SB 0590 - Fiscal Note

Fiscal Note - SB 0590 - Alters Fines For Violations of Utility Laws

L.R. NO.  2214-01
BILL NO.  SB 590
SUBJECT:  Public Service Commission:  Utilities
TYPE:     Original
DATE:     January 10, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
None

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Local Government                $0                  $0                $0


                              FISCAL ANALYSIS
ASSUMPTION

Officials of the Department of Economic Development - Public Service
Commission and Public Counsel assume that this proposal would have no fiscal
impact to their agency.

Oversight assumes that if a municipality is found to be in violation, a
penalty would result and there would be a fiscal impact to the extent of the
penalty amount cited in the proposed legislation.

FISCAL IMPACT - State Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)

                                       0         0         0

FISCAL IMPACT - Local Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)

                                       0         0         0


DESCRIPTION

This proposal would revise certain penalties for violations by regulated
utilities.  It would increase the state penalty for violations of the federal
Natural Gas Pipeline Safety Act of 1986 to match the federal penalty whenever
required by federal law.  The maximum federal penalty for violations of such
safety standards is a fine of up to $10,000 per violation, limited to
$500,000 per related series of violations.

This legislation is federally mandated to the extent that certain sections of
the Natural Gas Pipeline Safety Act of 1968 as amended mandates that the
maximum penalty for violations of federal pipeline safety rules is $25,000.
However, the US Department of Transportation currently requires states
participating in the Pipeline Safety Grant Aid Program to have a $10,000
minimum penalty for violations.  This legislation would not duplicate any
other program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Department of Economic Development - Public Service Commission
Department of Economic Development - Public Counsel