By Turner of Harris                                   H.B. No. 2307
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the right of electric utilities to seek contribution or
    1-3  reimbursement from persons transmitting power on utility
    1-4  transmission or distribution systems or using utility transmission
    1-5  or distribution systems to make sales to utilities.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7        SECTION 1.  Chapter 10, Title 32, Revised Statutes, is
    1-8  amended by adding Article 1436d to read as follows:
    1-9        Art. 1436d.
   1-10        Section 1.  In any action or claim brought against an
   1-11  electric utility based in whole or in part on a theory of strict
   1-12  products liability, breach of implied warranty, other liability
   1-13  without negligence, or liability based on the inherent
   1-14  characteristics of electricity, the utility shall have a right on
   1-15  contribution against any person using the utility's transmission or
   1-16  distribution system to transmit power or make a sale of energy or
   1-17  capacity to the utility.  In the case of an action or claim based
   1-18  in whole or in part on a theory of strict products liability,
   1-19  breach of implied warranty or other liability without negligence,
   1-20  the amount of contribution the utility shall be entitled to receive
   1-21  from such person shall be based on the amount of power such person
   1-22  was transmitting or selling to the utility at the time of the
   1-23  accident or injury made the basis of the claim or action against
    2-1  the electric utility.  In the case of an action or claim based in
    2-2  whole or in part on liability based on the inherent characteristics
    2-3  of electricity, the amount of contribution the utility shall be
    2-4  entitled to receive from such person shall be based on the amount
    2-5  of power such person transmitted or sold to the utility during the
    2-6  twelve month period immediately preceding the accident or injury
    2-7  made the basis of the claim or action against the utility.
    2-8        Section 2.  If as a result of any future statute, regulation
    2-9  or judicial or administrative decision, an electric utility is
   2-10  required to make any improvements, modifications, retrofits or
   2-11  other changes to its transmission and/or distribution system, or
   2-12  any part thereof, on the basis of the inherent characteristics of
   2-13  electricity, the utility shall have a right to reimbursement from
   2-14  any person using the utility's transmission or distribution system
   2-15  to transmit power or make a sale of energy or capacity to the
   2-16  utility.  The amount of reimbursement the utility shall be entitled
   2-17  to receive from such person shall be based on the amount of power
   2-18  such person transmitted or sold to the utility during the twelve
   2-19  month period immediately preceding the passage or adoption of such
   2-20  statute or regulation or the entry of the judicial or
   2-21  administrative decision.
   2-22        SECTION 2.  Nothing in this legislation shall be construed to
   2-23  invalidate any provision of any contract entered into prior to the
   2-24  effective date of this Act providing for the transmission of power
   2-25  on a utility's transmission or distribution system, the
    3-1  interconnection to a utility's transmission or distribution system
    3-2  or the sale of power to a utility.
    3-3        SECTION 3.  The importance of this legislation and the
    3-4  crowded condition of the calendars in both houses create an
    3-5  emergency and an imperative public necessity that the
    3-6  constitutional rule requiring bills to be read on three several
    3-7  days in each house be suspended, and this rule is hereby suspended,
    3-8  and that this Act take effect and be in force from and after its
    3-9  passage, and it is so enacted.