| 1 | 1 | | 88R26763 JXC-D |
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| 2 | 2 | | By: Troxclair, Dean, Goldman, Hefner H.B. No. 4207 |
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| 3 | 3 | | Substitute the following for H.B. No. 4207: |
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| 4 | 4 | | By: Spiller C.S.H.B. No. 4207 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to municipally owned utility vegetation management. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter Z, Chapter 552, Local Government |
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| 12 | 12 | | Code, is amended by adding Section 552.915 to read as follows: |
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| 13 | 13 | | Sec. 552.915. PROHIBITION ON TRANSFER OF MUNICIPAL UTILITY |
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| 14 | 14 | | REVENUE. (a) In this section: |
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| 15 | 15 | | (1) "Commission" means the Public Utility Commission |
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| 16 | 16 | | of Texas. |
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| 17 | 17 | | (2) "Municipal utility" means an electric utility |
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| 18 | 18 | | system owned, operated, or controlled by a municipality. |
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| 19 | 19 | | (b) If the commission determines under Section 38.101, |
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| 20 | 20 | | Utilities Code, that a municipal utility's vegetation management |
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| 21 | 21 | | activities are insufficient to ensure reliable service, except as |
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| 22 | 22 | | provided by Subsection (c) and notwithstanding any other law, the |
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| 23 | 23 | | municipality may not in the fiscal year of the determination |
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| 24 | 24 | | transfer revenue to the general fund of the municipality from the |
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| 25 | 25 | | municipal utility that the municipal utility needs to conduct |
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| 26 | 26 | | sufficient vegetation management activities to ensure reliable |
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| 27 | 27 | | service. |
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| 28 | 28 | | (c) The commission shall provide the municipality with a |
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| 29 | 29 | | reasonable grace period after the commission provides a notice to |
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| 30 | 30 | | the municipal utility under Section 38.101(c), Utilities Code, in |
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| 31 | 31 | | which the municipality may continue to transfer revenue as |
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| 32 | 32 | | described by Subsection (b) while the utility alters the utility's |
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| 33 | 33 | | vegetation management activities to ensure reliable service. |
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| 34 | 34 | | SECTION 2. Section 38.101, Utilities Code, is amended to |
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| 35 | 35 | | read as follows: |
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| 36 | 36 | | Sec. 38.101. REPORT ON INFRASTRUCTURE IMPROVEMENT AND |
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| 37 | 37 | | MAINTENANCE. (a) Not later than May 1 of each year, each electric |
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| 38 | 38 | | utility and municipally owned utility shall submit to the |
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| 39 | 39 | | commission a report describing the utility's activities related to: |
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| 40 | 40 | | (1) identifying areas that are susceptible to damage |
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| 41 | 41 | | during severe weather and hardening transmission and distribution |
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| 42 | 42 | | facilities in those areas; |
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| 43 | 43 | | (2) vegetation management; and |
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| 44 | 44 | | (3) inspecting distribution poles. |
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| 45 | 45 | | (b) Each electric utility and municipally owned utility |
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| 46 | 46 | | shall include in a report required under Subsection (a) a summary of |
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| 47 | 47 | | the utility's activities related to preparing for emergency |
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| 48 | 48 | | operations. |
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| 49 | 49 | | (c) The commission shall evaluate each report submitted by a |
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| 50 | 50 | | municipally owned utility under this section and notify the utility |
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| 51 | 51 | | if the commission determines that the utility's vegetation |
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| 52 | 52 | | management activities are insufficient to ensure reliable service. |
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| 53 | 53 | | SECTION 3. This Act takes effect September 1, 2023. |
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