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.