Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 109 Second Substitute (2017GS)

Sponsor

Rep. Pitcher, D.

Final action

Governor Signed 3/25/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• creates a restricted account known as the Public Utility Regulatory Restricted Account in the Department of Commerce;
• provides that the Department of Commerce shall deposit special regulation fees into the Public Utility Regulatory Restricted Account;
• provides that funds in the Public Utility Regulatory Restricted Account may be used to fund the Division of Public Utilities, the Office of Consumer Services, and the Public Service Commission;
• designates appropriations from the Public Utility Regulatory Restricted Account as nonlapsing; and
• transfers public utility regulatory fees designated as nonlapsing into the Public Utility Regulatory Restricted Account.

Every vote on this bill

Bill text

PUBLIC UTILITY REGULATORY RESTRICTED ACCOUNT
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Dixon M. Pitcher
Senate Sponsor: 
Brian E. Shiozawa
LONG TITLE
General Description:
This bill creates a restricted account within the General Fund.
Highlighted Provisions:
This bill:
▸ creates a restricted account known as the Public Utility Regulatory Restricted
Account in the Department of Commerce;
▸ provides that the Department of Commerce shall deposit special regulation fees into
the Public Utility Regulatory Restricted Account;
▸ provides that funds in the Public Utility Regulatory Restricted Account may be used
to fund the Division of Public Utilities, the Office of Consumer Services, and the
Public Service Commission;
▸ designates appropriations from the Public Utility Regulatory Restricted Account as
nonlapsing; and
▸ transfers public utility regulatory fees designated as nonlapsing into the Public
Utility Regulatory Restricted Account.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
54-5-1.5
, as last amended by Laws of Utah 2009, Chapter 183
63J-1-602.3
, as last amended by Laws of Utah 2016, Chapters 52 and 271
Uncodified Material Affected:
ENACTS UNCODIFIED MATERIAL
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
54-5-1.5
 is amended to read:
54-5-1.5.
Special regulation fee -- Supplemental Levy Committee -- Supplemental
fee -- Fee for electrical cooperatives.
(1) (a) A special fee to defray the cost of regulation is imposed upon all public utilities
subject to the jurisdiction of the Public Service Commission.
(b) The special fee is in addition to any charge now assessed, levied, or required by
law.
(2) (a) The executive director of the Department of Commerce shall determine the
special fee for the Department of Commerce.
(b) The chair of the Public Service Commission shall determine the special fee for the
Public Service Commission.
(c) The fee shall be assessed as a uniform percentage of the gross operating revenue for
the preceding calendar year derived from each public utility's business and operations during
that period within this state, excluding income derived from interstate business. Gross
operating revenue shall not include income to a wholesale electric cooperative derived from the
sale of power to a rural electric cooperative which resells that power within the state.
(3) (a) The executive director of the Department of Commerce shall notify each public
utility subject to the provisions of this chapter of the amount of the fee.
(b) The fee is due and payable on or before July 1 of each year.
(4) (a) There is created a restricted account within the General Fund known as the
Public Utility Regulatory Restricted Account.
(b) Notwithstanding Subsection 
13-1-2
(3)(c), the Department of Commerce shall
deposit a fee assessed under this section into the Public Utility Regulatory Restricted Account.
(c) Within appropriations by the Legislature:
(i) the Department of Commerce may use the funds in the Public Utility Regulatory
Restricted Account to administer:
(A) the Division of Public Utilities; and
(B) the Office of Consumer Services; and
(ii) the Public Service Commission may use the funds in the Public Utility Regulatory
Restricted Account to administer the Public Service Commission.
(d) At the end of each fiscal year, the director of the Division of Finance shall transfer
into the General Fund any balance in the Public Utility Regulatory Restricted Account in
excess of $3,000,000.
[
(4)
] 
(5)
 (a) [
It is the intent of the
] 
The
 Legislature 
intends
 that the public utilities
provide all of the funds for the administration, support, and maintenance of:
(i) the Public Service Commission;
(ii) state agencies within the Department of Commerce involved in the regulation of
public utilities; and
(iii) expenditures by the attorney general for utility regulation.
(b) Notwithstanding Subsection [
(4)
] 
(5)
(a), the fee imposed by Subsection (1) shall
not exceed the greater of:
(i) (A) for a public utility other than an electrical cooperative, .3% of the public utility's
gross operating revenues for the preceding calendar year; or
(B) for an electrical cooperative, .15% of the electrical cooperative's gross operating
revenues for the preceding calendar year; or
(ii) $50.
[
(5)
] 
(6)
 (a) There is created a Supplemental Levy Committee to levy additional
assessments on public utilities when unanticipated costs of regulation occur in any fiscal year.
(b) The Supplemental Levy Committee shall consist of:
(i) one member selected by the executive director of the Department of Commerce;
(ii) one member selected by the chairman of the Public Service Commission;
(iii) two members selected by the three public utilities that paid the largest percent of
the current regulatory fee; and
(iv) one member selected by the four appointed members.
(c) (i) The members of the Supplemental Levy Committee shall be selected within 10
working days after the executive director of the Department of Commerce gives written notice
to the Public Service Commission and the public utilities that a supplemental levy committee is
needed.
(ii) If the members of the Supplemental Levy Committee have not been appointed
within the time prescribed, the governor shall appoint the members of the Supplemental Levy
Committee.
(d) (i) During any state fiscal year, the Supplemental Levy Committee, by a majority
vote and subject to audit by the state auditor, may impose a supplemental fee on the regulated
utilities for the purpose of defraying any increased cost of regulation.
(ii) The supplemental fee imposed upon the utilities shall equal a percentage of their
gross operating revenue for the preceding calendar year.
(iii) The aggregate of all fees, including any supplemental fees assessed, shall not
exceed .3% of the gross operating revenue of the utilities assessed for the preceding calendar
year.
(iv) Payment of the supplemental fee is due within 30 days after receipt of the
assessment.
(v) The utility may, within 10 days after receipt of assessment, request a hearing before
the Public Service Commission if it questions the need for, or the reasonableness of, the
supplemental fee.
(e) (i) Any supplemental fee collected to defray the cost of regulation shall be
transferred to the state treasurer as a departmental collection according to the provisions of
Section 
63J-1-104
.
(ii) Supplemental fees are excess collections, credited according to the procedures of
Section 
63J-1-104
.
(iii) Charges billed to the Department of Commerce by any other state department,
institution, or agency for services rendered in connection with regulation of a utility shall be
credited by the state treasurer from the special or supplemental fees collected to the
appropriations account of the entity providing that service according to the procedures provided
in Title 63J, Chapter 1, Budgetary Procedures Act.
[
(6)
] 
(7)
 (a) For purposes of this section, "electrical cooperative" means:
(i) a distribution electrical cooperative; or
(ii) a wholesale electrical cooperative.
(b) Subject to Subsection [
(6)
] 
(7)
(c), if the regulation of one or more electrical
cooperatives causes unanticipated costs of regulation in a fiscal year, the commission may
impose a supplemental fee on the one or more electrical cooperatives in this state responsible
for the increased cost of regulation.
(c) The aggregate of all fees imposed under this section on an electrical cooperative in
a calendar year shall not exceed the greater of:
(i) .3% of the electrical cooperative's gross operating revenues for the preceding
calendar year; or
(ii) $50.
Section 2. Section 
63J-1-602.3
 is amended to read:
63J-1-602.3.
List of nonlapsing funds and accounts -- Title 46 through Title 60.
(1) The Utah Law Enforcement Memorial Support Restricted Account created in
Section 
53-1-120
.
(2) Funding for the Search and Rescue Financial Assistance Program, as provided in
Section 
53-2a-1102
.
(3) Appropriations made to the Division of Emergency Management from the State
Disaster Recovery Restricted Account, as provided in Section 
53-2a-603
.
(4) Appropriations made to the Department of Public Safety from the Department of
Public Safety Restricted Account, as provided in Section 
53-3-106
.
(5) Appropriations to the Motorcycle Rider Education Program, as provided in Section
53-3-905
.
(6) Appropriations from the Utah Highway Patrol Aero Bureau Restricted Account
created in Section 
53-8-303
.
(7) Appropriations from the DNA Specimen Restricted Account created in Section
53-10-407
.
(8) The Canine Body Armor Restricted Account created in Section 
53-16-201
.
(9) The School Readiness Restricted Account created in Section 
53A-1b-104
.
(10) Appropriations to the State Board of Education, as provided in Section
53A-17a-105
.
(11) Money received by the Utah State Office of Rehabilitation for the sale of certain
products or services, as provided in Section 
35A-13-202
.
(12) Certain funds appropriated from the General Fund to the State Board of Regents
for teacher preparation programs, as provided in Section 
53B-6-104
.
(13) Funding for the Medical Education Program administered by the Medical
Education Council, as provided in Section 
53B-24-202
.
(14) A certain portion of money collected for administrative costs under the School
Institutional Trust Lands Management Act, as provided under Section 
53C-3-202
.
(15) Subject to Subsection 
54-5-1.5
(4)(d), appropriations from the Public Utility
Regulatory Restricted Account created in Section 
54-5-1.5
. 
[
(15)
] 
(16)
 Certain surcharges on residential and business telephone numbers imposed
by the Public Service Commission, as provided in Section 
54-8b-10
.
[
(16)
] 
(17)
 Certain fines collected by the Division of Occupational and Professional
Licensing for violation of unlawful or unprofessional conduct that are used for education and
enforcement purposes, as provided in Section 
58-17b-505
.
[
(17)
] 
(18)
 Certain fines collected by the Division of Occupational and Professional
Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
provided in Section 
58-63-103
.
[
(18)
] 
(19)
 Appropriations from the Relative Value Study Restricted Account created
in Section 
59-9-105
.
[
(19)
] 
(20)
 The Cigarette Tax Restricted Account created in Section 
59-14-204
.
Section 3. 
Legislative intent.
The Legislature intends that:
(1) public utility regulatory fee balances designated as nonlapsing at the close of fiscal
year 2017 for the Division of Public Utilities, the Office of Consumer Services, and the Public
Service Commission be transferred to the newly created Public Utility Regulatory Restricted
Account; and
(2) the Division of Finance transfer any fees assessed under Section 
54-5-1.5
 that are
recorded as revenue in fiscal year 2018 in the Commerce Service Fund to the newly created
Public Utility Regulatory Restricted Account.
Section 4. 
Effective date.
This bill takes effect on July 1, 2017.