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ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 2663
(By Delegates Moye, T. Campbell, Manchin,
Shaver, Stephens, Barker, M. Poling and Doyle)
[Passed March 12, 2011; in effect ninety days from passage.]
AN ACT to
amend and reenact §11-13-3f of the Code of West Virginia,
1931, as amended be amended and reenacted; to amend and
reenact §11-13F-1 of said code; to amend and reenact §11-24-11
of said code; to amend and reenact §24-1-3, §24-1-4 and §24-1-
6 of said code; to amend and reenact §24-2A-2 of said code; to
amend said code by adding thereto a new section, designated
§24-2A-5; and to amend and reenact §24-3-2, all relating to
duties of the Public Service Commission; requiring at least
one commissioner be present at any public hearing on a public
utility; requiring the commission establish a website and
toll-free telephone number for reception of public comments;
adding cost of providing private water utility services to
qualified low-income residents to matters that the commission
must certify and deleting obsolete language
.
Be it enacted by the Legislature of West Virginia:
That §11-13-3f of the Code of West Virginia, 1931, as amended
be amended and reenacted; that §11-13F-1 be amended and reenacted; that §11-24-11 be amended and reenacted; that §24-1-3, §24-1-4 and
§24-1-6 be amended and reenacted; that §24-2A-2 be amended and
reenacted; that §24-3-2 be amended and reenacted; and that said
code be amended by adding thereto a new section, designated §24-2A-
5, all to read as follows:
CHAPTER 11. TAXATION.
ARTICLE 13. BUSINESS AND OCCUPATION TAX.
§11-13-3f. Tax credit for reducing electric and natural gas
utility rates for low-income residential
customers; regulations.
(a) There shall be allowed as a credit against the tax imposed
by this article, the cost of providing electric or natural gas or
water utility service, or any combination of electric, natural gas
or water utility services, at reduced rates to qualified low-income
residential customers which has not been reimbursed by any other
means.
(b) The tax commissioner may prescribe such regulations as may
be necessary to carry out the purposes of this section, of article
thirteen-f of this chapter and of section eleven, article twenty-
four of this chapter.
ARTICLE 13F. BUSINESS AND OCCUPATION TAX CREDIT FOR REDUCING
ELECTRIC, NATURAL GAS AND WATER UTILITY RATES FOR
LOW-INCOME RESIDENTIAL CUSTOMERS.
§11-13F-1. Legislative Purpose.
In order to reimburse public utilities for the revenue deficiencies that they incur in providing special reduced electric
and natural gas utility rates to low-income residential customers
in accordance with the provisions of article two-a of chapter
twenty-four, there is hereby provided a business and occupation tax
credit for reducing electric natural gas, and water utility rates
for low-income residential customers.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-11. Credit for reducing electric, natural gas and water
utility rates for low-income residential customers.
(a) General. -- A credit shall be allowed against the primary
tax liability of an eligible taxpayer under this article for the
cost of providing electric natural gas or water utility service, or
any combination of electric, natural gas or water utility services,
at special reduced rates to qualified low-income residential
customers which has not been reimbursed by any other means.
(b) Definitions. -- For purposes of this section, the term:
(1) "Eligible taxpayer" means a utility which has provided
electric natural gas or water utility service, or any combination
of electric, natural gas or water utility services, to qualified
low-income residential customers at special reduced rates.
(2) "Cost of providing electric or natural gas or water
utility service, or any combination of electric, natural gas or
water utility services, at special reduced rates" means the amount
certified by the public service commission under the provisions of
section three, article two-a, chapter twenty-four of this code, as the revenue deficiency incurred by a public utility in providing
special reduced rates for electric natural gas or water utility
service, or any combination of electric, natural gas or water
utility services, as required by section one, article two-a,
chapter twenty-four of this code.
(3) "Special reduced rates" means the rates ordered by the
public service commission under the authority of sections one, and
five article two-a, chapter twenty-four of this code.
(4) "Qualified low-income residential customers" means those
utility customers eligible to receive electric natural gas or water
utility service, or any combination of electric, natural gas or
water utility services, under special reduced rates.
(c) Amount of credit.--The amount of the credit available to
any eligible taxpayer shall be equal to its cost of providing
electric or natural gas service, or both, at special reduced rates
to qualified residential customers, less any reimbursement of said
cost which the taxpayer has received through any other means.
(d) When credit may be taken. -- An eligible taxpayer may
claim a credit allowed under this section on its annual return for
the taxable year in which it receives certification of the amount
of its revenue deficiency from the public service commission.
Notwithstanding the provisions of section sixteen of this article
to the contrary, no credit may be claimed on any declaration of
estimated tax filed for such taxable year prior to the first day of
July of such taxable year. Such credit may be claimed on a
declaration or amended declaration filed on or after that date but only if the amount certified will not be recovered by application
of the business and occupation tax credit allowed by section three-
f, article thirteen of this chapter. In such event, only that
amount not recovered by that credit may be considered or taken as
a credit when estimating the tax due under this article. In no
event may the eligible taxpayer recover more than one hundred
percent of its revenue deficiency as certified by the public
service commission.
(e) Application of credit. -- The credit allowable by this
section for a taxable year is not subject to the fifty percent
limitation specified in section nine of this article.
Notwithstanding the provisions of section four, article
thirteen-f of this chapter, any unused credit may be carried over
and applied against business and occupation taxes in the manner
specified in section five, article thirteen-f of this chapter.
(f) Copy of certification order. -- A copy of a certification
order from the public service commission shall be attached to any
annual return under this article on which a credit allowed by this
section is taken.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-11. Credit for reducing electric natural gas and water
utility rates for low-income residential customers.
(a) General. -- A credit shall be allowed against the primary
tax liability of an eligible taxpayer under this article for the
cost of providing electric natural gas or water utility service, or any combination of electric, natural gas or water utility services,
at special reduced rates to qualified low-income residential
customers which has not been reimbursed by any other means.
(b) Definitions. -- For purposes of this section, the term:
(1) "Eligible taxpayer" means a utility which has provided
electric natural gas or water utility service, or any combination
of electric, natural gas or water utility services, to qualified
low-income residential customers at special reduced rates.
(2) "Cost of providing electric natural gas or water utility
service, or any combination of electric, natural gas or water
utility services, at special reduced rates" means the amount
certified by the public service commission under the provisions of
section three, article two-a, chapter twenty-four of this Code, as
the revenue deficiency incurred by a public utility in providing
special reduced rates for electric natural gas or water utility
service, or any combination of electric, natural gas or water
utility services, as required by section one, article two-a,
chapter twenty-four of this code.
(3) "Special reduced rates" means the rates ordered by the
public service commission under the authority of section one,
article two-a, chapter twenty-four of this code.
(4) "Qualified low-income residential customers" means those
utility customers eligible to receive electric natural gas or water
utility service, or any combination of electric, natural gas or
water utility services, under special reduced rates.
(c) Amount of credit. -- The amount of the credit available to
any eligible taxpayer shall be equal to its cost of providing
electric natural gas or water utility service, or any combination
of electric, natural gas or water utility services, at special
reduced rates to qualified residential customers, less any
reimbursement of said cost which the taxpayer has received through
any other means.
(d) When credit may be taken. -- An eligible taxpayer may
claim a credit allowed under this section on its annual return for
the taxable year in which it receives certification of the amount
of its revenue deficiency from the public service commission.
Notwithstanding the provisions of section sixteen of this article
to the contrary, no credit may be claimed on any declaration of
estimated tax filed for such taxable year prior to the first day of
July of such taxable year. Such credit may be claimed on a
declaration or amended declaration filed on or after that date but
only if the amount certified will not be recovered by application
of the business and occupation tax credit allowed by section three-
f, article thirteen of this chapter. In such event, only that
amount not recovered by that credit may be considered or taken as
a credit when estimating the tax due under this article. In no
event may the eligible taxpayer recover more than one hundred
percent of its revenue deficiency as certified by the public
service commission.
(e) Application of credit. -- The credit allowable by this section for a taxable year is not subject to the fifty percent
limitation specified in section nine of this article.
Notwithstanding the provisions of section four, article thirteen-f
of this chapter, any unused credit may be carried over and applied
against business and occupation taxes in the manner specified in
section five, article thirteen-f of this chapter.
(f) Copy of certification order. -- A copy of a certification
order from the public service commission shall be attached to any
annual return under this article on which a credit allowed by this
section is taken.
CHAPTER 24. PUBLIC SERVICE COMMISSION.
ARTICLE 1. GENERAL PROVISIONS.
§24-1-3. Commission continued; membership; chairman; compensation;
quorum.
(a) The Public Service Commission of West Virginia is
continued and directed as provided by this chapter, chapter twenty-
four-a, chapter twenty-four-b and chapter twenty-four-d of this
code. The Public Service Commission may sue and be sued by that
name.
(b) The Public Service Commission shall consist of three
members who shall be appointed by the Governor, with the advice and
consent of the Senate. The commissioners shall be citizens and
residents of this state and at least one of them shall be duly
licensed to practice law in West Virginia, with not less than ten years' actual work experience in the legal profession as a member
of a State Bar.
(c) No more than two of the commissioners shall be members of
the same political party.
(d) Each commissioner shall, before entering upon the duties
of his or her office, take and subscribe to the oath provided by
section five, article IV of the Constitution of this state. The
oath shall be filed in the office of the Secretary of State.
(e) The Governor shall designate one of the commissioners to
serve as chairman at the Governor's will and pleasure. The
chairman shall be the chief administrative officer of the
commission. The Governor may remove any commissioner only for
incompetency, neglect of duty, gross immorality, malfeasance in
office or violation of subsections (g) and (h) of this section.
(f) Upon expiration of the terms, appointments are for terms
of six years, except that an appointment to fill a vacancy is for
the unexpired term only.
(g) No person while in the employ of, or holding any official
relation to, any public utility subject to the provisions of this
chapter or holding any stocks or bonds of a public utility subject
to the provisions of this chapter or who is pecuniarily interested
in a public utility subject to the provisions of this chapter may
serve as a member of the commission or as an employee of the
commission.
(h) Nor may any commissioner be a candidate for or hold public office or be a member of any political committee while acting as a
commissioner; nor may any commissioner or employee of the
commission receive any pass, free transportation or other thing of
value, either directly or indirectly, from any public utility or
motor carrier subject to the provisions of this chapter. In case
any of the commissioners becomes a candidate for any public office
or a member of any political committee, the Governor shall remove
him or her from office and shall appoint a new commissioner to fill
the vacancy created.
(i) The annual salary of each commissioner provided in section
two-a, article seven, chapter six of this code shall be paid in
monthly installments from the special funds in the percentages that
follow:
(1) From the Public Service Commission Fund collected under
the provisions of section six, article three of this chapter,
eighty percent;
(2) From the Public Service Commission Motor Carrier Fund
collected under the provisions of section six, article six, chapter
twenty-four-a of this code, seventeen percent; and
(3) From the Public Service Commission Gas Pipeline Safety
Fund collected under the provisions of section three, article five,
chapter twenty-four-b of this code, three percent.
(j) In addition to the salary provided for all commissioners
in section two-a, article seven, chapter six of this code, the
chairman of the commission shall receive $5,000 per annum to be paid in monthly installments from the Public Service Commission
Fund collected under the provisions of section six, article three
of this chapter.
§24-1-4. Appointment, duties and compensation of secretary and
other employees; hearings generally; public comment;
outside employment by certain employees prohibited.
The commission shall appoint a secretary and such other
employees as may be necessary to carry out the provisions of this
chapter and shall fix their respective salaries or compensations.
It shall be the duty of the secretary to keep a full and true
record of all proceedings, acts, orders and judgments of the
commission, to issue all necessary process, returns and notices, to
keep all books, maps, documents and papers ordered filed by the
commission, and all orders made by the commission or approved and
confirmed by it and ordered to be filed; and he shall be
responsible to the commission for the safe custody and preservation
of all such documents in his office. He may administer oaths in
all parts of the state, so far as the exercise of such power is
properly incidental to the performance of his duty or that of the
commission.
The commission may designate such of its employees as it deems
necessary to hold hearings, held or required by this chapter, and
to take evidence at such hearings, which employees are hereby
empowered to subpoena witnesses, administer oaths, take testimony,
require the production of documentary evidence and exercise such other powers and perform such other duties as may be delegated to
them and required by the commission, in any proceeding or
examination instituted or conducted by the commission under this
chapter, at any designated place of hearing within the state.
The Commission shall provide a web site to accept comments
from West Virginia residents regarding any matter under the
auspices of the Commission or before the commission. The Commission
staff shall report to the full commission all comments and
suggestions received through the web site.
Any commissioner or person employed by the commission other
than on a part-time basis shall devote full time to the performance
of his duties as such commissioner or employee during the regular
working hours as set by the commission.
§24-1-6. Office of commission; time and place of hearings; number
of commissioners required for taking action.
The general office of the commission shall be kept at the seat
of government and in charge of the secretary or his or her deputy.
Hearings and the taking of evidence may be had at such times and
places and in such manner in each particular case as the commission
may designate. If the sole purpose of the hearing is to receive
public comment or protest, then not less than one commissioner is
required to be present.
The concurrent judgment of two of the commissioners, when in
session as the commission, shall be deemed the action of the
commission, and a vacancy in the commission shall not affect the right or duty of the remaining commissioners to function as a
commission.
ARTICLE 2A. REDUCED RATES FOR LOW-INCOME RESIDENTIAL CUSTOMERS OF
ELECTRICITY AND GAS.
§24-2A-2. Recovery of revenue deficiencies.
In order to provide the special reduced rates mandated by
sections one and five of this article and still maintain the
integrity of the earnings of the utilities offering service under
these rates, the commission shall each year, determine, upon
application by any affected utility, that utility's revenue
deficiency resulting from the special reduced rates. Upon
determining any utility's revenue deficiency, the commission shall
issue an order certifying the amount of that deficiency. Certified
revenue deficiencies shall be recovered by the affected utilities
as follows:
(1) A utility's certified revenue deficiency, if any,
resulting from the special reduced rates shall be allowed as a tax
credit against the liability of the utility pursuant to the
provisions of article thirteen-f of chapter eleven of this code.
(2) After allowance of a tax credit pursuant to the provisions
of article thirteen-f of chapter eleven, a utility's remaining
revenue deficiency, if any, resulting from the special reduced
rates, shall be allowed as a tax credit against the liability of
the utility pursuant to the provisions of section eleven, article twenty-four of chapter eleven.
§24-2A-5. Special rates for certain water utility customers.
(a) The commission may authorize a privately owned water
utility to voluntarily implement a rate design featuring reduced
rates and charges for service for residential utility customers
receiving:
(1) Social Security Supplemental Security Income (SSI);
(2) Temporary Assistance for Needy Families (TANF);
(3) Temporary Assistance for Needy Families-Unemployed Parent
Program (TANF-UP);or
(4) assistance from the Supplemental Nutrition Assistance
Program (SNAP) if they are sixty years of age or older.
(b) The special reduced rate offered by each water utility to
its eligible customers shall be a percentage less, which shall be
approved by the commission, than the rate that would be applicable
to such customers if they were not receiving any of the four forms
of assistance that confer eligibility for the special reduced rates
approved by the commission: Provided, That such rate reduction
shall not exceed twenty percent of the rate that would be otherwise
applicable.
(c) Before any individual may qualify to receive the special
reduced rates, the following requirements must be met:
(1) The special reduced rates may apply only to current
customers or to those persons who subsequently become customers in their own right. If an SSI, TANF-UP or SNAP recipient is living in
a household that is served under the name of a person who is not an
SSI, TANF, TANF-UP or SNAP recipient, that service may not be
changed or have been changed subsequent to July 1 , 2011, to the
name of the SSI, TANF, TANF-UP or SNAP recipient in order to
qualify for service under the special reduced rates.
(2) The burden of proving eligibility for the special reduced
rates shall be on the customer requesting such rates. The
Department of Health and Human Resources shall establish by rules
procedures:
(A) To inform persons receiving any of the four forms of
assistance that confer eligibility for the special reduced rates
about the availability of the special reduced rates;
(B) To assist applicants for the special reduced rates in
proving their eligibility therefor; and
(C) To assist water utilities offering the special reduced
rates in determining on a continuing basis the eligibility therefor
of persons receiving or applying for such rates.
The commission shall establish rules and procedures for the
application for and provision of service under the special reduced
rates and for the determination and certification of revenue
deficiencies resulting from the special reduced rates.
(3) In order to provide each eligible residential utility
customer the special reduced rates, each utility providing the
special reduced rates shall credit against amounts otherwise owed by each customer an amount equal to the difference between the
total amount that each customer was actually billed during the
previous month and the total amount that each customer would have
been entitled to be billed under the special reduced rates. Each
credit shall be fully reflected on the first bill issued to each
customer after approval of each customer's application for the
special reduced rates, except in cases where the interval between
the approval and the issuance of the next bill is so short that it
is administratively impracticable to do so, in which case, such
credits shall be fully reflected on the second bill issued to each
customer after approval of that customer's application. If the
interval between the approval and the issuance of the next bill is
fifteen days or more, it may not be deemed administratively
impracticable to reflect the credit on the customer's first bill.
ARTICLE 3. DUTIES AND PRIVILEGES OF PUBLIC UTILITIES SUBJECT TO
REGULATIONS OF COMMISSION.
§24-3-2. Discrimination prohibited.
No public utility subject to the provisions of this chapter
shall, directly or indirectly, by any special rate, rebate,
drawback or other device or method, charge, demand, collect or
receive from any person, firm or corporation, a greater or less
compensation, for any service rendered or to be rendered, than it
charges, demands, collects, or receives from any other person, firm
or corporation for doing a like and contemporaneous service under
the same or substantially similar circumstances and conditions.
It shall be unlawful for any public utility subject to the
provisions of this chapter to make or give any undue or
unreasonable preference or advantage to any particular person,
company, firm, corporation or locality, or any particular character
of traffic or service, in any respect whatsoever, or to subject any
particular person, firm, corporation, company or locality, or any
particular character of traffic or service, to any undue or
unreasonable prejudice or disadvantage in any respect whatsoever.
Nothing in this section shall be construed to prevent the
commission from:
(a) Authorizing or requiring any rate design consistent with
the purposes and policies set forth in article two-a of this
chapter; or
(b) Authorizing a private water utility to voluntarily
implement a rate design featuring reduced rates and charges for
service to qualifying low-income residential customers.