Bill Text: TX HB1581 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to the sale of electric power to and the imposition of a tax on the gross receipts of electric power for certain public customers.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-03-04 - Referred to State Affairs [HB1581 Detail]

Download: Texas-2019-HB1581-Introduced.html

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86R4771 GRM-D
By: Geren H.B. No. 1581

A BILL TO BE ENTITLED
AN ACT
relating to the sale of electric power to and the imposition of a
tax on the gross receipts of electric power for certain public
customers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 182.022, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) Notwithstanding any other provisions of this chapter, a
tax under this chapter may not be imposed on the gross receipts from
the sale of electricity to a public school district customer.
SECTION 2. Section 35.102, Utilities Code, is amended by
adding Subsection (c) to read as follows:
(c) In selling or otherwise conveying electric power under
this section, the General Land Office letterhead, seal, or other
marketing materials may only be used by a person employed by the
General Land Office. For the purposes of this section, an employee
of an entity with which the General Land Office contracts is not
considered to be employed by the General Land Office.
SECTION 3. Subchapter D, Chapter 35, Utilities Code, is
amended by adding Section 35.1025 to read as follows:
Sec. 35.1025. PUBLIC BID TO SELL POWER TO PUBLIC RETAIL
CUSTOMERS. (a) The commissioner may not sell or otherwise convey
power to a public retail customer unless the commissioner submits a
public bid in response to a request for proposal in which bids are
solicited from multiple power providers to provide power to the
public retail customer.
(b) A bid submitted by the commissioner to provide power to
a public retail customer is subject to disclosure under Chapter
552, Government Code.
SECTION 4. The change in law made by this Act does not
affect taxes imposed before the effective date of this Act, and the
law in effect before the effective date of this Act is continued in
effect for purposes of the liability for and collection of those
taxes.
SECTION 5. (a) As soon as practicable after the effective
date of this Act, the Public Utility Commission of Texas, for an
electric utility regulated under Chapter 36, Utilities Code, shall
provide for the adjustment of the electric utility's billing of a
public school district customer to reflect any decrease in the
utility's tax liability to this state if the decrease is
attributable to the exemption in Section 182.022(d), Tax Code, as
added by this Act. An adjustment must be made effective at the same
time as the decrease of tax liability or as soon after that decrease
occurs as is reasonably practicable. The Public Utility Commission
of Texas is not required to provide for an adjustment if the
commission enters an order for the utility under Subchapter C or D,
Chapter 36, Utilities Code, that accounts for any decrease in the
utility's tax liability attributable to the exemption in Section
182.022(d), Tax Code, as added by this Act. An adjustment is not a
rate case under Subchapter C or D, Chapter 36, Utilities Code.
(b) As soon as practicable after the effective date of this
Act, a retail electric provider, as defined by Section 31.002,
Utilities Code, shall adjust the billing of a public school
district customer to reflect any decrease in the retail electric
provider's tax liability to this state if the decrease is
attributable to the exemption in Section 182.022(d), Tax Code, as
added by this Act. An adjustment must be made effective at the same
time as the decrease of tax liability or as soon after that decrease
occurs as is reasonably practicable.
SECTION 6. This Act takes effect September 1, 2019.