79R2312 CBH-D

By:  Isett                                                        H.B. No. 2774



A BILL TO BE ENTITLED

AN ACT

relating to the purposes for which the system benefit fund may be 
used.     
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 39.903(e), Utilities Code, as amended by 
Chapters 1394, 1451, and 1466, Acts of the 77th Legislature, 
Regular Session, 2001, is reenacted and amended to read as follows:
	(e)  Money in the system benefit fund may be appropriated to 
provide funding solely for the following [regulatory] purposes,
[and] in the following order of priority:
		(1)  the medical assistance program under Chapter 32, 
Human Resources Code;
		(2)  customer education programs, administrative 
expenses incurred by the commission in implementing and 
administering this chapter, and expenses incurred by the office 
under this chapter;
		(3)  programs to assist low-income electric customers 
by providing the 10 percent reduced rate prescribed by Subsection  
(h);
		(4)  programs to assist low-income electric customers 
by providing the targeted energy efficiency programs described by 
Subsection (f)(2); [customer education programs, administrative 
expenses incurred by the commission in implementing and 
administering this chapter, and expenses incurred by the office 
under this chapter;]
		(5)  the school funding loss mechanism provided by 
Section 39.901;          
		(6)  programs to assist low-income electric customers 
by providing the 20 percent reduced rate prescribed by Subsection 
(h); and
		(7)  reimbursement to the commission and the Health and 
Human Services Commission [Texas Department of Human Services] for 
expenses incurred in the implementation and administration of an 
integrated eligibility process created under Section 17.007 for 
customer service discounts relating to retail electric service, 
including outreach expenses the commission determines are 
reasonable and necessary.
	SECTION 2.  This Act takes effect September 1, 2005.