This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0172 - Increases penalties for violations of utility laws
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 0649-01
BILL NO.: SB 172
SUBJECT: Public Service Commission; Utilities
TYPE: Original
DATE: January 29, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Economic Development - Public Service Commission (PSC), Department of Economic Development - Office of Public Counsel (OPC) and the Department of Natural Resources (DNR) assume the proposed legislation would have no fiscal impact on their agencies.
Oversight assumes if a municipality is found to be in violation, a penalty would result and there would be a fiscal impact to the extent the of penalty amount cited in the proposed legislation.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Small Business | |||
| Small businesses could have a direct fiscal impact as a result of this proposal to the extent that the small utility/business would be subject to increased maximum penalty amounts for each violation ($10,000 instead of $2,000). | |||
DESCRIPTION
The proposed legislation would revise certain penalties for violations by regulated utilities. The state penalty for violations of the federal Natural Gas Pipeline Safety Act of 1986 would be increased to match the federal penalty whenever so 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. The proposal would identify, as among the entities covered by this particular statute, municipalities owning gas plants.
DESCRIPTION (continued)
This legislation is federally mandated to the extent that Sections 60105 and 60122 of the Natural Gas Pipeline Safety Act of 1968 as amended (49 U.S.C., Section 60101 et.Seq.) mandate that the maximum penalty for violations of federal pipeline safety rules must be $25,000. However, the United States 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.
This proposal would not affect Total State Revenues.
SOURCES OF INFORMATION
Department of Economic Development - Public Service Commission
Department of Economic Development - Office of Public Counsel
Department of Natural Resources
Jeanne Jarrett, CPA
Director
January 29, 1999