Amend HB 1902 by striking all below the enacting clause and
substituting the following:
      SECTION 1. Section 39.901(e), Utilities Code, is amended to
read as follows:
      (e)  Not later than May 1 of each year, the commission shall
transfer from the system benefit fund to the foundation school fund
the amounts determined by the Texas Education Agency under
Subsections (b) and (c).  If in any year the system benefit fund is
insufficient to make the transfer designated by the Texas Education
Agency, the shortfall shall be included in the projected revenue
requirement for the system benefit fund the next time the
commission sets the fee under Section 39.903, and the shortfall
amount shall be transferred to the Foundation School Program the
following year, subject to Section 39.903(e).  Amounts transferred
from the system benefit fund under this section may be appropriated
only for the support of the Foundation School Program and are
available, in addition to any amounts allocated by the General
Appropriations Act, to finance actions under Section 41.002(b) or
42.2521 <42.252(e)>, Education Code.
      SECTION 2. Section 39.903, Utilities Code, is amended by
amending Subsection (e) and adding Subsection (m) to read as
follows:
      (e)  The system benefit fund shall provide funding solely for
the following regulatory purposes and in the following order of
priority:
            (1)  programs to assist low-income electric customers
by providing the 10 percent reduced rate prescribed by Subsection
(h);
            (2)  programs to assist low-income electric customers
by providing the targeted energy efficiency programs described by
Subsection (f)(2);
            (3)  <provided by Subsections (f)-(l);>
            <(2)>  customer education programs, administrative
expenses incurred by the commission in implementing and
administering this chapter, and expenses incurred by the office
under this chapter; <and>
            (4) <(3)>  the school funding loss mechanism provided
by Section 39.901; and
            (5)  programs to assist low-income electric customers
by providing the 20 percent reduced rate prescribed by Subsection
(h).
      (m)  In addition to the rules required by Section 39.901(g)
relating to the school funding loss mechanism, the comptroller
shall adopt rules and establish procedures to:
            (1)  identify school districts that are directly
affected by electric utility restructuring;
            (2)  assess the effect changing gas prices have on the
market value of nuclear power plants;
            (3)  conduct an appraisal of the estimates of each
school district and include in the appraisal a cross-reference to
the commission's most recent stranded costs estimate for a facility
in the district;
            (4)  adjust the property tax reductions attributable to
electric utility restructuring in a district under Section 39.901
to reflect any increase in the district's property tax revenue that
is attributable to electric utility restructuring, including the
value of new power plants constructed in the district and the
increased value of other property in the district, such as power
plants and transmission and distribution facilities; and
            (5)  ensure that the amount a school district is
reimbursed is computed by taking the difference between current
year and prior year appraisal values as required by Section 39.901
and as adjusted in accordance with this subsection.
      SECTION 3. This Act takes effect September 1, 2001.