H.B. No. 1767
 
 
 
 
AN ACT
  relating to the consideration of employee compensation and benefits
  in establishing the rates of gas utilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 104, Utilities Code, is
  amended by adding Section 104.060 to read as follows:
         Sec. 104.060.  CONSIDERATION OF COMPENSATION AND BENEFIT
  EXPENSES. (a) In this section, "employee compensation and
  benefits" includes base salaries, wages, incentive compensation,
  and benefits. The term does not include:
               (1)  pension or other postemployment benefits; and
               (2)  incentive compensation related to attaining
  financial metrics for an executive officer whose compensation is
  required to be disclosed under 17 C.F.R. Section 229.402(a).
         (b)  When establishing a gas utility's rates, the regulatory
  authority shall presume that employee compensation and benefits
  expenses are reasonable and necessary if the expenses are
  consistent with market compensation studies issued not earlier than
  three years before the initiation of the proceeding to establish
  the rates.
         SECTION 2.  (a)  Section 104.060, Utilities Code, as added by
  this Act, applies only to a proceeding for the establishment of
  rates for which the regulatory authority has not issued a final
  order or decision before the effective date of this Act.
         (b)  A proceeding for which the regulatory authority has
  issued a final order or decision before the effective date of this
  Act is governed by the law in effect immediately before that date,
  and that law is continued in effect for that purpose.
         SECTION 3.  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, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1767 was passed by the House on April
  15, 2019, by the following vote:  Yeas 103, Nays 38, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1767 on May 22, 2019, by the following vote:  Yeas 138, Nays 6,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1767 was passed by the Senate, with
  amendments, on May 14, 2019, by the following vote:  Yeas 30, Nays
  1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor