BILL ANALYSIS

H.B. 2538

By: Oliveira

International Trade & Intergovernmental Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties note that several years ago, the legislature authorized a municipality with a certain population to include in the first lien against the revenue of a municipally owned utility system the funding of a bill payment assistance program for certain customers as a necessary maintenance and operations expense. These parties assert, however, that the law is unclear as to whether such an assistance program would qualify as such an expense for a municipally owned utility system in certain other municipalities. H.B. 2538 seeks to clarify the law and provide that authorization.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2538 amends the Government Code to apply the first lien against the revenue of a municipally owned utility system in a municipality in a county that contains an international border and borders the Gulf of Mexico that secures the payment of public securities issued or obligations incurred for municipal utilities, parks, or pools to funding, as a necessary operations expense, for a bill payment assistance program for the utility system's customers who have received a notice of disconnection from service for nonpayment of bills and who have been determined by the municipality to be low-income customers, who are military veterans who have significantly decreased abilities to regulate their bodies' core temperatures because of severe burns received in combat, or who are elderly and low-income customers as determined by the municipality.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2015.