SB 0209 - Fiscal Note

Fiscal Note - SB 0209 - Requires seller certification for sales of electricity and gas; distributors required to file tariffs

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0192-09

BILL NO.: Perfected SS #2 for SB 209

SUBJECT: Utility Taxation

TYPE: Original

DATE: March 31, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Economic Development - Public Service Commission (PSC) assume the proposal would have no fiscal impact on PSC. This proposal would include modifications made to a bill passed last session. PSC officials requested additional staff for that proposal and subsequently, requested staff in their budget to implement the proposal. Therefore, additional staff would not be necessary to implement modifications contained in this proposal.

Officials from the Department of Economic Development - Office of Public Counsel (OPC) and the Department of Revenue (DOR) assume the proposed legislation would have no fiscal impact on their agencies.

Officials from the City of St. Louis did not respond to our fiscal note request.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	0	0	0
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	0	0	0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

The proposed legislation would make changes to the provisions enacted in Senate Bill 627 from the 1998 legislative session, which required sellers of electricity and gas to be certified by the Public Service Commission and to file agreements which the sellers entered into, with either the distributor or political subdivision, for the payment of all gross receipt taxes or franchise fees owed. This act would clarify that the sales at issue would be deemed to be local sales, even if

DESCRIPTION (continued)

title passes outside the state, and that a retail consumer would not be considered a seller. An

enforcement provision would be added which requires distributors to file tariffs to enforce the agreement structure. The act would also extend the same framework to sales and use tax, requiring sellers of electricity and gas to file, with the Public Service Commission, agreements entered into with either the distributor or political subdivision to collect and remit all sales and use taxes. Distributors and political subdivisions would be prohibited from providing energy services to any person unless the seller has been certified by the Public Service Commission and has filed its agreements. Sellers would be required to waive all rights to challenge the validity of any agreement and of any right to a refund. A declaratory judgment action would be authorized. Legal action challenging the validity of any agreement would suspend that agreement until a final court judgment is made; if a court judgment invalidates the agreement structure, energy services could only be provided upon a showing of public convenience and necessity by the Public Service Commission. This act has an emergency clause.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

This proposal would not affect Total State Revenues.

SOURCES OF INFORMATION

Department of Economic Development - Public Service Commission

Department of Economic Development - Office of Public Counsel

Department of Revenue

NOT RESPONDING:

City of St. Louis

Jeanne Jarrett, CPA

Director

March 31, 1999