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AN ACT
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relating to the consideration of employee compensation and benefits |
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in establishing the rates of gas utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 104, Utilities Code, is |
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amended by adding Section 104.060 to read as follows: |
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Sec. 104.060. CONSIDERATION OF COMPENSATION AND BENEFIT |
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EXPENSES. (a) In this section, "employee compensation and |
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benefits" includes base salaries, wages, incentive compensation, |
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and benefits. The term does not include: |
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(1) pension or other postemployment benefits; and |
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(2) incentive compensation related to attaining |
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financial metrics for an executive officer whose compensation is |
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required to be disclosed under 17 C.F.R. Section 229.402(a). |
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(b) When establishing a gas utility's rates, the regulatory |
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authority shall presume that employee compensation and benefits |
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expenses are reasonable and necessary if the expenses are |
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consistent with market compensation studies issued not earlier than |
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three years before the initiation of the proceeding to establish |
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the rates. |
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SECTION 2. (a) Section 104.060, Utilities Code, as added by |
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this Act, applies only to a proceeding for the establishment of |
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rates for which the regulatory authority has not issued a final |
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order or decision before the effective date of this Act. |
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(b) A proceeding for which the regulatory authority has |
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issued a final order or decision before the effective date of this |
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Act is governed by the law in effect immediately before that date, |
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and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1767 was passed by the House on April |
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15, 2019, by the following vote: Yeas 103, Nays 38, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 1767 on May 22, 2019, by the following vote: Yeas 138, Nays 6, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1767 was passed by the Senate, with |
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amendments, on May 14, 2019, by the following vote: Yeas 30, Nays |
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1. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |