AB 2356

Bill Subjects

Abstract

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to establish rules for all public utilities, subject to control by the Legislature. Existing law authorizes the commission, after a hearing, to require every public utility to construct, maintain, and operate its line, plant, system, equipment, apparatus, tracks, and premises in a manner so as to promote and safeguard the health and safety of its employees, passengers, customers, and the public. The Public Utilities 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 $100,000 for each offense. This bill would authorize the Attorney General or the district attorney of a proper county or city and county, as specified, to bring an action in the name of the people, pursuant to the above-described civil penalty provision, against an electrical corporation involving a failure to comply with safety standards or requirements. The bill would provide that when the conduct that constitutes the violation or failure to comply is of a continuing nature, each day of that violation or failure to comply is subject to a separate and distinct civil penalty. The bill would require that an action seeking these civil penalties be commenced within 4 years after the cause of action accrues. The Public Utilities Act provides that every public utility and every officer, agent, or employee of a public utility, who violates or fails to comply with, or who procures, aids, or abets any violation by any public utility of any provision of the California Constitution or of the act, or who fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission, or who procures, aids, or abets any public utility in a violation or noncompliance, in a case in which a penalty has not otherwise been provided, is guilty of a misdemeanor and is punishable by a fine not exceeding $5,000, or by imprisonment in a county jail not exceeding one year, or by both fine and imprisonment. This bill would authorize the Attorney General or the district attorney of a proper county or city and county, as specified, to bring an action in the name of the people, pursuant to the above-described criminal provision, against an electrical corporation involving a failure to comply with safety standards or requirements. The bill would provide that when the conduct that constitutes the violation or failure to comply is of a continuing nature, each day of that violation or failure to comply is a separate and distinct offense subject to a fine or imprisonment, or both a fine and imprisonment. The bill would require that an action seeking a fine or imprisonment pursuant to the above-described criminal provision be commenced within 4 years after the commission discovers the violation or failure to comply, or within 4 years after completion of the violation or failure to comply, whichever is later. The Public Utilities Act provides that all penalties accruing under the act are cumulative, and a suit for the recovery of one penalty does not bar or affect the recovery of any other penalty or forfeiture or serve as a bar to any criminal prosecution against any public utility, or any officer, director, agent, or employee of the public utility, or any other corporation or person. This bill would expressly provide that the above-described civil penalty and criminal sanction provisions are in addition to other fines or penalties imposed by other law. The Public Utilities Act requires the commission to ensure that where enforcement of provisions affecting public utilities is not specifically vested in some other officer or tribunal, that those provisions are enforced and obeyed and that violations are promptly prosecuted and penalties are recovered and collected. To accomplish this requirement, the commission is authorized to sue in the name of the people and to request the Attorney General or a district attorney to aid in any investigation, hearing, or trial and to institute and prosecute actions or proceedings. This bill would provide that the bill does not diminish the duty of the commission to be the primary entity responsible to ensure that the laws pertaining to public utilities are enforced and obeyed and does not diminish the authority of the commission to request the Attorney General or the district attorney of a proper county or city and county to aid in any investigation, hearing, or trial pursuant to the act.