COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 3162-01
BILL NO.: SB 745
SUBJECT: Public Service Commission; Utilities
TYPE: Original
DATE: February 4, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
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 of the penalty amount cited in the proposed legislation.
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003
(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
February 4, 2000