Fiscal Note - SB 0073 - Alters Fines For Violations of Utility Laws
L.R. NO. 0442-01
BILL NO. SB 73
SUBJECT: Public Service Commission: Utilities
TYPE: Original
DATE: January 3, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Economic Development - Public Service
Commission and Office of 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 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
This proposal could have an fiscal impact for those small natural gas utility
companies to the extent that the small utility/small business would be
subject to increased civil penalties for violations of certain Commission
regulations. If a complaint is filed against small utility business for
violations of those regulations, then they may subject to increased penalty
amounts for each violation ($10,000 instead of $2,000).
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 - Office of Public Counsel
This Fiscal Note is not an official copy and should not be quoted or cited.