HBA-SEB S.B. 1883 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1883
By: Harris
Energy Resources
5/7/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, some confusion exists over whether municipal franchise fees may
be included in the rates charged to a state agency by a utility. In 1993,
the 73rd Texas Legislature enacted legislation  which established the
amounts that could be included in the rates a utility may charge a state
agency. S.B. 1883 provides that a gross receipts assessment, regulatory
assessment, or similar expense of a utility does not include a payment to a
municipality under a contract, franchise, or other agreement.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 104.202, Utilities Code, by adding Subsection
(c), to provide that a gross receipts assessment, regulatory assessment, or
similar expense of a utility does not include a payment to a municipality
under a contract, franchise, or other agreement.   

SECTION 2.Emergency clause.
  Effective date: upon passage.