LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 8, 2001
TO: Honorable Robert Junell, Chair, House Committee on
Appropriations
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1902 by Turner, Sylvester (Relating to the re-creation
of the system benefit fund as a dedicated account and to
the use of the account.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1902, As Introduced: negative impact of $(362,517,546) through *
* the biennium ending August 31, 2003, if the effective date of the *
* bill is June 1, 2001; and a negative impact of $(321,048,000) *
* through the biennium ending August 31, 2003, if the effective date *
* of the bill is September 1, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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The following table assumes an effective date of June 1, 2001.
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Gain/(Loss) Probable Revenue Gain/(Loss) to *
* Year from General Revenue Fund New General Revenue *
* 0001 Dedicated-System Benefit Fund *
* 2001 $(27,646,364) $27,646,364 *
* 2002 (165,878,182) 165,878,182 *
* 2003 (168,993,000) 168,993,000 *
* 2004 (172,960,000) 172,960,000 *
* 2005 (177,236,000) 177,236,000 *
* 2006 (181,619,000) 181,619,000 *
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The following table assumes an effective date of September 1, 2001.
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*Fiscal Probable Revenue Gain/(Loss) Probable Revenue Gain/(Loss) to *
* Year from General Revenue Fund New General Revenue Dedicated - *
* 0001 Syslem Benefit Fund *
* 2002 $(152,055,000) $152,055,000 *
* 2003 (168,993,000) 168,993,000 *
* 2004 (172,960,000) 172,960,000 *
* 2005 (177,236,000) 177,236,000 *
* 2006 (181,619,000) 181,619,000 *
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Fiscal Analysis
The bill would amend Chapter 39 of the Utilities Code to re-create the
System Benefit Fund as a General Revenue dedicated account.
Interest earned by the account would be credited to the account; and the
account could be appropriated only for the purposes of providing programs
to assist low-income electricity users, customer education programs, the
school funding loss mechanism, and administrative expenses incurred in
implementing Chapter 39 (concerning electric utility restructuring).
The bill would take effect immediately upon enactment, assuming that it
received the requisite two-thirds majority votes in both houses of the
Legislature. Otherwise, it would take effect September 1, 2001.
Methodology
As a result of funds consolidation legislation enacted by the Legislature
in 1999 under HB 3084, the System Benefit Fund authorized under Section
39.903 of the Utilities Code was not established. Revenues are currently
deposited to the General Revenue Fund 0001. The bill would create the
System Benefit Fund as a dedicated account in Fund 0001 and require
interest to be credited to the new account.
The fund would be financed by a fee set by the Public Utility Commission
in an amount not to exceed $0.50 per megawatt hour, except, beginning on
January 1, 2002 and ending December 31, 2006, the fee may not exceed
$0.65 per megawatt hour.
This analysis includes estimated System Benefit Fund revenue as well as
interest earnings. To estimate interest, the average daily balance was
calculated for each month based on cash flow data provided by the Public
Utility Commission. The average balance was multiplied by the estimated
daily interest rate on Treasury investments. The interest estimate
assumes equal revenue collections and expenditures during the forecast
period.
Note: This bill would do one or more of the following: create or
recreate a dedicated account in the General Revenue Fund, create or
recreate a special or trust fund either with or outside of the Treasury,
or create a dedicated revenue source. Legislative policy, implemented
as Government Code 403.094, consolidated special funds (except those
affected by constitutional, federal, or other restrictions) into the
General Revenue Fund as of August 31, 1993 and eliminated all applicable
statutory revenue dedications as of August 31, 1995. Each subsequent
Legislature has reviewed bills that affect funds consolidation. The
fund, account, or revenue dedication included in this bill would be
subject to funds consolidation review by the current Legislature.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 475 Office of Public Utility Counsel, 473 Public
Utility Commission of Texas, 304 Comptroller of
Public Accounts
LBB Staff: JK, SD, RT, KM