Amend HB 1902 (Senate Committee Printing) by striking all
below the enacting clauses and substituting the following:
"SECTION 1. Section 39.901, Utilities Code, is amended to
read as follows:
Sec. 39.901. SCHOOL FUNDING LOSS MECHANISM. (a) Not later
than August 31 <March 1> each year, the comptroller shall certify
to the Texas Education Agency the statewide net loss in electric
generating facility property value <any property wealth reductions,
determined by taking the difference between current year and prior
year appraisal values> attributable to electric utility
restructuring. In calculating the statewide net loss in electric
generating facility property value, the comptroller shall:
(1) subtract current year electric generating facility
appraisal roll values, as defined by Section 25.24, Tax Code, from
1999 electric generating facility appraised value in each school
district;
(2) sum the resulting property value losses (positive
differences);
(3) sum the resulting property value gains (negative
differences); and
(4) subtract the absolute value of the property value
gains, subject to the limitation in Section 39.9011, from the
absolute value of the property value losses to calculate a
statewide net loss.
(b) The Texas Education Agency shall determine the amount
necessary to compensate the state for the statewide net loss
certified under subsection (a) by multiplying the statewide net
loss by the average adopted property tax rate of the school
districts that had losses, weighted by the value losses in each
school district, and dividing the result by 100 <reduction of the
amount of property taxes recaptured by the state from school
districts subject to wealth equalization under Chapter 41,
Education Code, as a result of the property wealth reductions
certified under Subsection (a)> and shall notify the commission of
the amount necessary to compensate the state for the reduction.
The comptroller shall provide the Texas Education Agency the
electric generating facility value losses in each school district
used in subsection (a)(2) for use in calculating the weighted
average property tax rate.
(c) <The Texas Education Agency shall determine the amount
necessary to compensate school districts for lost revenue resulting
from the property wealth reductions under Subsection (a) and shall
notify the commission of this amount. The amounts necessary to
compensate districts shall be the sum of:>
<(1) decreases in the level of funding to which a
school district is entitled under Chapters 42 and 46, Education
Code, that are directly attributable to the decline in property
values caused by utility restructuring; and>
<(2) losses of property tax collections incurred by
school districts that are directly attributable to property value
declines caused by utility restructuring and that are not accounted
for under Subdivision (1), including amounts that a school district
would be entitled to retain under Chapter 41, Education Code.>
<(d)> The amounts determined by the comptroller and the
Texas Education Agency under this section, for the purposes of this
section, are final and may not be appealed.
(d) <(e)> Not later than May 1 of each year, subject to
Section 39.903 (b), the commission shall transfer from the system
benefit fund to the foundation school fund the amount <amounts>
determined by the Texas Education Agency under Subsection (b) to
the extent that funds are available. <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.> 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.
(e) <(f) The Texas Education Agency shall, on the transfer
of funds from the system benefit fund to the foundation school
fund, compensate school districts for losses incurred under
Subsection (c).>
<(g)> The commissioner of education and the comptroller
shall adopt rules necessary to implement this section, including
rules providing for public input.
(f) <(h)> This section is effective through the 2006-2007
school year. This section expires August 31, 2007.
SECTION 2. Chapter 39, Utilities Code, is amended by adding
Section 39.9011 to read as follows:
Sec. 39.9011. LIMITATION ON TOTAL PROPERTY VALUE GAINS. (a)
If the absolute value of the total property value gains calculated
as required by Section 39.901(a)(3) exceed 30 percent of the
absolute value of the property value losses calculated as required
by Section 39.901(a)(2), the comptroller shall cap the total
property value gains at 30 percent of the property value losses
before calculating the statewide net loss required by Section
39.901(a)(4).
(b) This section expires May 31, 2003.
SECTION 3. Section 39.903, Utilities Code, is amended to
read as follows:
Sec. 39.903. SYSTEM BENEFITS FUND. (a) The system benefit
fund is an account in the general revenue fund that may be
appropriated only for the purposes provided by this section.
Interest earned on the system benefit fund shall be credited to
<created as a trust fund with the comptroller and shall be
administered by the commission as trustee on behalf of the
recipients of money from> the fund.
(b) The system benefit fund is financed by a nonbypassable
fee set by the commission in an amount not to exceed 65 <50> cents
per megawatt hour<, except beginning on January 1, 2002, and ending
on December 31, 2006, the commission may set the fee in an amount
not to exceed 65 cents per magawatt hour to the extent necessary to
collect sufficient revenue to fund the 10 percent reduced rate
requirements of the program required by Subsection (h)>. The
system benefit fund fee is allocated to customers based on the
amount of kilowatt hours used.
(c) The nonbypassable fee may not be imposed on the retail
electric customers of a municipally owned utility or electric
cooperative before the sixth month preceding the date on which the
utility or cooperative implements customer choice. Money
distributed from the system benefit fund to a municipally owned
utility or an electric cooperative shall be proportional to the
nonbypassable fee paid by the municipally owned utility or the
electric cooperative, subject to the reimbursement provided by
Subsection (i). On request by a municipally owned utility or
electric cooperative, the commission shall reduce the nonbypassable
fee imposed on retail electric customers served by the municipally
owned utility or electric cooperative by an amount equal to the
amount provided by the municipally owned utility or electric
cooperative or its ratepayers for local low-income programs and
local programs that educate customers about the retail electric
market in a neutral and nonpromotional manner.
(d) The commission shall annually review and approve system
benefit fund accounts, projected revenue requirements, and proposed
nonbypassable fees. The commission shall report to the electric
utility restructuring legislative oversite committee if the system
benefit fund fee is insufficient to fund the purposes set forth in
Subsection (e) to the extent required by this section.
(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 Subsections
(h) <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>
(3) programs to assist low-income electric customers
by providing the targeted energy efficiency programs described by
Subsection (f)(2);
(4) 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).
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2001."