By:  West (Senate Sponsor - Armbrister)                           H.B. No. 872
	(In the Senate - Received from the House April 7, 2005; 
April 11, 2005, read first time and referred to Committee on 
Natural Resources; May 16, 2005, reported favorably by the 
following vote:  Yeas 10, Nays 0; May 16, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the imposition of the pipeline safety annual inspection 
fee by the Railroad Commission of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 121.211(d) and (g), Utilities Code, are 
amended to read as follows:
	(d)  The commission may assess each operator of a
[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.
	(g)  Each operator of a [investor-owned and municipally 
owned] natural gas distribution system [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 system or a cooperatively 
owned natural gas distribution system [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 Subtitle C, Title 3 [Chapters 321 through 
327], Tax Code.
	SECTION 2.  This Act takes effect September 1, 2005.                           



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