H.B. 1193 78(R)    BILL ANALYSIS


H.B. 1193
By: West, George "Buddy"
Energy Resources
Committee Report (Unamended)



BACKGROUND AND PURPOSE 
The Railroad Commission of Texas (RRC) is proposing that the Legislature
repeal Texas Utilities Code 121.156, Railroad Commission Report, because
it no longer serves the purpose for which it was originally adopted.  

In 1920, the Texas Legislature declared the transportation and sale of
natural gas to be a public utility and gave the RRC jurisdiction. The
Legislature gave the RRC the power to establish a staff of experts to
inspect and audit gas utilities activities. This regulatory staff was to
be paid out of a Gas Utilities Fund established by a tax on the gross
receipts of the gas utilities operating in the State. The RRC was required
to file an annual report to the Governor that detailed gas utility
proceedings over the previous year, receipts into the Gas Utilities Fund,
and a detailed accounting of the names, title, and expenditures (including
salaries and travel expenses) of the regulatory staff that evaluated gas
utility operations. The detailed accounting report to the Governor was
necessary because these expenses were reimbursed directly by the utilities
through the Gas Utilities Fund. 

In 1981, the Legislature modified payment of the gas utilities' gross
receipts tax so that it was deposited into the State's General Revenue
Fund rather than the Gas Utilities Fund, while RRC regulatory expenses
were likewise paid out of the General Revenue Fund rather than the Gas
Utilities Fund. The link between the dedicated Gas Utilities Fund and the
RRC regulatory activities was thus broken. Therefore, the annual report to
the Governor became unnecessary. 

Funding of regulatory activities is now performed through the normal
agency budgeting process, and regulatory activities and expenditures are
now reported through the RRC's Annual Statistical and Financial Reports.  

RULEMAKING AUTHORITY
This bill does not expressly delegate any additional rulemaking authority
to a state officer, department, agency, or institution. 

ANALYSIS
HB 1193 repeals Section 121.156, Texas Utilities Code which is no longer
needed. 

EFFECTIVE DATE
This act takes effect immediately if it receives a vote of two-thirds of
all the 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, 2003.