HBA-DMH S.B. 1539 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1539
By: Duncan
State, Federal & International Relations
4/27/2001
Engrossed



BACKGROUND AND PURPOSE 

The Lubbock Reese Redevelopment Authority (authority) serves as the
governing body for the Reese Technology Center (center), also known as the
former Reese Air Force Base.  The enabling statute creating the authority
was amended by the 76th Legislature to provide for more effective
administration and maintenance of utilities and other infrastructure on the
property.  Certain provisions required the Public Utility Commission of
Texas, by September 1, 2001, to perform an electric utility infrastructure
value assessment of the center.  Such a value, as determined by the
assessment, was to serve as a required minimum value for the purposes of
considering any bids for the sale of the electricity infrastructure.  It
has since been estimated by the authority and certain business entities
operating or considering establishing operations at the center that,
because of the deteriorating condition of the infrastructure and the
technologically advanced focus of several of the entities at the center,
the market value of the infrastructure will likely be much lower than any
book value assigned to it.  Senate Bill 1539 authorizes the authority to
contract to convey property relating to the supply and distribution of
electrical power within the authority's boundaries to any neighboring
municipality or other utility provider that require such conveyance as a
condition to upgrade the electric utility infrastructure. 

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

Senate Bill 1539 amends the Local Government Code to require the Lubbock
Reese Redevelopment Authority (authority) to continue to be served by the
current provider of electricity and related services until the authority
delegates the provision of electric services, rather than September 1,
2001. 

The bill authorizes the authority to contract to convey property relating
to the supply and distribution of electrical power within the authority's
boundaries to any neighboring municipality or other utility provider,
including municipally owned electric utilities or electric cooperatives,
that requires such conveyance as a condition to upgrade the electric
utility infrastructure.  

The bill authorizes any delegation of the exercise of power and the
provision of electric services to only be given to those neighboring
municipalities or other utility providers, including municipally owned
electric utilities or electric cooperatives, that agree to upgrade the
existing electrical system infrastructure so that the authority can carry
out its intended purpose.  The bill requires the authority to determine the
criteria to be used for determining the level of infrastructure
improvements necessary to encourage the expansion of economic development
and commercial activity.  The bill authorizes the authority to delegate the
provisions of electrical services  without other state regulatory approval. 
 
The bill deletes the provision requiring the authority to use a competitive
sealed proposal procedure when delegating the provision of electric
services and deletes the provision requiring the Public Utility Commission
of Texas to conduct a study before September 1, 2001. 
 
EFFECTIVE DATE

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