Texas 2019 - 86th Regular

Texas House Bill HB2263 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2263
	1	+	By: Paddie, et al. (Senate Sponsor - Hancock) H.B. No. 2263
	2	+	(In the Senate - Received from the House April 11, 2019;
	3	+	April 15, 2019, read first time and referred to Committee on
	4	+	Business & Commerce; April 30, 2019, reported favorably by the
	5	+	following vote: Yeas 9, Nays 0; April 30, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the sale of electric power to certain public customers.
6	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	13		SECTION 1. Section 52.133(d), Natural Resources Code, is
8	14		amended to read as follows:
9	15		(d) The commissioner, the owner of the soil under Subchapter
10	16		F, or the commissioner acting on behalf of and at the direction of
11	17		an owner of the soil under Subchapter F, the board, or a board for
12	18		lease may negotiate and execute contracts or any other instruments
13	19		or agreements necessary to convert that portion of the royalty
14	20		taken in kind into other forms of energy, other than [including]
15	21		electricity.
16	22		SECTION 2. Section 53.026(b), Natural Resources Code, is
17	23		amended to read as follows:
18	24		(b) The commissioner or the commissioner acting on behalf of
19	25		and at the direction of the board or a board for lease may negotiate
20	26		and execute a contract or any other instrument or agreement
21	27		necessary to convert that portion of the royalty taken in kind to
22	28		other forms of energy, other than [including] electricity.
23	29		SECTION 3. Section 53.077(b), Natural Resources Code, is
24	30		amended to read as follows:
25	31		(b) The commissioner, each owner of the soil under this
26	32		subchapter, or the commissioner acting on behalf of and at the
27	33		direction of the owner of the soil under this subchapter may
28	34		negotiate and execute a contract or any other instrument or
29	35		agreement necessary to convert that portion of the royalty taken in
30	36		kind to other forms of energy, other than [including] electricity.
31	37		SECTION 4. Section 182.022, Tax Code, is amended by adding
32	38		Subsection (d) to read as follows:
33	39		(d) Notwithstanding any other provisions of this chapter, a
34	40		tax under this chapter may not be imposed on the gross receipts from
35	41		the sale of electricity to a public school district customer.
36	42		SECTION 5. Section 35.102, Utilities Code, is transferred
37	43		to Subchapter A, Chapter 101, Utilities Code, redesignated as
38	44		Section 101.009, Utilities Code, and amended to read as follows:
39	45		Sec. 101.009 [35.102]. STATE AUTHORITY TO SELL OR CONVEY
40	46		[POWER OR] NATURAL GAS. (a) In this section:
41	47		(1) "Commissioner" means the commissioner of the
42	48		General Land Office.
43	49		(2) "Public retail customer" means a retail customer
44	50		that is an agency of this state, a state institution of higher
45	51		education, a public school district, a political subdivision of
46	52		this state, a military installation of the United States, or a
47	53		United States Department of Veterans Affairs facility.
48	54		(b) The commissioner, acting on behalf of the state, may
49	55		sell or otherwise convey [power or] natural gas generated from
50	56		royalties taken in kind as provided by Sections 52.133(f), 53.026,
51	57		and 53.077, Natural Resources Code, directly to a public retail
52	58		customer [regardless of whether the public retail customer is also
53	59		classified as a wholesale customer under other provisions of this
54	60		title].
55	61		(c) [(b)] To ensure that the state receives the maximum
56	62		benefit from the sale of [power or] natural gas generated from
57	63		royalties taken in kind, the commissioner shall use all feasible
58	64		means to sell that [power or] natural gas first to public retail
59	65		customers that are military installations of the United States,
60	66		agencies of this state, institutions of higher education, or public
61	67		school districts. The remainder of the [power or] natural gas, if
62	68		any, may be sold to public retail customers that are political
63	69		subdivisions of this state or to a United States Department of
64	70		Veterans Affairs facility.
65	71		SECTION 6. Section 104.2545(d), Utilities Code, is amended
66	72		to read as follows:
67	73		(d) In this section, "public retail customer" has the
68	74		meaning assigned by Section 101.009 [35.101].
69	75		SECTION 7. (a) The heading to Subchapter D, Chapter 35,
70	76		Utilities Code, is repealed.
71	77		(b) Sections 35.101, 35.103, 35.104, 35.105, and 35.106,
72	78		Utilities Code, are repealed.
73	79		SECTION 8. The General Land Office or an entity operating
74	80		under a contract with the General Land Office may continue to
75	81		provide retail electric service in accordance with Subchapter D,
76	82		Chapter 35, Utilities Code, as that subchapter existed before the
77	83		effective date of this Act, under the terms of an agreement with a
78	84		customer entered into before the effective date of this Act, only
79	85		until the date the agreement expires. An agreement described by
80	86		this section may be extended to a date not later than January 1,
81	87		2024.
82	88		SECTION 9. The change in law made by this Act does not
83	89		affect taxes imposed before the effective date of this Act, and the
84	90		law in effect before the effective date of this Act is continued in
85	91		effect for purposes of the liability for and collection of those
86	92		taxes.
87	93		SECTION 10. (a) As soon as practicable after January 1,
88	94		2024, the Public Utility Commission of Texas, for an electric
89	95		utility regulated under Chapter 36, Utilities Code, shall provide
90	96		for the adjustment of the electric utility's billing of a public
91	97		school district customer to reflect any decrease in the utility's
92	98		tax liability to this state if the decrease is attributable to the
93	99		exemption in Section 182.022(d), Tax Code, as added by this Act. An
94	100		adjustment must be made effective at the same time as the decrease
95	101		of tax liability or as soon after that decrease occurs as is
96	102		reasonably practicable. The Public Utility Commission of Texas is
97	103		not required to provide for an adjustment if the commission enters
98	104		an order for the utility under Subchapter C or D, Chapter 36,
99	105		Utilities Code, that accounts for any decrease in the utility's tax
100	106		liability attributable to the exemption in Section 182.022(d), Tax
101	107		Code, as added by this Act. An adjustment is not a rate case under
102	108		Subchapter C or D, Chapter 36, Utilities Code.
103	109		(b) As soon as practicable after January 1, 2024, a retail
104	110		electric provider, as defined by Section 31.002, Utilities Code,
105	111		shall adjust the billing of a public school district customer to
106	112		reflect any decrease in the retail electric provider's tax
107	113		liability to this state if the decrease is attributable to the
108	114		exemption in Section 182.022(d), Tax Code, as added by this Act. An
109	115		adjustment must be made effective at the same time as the decrease
110	116		of tax liability or as soon after that decrease occurs as is
111	117		reasonably practicable.
112	118		SECTION 11. (a) Except as provided by Subsection (b) of
113	119		this section, this Act takes effect immediately if it receives a
114	120		vote of two-thirds of all the members elected to each house, as
115	121		provided by Section 39, Article III, Texas Constitution. If this
116	122		Act does not receive the vote necessary for immediate effect, this
117	123		Act takes effect September 1, 2019.
118	124		(b) Section 182.022(d), Tax Code, as added by this Act,
119	125		takes effect January 1, 2024.
120		-	______________________________ ______________________________
121		-	President of the Senate Speaker of the House
122		-	I certify that H.B. No. 2263 was passed by the House on April
123		-	10, 2019, by the following vote: Yeas 146, Nays 0, 1 present, not
124		-	voting.
125		-	______________________________
126		-	Chief Clerk of the House
127		-	I certify that H.B. No. 2263 was passed by the Senate on
128		-	May 2, 2019, by the following vote: Yeas 31, Nays 0.
129		-	______________________________
130		-	Secretary of the Senate
131		-	APPROVED: _____________________
132		-	Date
133		-	_____________________
134		-	Governor
	126	+	* * * * *