MISSISSIPPI LEGISLATURE

2024 Regular Session

To: Public Utilities

By: Representative Bounds

House Bill 1117

AN ACT TO AMEND SECTION 77-3-87, MISSISSIPPI CODE OF 1972, TO REQUIRE CERTAIN TAXES COLLECTED FROM UTILITIES TO BE CREDITED TO THE PUBLIC UTILITIES STAFF REGULATION FUND TO COVER THE EXPENSES OF THE PUBLIC UTILITIES STAFF; TO AMEND SECTION 27-104-205, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT THE PUBLIC UTILITIES STAFF IS NOT INCLUDED IN THE LIST OF STATE AGENCIES FUNDED BY APPROPRIATION FROM THE STATE GENERAL FUND UNDER THE MISSISSIPPI BUDGET TRANSPARENCY AND SIMPLIFICATION ACT OF 2016; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 77-3-87, Mississippi Code of 1972, is amended as follows:

     77-3-87.  All reasonable and necessary expenses of the administration of the duties imposed on the Public Utilities Staff and on the commission by Title 77, Mississippi Code of 1972, excluding the reasonable and necessary expenses of the administration and enforcement by the commission of the laws of this state pursuant to Chapters 7 and 9, Title 77, Mississippi Code of 1972, shall be provided as follows:  There is * * *hereby levied a tax upon (a) all utilities, the rates of which are subject to regulation by the provisions of this chapter and upon (b) all utilities not subject to such rate regulation which furnish to the ultimate consumer utility services of the type described by subparagraph (i) of paragraph (d) of Section 77-3-3 and otherwise subject to regulation by the provisions of this chapter, such levy to be effective on the first day of each year and to be calculated as follows:  The rate of the tax shall be one hundred sixty-four thousandths of one percent (164/1000 of 1%) per year, of the gross revenues from the intrastate operations of the utilities taxed under this section.  The rate of the tax for electric power associations and rural electrification authorities shall be ninety thousandths of one percent (90/1000 of 1%) per year of the gross revenues from the intrastate operations of electric power associations and rural electrification authorities taxed under this section.  Effective July 1, 2017, the sum of all taxes levied by this section shall not exceed the total legislative appropriation of monies for the Public Utilities Staff and the Public Service Commission for the ensuing fiscal year.  The commission and the executive director of the Public Utilities Staff shall certify to the Department of Revenue the amount of legislative appropriations of monies for the regulation of utilities.  The Department of Revenue shall adjust the tax rates on a pro rata basis to generate the necessary revenues established by such legislative appropriations.  Each utility which is subject to the tax levied by this section shall file a statement of its gross revenue by April 1 of each year showing the gross revenue for the preceding year's operation.  These statements of gross revenue shall be filed with the Department of Revenue on forms prescribed and furnished by the Department of Revenue.  The Department of Revenue shall file a copy of these statements of gross revenue with the Public Utilities Staff and the commission.  The Department of Revenue shall calculate the amount of tax to be paid by each of the utilities and shall submit a statement thereof to the respective utilities, and the amount shown due in the statements to the utilities shall be paid by them within thirty (30) days thereafter to the Department of Revenue.  The Department of Revenue shall furnish the Public Utilities Staff and the commission with an itemized list showing gross and net revenues, assessments, tax collections and other related information for the respective utilities.  The Department of Revenue shall deposit funds into the State Treasury to the credit of the Public Utilities Staff Regulation Fund for the expenses of the Public Utilities Staff and into the State General Fund for the expenses of the Public Service Commission in the same proportion that the total legislative appropriation of monies to the Public Utilities Staff from the Public Utilities Staff Regulation Fund bears to the total legislative appropriation of monies from the General Fund to the Public Service Commission for the ensuing fiscal year.  The Department of Revenue shall deposit these funds * * *into the General Fund of the State Treasury on the same day collected.

     All administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provisions of such chapter, and all other duties and requirements imposed upon taxpayers, shall apply to all persons liable for taxes under the provisions of this chapter, and the Commissioner of Revenue shall exercise all the power and authority and perform all the duties with respect to taxpayers under this chapter as are provided in the Mississippi Sales Tax Law except where there is a conflict, then the provisions of this chapter shall control.  The term "gross revenue" as used in this section is the total amount of all revenue derived by each of the utilities from its intrastate operations, which are subject to rate regulation under the provisions of this chapter or which constitute utility services of the type described by subparagraph (i) of paragraph (d) of Section 77-3-3 and which are regulated by this chapter and furnished to ultimate consumers.  The Department of Revenue is * * *hereby authorized to use all tax returns of any utilities available to it and to make audits as may be deemed necessary of all records of utilities in order to correctly determine the amount of such gross revenue.

     All proceeds of the above-mentioned tax are * * *hereby to be allocated to the Public Utilities Staff and to the commission in the manner provided in this section for the purpose of this chapter.

     Each utility subject to the provisions of this section shall be allowed to recover, through the use of a rate adjustment clause or rider, the total amount of taxes paid by the utility pursuant to this section for the reasonable and necessary expenses of the commission and the Public Utilities Staff.

      * * *From and after July 1, 2016, The expenses of * * *this agency the Public Service Commission shall be defrayed by appropriation from the State General Fund, and all user charges and fees authorized under this section which are not credited to the Public Utilities Staff Regulation Fund shall be deposited into the State General Fund as authorized by law.

      * * *From and after July 1, 2016, no state agency The Public Service Commission shall not charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

     SECTION 2.  Section 27-104-205, Mississippi Code of 1972, is amended as follows:

     27-104-205.  (1)  From and after July 1, 2016, the expenses of the following enumerated state agencies shall be defrayed by appropriation of the Legislature from the State General Fund:  the State Fire Marshal, the State Fire Academy (not including the State Fire Academy Workforce Program Fund), the Office of Secretary of State (not including the Preneed Contracts Loss Recovery Fund), the Mississippi Public Service Commission (not including the Public Utilities Staff Regulation Fund, from which the expenses of the Public Utilities Staff are paid), the Mississippi Department of Information Technology Services, (not including the Mississippi Department of Information Technology Services Revolving Fund), the State Personnel Board, the Mississippi Department of Insurance (not including the Municipal Fire Protection Fund, Section 83-1-37, the County Volunteer Fire Department Fund, Section 83-1-39, and the Mississippi Propane Education and Research Fund, Section 75-57-119), the Mississippi Law Enforcement Officers' Minimum Standards Board, the Mississippi Gaming Commission, the Office of the State Public Defender, the Mississippi Workers' Compensation Commission (not including the Second Injury Trust Fund) and the Office of Attorney General.  Beginning July 1, 2016, any fees, assessments or other revenues charged for the support of the above-named state agencies shall be deposited into the State General Fund, and any special fund or depository established within the State Treasury for the deposit of such fees, assessments or revenues shall be abolished and the balance transferred to the State General Fund.  Expenses heretofore drawn from such special funds or other depositories shall be drawn from the agencies' General Fund Account.

     (2)  Beginning with the fiscal year ending June 30, 2016, the amount to be appropriated annually from the State General Fund for the support of each of the above-named state agencies shall not exceed the amount appropriated for such purpose in the preceding fiscal year, plus any increases in or additional fees, assessments or other charges authorized by act of the Legislature for the succeeding fiscal year.

     (3)  The provisions of this section shall not apply to any trust fund account that is maintained by any above-named agency.

     (4)  The provisions of this section shall not prohibit any of the above-named agencies from maintaining clearing accounts in approved depositories.

     (5)  The provisions of this section shall not apply to any trust fund accounts maintained by the Public Employees' Retirement System and protected under Section 272A of the Mississippi Constitution of 1890.

     SECTION 3.  This act shall take effect and be in force from and after July 1, 2024.