Bill Text: TX SR564 | 2021-2022 | 87th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Suspending limitations on conference committee jurisdiction, S.B. No. 2.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2021-05-30 - Reported enrolled [SR564 Detail]

Download: Texas-2021-SR564-Introduced.html

---

87R30033 CXP-D
By: Hancock S.R. No. 564

R E S O L U T I O N
BE IT RESOLVED by the Senate of the State of Texas, 87th
Legislature, Regular Session, 2021, That Senate Rule 12.03 be
suspended in part as provided by Senate Rule 12.08 to enable the
conference committee appointed to resolve the differences on Senate
Bill 2 (the governance of the Public Utility Commission of Texas,
the Office of Public Utility Counsel, and an independent
organization certified to manage a power region) to consider and
take action on the following matters:
(1) Senate Rules 12.03(1), (3), and (4) are suspended to
permit the committee to amend text not in disagreement, to add text
on a matter not in disagreement, and to add text on a matter not
included in either the house or senate version of the bill in
proposed SECTION 3 of the bill, in amended Sections 39.151(g) and
(g-1), Utilities Code, and added Sections 39.151(g-2), (g-3), and
(g-4), Utilities Code, to read as follows:
(g) To maintain certification as an independent
organization for the ERCOT power region under this section, an
organization's governing body must be composed of persons selected
by the ERCOT board selection committee [specified by this section
and selected in accordance with formal bylaws or protocols of the
organization].
(g-1) The independent organization's bylaws or protocols
must be approved by the commission and must reflect the input of the
commission. [The bylaws must specify the process by which
appropriate stakeholders elect members and, for unaffiliated
members, prescribe professional qualifications for selection as a
member.] The bylaws must require that every member of the governing
body be a resident of this state and must prohibit a legislator from
serving as a member [the use of a professional search firm to
identify candidates for membership of unaffiliated members. The
process must allow for commission input in identifying candidates].
The governing body must be composed of:
(1) the chairman of the commission as an ex officio
nonvoting member;
(2) the counsellor as an ex officio voting member
representing residential and small commercial consumer interests;
(3) the chief executive officer of the independent
organization as an ex officio nonvoting [voting] member; and
(4) eight members selected by the selection committee
under Section 39.1513 with executive-level experience in any of the
following professions:
(A) finance;
(B) business;
(C) engineering, including electrical
engineering;
(D) trading;
(E) risk management;
(F) law; or
(G) electric market design [six market
participants elected by their respective market segments to serve
one-year terms, with:
[(A) one representing independent generators;
[(B) one representing investor-owned utilities;
[(C) one representing power marketers;
[(D) one representing retail electric providers;
[(E) one representing municipally owned
utilities; and
[(F) one representing electric cooperatives;
[(5) one member representing industrial consumer
interests and elected by the industrial consumer market segment to
serve a one-year term;
[(6) one member representing large commercial
consumer interests selected in accordance with the bylaws to serve
a one-year term; and
[(7) five members unaffiliated with any market segment
and selected by the other members of the governing body to serve
three-year terms].
(g-2) Members [(g-1) The presiding officer] of the
governing body are entitled to receive a salary for their service
[must be one of the members described by Subsection (g)(7)].
(g-3) A person does not qualify for selection as a member of
the governing body of an independent organization for the ERCOT
power region if the person has a fiduciary duty or assets in the
electricity market for that region.
(g-4) To maintain certification as an independent
organization under this section, the organization's governing body
may not include more than two members who are employed by an
institution of higher education, as defined by Section 61.003,
Education Code, in a professorial role.
Explanation: This change is necessary to provide for the
composition of the governing body of an independent organization
certified under Section 39.151, Utilities Code, for the Electric
Reliability Council of Texas power region and to establish
requirements relating to the eligibility and selection of members
of the governing body.
(2) Senate Rule 12.03(2) is suspended to permit the
committee to omit text not in disagreement in SECTION 3 of the
senate engrossment of Senate Bill 2 and the corresponding bill as
the bill was amended by the house in added Section 39.151(g-2),
Utilities Code. The omitted text reads:
(g-2) A person does not qualify for appointment as a member
of the governing body of an independent organization under
Subsection (g)(3) or (7) if the person is required to register as a
lobbyist under Chapter 305, Government Code. In making an
appointment under Subsection (g)(3) or (7), the governor:
(1) shall give preference to a person who has
executive-level business experience representing a range of
industries; and
(2) may consider a person recommended by the
legislature.
(g-2) A person does not qualify for selection as a member of
the governing body of an independent organization under Subsection
(g)(3) or (7) if the person is required to register as a lobbyist
under Chapter 305, Government Code. In making a selection under
Subsection (g)(3) or (7), the members of the governing body shall
give preference to a person who has executive-level business
experience representing a range of industries.
Explanation: The change is necessary to omit the
qualification and selection requirements.
(3) Senate Rule 12.03(2) is suspended to permit the
committee to omit text not in disagreement in SECTION 3 of the
senate engrossment of Senate Bill 2 and the corresponding bill as
the bill was amended by the house in added Section 39.151(g-3),
Utilities Code. The omitted text reads:
(g-3) Members of the governing body of an independent
organization certified under this section must serve staggered
terms. A member described by Subsection (g)(4) or (5) must serve a
term that expires in an even-numbered year. A member described by
Subsection (g)(6) or (7) must serve a term that expires in an
odd-numbered year. As soon as practicable after the date a member of
the governing body's term expires, the appropriate authority must
appoint or arrange for the election of a replacement in the same
manner as the original appointment or election. If a vacancy occurs
on the governing body, the appropriate authority must appoint or
arrange for the election of a successor in the same manner as the
original appointment or election to serve for the remainder of the
unexpired term.
Explanation: The change is necessary to omit the term and
vacancy requirements.
(4) Senate Rule 12.03(4) is suspended to permit the
committee to add text on a matter not included in either the house
or senate version of the bill by adding the following new SECTION to
the bill:
SECTION 4. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.1513 to read as follows:
Sec. 39.1513. ERCOT BOARD SELECTION COMMITTEE. (a) The
ERCOT board selection committee is composed of:
(1) one member appointed by the governor;
(2) one member appointed by the lieutenant governor;
and
(3) one member appointed by the speaker of the house of
representatives.
(b) A person may not be appointed as a member of the
committee unless the person is a resident of this state.
(c) A member of the committee is not entitled to
compensation for serving as a member but is entitled to
reimbursement for actual and necessary expenses incurred in
performing the official duties of office.
(d) The committee shall select members eligible under
Section 39.151 to serve on the governing body of an independent
organization certified under that section for the ERCOT power
region and shall designate the chair and vice chair of the governing
body from those members.
(e) The ERCOT board selection committee shall retain an
outside consulting firm to help select members of the governing
body under Subsection (d).
Explanation: The addition is necessary to provide for the
creation of a committee to select the members of a governing body of
an independent organization certified under Section 39.151,
Utilities Code, for the Electric Reliability Council of Texas power
region.
(5) Senate Rule 12.03(2) is suspended to permit the
committee to omit text not in disagreement in SECTION 4 of the
senate engrossment of Senate Bill 2 and the corresponding bill as
the bill was amended by the house that would require an independent
organization certified by the Public Utility Commission of Texas
under Section 39.151, Utilities Code, to modify the organization to
comply with Section 39.151, Utilities Code, as amended by the bill,
not later than September 1, 2021. The omitted language reads: "not
later than September 1, 2021".
Explanation: The omission is necessary to provide
sufficient time for the ERCOT Board Selection Committee to be
formed and for the committee to select members of the governing body
of the independent organization certified under Section 39.151,
Utilities Code, for the Electric Reliability Council of Texas power
region.