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PUBLIC UTILITY REGULATORY RESTRICTED ACCOUNT

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AMENDMENTS

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2016 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Dixon M. Pitcher

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Senate Sponsor: ____________

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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 certain entities within the Department of Commerce;
19          ▸     designates funds in the Public Utility Regulatory Restricted Account as nonlapsing;
20     and
21          ▸     transfers public utility regulatory fees designated as nonlapsing into the Public
22     Utility Regulatory Restricted Account.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          This bill provides a special effective date.
27     Utah Code Sections Affected:

28     AMENDS:
29          54-5-1.5, as last amended by Laws of Utah 2009, Chapter 183
30          63J-1-602.3, as last amended by Laws of Utah 2014, Chapters 189 and 304
31     Uncodified Material Affected:
32     ENACTS UNCODIFIED MATERIAL
33     

34     Be it enacted by the Legislature of the state of Utah:
35          Section 1. Section 54-5-1.5 is amended to read:
36          54-5-1.5. Special regulation fee -- Supplemental Levy Committee -- Supplemental
37     fee -- Fee for electrical cooperatives.
38          (1) (a) A special fee to defray the cost of regulation is imposed upon all public utilities
39     subject to the jurisdiction of the Public Service Commission.
40          (b) The special fee is in addition to any charge now assessed, levied, or required by
41     law.
42          (2) (a) The executive director of the Department of Commerce shall determine the
43     special fee for the Department of Commerce.
44          (b) The chair of the Public Service Commission shall determine the special fee for the
45     Public Service Commission.
46          (c) The fee shall be assessed as a uniform percentage of the gross operating revenue for
47     the preceding calendar year derived from each public utility's business and operations during
48     that period within this state, excluding income derived from interstate business. Gross
49     operating revenue shall not include income to a wholesale electric cooperative derived from the
50     sale of power to a rural electric cooperative which resells that power within the state.
51          (3) (a) The executive director of the Department of Commerce shall notify each public
52     utility subject to the provisions of this chapter of the amount of the fee.
53          (b) The fee is due and payable on or before July 1 of each year.
54          (4) (a) There is created a restricted account within the General Fund known as the
55     Public Utility Regulatory Restricted Account.
56          (b) Notwithstanding Subsection 13-1-2(3)(c), the Department of Commerce shall
57     deposit a fee assessed under this section into the Public Utility Regulatory Restricted Account.
58          (c) Within appropriations by the Legislature, the Department of Commerce may use the

59     funds in the Public Utility Regulatory Restricted Account to administer:
60          (i) the Division of Public Utilities;
61          (ii) the Office of Consumer Services; and
62          (iii) the Public Service Commission.
63          [(4)] (5) (a) [It is the intent of the] The Legislature intends that the public utilities
64     provide all of the funds for the administration, support, and maintenance of:
65          (i) the Public Service Commission;
66          (ii) state agencies within the Department of Commerce involved in the regulation of
67     public utilities; and
68          (iii) expenditures by the attorney general for utility regulation.
69          (b) Notwithstanding Subsection [(4)] (5)(a), the fee imposed by Subsection (1) shall
70     not exceed the greater of:
71          (i) (A) for a public utility other than an electrical cooperative, .3% of the public utility's
72     gross operating revenues for the preceding calendar year; or
73          (B) for an electrical cooperative, .15% of the electrical cooperative's gross operating
74     revenues for the preceding calendar year; or
75          (ii) $50.
76          [(5)] (6) (a) There is created a Supplemental Levy Committee to levy additional
77     assessments on public utilities when unanticipated costs of regulation occur in any fiscal year.
78          (b) The Supplemental Levy Committee shall consist of:
79          (i) one member selected by the executive director of the Department of Commerce;
80          (ii) one member selected by the chairman of the Public Service Commission;
81          (iii) two members selected by the three public utilities that paid the largest percent of
82     the current regulatory fee; and
83          (iv) one member selected by the four appointed members.
84          (c) (i) The members of the Supplemental Levy Committee shall be selected within 10
85     working days after the executive director of the Department of Commerce gives written notice
86     to the Public Service Commission and the public utilities that a supplemental levy committee is
87     needed.
88          (ii) If the members of the Supplemental Levy Committee have not been appointed
89     within the time prescribed, the governor shall appoint the members of the Supplemental Levy

90     Committee.
91          (d) (i) During any state fiscal year, the Supplemental Levy Committee, by a majority
92     vote and subject to audit by the state auditor, may impose a supplemental fee on the regulated
93     utilities for the purpose of defraying any increased cost of regulation.
94          (ii) The supplemental fee imposed upon the utilities shall equal a percentage of their
95     gross operating revenue for the preceding calendar year.
96          (iii) The aggregate of all fees, including any supplemental fees assessed, shall not
97     exceed .3% of the gross operating revenue of the utilities assessed for the preceding calendar
98     year.
99          (iv) Payment of the supplemental fee is due within 30 days after receipt of the
100     assessment.
101          (v) The utility may, within 10 days after receipt of assessment, request a hearing before
102     the Public Service Commission if it questions the need for, or the reasonableness of, the
103     supplemental fee.
104          (e) (i) Any supplemental fee collected to defray the cost of regulation shall be
105     transferred to the state treasurer as a departmental collection according to the provisions of
106     Section 63J-1-104.
107          (ii) Supplemental fees are excess collections, credited according to the procedures of
108     Section 63J-1-104.
109          (iii) Charges billed to the Department of Commerce by any other state department,
110     institution, or agency for services rendered in connection with regulation of a utility shall be
111     credited by the state treasurer from the special or supplemental fees collected to the
112     appropriations account of the entity providing that service according to the procedures provided
113     in Title 63J, Chapter 1, Budgetary Procedures Act.
114          [(6)] (7) (a) For purposes of this section, "electrical cooperative" means:
115          (i) a distribution electrical cooperative; or
116          (ii) a wholesale electrical cooperative.
117          (b) Subject to Subsection [(6)] (7)(c), if the regulation of one or more electrical
118     cooperatives causes unanticipated costs of regulation in a fiscal year, the commission may
119     impose a supplemental fee on the one or more electrical cooperatives in this state responsible
120     for the increased cost of regulation.

121          (c) The aggregate of all fees imposed under this section on an electrical cooperative in
122     a calendar year shall not exceed the greater of:
123          (i) .3% of the electrical cooperative's gross operating revenues for the preceding
124     calendar year; or
125          (ii) $50.
126          Section 2. Section 63J-1-602.3 is amended to read:
127          63J-1-602.3. List of nonlapsing funds and accounts -- Title 46 through Title 60.
128          (1) Funding for the Search and Rescue Financial Assistance Program, as provided in
129     Section 53-2a-1102.
130          (2) Appropriations made to the Division of Emergency Management from the State
131     Disaster Recovery Restricted Account, as provided in Section 53-2a-603.
132          (3) Appropriations made to the Department of Public Safety from the Department of
133     Public Safety Restricted Account, as provided in Section 53-3-106.
134          (4) Appropriations to the Motorcycle Rider Education Program, as provided in Section
135     53-3-905.
136          (5) Appropriations from the Utah Highway Patrol Aero Bureau Restricted Account
137     created in Section 53-8-303.
138          (6) Appropriations from the DNA Specimen Restricted Account created in Section
139     53-10-407.
140          (7) The Canine Body Armor Restricted Account created in Section 53-16-201.
141          (8) The School Readiness Restricted Account created in Section 53A-1b-104.
142          (9) Appropriations to the State Board of Education, as provided in Section
143     53A-17a-105.
144          (10) Money received by the State Office of Rehabilitation for the sale of certain
145     products or services, as provided in Section 53A-24-105.
146          (11) Certain funds appropriated from the General Fund to the State Board of Regents
147     for teacher preparation programs, as provided in Section 53B-6-104.
148          (12) Funding for the Medical Education Program administered by the Medical
149     Education Council, as provided in Section 53B-24-202.
150          (13) A certain portion of money collected for administrative costs under the School
151     Institutional Trust Lands Management Act, as provided under Section 53C-3-202.

152          (14) Funds deposited into the Public Utility Regulatory Restricted Account created in
153     Section 54-5-1.5.
154          [(14)] (15) Certain surcharges on residential and business telephone numbers imposed
155     by the Public Service Commission, as provided in Section 54-8b-10.
156          [(15)] (16) Certain fines collected by the Division of Occupational and Professional
157     Licensing for violation of unlawful or unprofessional conduct that are used for education and
158     enforcement purposes, as provided in Section 58-17b-505.
159          [(16)] (17) Certain fines collected by the Division of Occupational and Professional
160     Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
161     provided in Section 58-63-103.
162          [(17)] (18) Appropriations from the Relative Value Study Restricted Account created
163     in Section 59-9-105.
164          [(18)] (19) The Cigarette Tax Restricted Account created in Section 59-14-204.
165          Section 3. Legislative intent.
166          The Legislature intends that public utility regulatory fee balances designated as
167     nonlapsing at the close of fiscal year 2016 for the Division of Public Utilities, the Office of
168     Consumer Services, and the Public Service Commission be transferred to the newly created
169     Public Utility Regulatory Restricted Account.
170          Section 4. Effective date.
171          This bill takes effect on July 1, 2016.






Legislative Review Note
Office of Legislative Research and General Counsel