NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.
| SPONSOR: | Garcia | DATE TYPED: | 02/14/01 | HB | |||
| SHORT TITLE: | Prohibit Utility Service Area Encroachment | SB | 177 | ||||
| ANALYST: | Dotson | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY01 | FY02 | FY01 | FY02 | ||
| None | None | ||||
(Parenthesis ( ) Indicate Expenditure Decreases)
SUMMARY
Synopsis of Bill
SB 177 outlines the protections granted to an association of it's service area as long as the association remains indebted to the state.
Significant Issues
This bill promotes indebtedness to state agencies and financial programs. Holding service areas should be based on service provided at competitive rates. This bill would curtail competition in service areas and possibly allow poorly performing utilities to continue to operate only due to their obligations to the state.
POSSIBLE QUESTIONS
What prevents a utility from seeking loans from a state agency for the sole purpose of protecting it's service area?
PD/nw