Bill Text: TX HB2263 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the sale of electric power to certain public customers.
Spectrum: Slight Partisan Bill (Republican 6-3)
Status: (Passed) 2019-05-17 - See remarks for effective date [HB2263 Detail]
Download: Texas-2019-HB2263-Enrolled.html
H.B. No. 2263 |
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relating to the sale of electric power to certain public customers. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 52.133(d), Natural Resources Code, is | ||
amended to read as follows: | ||
(d) The commissioner, the owner of the soil under Subchapter | ||
F, or the commissioner acting on behalf of and at the direction of | ||
an owner of the soil under Subchapter F, the board, or a board for | ||
lease may negotiate and execute contracts or any other instruments | ||
or agreements necessary to convert that portion of the royalty | ||
taken in kind into other forms of energy, other than [ |
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electricity. | ||
SECTION 2. Section 53.026(b), Natural Resources Code, is | ||
amended to read as follows: | ||
(b) The commissioner or the commissioner acting on behalf of | ||
and at the direction of the board or a board for lease may negotiate | ||
and execute a contract or any other instrument or agreement | ||
necessary to convert that portion of the royalty taken in kind to | ||
other forms of energy, other than [ |
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SECTION 3. Section 53.077(b), Natural Resources Code, is | ||
amended to read as follows: | ||
(b) The commissioner, each owner of the soil under this | ||
subchapter, or the commissioner acting on behalf of and at the | ||
direction of the owner of the soil under this subchapter may | ||
negotiate and execute a contract or any other instrument or | ||
agreement necessary to convert that portion of the royalty taken in | ||
kind to other forms of energy, other than [ |
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SECTION 4. Section 182.022, Tax Code, is amended by adding | ||
Subsection (d) to read as follows: | ||
(d) Notwithstanding any other provisions of this chapter, a | ||
tax under this chapter may not be imposed on the gross receipts from | ||
the sale of electricity to a public school district customer. | ||
SECTION 5. Section 35.102, Utilities Code, is transferred | ||
to Subchapter A, Chapter 101, Utilities Code, redesignated as | ||
Section 101.009, Utilities Code, and amended to read as follows: | ||
Sec. 101.009 [ |
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[ |
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(1) "Commissioner" means the commissioner of the | ||
General Land Office. | ||
(2) "Public retail customer" means a retail customer | ||
that is an agency of this state, a state institution of higher | ||
education, a public school district, a political subdivision of | ||
this state, a military installation of the United States, or a | ||
United States Department of Veterans Affairs facility. | ||
(b) The commissioner, acting on behalf of the state, may | ||
sell or otherwise convey [ |
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royalties taken in kind as provided by Sections 52.133(f), 53.026, | ||
and 53.077, Natural Resources Code, directly to a public retail | ||
customer [ |
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(c) [ |
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benefit from the sale of [ |
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royalties taken in kind, the commissioner shall use all feasible | ||
means to sell that [ |
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customers that are military installations of the United States, | ||
agencies of this state, institutions of higher education, or public | ||
school districts. The remainder of the [ |
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any, may be sold to public retail customers that are political | ||
subdivisions of this state or to a United States Department of | ||
Veterans Affairs facility. | ||
SECTION 6. Section 104.2545(d), Utilities Code, is amended | ||
to read as follows: | ||
(d) In this section, "public retail customer" has the | ||
meaning assigned by Section 101.009 [ |
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SECTION 7. (a) The heading to Subchapter D, Chapter 35, | ||
Utilities Code, is repealed. | ||
(b) Sections 35.101, 35.103, 35.104, 35.105, and 35.106, | ||
Utilities Code, are repealed. | ||
SECTION 8. The General Land Office or an entity operating | ||
under a contract with the General Land Office may continue to | ||
provide retail electric service in accordance with Subchapter D, | ||
Chapter 35, Utilities Code, as that subchapter existed before the | ||
effective date of this Act, under the terms of an agreement with a | ||
customer entered into before the effective date of this Act, only | ||
until the date the agreement expires. An agreement described by | ||
this section may be extended to a date not later than January 1, | ||
2024. | ||
SECTION 9. The change in law made by this Act does not | ||
affect taxes imposed before the effective date of this Act, and the | ||
law in effect before the effective date of this Act is continued in | ||
effect for purposes of the liability for and collection of those | ||
taxes. | ||
SECTION 10. (a) As soon as practicable after January 1, | ||
2024, the Public Utility Commission of Texas, for an electric | ||
utility regulated under Chapter 36, Utilities Code, shall provide | ||
for the adjustment of the electric utility's billing of a public | ||
school district customer to reflect any decrease in the utility's | ||
tax liability to this state if the decrease is attributable to the | ||
exemption in Section 182.022(d), Tax Code, as added by this Act. An | ||
adjustment must be made effective at the same time as the decrease | ||
of tax liability or as soon after that decrease occurs as is | ||
reasonably practicable. The Public Utility Commission of Texas is | ||
not required to provide for an adjustment if the commission enters | ||
an order for the utility under Subchapter C or D, Chapter 36, | ||
Utilities Code, that accounts for any decrease in the utility's tax | ||
liability attributable to the exemption in Section 182.022(d), Tax | ||
Code, as added by this Act. An adjustment is not a rate case under | ||
Subchapter C or D, Chapter 36, Utilities Code. | ||
(b) As soon as practicable after January 1, 2024, a retail | ||
electric provider, as defined by Section 31.002, Utilities Code, | ||
shall adjust the billing of a public school district customer to | ||
reflect any decrease in the retail electric provider's tax | ||
liability to this state if the decrease is attributable to the | ||
exemption in Section 182.022(d), Tax Code, as added by this Act. An | ||
adjustment must be made effective at the same time as the decrease | ||
of tax liability or as soon after that decrease occurs as is | ||
reasonably practicable. | ||
SECTION 11. (a) Except as provided by Subsection (b) of | ||
this section, 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. | ||
(b) Section 182.022(d), Tax Code, as added by this Act, | ||
takes effect January 1, 2024. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2263 was passed by the House on April | ||
10, 2019, by the following vote: Yeas 146, Nays 0, 1 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2263 was passed by the Senate on | ||
May 2, 2019, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |