By: Turner, Bonnen, Giddings, Bohac, Homer, H.B. No. 551
      et al.
 
A BILL TO BE ENTITLED
AN ACT
relating to the system benefit fund and to eligibility for and
enrollment for benefits provided under the system benefit fund
programs.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 39.903, Utilities Code, is amended by
amending Subsections (a), (e), (j), and (l) and adding Subsection
(e-1) to read as follows:
       (a)  The system benefit fund is an account in the general
revenue fund. Money in the account may be appropriated only for the
purposes provided by this section [or other law].  Interest earned
on the system benefit fund shall be credited to the fund. Section
403.095, Government Code, does not apply to the system benefit
fund.
       (e)  Money in the system benefit fund may be appropriated
only to provide funding [solely] for the following [regulatory]
purposes, in the following order of priority:
             (1)  programs to:
                   (A)  assist low-income electric customers by
providing the 10-20 [10] percent reduced rate prescribed by
Subsection (h); and
                   (B)  provide one-time bill payment assistance to
electric customers who are or who have in their households one or
more seriously ill or disabled low-income persons and who have been
threatened with disconnection for nonpayment;
             (2)  customer education programs;
             (3)  [,] administrative expenses incurred by the
commission in implementing and administering this chapter, and
expenses incurred by the office under this chapter;
             (4) [(3)]  programs to assist low-income electric
customers by providing the targeted energy efficiency programs
described by Subsection (f)(2); and
             (5)  the rate reductions for nursing homes under
Subsection (e-1)[;
             [(4)  programs to assist low-income electric customers
by providing the 20 percent reduced rate prescribed by Subsection
(h); and
             [(5)  reimbursement to the commission and the Health
and Human Services Commission 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].
       (e-1)  The commission by rule shall develop and implement a
program through which a retail electric provider shall provide a
rate reduction for an eligible nursing home customer. The
commission shall accept applications from nursing homes for a rate
reduction under this subsection and shall determine the rate
reduction for each retail electric provider that supplies
electricity to each approved nursing home so that each nursing home
receives an equal percentage reduction from the rate the nursing
home otherwise would be charged. The percentage reduction must be
the maximum percentage reduction, not to exceed 20 percent, that
the commission may finance from appropriated money available for
that purpose. The commission may not apply to that purpose more than
an amount equal to five percent of the annual income of the system
benefit fund, including the costs of administering this subsection.
A nursing home is eligible for a rate reduction under this
subsection only if the nursing home is a nonprofit entity and at
least half of the entity's nursing residents are Medicaid eligible.
       (j)  The commission shall adopt rules providing for methods
of enrolling customers eligible to receive reduced rates under
Subsection (h). The rules must provide for automatic enrollment as
one enrollment option. On [The Texas Department of Human Services,
on] request of the commission, each appropriate governmental entity
shall assist in the adoption and implementation of these rules.
Each assisting governmental entity [The commission and the Texas
Department of Human Services] shall enter into a memorandum of
understanding with the commission establishing the respective
duties of the commission and the entity [department] in relation to
the automatic enrollment. Each assisting governmental entity shall
supply to the commission any information necessary for the
commission to implement automatic enrollment for reduced rates
under Subsection (h). The commission shall prepare a report each
calendar quarter with information concerning the enrollment of
customers eligible for the reduced rates. The commission shall
compile the information into an annual report to be published for
periodic distribution not later than January 1 of each odd-numbered
year. The commission shall send a copy of each annual and quarterly
report to each member of the legislature and the electric utility
restructuring legislative oversight committee.
       (l)  For the purposes of this section, a "low-income electric
customer" is an electric customer:
             (1)  whose household income is not more than 125
percent of the federal poverty guidelines; or
             (2)  in whose household resides a person who:
                   (A)  receives food stamps from the Health and
Human Services Commission [Texas Department of Human Services] or
medical assistance from a state agency administering a part of the
medical assistance program;
                   (B)  receives federal housing assistance;
                   (C)  has a child enrolled in the national school
lunch program for free or reduced-price lunches; or
                   (D)  receives lifeline telephone service.
       SECTION 2.  The Public Utility Commission of Texas shall
adopt rules required by Section 39.903, Utilities Code, as amended
by this Act, not later than January 1, 2008.
       SECTION 3.  This Act takes effect September 1, 2007.