Bill Text: TX HB2263 | 2019-2020 | 86th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Engrossed.html
  86R15072 TYPED
 
  By: Paddie, Phelan, Price, Springer, H.B. No. 2263
      Hernandez, et al.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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 [including]
  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 [including] electricity.
         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 [including] electricity.
         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 [35.102].  STATE AUTHORITY TO SELL OR CONVEY
  [POWER OR] NATURAL GAS. (a) In this section:
               (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 [power or] natural gas generated from
  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 [regardless of whether the public retail customer is also
  classified as a wholesale customer under other provisions of this
  title].
         (c) [(b)]  To ensure that the state receives the maximum
  benefit from the sale of [power or] natural gas generated from
  royalties taken in kind, the commissioner shall use all feasible
  means to sell that [power or] natural gas first to public retail
  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 [power or] natural gas, if
  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 [35.101].
         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.
feedback