HBA-TBM, CCH H.B. 1902 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1902
By: Turner, Sylvester
Appropriations
7/17/2001
Enrolled



BACKGROUND AND PURPOSE 

When the System Benefit Fund (SBF) was created by the 76th Legislature as
part of electric utility deregulation, it was envisioned to be a trust fund
that would help finance programs regarding utility awareness and
assistance.  Prior to the 77th Legislature, the SBF was a trust fund with
the comptroller administered by the Public Utility Commission.  House Bill
1902 establishes the SBF as a dedicated account in the general revenue
fund.   

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. 

ANALYSIS

House Bill 1902 amends the Utilities Code to provide that, not later than
August 31 rather than March 1 of each year, the comptroller of public
accounts (comptroller) shall certify to the Texas Education Agency (TEA)
the statewide net loss in electric generating facility property value
attributable to electric utility restructuring.  The bill sets forth
provisions by which the comptroller is required to calculate the loss.  The
bill requires TEA to determine the amount necessary to compensate the state
for the statewide net loss and the comptroller to provide TEA with the
necessary information to do so.  The bill removes provisions regarding
compensation for school districts for lost revenues and the transfer of
funds from the system benefit fund (SBF) to the foundation school fund
(Sec. 39.901).  If the absolute value of the total property value gains
exceeds 30 percent of the absolute value of the property value losses, the
bill requires the comptroller to cap the total property value gains at 30
percent of the property value losses before calculating the statewide net
loss.  This provision expires May 31, 2003 (Sec. 39.9011).   

The bill provides that the SBF is an account in the general revenue fund
rather than a trust fund with the comptroller that is required to be
administered by the Public Utility Commission of Texas.  The bill increases
the fee that finances the system benefit fund from 50 cents to 65 cents per
megawatt hour.  The bill requires the SBF to provide funding solely for
regulatory purposes related to the assistance of lowincome electric
customers, customer education, and the school funding loss mechanism (Sec.
39.903). 

EFFECTIVE DATE

September 1, 2001.