By: Garza H.B. No. 3469
A BILL TO BE ENTITLED
AN ACT
relating to the collection of electric franchise fees by certain
municipalities and counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 33, Utilities Code, is
amended by adding Section 33.009 to read as follows:
Sec. 33.009. LIMITATION ON MUNICIPAL FRANCHISE FEES. (a)
This section applies only to a municipality that is located in a
county that has a population of less than 48,000 and that borders
the United Mexican States.
(b) Notwithstanding any other law, including Section
33.008, a municipality to which this section applies may not impose
on an electric utility, transmission and distribution utility,
municipally owned utility, or electric cooperative a charge for the
use of a municipal street, alley, or public way to deliver
electricity to a retail customer unless the retail customer resides
in that municipality.
SECTION 2. Subchapter C, Chapter 181, Utilities Code, is
amended by adding Section 181.048 to read as follows:
Sec. 181.048. FRANCHISE CHARGES BY COUNTY. (a) This
section applies only to a county that has a population of less than
48,000 and that borders the United Mexican States.
(b) Notwithstanding any other law, a county to which this
section applies may impose on an electric utility, transmission and
distribution utility, municipally owned utility, or electric
cooperative, as appropriate, that provides distribution service
within the unincorporated areas of the county a reasonable charge
for the use of a county street, alley, or public way to deliver
electricity to a retail customer who resides in an unincorporated
area of the county.
(c) A franchise charge authorized by this section shall be
considered a reasonable and necessary operating expense of each
electric utility, transmission and distribution utility,
municipally owned utility, or electric cooperative that is subject
to a charge under this section. The charge shall be included in the
nonbypassable delivery charges that a customer's retail electric
provider must pay under Section 39.107 to the utility serving the
customer.
SECTION 3. This Act takes effect September 1, 2003.