Bill Text: CT SB00778 | 2017 | General Assembly | Comm Sub
Bill Title: An Act Concerning Expenses For Consultants Borne By Telecommunications Providers.
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2017-06-07 - House Calendar Number 656 [SB00778 Detail]
Download: Connecticut-2017-SB00778-Comm_Sub.html
General Assembly |
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January Session, 2017 |
*_____SB00778ET____031717____* |
AN ACT CONCERNING EXPENSES FOR CONSULTANTS BORNE BY TELECOMMUNICATIONS PROVIDERS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsection (b) of section 16-8 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):
(b) (1) The authority may employ professional personnel to perform management audits. The authority shall promptly establish such procedures as it deems necessary or desirable to provide for management audits to be performed on a regular or irregular schedule on all or any portion of the operating procedures and any other internal workings of any public service company, including the relationship between any public service company and a related holding company or subsidiary, consistent with the provisions of section 16-8c, provided no such audit shall be performed on a community antenna television company, except with regard to any noncable communications services which the company may provide, or when (A) such an audit is necessary for the authority to perform its regulatory functions under the Communications Act of 1934, 47 USC 151, et seq., as amended from time to time, other federal law or state law, (B) the cost of such an audit is warranted by a reasonably foreseeable financial, safety or service benefit to subscribers of the company which is the subject of such an audit, and (C) such an audit is restricted to examination of the operating procedures that affect operations within the state.
(2) In any case where the authority determines that an audit is necessary or desirable, it may (A) order the audit to be performed by one of the management audit teams, (B) require the affected company to perform the audit utilizing the company's own internal management audit staff as supervised by designated members of the authority's staff, or (C) require that the audit be performed under the supervision of designated members of the authority's staff by an independent management consulting firm selected by the authority, in consultation with the affected company. If the affected company has more than seventy-five thousand customers, such independent management consulting firm shall be of nationally recognized stature. All reasonable and proper expenses of the audits, including, but not limited to, the costs associated with the audit firm's testimony at a public hearing or other proceeding, shall be borne by the affected companies and shall be paid by such companies at such times and in such manner as the authority directs, provided such reasonable and proper expenses borne by a (i) public service company providing telecommunications services, (ii) telecommunications company, or (iii) person seeking certification to provide telecommunications services, shall not exceed two hundred thousand dollars per calendar year for all dockets and audits performed pursuant to this section and section 16-18a, as amended by this act.
(3) For purposes of this section, a complete audit shall consist of (A) a diagnostic review of all functions of the audited company, which shall include, but not be limited to, documentation of the operations of the company, assessment of the company's system of internal controls, and identification of any areas of the company which may require subsequent audits, and (B) the performance of subsequent focused audits identified in the diagnostic review and determined necessary by the authority. All audits performed pursuant to this section shall be performed in accordance with generally accepted management audit standards. The authority shall adopt regulations in accordance with the provisions of chapter 54 setting forth such generally accepted management audit standards. Each audit of a community antenna television company shall be consistent with the provisions of the Communications Act of 1934, 47 USC 151, et seq., as amended from time to time, and of any other applicable federal law. The authority shall certify whether a portion of an audit conforms to the provisions of this section and constitutes a portion of a complete audit.
(4) A complete audit of each portion of each gas company or electric distribution company having more than seventy-five thousand customers shall begin no less frequently than every six years, so that a complete audit of such a company's operations shall be performed every six years. Such an audit of each such company having more than seventy-five thousand customers shall be updated as required by the authority.
(5) The results of an audit performed pursuant to this section shall be filed with the authority and shall be open to public inspection. Upon completion and review of the audit, if the person or firm performing or supervising the audit determines that any of the operating procedures or any other internal workings of the affected public service company are inefficient, improvident, unreasonable, negligent or in abuse of discretion, the authority may, after notice and opportunity for a hearing, order the affected public service company to adopt such new or altered practices and procedures as the authority shall find necessary to promote efficient and adequate service to meet the public convenience and necessity. The authority shall annually submit a report of audits performed pursuant to this section to the joint standing committee of the General Assembly having cognizance of matters relating to public utilities which report shall include the status of audits begun but not yet completed and a summary of the results of audits completed. Any such report may be submitted electronically.
(6) All reasonable and proper costs and expenses that are consistent with the provisions of subdivision (2) of this subsection, as determined by the authority, of complying with any order of the authority pursuant to this subsection shall be recognized by the authority for all purposes as proper business expenses of the affected company.
(7) After notice and hearing, the authority may modify the scope and schedule of a management audit of a telephone company which is subject to an alternative form of regulation so that such audit is consistent with that alternative form of regulation.
Sec. 2. Section 16-18a of the general statutes is amended by adding subsection (d) as follows (Effective October 1, 2017):
(NEW) (d) Notwithstanding subsections (a) and (c) of this section, all reasonable and proper expenses of any consultants and consultant services borne by a (1) public service company providing telecommunications services, (2) telecommunications company, or (3) person seeking certification to provide telecommunications services, shall not exceed two hundred thousand dollars per calendar year for all dockets and audits performed pursuant to this section and section 16-8, as amended by this act.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2017 |
16-8(b) |
Sec. 2 |
October 1, 2017 |
16-18a |
ET |
Joint Favorable Subst. |