requires the authority to reimburse the commission for the cost of hiring a consultant to prepare and present a study of a reasonable purchase price for the infrastructure, if the commission determines that a consultant is necessary. (3) Requires any delegation of the exercise of power and the provision of electric services provided for in Subsection (a) to be effected through a competitive sealed proposal procedure. Provides that the delegation must be awarded to the responsible offeror whose proposal is determined to be the most advantageous to the authority after considering the relative importance of price and other evaluation factors included in the request for proposals. Authorizes the authority to include as an evaluation factor any criteria the board determines to be relevant to the delegation and to reject any and all proposals. Prohibits the authority from accepting a proposal for the acquisition of the electric utility infrastructure of the authority in which the offered amount is less than the reasonable purchase price determined by the commission. Requires the provisions of Chapter 252 (Purchasing and Contracting Authority of Municipalities), Local Government Code, including Section 252.042(b) (Requests for Proposals for Certain Procurements), Local Government Code, and related provisions of this code, to control procedures where not otherwise inconsistent with the provisions herein. SECTION 6. Amends Section 2311.022, Government Code, to make conforming changes. SECTION 7. (a) Effective date: September 1, 1999. (b) Provides that SECTIONS 1, 3, and 5 of this Act take effect only if the Act of the 76th Legislature, Regular Session, 1999, relating to nonsubstantive additions to and corrections in enacted codes takes effect. (c) Provides that SECTIONS 2, 4, and 6 of this Act take effect only if the Act of the 76th Legislature, Regular Session, 1999, relating to nonsubstantive additions to and corrections in enacted codes does not take effect. SECTION 8. Emergency clause.