By:  West (Senate Sponsor - Armbrister)                           H.B. No. 1194
	(In the Senate - Received from the House May 5, 2003; 
May 7, 2003, read first time and referred to Committee on Natural 
Resources; May 22, 2003, reported favorably by the following vote:  
Yeas 10, Nays 0; May 22, 2003, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to pipeline safety fees.                                           
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 121, Utilities Code, is 
amended by adding Section 121.211 to read as follows:
	Sec. 121.211.  PIPELINE SAFETY FEES.  (a)  The railroad 
commission by rule may adopt an inspection fee to be assessed 
annually against operators of natural gas distribution pipelines 
and their pipeline facilities and natural gas master metered 
pipelines and their pipeline facilities subject to this chapter.
	(b)  The railroad commission by rule shall establish the 
method by which the fee will be calculated and assessed.  In 
adopting a fee structure, the railroad commission may consider any 
factors necessary to provide for the equitable allocation among 
operators of the costs of administering the railroad commission's 
pipeline safety program under this chapter.
	(c)  The total amount of fees estimated to be collected under 
rules adopted by the railroad commission under this section may not 
exceed the amount estimated by the railroad commission to be 
necessary to recover the costs of administering the railroad 
commission's pipeline safety program under this chapter, excluding 
costs that are fully funded by federal sources.
	(d)  The commission may assess each investor-owned and each 
municipally owned natural gas distribution system subject to this 
chapter an annual inspection fee not to exceed 50 cents for each 
service line reported by the system on the Distribution Annual 
Report, Form RSPA F7100.1-1, due on March 15 of each year.  The fee 
is due March 15 of each year.
	(e)  The commission may assess each operator of a natural gas 
master metered system subject to this chapter an annual inspection 
fee not to exceed $100 for each master metered system.  The fee is 
due June 30 of each year.
	(f)  The commission may assess a late payment penalty of 10 
percent of the total assessment due under Subsection (d) or (e) that 
is not paid within 30 days after the annual due date established by 
the applicable subsection.
	(g)  Each investor-owned and municipally owned natural gas 
distribution company and each natural gas master meter operator 
shall recover as a surcharge to its existing rates the amounts paid 
to the commission under this section.  Amounts collected under this 
subsection by an investor-owned natural gas distribution company 
shall not be included in the revenue or gross receipts of the 
company for the purpose of calculating municipal franchise fees or 
any tax imposed under Subchapter B, Chapter 182, Tax Code, or under 
Chapter 122.  Those amounts are not subject to a sales and use tax 
imposed by Chapter 151, Tax Code, or Chapters 321 through 327, Tax 
Code.
	(h)  A fee collected under this section shall be deposited to 
the credit of the general revenue fund to be used for the pipeline 
safety program.
	SECTION 2.  This Act takes effect September 1, 2003.                           



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