Texas 2015 - 84th Regular

Texas House Bill HB3958 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R15213 T
2	2	By: Workman H.B. No. 3958
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to limitations on the use of municipal electric system
8	8	revenues by certain municipalities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 33, Utilities Code, is amended by adding
11	11	Subchapter F to read as follows:
12	12	SUBCHAPTER F. LIMITATIONS ON THE USE OF MUNICIPAL ELECTRIC
13	13	SYSTEM REVENUES BY CERTAIN MUNICIPALITIES.
14	14	Sec. 33.124. (a) This section applies only to a
15	15	municipality with a population of less than 850,000 that is served
16	16	by a municipally owned electric utility system with 400,000 or more
17	17	customers.
18	18	(b) For purposes of this section, "revenues" means the total
19	19	sales revenues of a municipal electric utility, and does not
20	20	include revenues from pass-through fuel charges or power supply
21	21	adjustment revenues.
22	22	(c) Notwithstanding any other law, including a municipal
23	23	ordinance or provision of a municipal charter, the governing body
24	24	of a municipality subject to this section shall use the revenues
25	25	from its electric system for the sole purposes of (i) paying the
26	26	direct costs of operating the system and (ii) transferring sums to
27	27	the municipality to the extent permitted under Subsection (e) of
28	28	this section. Except as otherwise authorized under Subsection (e)
29	29	of this section, a municipality shall not spend, divert, allocate,
30	30	donate, or in any other manner use revenues from the utility for
31	31	any purpose not explicitly authorized by this section.
32	32	(d) The direct costs of operating the electric system solely
33	33	include the following:
34	34	(1) the cost of operating and maintaining the system,
35	35	including but not limited to the cost of salaries and wages,
36	36	employee benefits, vehicle purchases, vehicle maintenance, rents,
37	37	legal services and facility maintenance;
38	38	(2) payments on indebtedness incurred by or on behalf
39	39	of the system that is secured by revenues of the system, and the
40	40	cost of replacing reserves required by agreements entered into by
41	41	the governing body of the municipality in connection with the
42	42	issuance of bonds or other indebtedness incurred by or on behalf of
43	43	the system;
44	44	(3) reserves deemed necessary by the governing body of
45	45	the municipality to maintain the financial and operational
46	46	integrity of the system;
47	47	(4) a rate stabilization fund to minimize the impact
48	48	of rate increases on customers of the system;
49	49	(5) the cost of capital improvements or equipment;
50	50	and
51	51	(6) required payments to governmental units other than
52	52	the municipality.
53	53	(e) The governing body of the municipality may transfer
54	54	annually to the general fund of the municipality a sum not to exceed
55	55	12 percent (12%) of the amount of the annual sales revenues of the
56	56	system, as reported in the municipality's audited financial
57	57	statements for the preceding fiscal year.
58	58	(f) Not later than the first anniversary of the effective
59	59	date of this Act, the governing body of the municipality shall
60	60	establish and maintain a discrete system of accounts, books,
61	61	financial statements, and reports for the municipal electric
62	62	system that is separate from the accounts of the municipality and
63	63	its other utilities, departments, and agencies.
64	64	SECTION 2. Sections 33.124 (c), (d), and (e), Utilities
65	65	Code, as added by this Act, apply to all uses of revenues by the
66	66	utility and general fund transfers made by the governing body of the
67	67	municipality after the second anniversary of the effective date of
68	68	this Act.
69	69	SECTION 3. This Act takes effect September 1, 2015.