HBA-EDN H.B. 2506 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2506
By: Danburg
State Affairs
3/15/2001
Introduced



BACKGROUND AND PURPOSE 

Legislation passed last session restructured the electricity market to
permit certain providers to compete for customers.  Under the new
structure, counties, school districts, and other political subdivisions are
authorized to form aggregations.  Currently, when a political subdivision
aggregator negotiates for the purchase of electricity and energy services,
the citizens must affirmatively request to be included in the aggregation
services.  House Bill 2506 provides that if a political subdivision adopts
an ordinance specifying that aggregation of electricity and energy
purchased will automatically occur, the citizens must affirm it by vote and
if affirmed, must opt out if they do not want to participate in the
aggregation services. 

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. 

ANALYSIS

House Bill 2506 amends the Local Government Code to provide that if a
political subdivision (subdivision) adopts an ordinance or resolution
specifying that aggregation of electricity and energy services purchased on
behalf of the citizens of the subdivision (citizens) will automatically
occur, the question of authority to purchase electricity and energy
services on behalf of the citizens must be submitted to the voters of the
subdivision.  If automatic enrollment in such aggregation services is
authorized by a majority vote, the citizens must be notified by mail and
affirmatively request not to be included if the citizens do not want to
participate. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.