View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
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
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature First Regular Session - 2001IN 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 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