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By:  Baxter (Senate Sponsor - Fraser)                             H.B. No. 3460
	(In the Senate - Received from the House May 10, 2005; 
May 12, 2005, read first time and referred to Committee on Business 
and Commerce; May 18, 2005, reported favorably by the following 
vote:  Yeas 6, Nays 0; May 18, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the interest rate to be paid on the deposits made by 
customers of a water, electric, gas, or telephone utility.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 183.003, Utilities Code, is amended to 
read as follows:  
	Sec. 183.003.  RATE OF INTEREST.  [(a)]  The commission each 
December 1, or the next regular workday if December 1 is a Saturday, 
Sunday, or legal holiday, shall set the annual interest rate for the 
next calendar year on deposits governed by this chapter at [.
	[(b)  The commission may not set the rate at an amount that 
exceeds the lesser of:
		[(1)  85 percent of] the average rate paid over the 
previous 12-month period on United States treasury bills with a 
26-week [12-month] maturity [date; or
		[(2)  12 percent].                                           
	[(c)  The commission may not set the rate at an amount that is 
less than six percent.]
	SECTION 2.  This Act takes effect September 1, 2005.                           



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