Bill Text: CA SB1350 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public utilities: fines and penalties.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-05-24 - Held in committee and under submission. [SB1350 Detail]

Download: California-2011-SB1350-Amended.html

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BILL NUMBER: SB 1350	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 10, 2012

INTRODUCED BY   Senator Leno

                        FEBRUARY 24, 2012

   An act to amend Sections 2104 and 2104.5 of the Public Utilities
Code, relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1350, as amended, Leno. Public utilities: fines and penalties.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, as defined. The Public Utilities
Act requires the commission to investigate the cause of all accidents
occurring upon the property of any public utility or directly or
indirectly arising from or connected with its maintenance or
operation, resulting in loss of life or injury to person or property
and requiring, in the judgment of the commission, investigation by
it, and authorizes the commission to make any order or recommendation
with respect to the investigation that it determines to be just and
reasonable. The act provides that any public utility that violates
any provision of the California Constitution or the act, or that
fails or neglects to comply with any order, decision, decree, rule,
direction, demand, or requirement of the commission, where a penalty
has not otherwise been provided, is subject to a penalty of not less
than $500 and not more than $50,000 for each offense. Existing law
requires that any fine or penalty imposed by the commission and
collected from a public utility be paid to the State Treasury to the
credit of the General Fund. The act includes provisions that are
specific to gas corporations that involve safety standards for
pipeline facilities or the transportation of gas in the state.
   This bill would revise the provisions that are specific to gas
corporations that involve safety standards for pipeline facilities or
the transportation of gas in the state, to authorize the commission
to order that all or a portion of a fine or penalty levied against a
gas corporation in relation to a safety standard for pipeline
facilities or the transportation of gas in the state be held in
 trust by the commission   a separate account by
the gas corporation  to offset  investments,  expenses
 , or both,  for gas safety measures that would otherwise
be recovered from the utility's customers.  The bill would
require the commission to set a rate of interest for these accounts.
The bill would authorize the commission to audit these accounts.
 The bill would require that moneys ordered by the commission to
be held in  trust   one of these accounts 
be used only for the purpose of offsetting  investments, 
expenses  , or both,  incurred by the gas corporation for
gas safety measures, and only if the expenses would otherwise be
recovered in rates from the utility's customers. The bill would
require that  ,   five years after the date of their
deposit into the separate account,  any moneys not used for
these purposes be paid to the General Fund.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2104 of the Public Utilities Code, as amended
by Section 7 of Chapter 552 of the Statutes of 2008, is amended to
read:
   2104.  (a) Except as provided by Sections 2100 and 2107.5, and in
addition to the remedies provided in Sections 688.020 and 688.030 of
the Code of Civil Procedure, actions to recover penalties under this
part may be brought in the name of the people of the State of
California, in the superior court in and for the county, or city and
county, in which the cause or some part thereof arose, or in which
the corporation complained of has its principal place of business, or
in which the person complained of resides. The action, if brought
pursuant to this section, shall be commenced and prosecuted to final
judgment by the attorney or agent of the commission. All fines and
penalties may be sued for and recovered. The commission may enjoin
the sale of a public utility's or common carrier's assets to satisfy
unpaid fines and penalties. The commission may use any of the
remedies afforded to a creditor under the Uniform Fraudulent Transfer
Act (Chapter 1 (commencing with Section 3439) of Title 2 of Part 2
of Division 4 of the Civil Code). Respondents who fraudulently
transfer assets to avoid paying commission-imposed fines or penalties
are subject to prosecution under Sections 154, 531, and 531a of the
Penal Code. In all of these actions, the procedure and rules of
evidence shall be the same as in ordinary civil actions, except for
prosecutions under the Penal Code or as otherwise herein provided.
Except as provided in Section 2104.5, all fines and penalties
recovered by the state in any action, together with the costs
thereof, shall be paid into the State Treasury to the credit of the
General Fund. Any action may be compromised or discontinued on
application of the commission upon the terms the court approves and
orders.
   (b) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.
  SEC. 2.  Section 2104 of the Public Utilities Code, as added by
Section 8 of Chapter 552 of the Statutes of 2008, is amended to read:

   2104.  (a) Except as provided by Sections 2100 and 2107.5, actions
to recover penalties under this part shall be brought in the name of
the people of the State of California, in the superior court in and
for the county, or city and county, in which the cause or some part
thereof arose, or in which the corporation complained of has its
principal place of business, or in which the person complained of
resides. The action shall be commenced and prosecuted to final
judgment by the attorney or agent of the commission. All fines and
penalties may be sued for and recovered. The commission may enjoin
the sale of a public utility's or common carrier's assets to satisfy
unpaid fines and penalties. The commission may use any of the
remedies afforded to a creditor under the Uniform Fraudulent Transfer
Act (Chapter 1 (commencing with Section 3439) of Title 2 of Part 2
of Division 4 of the Civil Code). Respondents who fraudulently
transfer assets to avoid paying commission-imposed fines or penalties
are subject to prosecution under Sections 154, 531, and 531a of the
Penal Code. In all of these actions, the procedure and rules of
evidence shall be the same as in ordinary civil actions, except for
prosecutions under the Penal Code or as otherwise herein provided.
Except as provided in Section 2104.5, all fines and penalties
recovered by the state in any action, together with the costs
thereof, shall be paid into the State Treasury to the credit of the
General Fund. Any action may be compromised or discontinued on
application of the commission upon the terms the court approves and
orders.
   (b) This section shall become operative on January 1, 2014.
  SEC. 3.  Section 2104.5 of the Public Utilities Code is amended to
read:
   2104.5.  (a) Any penalty for violation of any provision of this
act, or of any rule, regulation, general order, or order of the
commission, involving safety standards for pipeline facilities or the
transportation of gas in the State of California may be compromised
by the commission. In determining the amount of the penalty, or the
amount agreed upon in compromise, the appropriateness of the penalty
to the size of the business of the person charged, the gravity of the
violation, and the good faith of the person charged in attempting to
achieve compliance, after notification of a violation, shall be
considered. The amount of any penalty, when finally determined, or
the amount agreed upon in compromise, may be recovered in a civil
action in the name of the people of the State of California in the
superior court in and for the county, or city and county in which the
cause or some part thereof arose, or in which the corporation
complained of has its principal place of business or the person
complained of resides. In any such action, all penalties incurred, or
amounts agreed upon in compromise for violations committed up to the
time of commencing the action may be sued for and recovered. In all
those actions, the procedure and rules of evidence shall be the same
as in ordinary civil actions, except as otherwise herein provided.
All fines and penalties recovered by the state in any action,
together with the costs thereof, shall be paid into the State
Treasury to the credit of the General Fund, except upon order of the
commission pursuant to subdivision (b).
   (b) The commission may order that all or a portion of a fine or
penalty levied against a gas corporation in relation to a safety
standard for pipeline facilities or the transportation of gas in the
state be held in  trust by the commission   a
separate   account by the gas corporation  to offset
 investments,  expenses  , or both,  for gas safety
measures that would otherwise be recovered from the  utility'
s   corporation's  customers. 
   (c) The commission shall set a rate of interest for an account
established pursuant to subdivision (b).  
   (d) The commission may audit an account established pursuant to
subdivision (b).  
   (c) 
    (e)  Any moneys ordered by the commission to be held in
 trust   a separate   account 
pursuant to subdivision (b) may be used only for the purpose of
offsetting  investments,  expenses  , or both, 
incurred by the gas corporation for gas safety measures, and only if
the expenses would otherwise be recovered in rates from the utility's
customers. Any moneys not used for these purposes shall  , five
years after the date of the   ir deposit into the separate
account,  be paid to the General Fund.