HB 4042

relating to the applicability of certain safety provisions and
regulatory fees administered by the Railroad Commission of Texas to
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Sections 121.211(a), (d), (e), and (g),
Utilities Code, are amended to read as follows:
(a)  The railroad commission by rule may adopt a fee to be
assessed annually against operators of [natural] gas distribution
pipelines and their pipeline facilities and [natural] gas master
metered pipelines and their pipeline facilities subject to this
(d)  The commission may assess each operator of a [natural]
gas distribution system subject to this title an annual fee not to
exceed one dollar for each service line reported by the system on
the Distribution Annual Report, Form RSPA F7100.1-1, due on March
15 of each year.  The fee is due March 15 of each year.
(e)  The railroad commission may assess each operator of a
[natural] gas master metered system subject to this title an annual
fee not to exceed $100 for each master metered system.  The fee is
(g)  Each operator of a [natural] gas distribution system and
each [natural] gas master meter operator shall recover as a
surcharge to its existing rates the amounts paid to the commission
under this section.  Amounts collected under this subsection by an
investor-owned [natural] gas distribution system or a
cooperatively owned [natural] gas distribution system shall not be
included in the revenue or gross receipts of the company for the
purpose of calculating municipal franchise fees or any tax imposed
under Subchapter B, Chapter 182, Tax Code, or under Chapter 122.
Those amounts are not subject to a sales and use tax imposed by
Chapter 151, Tax Code, or Subtitle C, Title 3, Tax Code.
SECTION 2.  Section 121.213(a), Utilities Code, is amended
(a)  In this section, "distribution gas pipeline facility"
means a pipeline facility that distributes [natural] gas directly
SECTION 3.  Section 121.214(a)(1), Utilities Code, is
(1)  "Distribution gas pipeline facility" means a
pipeline facility that distributes [natural] gas directly to end
SECTION 4.  This Act takes effect September 1, 2025.