LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 9, 2013 TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SJR55 by Williams (proposing a constitutional amendment appropriating the system benefit fund for the purpose of returning system benefit fund fees to electric customers.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SJR55, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2015. However, the resolution's actions with respect to the General Revenue-Dedicated System Benefit Account 5100 would result in a ($730,155,000) reduction to revenue available for certification.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 9, 2013
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SJR55 by Williams (proposing a constitutional amendment appropriating the system benefit fund for the purpose of returning system benefit fund fees to electric customers.), Committee Report 1st House, Substituted
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SJR55 by Williams (proposing a constitutional amendment appropriating the system benefit fund for the purpose of returning system benefit fund fees to electric customers.), Committee Report 1st House, Substituted
Honorable Tommy Williams, Chair, Senate Committee on Finance
Honorable Tommy Williams, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SJR55 by Williams (proposing a constitutional amendment appropriating the system benefit fund for the purpose of returning system benefit fund fees to electric customers.), Committee Report 1st House, Substituted
SJR55 by Williams (proposing a constitutional amendment appropriating the system benefit fund for the purpose of returning system benefit fund fees to electric customers.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SJR55, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2015. However, the resolution's actions with respect to the General Revenue-Dedicated System Benefit Account 5100 would result in a ($730,155,000) reduction to revenue available for certification.
Estimated Two-year Net Impact to General Revenue Related Funds for SJR55, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2015.
However, the resolution's actions with respect to the General Revenue-Dedicated System Benefit Account 5100 would result in a ($730,155,000) reduction to revenue available for certification.
However, the resolution's actions with respect to the General Revenue-Dedicated System Benefit Account 5100 would result in a ($730,155,000) reduction to revenue available for certification.
Appropriations: Fiscal Year Appropriation out ofSystem Benefit Account5100 2014 $730,155,000 2015 $0 General Revenue-Related Funds, Two-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 $0 2015 $0 General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 $0 2015 $0 2016 $0 2017 $0 2018 $0 All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromSystem Benefit Account5100 Probable Revenue Gain/(Loss) fromNew Special Fund 2014 ($730,155,000) $730,155,000 2015 $0 $0 2016 $0 $0 2017 $0 $0 2018 $0 $0 Fiscal Analysis The resolution would propose an amendment to Article VIII of the Texas Constitution regarding the appropriation of system benefit fund revenues for the purpose of returning system benefit fund fees to retail electric customers. On November 10, 2013, the proposed amendment would appropriate 90 percent of the unobligated and otherwise unappropriated balance of the General Revenue-Dedicated System Benefit Account No. 5100 (System Benefit Fund) to the Comptroller of Public Accounts (CPA) to be transferred into a new special fund outside of the General Revenue fund. The proposed amendment would require CPA to retain the balance in the new special fund and without further appropriation disburse the money to retail electric customers. The proposed amendment would require the legislature by general law to provide for the Public Utility Commission (PUC) to direct the CPA to disburse the entire balance of the special fund to retail electric customers as soon as practicable and before September 1, 2014. The proposed amendment would be submitted to voters at an election to be held November 5, 2013. Methodology Based on information provided by the CPA, it is assumed that 90 percent of the unobligated and otherwise unappropriated balance of the System Benefit Fund would be appropriated to the new special fund on November 10, 2013. As appropriations from the System Benefit Fund in the 2014-15 biennium are unknown, the fiscal impact of the proposed amendment were based on the estimated balance in the System Benefit Fund on September 1, 2013, as presented in the Comptroller's 2014-15 Biennial Revenue Estimate. The proposed amendment would not, in and of itself, provide the mechanism for disbursing funds from the new special fund back to retail electric customers. Based on information provided by the PUC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished utilizing existing resources.
Fiscal Year Appropriation out ofSystem Benefit Account5100 2014 $730,155,000 2015 $0
2014 $730,155,000
2015 $0
General Revenue-Related Funds, Two-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 $0 2015 $0
2014 $0
2015 $0
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 $0 2015 $0 2016 $0 2017 $0 2018 $0
2014 $0
2015 $0
2016 $0
2017 $0
2018 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromSystem Benefit Account5100 Probable Revenue Gain/(Loss) fromNew Special Fund 2014 ($730,155,000) $730,155,000 2015 $0 $0 2016 $0 $0 2017 $0 $0 2018 $0 $0
Fiscal Year Probable Savings/(Cost) fromSystem Benefit Account5100 Probable Revenue Gain/(Loss) fromNew Special Fund 2014 ($730,155,000) $730,155,000 2015 $0 $0 2016 $0 $0 2017 $0 $0 2018 $0 $0
2014 ($730,155,000) $730,155,000
2015 $0 $0
2016 $0 $0
2017 $0 $0
2018 $0 $0
Fiscal Analysis
The resolution would propose an amendment to Article VIII of the Texas Constitution regarding the appropriation of system benefit fund revenues for the purpose of returning system benefit fund fees to retail electric customers. On November 10, 2013, the proposed amendment would appropriate 90 percent of the unobligated and otherwise unappropriated balance of the General Revenue-Dedicated System Benefit Account No. 5100 (System Benefit Fund) to the Comptroller of Public Accounts (CPA) to be transferred into a new special fund outside of the General Revenue fund. The proposed amendment would require CPA to retain the balance in the new special fund and without further appropriation disburse the money to retail electric customers. The proposed amendment would require the legislature by general law to provide for the Public Utility Commission (PUC) to direct the CPA to disburse the entire balance of the special fund to retail electric customers as soon as practicable and before September 1, 2014. The proposed amendment would be submitted to voters at an election to be held November 5, 2013.
The resolution would propose an amendment to Article VIII of the Texas Constitution regarding the appropriation of system benefit fund revenues for the purpose of returning system benefit fund fees to retail electric customers. On November 10, 2013, the proposed amendment would appropriate 90 percent of the unobligated and otherwise unappropriated balance of the General Revenue-Dedicated System Benefit Account No. 5100 (System Benefit Fund) to the Comptroller of Public Accounts (CPA) to be transferred into a new special fund outside of the General Revenue fund. The proposed amendment would require CPA to retain the balance in the new special fund and without further appropriation disburse the money to retail electric customers. The proposed amendment would require the legislature by general law to provide for the Public Utility Commission (PUC) to direct the CPA to disburse the entire balance of the special fund to retail electric customers as soon as practicable and before September 1, 2014.
The proposed amendment would be submitted to voters at an election to be held November 5, 2013.
Methodology
Based on information provided by the CPA, it is assumed that 90 percent of the unobligated and otherwise unappropriated balance of the System Benefit Fund would be appropriated to the new special fund on November 10, 2013. As appropriations from the System Benefit Fund in the 2014-15 biennium are unknown, the fiscal impact of the proposed amendment were based on the estimated balance in the System Benefit Fund on September 1, 2013, as presented in the Comptroller's 2014-15 Biennial Revenue Estimate. The proposed amendment would not, in and of itself, provide the mechanism for disbursing funds from the new special fund back to retail electric customers. Based on information provided by the PUC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished utilizing existing resources.
Based on information provided by the CPA, it is assumed that 90 percent of the unobligated and otherwise unappropriated balance of the System Benefit Fund would be appropriated to the new special fund on November 10, 2013. As appropriations from the System Benefit Fund in the 2014-15 biennium are unknown, the fiscal impact of the proposed amendment were based on the estimated balance in the System Benefit Fund on September 1, 2013, as presented in the Comptroller's 2014-15 Biennial Revenue Estimate. The proposed amendment would not, in and of itself, provide the mechanism for disbursing funds from the new special fund back to retail electric customers.
Based on information provided by the PUC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished utilizing existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 473 Public Utility Commission of Texas, 304 Comptroller of Public Accounts
473 Public Utility Commission of Texas, 304 Comptroller of Public Accounts
LBB Staff: UP, KK, MW, ED, SD
UP, KK, MW, ED, SD