H.B. No. 1767
AN ACT
relating to the consideration of employee compensation and benefits
in establishing the rates of gas utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 104, Utilities Code, is
amended by adding Section 104.060 to read as follows:
Sec. 104.060. CONSIDERATION OF COMPENSATION AND BENEFIT
EXPENSES. (a) In this section, "employee compensation and
benefits" includes base salaries, wages, incentive compensation,
and benefits. The term does not include:
(1) pension or other postemployment benefits; and
(2) incentive compensation related to attaining
financial metrics for an executive officer whose compensation is
required to be disclosed under 17 C.F.R. Section 229.402(a).
(b) When establishing a gas utility's rates, the regulatory
authority shall presume that employee compensation and benefits
expenses are reasonable and necessary if the expenses are
consistent with market compensation studies issued not earlier than
three years before the initiation of the proceeding to establish
the rates.
SECTION 2. (a) Section 104.060, Utilities Code, as added by
this Act, applies only to a proceeding for the establishment of
rates for which the regulatory authority has not issued a final
order or decision before the effective date of this Act.
(b) A proceeding for which the regulatory authority has
issued a final order or decision before the effective date of this
Act is governed by the law in effect immediately before that date,
and that law is continued in effect for that purpose.
SECTION 3. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1767 was passed by the House on April
15, 2019, by the following vote: Yeas 103, Nays 38, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1767 on May 22, 2019, by the following vote: Yeas 138, Nays 6,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1767 was passed by the Senate, with
amendments, on May 14, 2019, by the following vote: Yeas 30, Nays
1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor