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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 - 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
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