LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

March 21, 2011

TO:	Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	SB504 by Davis (Relating to discounted utility rates for school districts.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend existing law by adding school districts and open-enrollment charter schools to the list of educational entities eligible for discounted utility rates from municipal and electric utilities.
 
Based on the analysis of the Public Utility Commission it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

Local Government Impact

The bill would require electric utilities, including municipally owned utilities, to offer a 20 percent reduction in electricity rates for school districts and open-enrollment charter schools, exempting utilities for which the 20 percent reduction would equal or exceed one percent of annual revenues. This provision would provide for a decrease in revenues to municipally owned utilities; however, fiscal impact is not anticipated to be significant.

Source Agencies:

473 Public Utility Commission of Texas, 701 Central Education Agency

LBB Staff:

JOB, AG, MW, RAN, KKR