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8 LONG TITLE
9 General Description:
10 This bill creates a restricted account within the General Fund.
11 Highlighted Provisions:
12 This bill:
13 ▸ creates a restricted account known as the Public Utility Regulatory Restricted
14 Account in the Department of Commerce;
15 ▸ provides that the Department of Commerce shall deposit special regulation fees into
16 the Public Utility Regulatory Restricted Account;
17 ▸ provides that funds in the Public Utility Regulatory Restricted Account may be used
18 to fund the Division of Public Utilities, the Office of Consumer Services, and the
19 Public Service Commission;
20 ▸ designates appropriations from the Public Utility Regulatory Restricted Account as
21 nonlapsing; and
22 ▸ transfers public utility regulatory fees designated as nonlapsing into the Public
23 Utility Regulatory Restricted Account.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 This bill provides a special effective date.
28 Utah Code Sections Affected:
29 AMENDS:
30 54-5-1.5, as last amended by Laws of Utah 2009, Chapter 183
31 63J-1-602.3, as last amended by Laws of Utah 2016, Chapters 52 and 271
32 Uncodified Material Affected:
33 ENACTS UNCODIFIED MATERIAL
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35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 54-5-1.5 is amended to read:
37 54-5-1.5. Special regulation fee -- Supplemental Levy Committee -- Supplemental
38 fee -- Fee for electrical cooperatives.
39 (1) (a) A special fee to defray the cost of regulation is imposed upon all public utilities
40 subject to the jurisdiction of the Public Service Commission.
41 (b) The special fee is in addition to any charge now assessed, levied, or required by
42 law.
43 (2) (a) The executive director of the Department of Commerce shall determine the
44 special fee for the Department of Commerce.
45 (b) The chair of the Public Service Commission shall determine the special fee for the
46 Public Service Commission.
47 (c) The fee shall be assessed as a uniform percentage of the gross operating revenue for
48 the preceding calendar year derived from each public utility's business and operations during
49 that period within this state, excluding income derived from interstate business. Gross
50 operating revenue shall not include income to a wholesale electric cooperative derived from the
51 sale of power to a rural electric cooperative which resells that power within the state.
52 (3) (a) The executive director of the Department of Commerce shall notify each public
53 utility subject to the provisions of this chapter of the amount of the fee.
54 (b) The fee is due and payable on or before July 1 of each year.
55 (4) (a) There is created a restricted account within the General Fund known as the
56 Public Utility Regulatory Restricted Account.
57 (b) Notwithstanding Subsection 13-1-2(3)(c), the Department of Commerce shall
58 deposit a fee assessed under this section into the Public Utility Regulatory Restricted Account.
59 (c) Within appropriations by the Legislature:
60 (i) the Department of Commerce may use the funds in the Public Utility Regulatory
61 Restricted Account to administer:
62 (A) the Division of Public Utilities; and
63 (B) the Office of Consumer Services; and
64 (ii) the Public Service Commission may use the funds in the Public Utility Regulatory
65 Restricted Account to administer the Public Service Commission.
66 (d) At the end of each fiscal year, the director of the Division of Finance shall transfer
67 into the General Fund any balance in the Public Utility Regulatory Restricted Account in
68 excess of $3,000,000.
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70 provide all of the funds for the administration, support, and maintenance of:
71 (i) the Public Service Commission;
72 (ii) state agencies within the Department of Commerce involved in the regulation of
73 public utilities; and
74 (iii) expenditures by the attorney general for utility regulation.
75 (b) Notwithstanding Subsection [
76 not exceed the greater of:
77 (i) (A) for a public utility other than an electrical cooperative, .3% of the public utility's
78 gross operating revenues for the preceding calendar year; or
79 (B) for an electrical cooperative, .15% of the electrical cooperative's gross operating
80 revenues for the preceding calendar year; or
81 (ii) $50.
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83 assessments on public utilities when unanticipated costs of regulation occur in any fiscal year.
84 (b) The Supplemental Levy Committee shall consist of:
85 (i) one member selected by the executive director of the Department of Commerce;
86 (ii) one member selected by the chairman of the Public Service Commission;
87 (iii) two members selected by the three public utilities that paid the largest percent of
88 the current regulatory fee; and
89 (iv) one member selected by the four appointed members.
90 (c) (i) The members of the Supplemental Levy Committee shall be selected within 10
91 working days after the executive director of the Department of Commerce gives written notice
92 to the Public Service Commission and the public utilities that a supplemental levy committee is
93 needed.
94 (ii) If the members of the Supplemental Levy Committee have not been appointed
95 within the time prescribed, the governor shall appoint the members of the Supplemental Levy
96 Committee.
97 (d) (i) During any state fiscal year, the Supplemental Levy Committee, by a majority
98 vote and subject to audit by the state auditor, may impose a supplemental fee on the regulated
99 utilities for the purpose of defraying any increased cost of regulation.
100 (ii) The supplemental fee imposed upon the utilities shall equal a percentage of their
101 gross operating revenue for the preceding calendar year.
102 (iii) The aggregate of all fees, including any supplemental fees assessed, shall not
103 exceed .3% of the gross operating revenue of the utilities assessed for the preceding calendar
104 year.
105 (iv) Payment of the supplemental fee is due within 30 days after receipt of the
106 assessment.
107 (v) The utility may, within 10 days after receipt of assessment, request a hearing before
108 the Public Service Commission if it questions the need for, or the reasonableness of, the
109 supplemental fee.
110 (e) (i) Any supplemental fee collected to defray the cost of regulation shall be
111 transferred to the state treasurer as a departmental collection according to the provisions of
112 Section 63J-1-104.
113 (ii) Supplemental fees are excess collections, credited according to the procedures of
114 Section 63J-1-104.
115 (iii) Charges billed to the Department of Commerce by any other state department,
116 institution, or agency for services rendered in connection with regulation of a utility shall be
117 credited by the state treasurer from the special or supplemental fees collected to the
118 appropriations account of the entity providing that service according to the procedures provided
119 in Title 63J, Chapter 1, Budgetary Procedures Act.
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121 (i) a distribution electrical cooperative; or
122 (ii) a wholesale electrical cooperative.
123 (b) Subject to Subsection [
124 cooperatives causes unanticipated costs of regulation in a fiscal year, the commission may
125 impose a supplemental fee on the one or more electrical cooperatives in this state responsible
126 for the increased cost of regulation.
127 (c) The aggregate of all fees imposed under this section on an electrical cooperative in
128 a calendar year shall not exceed the greater of:
129 (i) .3% of the electrical cooperative's gross operating revenues for the preceding
130 calendar year; or
131 (ii) $50.
132 Section 2. Section 63J-1-602.3 is amended to read:
133 63J-1-602.3. List of nonlapsing funds and accounts -- Title 46 through Title 60.
134 (1) The Utah Law Enforcement Memorial Support Restricted Account created in
135 Section 53-1-120.
136 (2) Funding for the Search and Rescue Financial Assistance Program, as provided in
137 Section 53-2a-1102.
138 (3) Appropriations made to the Division of Emergency Management from the State
139 Disaster Recovery Restricted Account, as provided in Section 53-2a-603.
140 (4) Appropriations made to the Department of Public Safety from the Department of
141 Public Safety Restricted Account, as provided in Section 53-3-106.
142 (5) Appropriations to the Motorcycle Rider Education Program, as provided in Section
143 53-3-905.
144 (6) Appropriations from the Utah Highway Patrol Aero Bureau Restricted Account
145 created in Section 53-8-303.
146 (7) Appropriations from the DNA Specimen Restricted Account created in Section
147 53-10-407.
148 (8) The Canine Body Armor Restricted Account created in Section 53-16-201.
149 (9) The School Readiness Restricted Account created in Section 53A-1b-104.
150 (10) Appropriations to the State Board of Education, as provided in Section
151 53A-17a-105.
152 (11) Money received by the Utah State Office of Rehabilitation for the sale of certain
153 products or services, as provided in Section 35A-13-202.
154 (12) Certain funds appropriated from the General Fund to the State Board of Regents
155 for teacher preparation programs, as provided in Section 53B-6-104.
156 (13) Funding for the Medical Education Program administered by the Medical
157 Education Council, as provided in Section 53B-24-202.
158 (14) A certain portion of money collected for administrative costs under the School
159 Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
160 (15) Subject to Subsection 54-5-1.5(4)(d), appropriations from the Public Utility
161 Regulatory Restricted Account created in Section 54-5-1.5.
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163 by the Public Service Commission, as provided in Section 54-8b-10.
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165 Licensing for violation of unlawful or unprofessional conduct that are used for education and
166 enforcement purposes, as provided in Section 58-17b-505.
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168 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
169 provided in Section 58-63-103.
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171 in Section 59-9-105.
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173 Section 3. Legislative intent.
174 The Legislature intends that:
175 (1) public utility regulatory fee balances designated as nonlapsing at the close of fiscal
176 year 2017 for the Division of Public Utilities, the Office of Consumer Services, and the Public
177 Service Commission be transferred to the newly created Public Utility Regulatory Restricted
178 Account; and
179 (2) the Division of Finance transfer any fees assessed under Section 54-5-1.5 that are
180 recorded as revenue in fiscal year 2018 in the Commerce Service Fund to the newly created
181 Public Utility Regulatory Restricted Account.
182 Section 4. Effective date.
183 This bill takes effect on July 1, 2017.