SRC-MWN H.B. 1902 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1902
By: Turner, Sylvester (Sibley)
Business & Commerce
5/9/2001
Engrossed


DIGEST AND PURPOSE 

When the System Benefit Fund (SBF) was created by the 76th Legislature as
part of electric utility deregulation, it was envisioned to be a trust fund
that would help finance programs regarding utility awareness and
assistance. Under current law, the SBF is a trust fund with the comptroller
administered by the Public Utility Commission. H.B. 1902 provides for the
purposes for which the SBF may be used. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the comptroller of public
accounts in SECTION 2 (Section 39.903, Utilities Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 39.901(e), Utilities Code, to provide that if in
any year the system benefit fund is insufficient to make the transfer
designated by the Texas Education Agency, the shortfall is required 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 is required to be transferred to the Foundation School
Program the following year, subject to Section 39.903(e). Provides that
amounts transferred from the SBF 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, rather than 42.252,
Education Code. 

SECTION 2. Amends Section 39.903, Utilities Code, by amending Subsection
(e) and adding Subsection (m), as follows: 

(e)  Requires the system benefit fund to provide funding solely for certain
regulatory purposes and in a certain order of priority. 

(m)  Requires the comptroller, in addition to the rules required by Section
39.901(g) relating to the school funding loss mechanism, to adopt rules and
establish procedures to meet certain criteria. 

SECTION 3. Effective date: September 1, 2001.