Tex. Gov't Code Section 1232.1072
Issuance of Obligations for Financing Customer Rate Relief Property


(a)

The definitions in Section 104.362 (Definitions), Utilities Code, apply to terms used in this section.

(b)

The authority may create an issuing financing entity for the purpose of issuing customer rate relief bonds approved by the Railroad Commission of Texas in a financing order, as provided by Subchapter I (Purpose; Railroad Commission Duty), Chapter 104 (Rates and Services), Utilities Code.

(c)

An issuing financing entity created under this section is a duly constituted public authority and instrumentality of the state and is authorized to issue customer rate relief bonds on behalf of the state for the purposes of Section 103, Internal Revenue Code of 1986 (26 U.S.C. Section 103).

(d)

The issuing financing entity must be governed by a governing board of three members appointed by the authority. A member of the governing board may be a current or former director of the authority. A member of the governing board serves without compensation but is entitled to reimbursement for travel expenses incurred in attending board meetings.

(e)

The issuing financing entity must be formed in accordance with, be governed by, and have the powers, rights, and privileges provided for a nonprofit corporation organized under the Business Organizations Code, including Chapter 22 (Appellate Courts) of that code, subject to the express exceptions and limitations provided by this section and Subchapter I (Purpose; Railroad Commission Duty), Chapter 104 (Rates and Services), Utilities Code. A single organizer selected by the executive director of the authority shall prepare the certificate of formation of the issuing financing entity under Chapters 3 (Limited Liability Companies) and 22 (Nonprofit Corporations), Business Organizations Code. The certificate of formation must be consistent with the provisions of this section.

(f)

The authority shall establish the issuing financing entity to act on behalf of the state as its duly constituted authority and instrumentality to issue customer rate relief bonds approved under Subchapter I (Purpose; Railroad Commission Duty), Chapter 104 (Rates and Services), Utilities Code.

(g)

On a request to the authority from the Railroad Commission of Texas, the authority shall direct an issuing financing entity to issue customer rate relief bonds in accordance with a financing order issued by the railroad commission as provided in Subchapter I (Purpose; Railroad Commission Duty), Chapter 104 (Rates and Services), Utilities Code.

(h)

Before the issuance of any customer rate relief bonds, the authority and the Railroad Commission of Texas shall ensure that adequate provision is made in any financing order for the recovery of all issuance costs and all other fees, costs, and expenses of the authority, the issuing financing entity, and any advisors or counsel hired by the authority or the entity for the purposes of this section during the life of the customer rate relief bonds.

(i)

Customer rate relief bonds are limited obligations of the issuing financing entity payable solely from customer rate relief property and any other money pledged by the issuing financing entity to the payment of the bonds and are not a debt of this state, the Railroad Commission of Texas, the authority, or a gas utility.

(j)

The Railroad Commission of Texas shall ensure that customer rate relief charges are imposed, collected, and enforced in an amount sufficient to pay on a timely basis all bond obligations, financing costs, and bond administrative expenses associated with any issuance of customer rate relief bonds.

(k)

The authority and the Railroad Commission of Texas have all the powers necessary to perform the duties and responsibilities described by this section. This section shall be interpreted broadly in a manner consistent with the most cost-effective financing of customer rate relief property, including regulatory assets, extraordinary costs, and related financing costs approved by the Railroad Commission of Texas in accordance with Subchapter I (Purpose; Railroad Commission Duty), Chapter 104 (Rates and Services), Utilities Code.

(l)

Any interest on the customer rate relief bonds is not subject to taxation by and may not be included as part of the measurement of a tax by this state or a political subdivision of this state.

(m)

The authority shall make periodic reports to the Railroad Commission of Texas and the public regarding each financing made in accordance with Section 104.373 (Repayment of Customer Rate Relief Bonds)(b), Utilities Code, and if required by the applicable financing order.

(n)

The issuing financing entity shall issue customer rate relief bonds in accordance with and subject to other provisions of Title 9 applicable to the authority.

(o)

The issuing financing entity may exercise the powers granted to the governing body of an issuer with regard to the issuance of obligations and the execution of credit agreements under Chapter 1371 (Obligations for Certain Public Improvements). A purpose for which bonds, obligations, or other evidences of indebtedness are issued under this section and Subchapter I (Purpose; Railroad Commission Duty), Chapter 104 (Rates and Services), Utilities Code, constitutes an eligible project for purposes of Chapter 1371 (Obligations for Certain Public Improvements) of this code.

(p)

Assets of an issuing financing entity may not be considered part of any state fund and must be held outside the state treasury. The liabilities of the issuing financing entity may not be considered to be a debt of the state or a pledge of the state’s credit. An issuing financing entity must be self-funded from customer rate relief property and established in accordance with Subchapter I (Purpose; Railroad Commission Duty), Chapter 104 (Rates and Services), Utilities Code. A state agency may provide money appropriated for the purpose to the issuing financing entity to provide for initial operational expenses of the issuing financing entity.
Added by Acts 2021, 87th Leg., R.S., Ch. 805 (H.B. 1520), Sec. 3, eff. June 16, 2021.

Source: Section 1232.1072 — Issuance of Obligations for Financing Customer Rate Relief Property, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­1232.­htm#1232.­1072 (accessed Jun. 5, 2024).

1232.001
Short Title
1232.002
Purpose
1232.003
Definitions
1232.004
State Lease Fund Account
1232.005
Application of State Funds Reform Act
1232.051
Texas Public Finance Authority
1232.052
Composition of Governing Board
1232.053
Terms
1232.054
Grounds for Removal
1232.055
Board Member Training
1232.056
Officers
1232.057
Public Testimony at Board Meetings
1232.058
Compensation and Expenses
1232.059
Staff
1232.060
Conflict of Interest
1232.061
Information on Responsibilities of Board Members and Employees
1232.062
Separation of Policymaking and Management Responsibilities
1232.063
Equal Employment Opportunity
1232.064
Career Ladder
1232.065
Compliance with Laws Relating to Accessibility
1232.066
Board Authority
1232.067
General Powers
1232.068
Eminent Domain
1232.070
Information on Complaints
1232.071
Relationship to Previous Board
1232.072
Sunset Provision
1232.073
Negotiated Rulemaking and Alternative Dispute Resolution
1232.101
Issuance of Bonds for Certain State Agencies
1232.102
Issuance of Bonds for State Office Buildings
1232.103
Issuance of Obligations for Equipment
1232.104
Issuance of Obligations for Alternative Fuel Projects
1232.105
Aggregate Limit on Issuance of Obligations for Alternative Fuel Projects
1232.106
Evaluation of Application for Assistance with Alternative Fuel Projects
1232.107
Purchase of Obligations for Alternative Fuel Projects
1232.108
Legislative Authorization Required
1232.109
Authorization to Purchase Certain Real Property
1232.110
Specific Projects
1232.111
Certain Projects by Texas Department of Transportation
1232.112
Bond Review Board Approval
1232.113
Obligation Issuance Orientation
1232.114
Project Analysis
1232.115
Expenses Included in Principal Amount
1232.116
Manner of Repayment
1232.117
State Debt Not Created
1232.118
Order or Resolution Authorizing Issuance of Obligations
1232.119
Adoption and Execution of Instruments
1232.120
Exemption from Taxation
1232.121
Certification and Deposit of Proceeds of Obligations
1232.122
Commencement of Construction, Purchase, or Lease
1232.123
Investment of Bond Proceeds
1232.124
Preference for Texas Businesses
1232.201
Rent and Fees
1232.202
Contracts Contingent on Legislative Appropriations
1232.203
Lease of Space for Child Care Facility
1232.204
Leasing Preference
1232.205
Lease of Space to Outside Entities
1232.206
Property Conveyance
1232.1025
Issuance of Bonds for Military Facilities
1232.1026
Issuance of Bonds for Texas Bullion Depository Buildings
1232.1071
Issuance of Obligations for Financing Stranded Costs of Municipal Power Agency
1232.1072
Issuance of Obligations for Financing Customer Rate Relief Property
1232.1115
Certain Construction and Repair Projects and Equipment Purchases
1232.1116
Certain Maintenance, Improvement, Repair, and Construction Projects
1232.1191
Delegation of Authority
1232.1221
Commencement of Certain Multiyear Cancer-related Projects

Accessed:
Jun. 5, 2024

§ 1232.1072’s source at texas​.gov