By: Van de Putte S.B. No. 1430

(In the Senate - Filed March 8, 2007; March 20, 2007, read first time and referred to Committee on Business and Commerce; April 12, 2007, reported adversely, with favorable Committee Substitute by the following vote: Yeas 8, Nays 0; April 12, 2007, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 1430 By: Watson

A BILL TO BE ENTITLED

AN ACT

relating to designation of certain customer bill payment assistance program costs as an expense of operation that is a first lien against revenue securing certain public securities or obligations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (a), Section 1502.056, Government Code, is amended to read as follows:

(a) If the revenue of a utility system, park, or swimming pool secures the payment of public securities issued or obligations incurred under this chapter, each expense of operation and maintenance, including all salaries, labor, materials, interest, repairs and extensions necessary to provide efficient service, and each proper item of expense, is a first lien against that revenue. For a municipality with a population of more than one million, the first lien against the revenue of a municipally owned electric or gas utility system that secures the payment of public securities issued or obligations incurred under this chapter also applies to funding, as a necessary operations expense, for a bill payment assistance program for utility system customers who have been threatened with disconnection from service for nonpayment of bills and who have been determined by the municipality to be low-income customers.

SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

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