89R3842 CS-F     By: Morales of Maverick H.B. No. 4042       A BILL TO BE ENTITLED   AN ACT   relating to the applicability of certain safety provisions and   regulatory fees administered by the Railroad Commission of Texas to   gas distribution pipelines.          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   title.          (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   due June 30 of each year.          (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   to read as follows:          (a)  In this section, "distribution gas pipeline facility"   means a pipeline facility that distributes [natural] gas directly   to end-use customers.          SECTION 3.  Section 121.214(a)(1), Utilities Code, is   amended to read as follows:                (1)  "Distribution gas pipeline facility" means a   pipeline facility that distributes [natural] gas directly to end   use customers.          SECTION 4.  This Act takes effect September 1, 2025.