HOUSE BILL NO. 334

INTRODUCED BY J. QUILICI

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING THE FUNDING FOR THE OFFICE OF THE CONSUMER COUNSEL AND THE DEPARTMENT OF PUBLIC SERVICE REGULATION TO CONFORM TO ARTICLE VIII, SECTION 17, OF THE MONTANA CONSTITUTION; AMENDING SECTIONS 69-1-223, 69-1-224, 69-1-402, AND 69-1-403, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

WHEREAS, Article XIII, section 2, of the Montana Constitution requires that the Legislature provide for the funding of the Office of the Consumer Counsel by a special tax on the net income or gross revenue of regulated companies.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 69-1-223, MCA, is amended to read:

"69-1-223. Funding of office of consumer counsel -- public service commission. (1) There is an account in the state special revenue fund to which all fees collected under 69-1-402 and this section must be deposited and from which all appropriations to the office of the consumer counsel and some appropriations to the department of public service regulation must be paid. An appropriation to the office of the consumer counsel may consist of a base appropriation for regular operating expenses and a contingency appropriation for expenses due to an unanticipated caseload.

(2) In addition to all other licenses, fees, and taxes imposed by law, all regulated companies shall:

(a) within 30 days after the close of each calendar quarter, file with the department of public service regulation and the department of revenue a statement, in a form that the commission and department may determine, showing the gross operating revenue from all activities regulated by the commission within the state for that calendar quarter of operation or portion of a quarter, separately stating gross revenue from sales to other regulated companies for resale; and

(b) at that time pay to the department of revenue a fee based on a percentage of the gross operating revenue reported, as provided in 69-1-224.

(3) The amount of money raised by the fee on the regulated companies pursuant to 69-1-224 during a fiscal year may not be used for any purpose other than funding the office of the consumer counsel. "

Section 2. Section 69-1-224, MCA, is amended to read:

"69-1-224. Fee. (1) The department of revenue shall

impose a fee of 0.1% on the total gross operating revenue generated by all regulated activities within this state for all regulated companies for the previous fiscal year.

(2)

Regulated companies must be given at least 30 days' notice of any change in the percentage multiplier.

(3) In the event that the fee charged in 1 year is in excess of the amount actually expended in that year, the excess must be used in the subsequent fiscal year.

(4) All fees paid by a regulated company pursuant to this section are immediately recoverable by the regulated company in its rates and charges. The public service commission shall by separate order authorize each regulated company to fully recover in its rates and charges, on an annual basis, the fees levied by this part."

Section 3. Section 69-1-402, MCA, is amended to read:

"69-1-402. Funding of department of public service regulation. (1) All fees collected under this section must be deposited in the account in the state special revenue fund provided for in 69-1-223. An appropriation to the department may consist of a base appropriation for regular operating expenses and a contingency appropriation for expenses due to an unanticipated caseload.

(2) In addition to all other licenses, fees, and taxes imposed by law, all regulated companies shall, within 30 days after the close of each calendar quarter, pay to the department of revenue a fee as provided in 69-1-403.

( If the money in the account provided for in 69-1-223 is insufficient to fund the appropriations for the office of the consumer counsel and the department, then any additional money required for operation of the department must be obtained from other sources in a manner authorized by the legislature."

Section 4. Section 69-1-403, MCA, is amended to read:

"69-1-403. Determination and collection of fee. (1) The fee provided for in 69-1-402 to be paid by regulated companies is 0.25% on the total gross operating revenue of regulated companies, as defined in 69-1-401(2), except that gross revenue from sales to other regulated companies for resale, as calculated by the public service commission, must be excluded from the determination of the total gross operating revenue pursuant to 69-1-224.

(2) The department of revenue shall give notice by mail to each regulated company of the percentage to be applied to gross operating revenue reported under 69-1-223, excluding gross revenue from sales to other regulated companies for resale.

(3) The fee provided for in 69-1-402 may be collected in the manner provided in 69-1-225 through 69-1-227.

(4) All fees paid by a regulated company pursuant to this section are immediately recoverable by the regulated company in its rates and charges. The public service commission shall by separate order authorize each regulated company to fully recover in its rates and charges, on an annual basis, the fees levied by this part.

(5) If the fee charged in 1 year is in excess of the amount actually expanded in that year, the excess must be used in the subsequent fiscal year."

NEW SECTION. Section 5. Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then [this act] is void.

NEW SECTION. Section 6. Effective date. [This act] is effective on passage and approval.

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