1-1 By: Turner of Harris (Senate Sponsor - Sibley) H.B. No. 1902
1-2 (In the Senate - Received from the House May 2, 2001;
1-3 May 3, 2001, read first time and referred to Committee on Business
1-4 and Commerce; May 11, 2001, reported favorably by the following
1-5 vote: Yeas 6, Nays 0; May 11, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the purposes for which the system benefit fund may be
1-9 used.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 39.901(e), Utilities Code, is amended to
1-12 read as follows:
1-13 (e) Not later than May 1 of each year, the commission shall
1-14 transfer from the system benefit fund to the foundation school fund
1-15 the amounts determined by the Texas Education Agency under
1-16 Subsections (b) and (c). If in any year the system benefit fund is
1-17 insufficient to make the transfer designated by the Texas Education
1-18 Agency, the shortfall shall be included in the projected revenue
1-19 requirement for the system benefit fund the next time the
1-20 commission sets the fee under Section 39.903, and the shortfall
1-21 amount shall be transferred to the Foundation School Program the
1-22 following year, subject to Section 39.903(e). Amounts transferred
1-23 from the system benefit fund under this section may be appropriated
1-24 only for the support of the Foundation School Program and are
1-25 available, in addition to any amounts allocated by the General
1-26 Appropriations Act, to finance actions under Section 41.002(b) or
1-27 42.2521 [42.252(e)], Education Code.
1-28 SECTION 2. Section 39.903, Utilities Code, is amended by
1-29 amending Subsection (e) and adding Subsection (m) to read as
1-30 follows:
1-31 (e) The system benefit fund shall provide funding solely for
1-32 the following regulatory purposes and in the following order of
1-33 priority:
1-34 (1) programs to assist low-income electric customers
1-35 by providing the 10 percent reduced rate prescribed by Subsection
1-36 (h);
1-37 (2) programs to assist low-income electric customers
1-38 by providing the targeted energy efficiency programs described by
1-39 Subsection (f)(2);
1-40 (3) [provided by Subsections (f)-(l);]
1-41 [(2)] customer education programs, administrative
1-42 expenses incurred by the commission in implementing and
1-43 administering this chapter, and expenses incurred by the office
1-44 under this chapter; [and]
1-45 (4) [(3)] the school funding loss mechanism provided
1-46 by Section 39.901; and
1-47 (5) programs to assist low-income electric customers
1-48 by providing the 20 percent reduced rate prescribed by Subsection
1-49 (h).
1-50 (m) In addition to the rules required by Section 39.901(g)
1-51 relating to the school funding loss mechanism, the comptroller
1-52 shall adopt rules and establish procedures to:
1-53 (1) identify school districts that are directly
1-54 affected by electric utility restructuring;
1-55 (2) assess the effect changing gas prices have on the
1-56 market value of nuclear power plants;
1-57 (3) conduct an appraisal of the estimates of each
1-58 school district and include in the appraisal a cross-reference to
1-59 the commission's most recent stranded costs estimate for a facility
1-60 in the district;
1-61 (4) adjust the property tax reductions attributable to
1-62 electric utility restructuring in a district under Section 39.901
1-63 to reflect any increase in the district's property tax revenue that
1-64 is attributable to electric utility restructuring, including the
2-1 value of new power plants constructed in the district and the
2-2 increased value of other property in the district, such as power
2-3 plants and transmission and distribution facilities; and
2-4 (5) ensure that the amount a school district is
2-5 reimbursed is computed by taking the difference between current
2-6 year and prior year appraisal values as required by Section 39.901
2-7 and as adjusted in accordance with this subsection.
2-8 SECTION 3. This Act takes effect September 1, 2001.
2-9 * * * * *