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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the Public Utility Commission of Texas |
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to approve certain payments by municipally owned utilities for |
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transmission facilities in lieu of ad valorem taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 37.051, Utilities Code, is amended by |
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adding Subsection (g), Payments in Lieu of Ad Valorem, to read as |
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follows: |
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(g) A municipally owned utility that is required to apply |
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for a certificate of convenience and necessity for a transmission |
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facility may agree with the governing body of a taxing entity with |
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authority to assess ad valorem taxes on the transmission facility |
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to make payments in lieu of ad valorem taxes on the transmission |
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facility. A municipally owned utility that agrees to make payments |
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in lieu of ad valorem taxes under this section shall recover, as |
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part of its transmission cost of service, the reasonable amount |
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paid to a taxing entity under the agreement to the extent that those |
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payments are the amount the municipally owned utility would have to |
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pay on that transmission facility if the facility were subject to ad |
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valorem taxation. A municipally owned utility that agrees to make |
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payments in lieu of ad valorem taxes under this section shall |
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provide a copy of the agreement to the commission. |
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SECTION 2. This section applies to a transmission line to be |
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constructed after the effective date of this act. |
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SECTION 3. This Act takes effect September 1, 2015. |