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Bill

HB 1007

prohibit use of the South Dakota public utilities commission gross receipts tax fund for reimbursement of costs incurred by the Public Utilities Commission.

2025 Regular Session

HB 1007 prohibits South Dakota's Public Utilities Commission from using gross receipts tax fund revenue for operational cost reimbursement, requiring alternative funding sources.

Signed by the Governor on 2025-03-31 H.J. 554
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Bill Summary · HB 1007

Legislative bill overview

HB 1007 prohibits the South Dakota Public Utilities Commission from using revenues from the gross receipts tax fund to reimburse its own operational costs. This bill effectively separates the funding mechanism for PUC operations from the gross receipts tax revenue stream that was previously available for that purpose.

Why is this important

The PUC regulates utilities in South Dakota, and how it funds its operations affects both the agency's capacity and utility rate structures. This change forces the state to find alternative funding sources for PUC costs, which could affect the agency's budget, staffing, and regulatory effectiveness—or shift costs to general state revenue sources or utility ratepayers through different mechanisms.

Potential points of contention

  • Funding gap: The bill eliminates a revenue source without specifying how PUC operational costs will be funded, potentially creating budget shortfalls or requiring legislative appropriations
  • Regulatory capacity: Inadequate funding could reduce the PUC's ability to conduct thorough utility rate reviews and consumer protection oversight
  • Rate structure impacts: If PUC costs shift to utility customer fees through alternative mechanisms, it may affect how those costs are allocated across residential, commercial, and industrial consumers

Compiled from official sources — confirm details with the bill’s official record.

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