Public Utilities Staff; remove from the provisions of the MS Budget Transparency and Simplification Act.

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To: Public Utilities;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Bounds

HOUSE BILL NO. 713

AN ACT TO AMEND SECTION 77-3-87, MISSISSIPPI CODE OF 1972, TO 1
REQUIRE CERTAIN TAXES COLLECTED FROM UTILITIES TO BE CREDITED TO 2
THE PUBLIC UTILITIES STAFF REGULATION FUND TO COVER THE EXPENSES 3
OF THE PUBLIC UTILITIES STAFF; TO AMEND SECTION 27-104-205, 4
MISSISSIPPI CODE OF 1972, TO CLARIFY THAT THE PUBLIC UTILITIES 5
STAFF IS NOT INCLUDED IN THE LIST OF STATE AGENCIES FUNDED BY 6
APPROPRIATION FROM THE STATE GENERAL FUND UNDER THE MISSISSIPPI 7
BUDGET TRANSPARENCY AND SIMPLIFICATION ACT OF 2016; AND FOR 8
RELATED PURPOSES. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 10
SECTION 1. Section 77-3-87, Mississippi Code of 1972, is 11
amended as follows: 12
77-3-87. All reasonable and necessary expenses of the 13
administration of the duties imposed on the Public Utilities Staff 14
and on the commission by Title 77, Mississippi Code of 1972, 15
excluding the reasonable and necessary expenses of the 16
administration and enforcement by the commission of the laws of 17
this state pursuant to Chapters 7 and 9, Title 77, Mississippi 18
Code of 1972, shall be provided as follows: There is * * * levied 19
a tax upon (a) all utilities, the rates of which are subject to 20
regulation by the provisions of this chapter and upon (b) all 21
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utilities not subject to such rate regulation which furnish to the 22
ultimate consumer utility services of the type described by 23
subparagraph (i) of paragraph (d) of Section 77-3-3 and otherwise 24
subject to regulation by the provisions of this chapter, such levy 25
to be effective on the first day of each year and to be calculated 26
as follows: The rate of the tax shall be one hundred sixty-four 27
thousandths of one percent (164/1000 of 1%) per year, of the gross 28
revenues from the intrastate operations of the utilities taxed 29
under this section. The rate of the tax for electric power 30
associations and rural electrification authorities shall be ninety 31
thousandths of one percent (90/1000 of 1%) per year of the gross 32
revenues from the intrastate operations of electric power 33
associations and rural electrification authorities taxed under 34
this section. Effective July 1, 2017, the sum of all taxes levied 35
by this section shall not exceed the total legislative 36
appropriation of monies for the Public Utilities Staff and the 37
Public Service Commission for the ensuing fiscal year. The 38
commission and the executive director of the Public Utilities 39
Staff shall certify to the Department of Revenue the amount of 40
legislative appropriations of monies for the regulation of 41
utilities. The Department of Revenue shall adjust the tax rates 42
on a pro rata basis to generate the necessary revenues established 43
by such legislative appropriations. Each utility which is subject 44
to the tax levied by this section shall file a statement of its 45
gross revenue by April 1 of each year showing the gross revenue 46
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for the preceding year's operation. These statements of gross 47
revenue shall be filed with the Department of Revenue on forms 48
prescribed and furnished by the Department of Revenue. The 49
Department of Revenue shall file a copy of these statements of 50
gross revenue with the Public Utilities Staff and the commission. 51
The Department of Revenue shall calculate the amount of tax to be 52
paid by each of the utilities and shall submit a statement thereof 53
to the respective utilities, and the amount shown due in the 54
statements to the utilities shall be paid by them within thirty 55
(30) days thereafter to the Department of Revenue. The Department 56
of Revenue shall furnish the Public Utilities Staff and the 57
commission with an itemized list showing gross and net revenues, 58
assessments, tax collections and other related information for the 59
respective utilities. The Department of Revenue shall deposit 60
funds into the State Treasury to the credit of the Public 61
Utilities Staff Regulation Fund for the expenses of the Public 62
Utilities Staff in the same proportion that the total legislative 63
appropriation of monies to the Public Utilities Staff from the 64
Public Utilities Staff Regulation Fund bears to the total 65
legislative appropriation of monies to the Public Service 66
Commission for the ensuing fiscal year. The Department of Revenue 67
shall deposit these funds * * * on the same day collected. 68
All administrative provisions of the Mississippi Sales Tax 69
Law, including those which fix damages, penalties and interest for 70
nonpayment of taxes and for noncompliance with the provisions of 71
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such chapter, and all other duties and requirements imposed upon 72
taxpayers, shall apply to all persons liable for taxes under the 73
provisions of this chapter, and the Commissioner of Revenue shall 74
exercise all the power and authority and perform all the duties 75
with respect to taxpayers under this chapter as are provided in 76
the Mississippi Sales Tax Law except where there is a conflict, 77
then the provisions of this chapter shall control. The term 78
"gross revenue" as used in this section is the total amount of all 79
revenue derived by each of the utilities from its intrastate 80
operations, which are subject to rate regulation under the 81
provisions of this chapter or which constitute utility services of 82
the type described by subparagraph (i) of paragraph (d) of Section 83
77-3-3 and which are regulated by this chapter and furnished to 84
ultimate consumers. The Department of Revenue is * * * authorized 85
to use all tax returns of any utilities available to it and to 86
make audits as may be deemed necessary of all records of utilities 87
in order to correctly determine the amount of such gross revenue. 88
All proceeds of the above-mentioned tax are * * * to be 89
allocated to the Public Utilities Staff and to the commission in 90
the manner provided in this section for the purpose of this 91
chapter. 92
Each utility subject to the provisions of this section shall 93
be allowed to recover, through the use of a rate adjustment clause 94
or rider, the total amount of taxes paid by the utility pursuant 95
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to this section for the reasonable and necessary expenses of the 96
commission and the Public Utilities Staff. 97
* * * The expenses of * * * the Public Service Commission 98
shall be defrayed by appropriation from the State General Fund, 99
and all taxes, user charges and fees authorized under this section 100
which are not credited to the Public Utilities Staff Regulation 101
Fund shall be deposited into the State General Fund as authorized 102
by law. 103
* * * The Public Service Commission shall not charge another 104
state agency a fee, assessment, rent or other charge for services 105
or resources received by authority of this section. 106
SECTION 2. Section 27-104-205, Mississippi Code of 1972, is 107
amended as follows: 108
27-104-205. (1) From and after July 1, 2016, the expenses 109
of the following enumerated state agencies shall be defrayed by 110
appropriation of the Legislature from the State General Fund: the 111
State Fire Marshal, the State Fire Academy (not including the 112
State Fire Academy Workforce Program Fund), the Office of 113
Secretary of State (not including the Preneed Contracts Loss 114
Recovery Fund, Land Records Maintenance Fund), the Mississippi 115
Public Service Commission (not including the Public Utilities 116
Staff Regulation Fund, from which the expenses of the Public 117
Utilities Staff are paid), the Mississippi Department of 118
Information Technology Services, (not including the Mississippi 119
Department of Information Technology Services Revolving Fund), the 120
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State Personnel Board, the Mississippi Department of Insurance 121
(not including the Municipal Fire Protection Fund, Section 122
83-1-37, the County Volunteer Fire Department Fund, Section 123
83-1-39, and the Mississippi Propane Education and Research Fund, 124
Section 75-57-119), the Mississippi Law Enforcement Officers' 125
Minimum Standards Board, the Mississippi Gaming Commission, the 126
Office of the State Public Defender, the Mississippi Workers' 127
Compensation Commission (not including the Second Injury Trust 128
Fund) and the Office of Attorney General. Beginning July 1, 2016, 129
any fees, assessments or other revenues charged for the support of 130
the above-named state agencies shall be deposited into the State 131
General Fund, and any special fund or depository established 132
within the State Treasury for the deposit of such fees, 133
assessments or revenues shall be abolished and the balance 134
transferred to the State General Fund. Expenses heretofore drawn 135
from such special funds or other depositories shall be drawn from 136
the agencies' General Fund Account. 137
(2) Beginning with the fiscal year ending June 30, 2016, the 138
amount to be appropriated annually from the State General Fund for 139
the support of each of the above-named state agencies shall not 140
exceed the amount appropriated for such purpose in the preceding 141
fiscal year, plus any increases in or additional fees, assessments 142
or other charges authorized by act of the Legislature for the 143
succeeding fiscal year. 144
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Simplification Act.
(3) The provisions of this section shall not apply to any 145
trust fund account that is maintained by any above-named agency. 146
(4) The provisions of this section shall not prohibit any of 147
the above-named agencies from maintaining clearing accounts in 148
approved depositories. 149
(5) The provisions of this section shall not apply to any 150
trust fund accounts maintained by the Public Employees' Retirement 151
System and protected under Section 272A of the Mississippi 152
Constitution of 1890. 153
SECTION 3. This act shall take effect and be in force from 154
and after July 1, 2026. 155