2012 -- S 2704 AS AMENDED

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LC01918

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS

     Introduced By: Senator William A. Walaska

     Date Introduced: March 06, 2012

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-3-40 of the General Laws in Chapter 39-3 entitled "Regulatory

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Powers of Administration" is hereby amended to read as follows:

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     39-3-40. Storage, transportation and distribution of gas -- Regulation -- Penalties. --

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(a) In regulating the storage, transportation and distribution of gas and the pressure under which

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these operations may respectively be carried on, the division of public utilities and carriers may

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ascertain, determine and fix adequate and serviceable standards for the measurement of quality,

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pressure or other condition pertaining to the performing of its service, or to the furnishing of its

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product or commodity by any gas storage, transportation and distribution facility, and prescribe

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reasonable regulations for examination and testing of such service, product or commodity.

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      (b) (1) Any person, firm or corporation who violates any provision of any code adopted

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by the division pertaining to the safety of pipeline facilities and the transportation of gas, or of

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any regulation or rule thereunder, at a time when the division has submitted and has in effect the

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annual certification to the United States secretary of transportation provided for in section 5(a) of

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the Natural Gas Pipeline Safety Act of 1968, as amended, (see section 1671 60101 et seq. of Title

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49 of the United States Code), shall be subject to a civil penalty penalties as specified in 49

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U.S.C. section 60122(a), as amended not to exceed ten thousand dollars ($10,000) for each

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violation for each day that the violation persists; provided, however, that the maximum civil

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penalty shall not exceed five hundred thousand dollars ($500,000) for any related series of

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violations.

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      (2) Any such penalty shall be determined by the division. In determining the amount of

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the penalty, the appropriateness of the penalty to the size of the business of the person, firm or

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corporation charged, the gravity of the violation, and the good faith of the person, firm or

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corporation charged in attempting to achieve compliance after notification of a violation, shall be

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considered. The amount of the penalty, where finally determined, may be deducted from any

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sums which the state may owe to the person, firm or corporation charged or may be recovered in

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a civil action commenced in the state courts.

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     SECTION 2. This act shall take effect upon passage.

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LC01918

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS

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     This act would amend the penalties for pipeline safety violations committed in Rhode

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Island to be consistent with federal law, thereby ensuring that the state is able to retain its annual

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federal enforcement certification status.

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     This act would take effect upon passage.

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LC01918

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