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A BILL TO BE ENTITLED
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AN ACT
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relating to municipally owned utility vegetation management. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 552, Local Government |
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Code, is amended by adding Section 552.915 to read as follows: |
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Sec. 552.915. PROHIBITION ON TRANSFER OF MUNICIPAL UTILITY |
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REVENUE. (a) In this section: |
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(1) "Commission" means the Public Utility Commission |
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of Texas. |
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(2) "Municipal utility" means an electric utility |
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system owned, operated, or controlled by a municipality. |
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(b) If the commission determines under Section 38.101, |
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Utilities Code, that a municipal utility's vegetation management |
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activities are insufficient to ensure reliable service, except as |
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provided by Subsection (c) and notwithstanding any other law, the |
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municipality may not in the fiscal year of the determination |
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transfer revenue to the general fund of the municipality from the |
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municipal utility that the municipal utility needs to conduct |
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sufficient vegetation management activities to ensure reliable |
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service. |
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(c) The commission shall provide the municipality with a |
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reasonable grace period after the commission provides a notice to |
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the municipal utility under Section 38.101(c), Utilities Code, in |
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which the municipality may continue to transfer revenue as |
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described by Subsection (b) while the utility alters the utility's |
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vegetation management activities to ensure reliable service. |
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SECTION 2. Section 38.101, Utilities Code, is amended to |
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read as follows: |
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Sec. 38.101. REPORT ON INFRASTRUCTURE IMPROVEMENT AND |
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MAINTENANCE. (a) Not later than May 1 of each year, each electric |
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utility and municipally owned utility shall submit to the |
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commission a report describing the utility's activities related to: |
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(1) identifying areas that are susceptible to damage |
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during severe weather and hardening transmission and distribution |
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facilities in those areas; |
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(2) vegetation management; and |
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(3) inspecting distribution poles. |
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(b) Each electric utility and municipally owned utility |
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shall include in a report required under Subsection (a) a summary of |
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the utility's activities related to preparing for emergency |
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operations. |
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(c) The commission shall evaluate each report submitted by a |
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municipally owned utility under this section and notify the utility |
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if the commission determines that the utility's vegetation |
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management activities are insufficient to ensure reliable service. |
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SECTION 3. This Act takes effect September 1, 2023. |