Enrolled Bill Summary

            House Bill 1194 amends the Utilities Code to authorize the Railroad Commission of Texas to assess an annual inspection fee against operators of natural gas distribution pipelines and master metered pipelines and related facilities to fund the commission's pipeline safety program. The bill requires the commission by rule to establish the method by which the fee will be calculated and assessed and prohibits the amount of revenue estimated to be collected from exceeding the amount estimated to be needed to administer the program. It authorizes the commission to assess each investor-owned and municipally owned natural gas distribution company an annual inspection fee of up to 50 cents for each service line and establishes that the fee is due March 15 of each year. The fee for master metered system operators may be up to $100 for each system, and the fee is due June 30 of each year. The commission is also authorized to assess a late payment penalty of 10 percent of the total assessment due if a fee is not paid within 30 days of the annual due date. The bill requires each entity paying the fee to recover the cost via a surcharge to existing rates paid by customers. An investor-owned utility is prohibited from including the surcharge in revenue or gross receipts used to calculate municipal franchise fees or the utility's tax burden. The bill establishes that the surcharges are not subject to sales and use taxes.