| 1 | 1 | | By: Sheets H.B. No. 3207 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the authority of the Public Utility Commission of Texas |
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| 7 | 7 | | to approve certain payments by municipally owned utilities for |
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| 8 | 8 | | transmission facilities in lieu of ad valorem taxes. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 37.051, Utilities Code, is amended by |
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| 11 | 11 | | adding Subsection (g), Payments in Lieu of Ad Valorem, to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | (g) A municipally owned utility that is required to apply |
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| 14 | 14 | | for a certificate of convenience and necessity for a transmission |
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| 15 | 15 | | facility may agree with the governing body of a taxing entity with |
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| 16 | 16 | | authority to assess ad valorem taxes on the transmission facility |
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| 17 | 17 | | to make payments in lieu of ad valorem taxes on the transmission |
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| 18 | 18 | | facility. A municipally owned utility that agrees to make payments |
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| 19 | 19 | | in lieu of ad valorem taxes under this section shall recover, as |
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| 20 | 20 | | part of its transmission cost of service, the reasonable amount |
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| 21 | 21 | | paid to a taxing entity under the agreement to the extent that those |
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| 22 | 22 | | payments are the amount the municipally owned utility would have to |
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| 23 | 23 | | pay on that transmission facility if the facility were subject to ad |
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| 24 | 24 | | valorem taxation. A municipally owned utility that agrees to make |
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| 25 | 25 | | payments in lieu of ad valorem taxes under this section shall |
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| 26 | 26 | | provide a copy of the agreement to the commission. |
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| 27 | 27 | | SECTION 2. This section applies to a transmission line to be |
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| 28 | 28 | | constructed after the effective date of this act. |
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| 29 | 29 | | SECTION 3. This Act takes effect September 1, 2015. |
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