Introduced Version
HOUSE BILL No. 1210
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-6; IC 8-1.
Synopsis: IURC fining authority. Allows the Indiana utility regulatory
commission (IURC) to impose a civil penalty of up to $5,000 on a
public utility providing energy services that violates or fails to comply
with any: (1) utility law; or (2) rate or service requirement imposed by
the IURC. Allows the IURC to impose an additional penalty of up to
$10,000 if the violation or failure to comply demonstrates a willful
disregard by the public utility of the public utility's duty to remedy the
violation or a willful failure to comply. Specifies that a suit to recover
or collect a forfeiture or penalty imposed by the IURC must be brought
by the IURC or, at the IURC's option, by the attorney general. Provides
that if the IURC acts independently of the attorney general to recover
or collect a forfeiture or penalty, the IURC may, subject to the approval
of the governor and the budget agency, contract with outside counsel
to prosecute the suit or assist the IURC in prosecuting the suit.
Effective: July 1, 2013.
Pierce
January 10, 2013, read first time and referred to Committee on Utilities and Energy.
Introduced
First Regular Session 118th General Assembly (2013)
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HOUSE BILL No. 1210
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-6-3-2; (13)IN1210.1.1. -->
SECTION 1. IC 4-6-3-2, AS AMENDED BY P.L.136-2012,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 2. (a) The attorney general shall have charge of
and direct the prosecution of all civil actions that are brought in the
name of the state of Indiana or any state agency.
(b) In no instance under this section shall the state or a state agency
be required to file a bond.
(c) This section does not affect the authority of prosecuting
attorneys to prosecute civil actions.
(d) This section does not affect the authority of the inspector general
to prosecute a civil action under IC 4-2-7-6 for the recovery of any of
the following:
(1) Funds misappropriated, diverted, missing, or unlawfully
gained.
(2) A civil penalty imposed by the state ethics commission under
IC 4-2-6-12.
(e) The attorney general may bring an action to collect unpaid
registration fees owed by a commercial dog broker or a commercial
dog breeder under IC 15-21.
(f) This section does not affect the authority of the Indiana
utility regulatory commission, at the commission's option, to act
independently under IC 8-1-2-115 to recover or collect a forfeiture
or penalty.
SOURCE: IC 4-6-5-3; (13)IN1210.1.2. -->
SECTION 2. IC 4-6-5-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 3. (a) No agency, except as
provided in this chapter, shall have any right to name, appoint, employ,
or hire any attorney or special or general counsel to represent it or
perform any legal service in behalf of such agency and the state without
the written consent of the attorney general.
(b) This section does not affect the authority of the Indiana
utility regulatory commission, at the commission's option, to act
independently under IC 8-1-2-115 to recover or collect a forfeiture
or penalty.
SOURCE: IC 8-1-1-11; (13)IN1210.1.3. -->
SECTION 3. IC 8-1-1-11 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 11. Subject to IC 8-1-2-115(b), the
commission is authorized to employ such counsel or attorneys,
engineers, administrative law judges, experts, clerks, accountants, and
other assistants as it may deem necessary, at such rates of
compensation as it may determine upon, subject, however, to the
approval of the governor.
SOURCE: IC 8-1-2-109; (13)IN1210.1.4. -->
SECTION 4. IC 8-1-2-109 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 109. (a) This section
does not apply to:
(1) a public utility that owns, operates, manages, or controls
any plant or equipment in Indiana for the production,
transmission, delivery, or furnishing of heat, light, or power;
or
(2) a department of public utilities created under IC 8-1-11.1.
(b) A public utility that violates this chapter, or fails to perform any
duty enjoined upon it, for which a penalty is not otherwise provided,
commits a Class B infraction.
SOURCE: IC 8-1-2-109.1; (13)IN1210.1.5. -->
SECTION 5. IC 8-1-2-109.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2013]: Sec. 109.1. (a) This section does not apply when a public
utility's violation or failure to comply under subsection (d) is
caused by circumstances beyond the control of the public utility,
including any of the following:
(1) Customer provided equipment.
(2) A negligent act or omission of a customer.
(3) An unavoidable casualty.
(4) An act of God.
(b) As used in this section, "public utility" means every
corporation, company, partnership, limited liability company,
individual, or association of individuals, or their lessees, trustees,
or receivers appointed by a court, that may own, operate, manage,
or control any plant or equipment in Indiana for the production,
transmission, delivery, or furnishing of heat, light, or power. The
term includes a department of public utilities created under
IC 8-1-11.1. The term does not include:
(1) a municipality or political subdivision;
(2) a rural electric membership corporation organized or
operating under IC 8-1-13; or
(3) a corporation organized under IC 23-17 that is an electric
cooperative and that has at least one (1) member that is a
corporation organized under IC 8-1-13.
(c) A public utility and any officer of a public utility shall
comply with any order or rule that:
(1) is made by the commission under this chapter or under
any other authority granted to or possessed by the
commission; and
(2) applies to the public utility, the officer, or both.
(d) Except as otherwise provided in this chapter, if the
commission finds, after notice and hearing, that a public utility has
violated this chapter or failed after due notice to comply with:
(1) a standard of service established by commission rule; or
(2) a rate or service requirement of a final and unappealable
order of the commission;
the commission may order the public utility to pay a civil penalty
of not more than five thousand dollars ($5,000) for each violation
or failure to comply.
(e) Notwithstanding subsection (d), if the commission finds after
notice and hearing that a public utility's violation or failure to
comply demonstrates, by a continuing pattern of conduct, a willful
disregard by the public utility of the public utility's obligation to
remedy the violation or a willful failure to comply, the commission
may impose an additional civil penalty of not more than ten
thousand dollars ($10,000) for each violation or failure to comply.
(f) The commission shall consider the following when
determining the appropriateness of the imposition or amount of a
civil penalty:
(1) The size of the public utility.
(2) The gravity of the violation or failure to comply.
(3) The good faith of the public utility in attempting to:
(A) remedy the violation; or
(B) achieve compliance after receiving notification of the
violation or failure to comply.
(4) The effect of the civil penalty on the public utility's
financial ability to provide adequate and reliable service.
(5) If the public utility is a nonprofit company:
(A) the effect of the penalty on the company's members
and their capitalization of the company; and
(B) whether the act or omission causing the violation or
failure to comply was approved or requested by the
company's members.
In the order imposing the civil penalty, the commission shall make
specific findings with respect to the factors described in
subdivisions (1) through (5).
(g) A public utility may not be subject to both a civil penalty
under this section and a negotiated penalty under a commission
approved settlement agreement for the same violation or failure to
comply. If the commission approves a settlement agreement that
includes penalties or remedies for noncompliance with specific
provisions of the settlement agreement, the penalties under this
section do not apply to those instances of noncompliance during the
life of the settlement agreement.
(h) Notwithstanding section 112 of this chapter, a civil penalty
imposed under this section for each violation or failure to comply
by a public utility may not be multiplied or increased because of
the number of customers affected or the length of time service is
affected. Only one (1) violation or failure to comply per day may
be attributed to a public utility as a result of a particular condition,
system outage, storm, act, omission, event, decision, or other cause
occurring on that day.
(i) A civil penalty recovered under this section shall be paid into
the state general fund.
(j) Upon the motion of a public utility, the commission shall stay
the effect or enforcement of an order under this section pending an
appeal, if the public utility posts a bond that complies with Rule 18
of the Indiana Rules of Appellate Procedure.
SOURCE: IC 8-1-2-115; (13)IN1210.1.6. -->
SECTION 6. IC 8-1-2-115 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 115.
(a) The
commission shall inquire into any neglect or violation of the statutes of
this state or the ordinances of any city or town by any public utility
doing business therein, or by the officers, agents, or employees thereof,
or by any person operating the plant of any public utility, and shall
have the power, and it shall be its the commission's duty, to enforce
the provisions of this chapter, as well as all other laws, relating to
public utilities. Any forfeiture or penalty provided in this chapter shall
be recovered, and suit therein shall be brought by the commission or,
at the commission's option, by the attorney general in the name of
the state of Indiana in the circuit or superior court where the public
utility has its principal place of business. a court that has jurisdiction.
Complaint for the collection of any such forfeiture may be made by the
commission or any member thereof, and, when so made, the action so
commenced shall be prosecuted by the commission or, at the
commission's option, by the attorney general. counsel.
(b) If the commission acts independently of the attorney general
under subsection (a) to bring a suit to recover or collect a
forfeiture or penalty under this chapter, the commission may,
subject to the approval of the governor and the budget agency,
contract with one (1) or more attorneys who are not members of
the commission's regular staff to prosecute the suit or assist the
commission in prosecuting the suit. An attorney contracted by the
commission under this section must be employed:
(1) at the salary; and
(2) for the length of time;
approved by the governor and the budget agency for the particular
case.