2001 Legislation
Print Friendly

SENATE BILL NO. 1201 – Public serv provider/franchise fees

SENATE BILL NO. 1201

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



S1201......................................................by STATE AFFAIRS
PUBLIC SERVICE PROVIDERS - FRANCHISE FEES - Amends existing law to provide
that, for calendar year 2001, the amount of franchise fees collected from
customers by public service providers shall be no more than was collected
in 2000 for a like amount of service, which amount may be increased by a
specified growth factor; and to provide that, if necessary, public service
providers shall credit, rebate or refund franchise fees to customers.
                                                                        
03/05    Senate intro - 1st rdg - to printing
03/06    Rpt prt - to St Aff
03/08    Rpt out - ref'd to Loc Gov

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1201
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO FRANCHISE FEES; AMENDING SECTION 50-329A, IDAHO CODE,  TO  PROVIDE
  3        THAT  FOR  CALENDAR  YEAR  2001, THE AMOUNT OF FRANCHISE FEES COLLECTED BY
  4        CITIES FROM CUSTOMERS SHALL BE NO MORE THAN WAS COLLECTED IN  2000  FOR  A
  5        LIKE  AMOUNT  OF SERVICE, WHICH AMOUNT MAY BE INCREASED BY A GROWTH FACTOR
  6        OF NOT TO  EXCEED  FOUR  PERCENT,  AND  TO  PROVIDE  THAT  PUBLIC  SERVICE
  7        PROVIDERS  SHALL  CREDIT,  REBATE OR REFUND FRANCHISE FEES TO CUSTOMERS ON
  8        BEHALF OF THE CITIES IF NECESSARY; AND DECLARING AN EMERGENCY AND  PROVID-
  9        ING RETROACTIVE APPLICATION.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION  1.  That  Section 50-329A, Idaho Code, be, and the same is hereby
 12    amended to read as follows:
                                                                        
 13        50-329A.  FRANCHISE ORDINANCES -- FEES. (1) This section applies to  fran-
 14    chises  granted by cities to electric, natural gas and water public utilities,
 15    as defined in chapter 1, title 61, Idaho Code, and to  cooperative  electrical
 16    associations,  as  defined  in  subsection (a) of section 63-3501, Idaho Code,
 17    which provide service to customers in Idaho and which shall also be  known  as
 18    "public  service  providers" for purposes of this section. Notwithstanding any
 19    other provision of law to the contrary, cities may include franchise  fees  in
 20    franchises  granted  to  public service providers, only in accordance with the
 21    following terms and conditions:
 22        (a)  Franchise fees assessed by cities  upon  a  public  service  provider
 23        shall  not exceed one percent (1%) of the public service provider's "gross
 24        revenues" received within the city without the consent of the public  ser-
 25        vice  provider  or the approval of a majority of voters of the city voting
 26        on the question at an election held in accordance with  chapter  4,  title
 27        50,  Idaho  Code.  In no case shall the franchise fee exceed three percent
 28        (3%), unless a greater franchise fee is being paid under an existing fran-
 29        chise agreement, in which case the franchise agreement may be  renewed  at
 30        up  to the greater percentage, with the consent of the public service pro-
 31        vider or the approval of a majority of voters of the city  voting  on  the
 32        question at an election held in accordance with chapter 4, title 50, Idaho
 33        Code. For purposes of this section, "gross revenues" shall mean the amount
 34        of  money billed by the public service provider for the sale, transmission
 35        and/or distribution of electricity, natural gas or water within  the  city
 36        to customers less uncollectibles.
 37        (b)  Franchise fees shall be collected by the public service provider from
 38        its  customers  within the city, by assessing the franchise fee percentage
 39        on the amounts billed to customers for the sale, transmission and/or  dis-
 40        tribution  of electricity, natural gas or water by the public service pro-
 41        vider within the city. The franchise fee shall be separately  itemized  on
 42        the public service provider's billings to customers. From January 1, 2001,
 43        to December 31, 2001, the amount of franchise fees that cities may collect
                                                                        
                                           2
                                                                        
  1        from  customers  shall be no more than was collected in calendar year 2000
  2        for a like amount of service, which amount may be increased  by  a  growth
  3        factor  not  to  exceed  four  percent  (4%). If necessary, public service
  4        providers shall credit, rebate or refund franchise fees  to  customers  on
  5        behalf of the cities.
  6        (c)  Cities  collecting  franchise  fees  shall also be allowed to collect
  7        user fees from consumers located within the city in the  event  such  con-
  8        sumers purchase electricity, natural gas or water commodities and services
  9        from a party other than the public service provider. The user fee shall be
 10        assessed  on  the purchase price of the commodities or services, including
 11        transportation or other charges, paid by the consumer to  the  seller  and
 12        shall  be  collected  by the city from the consumer. Except as provided in
 13        this subsection, user fees shall be subject to  all  of  the  same  terms,
 14        rates,  conditions  and  limitations as the franchise fee in effect in the
 15        city and as provided for in this section. This subsection shall not  apply
 16        to  a  consumer  to the extent that consumer is purchasing commodities and
 17        services from a party other than the public service provider on the effec-
 18        tive date of this act, only until such time that  the  existing  franchise
 19        agreement  for the city in which the consumer is located either expires or
 20        is renegotiated.
 21        (d)  Franchise fees shall be  paid  by  public  service  providers  within
 22        thirty (30) days of the end of each calendar quarter.
 23        (e)  Franchise  fees  paid  by public service providers will be in lieu of
 24        and as payment for any tax or fee imposed by a city on  a  public  service
 25        provider  by  virtue of its status as a public service provider including,
 26        but not limited to, taxes, fees or charges  related  to  easements,  fran-
 27        chises,  rights-of-way,  utility lines and equipment installation, mainte-
 28        nance and removal during the term of the public service  provider's  fran-
 29        chise with the city.
 30        (2)  This section shall not affect franchise agreements which are executed
 31    and  agreed  to  by cities and public service providers with an effective date
 32    prior to the effective date of this act.
                                                                        
 33        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 34    declared to exist, this act shall be in full force and effect on and after its
 35    passage and approval, and retroactively to January 1, 2001.

Statement of Purpose / Fiscal Impact




                  STATEMENT OF PURPOSE
    
                       RS 11225C1
    
    
    
The purpose of this legislation is to cap the amount of franchise
    
fees that cities can collect from the utilities for the Calendar
    
Year 2001 to the same dollar amount collected for Calendar Year
    
2000 plus a growth factor of 4%.
    
    
    
    
                          FISCAL NOTE
      
    
    
There should be no impact on the general fund or other state 

government funds.  The potential savings to Idaho ratepayers in

Calendar Year 2001 is approximately $3,000,000.        
                            
    
    
    
    
    
    
    
Contact
   Name:   Senator Joe Stegner
   Phone:  332-1340





STATEMENT OF PURPOSE/FISCAL NOTE                     S 1201         



 
    
                      ATTACHMENT HANDOUT TO
                          RS 11225C1
        
    
Franchise Fees Paid by Utilities to the Cities:                 
                        
                                   
    
    
    
    
         PacifiCorp                    $618,335.91 
         Idaho Power                    1,952,875.39
         Avista - Electric              1,339,099.00
         -Gas                             686,537.00
         Intermountain Gas              3,631,103.08           
         United Water   
         Idaho (Boise                     715,800.00 
         only)         
 
         Calendar year 2000 
         TOTAL                         $ 8,943350.38
         


         Calendar year 2000           $ 8,943,750.38 
         Plus 4%                          357,750.02 
                
         TOTAL - 2001                 $ 9,301,500.40
  
         Calendar year 2000            $ 8,943,750.38 
         Potential Rate     
                                                          
         Increase 35%                            X.35           
         Potential                    
         Increase Amount                $3,130.312.63
                   
           
                   
           
                 
                   
               
                  
                        
                        
                        
           
                        
                        
                        
                        
                        
             
         
                        
        
                        
    
    






















































                                                                              -J