Bill Summary: Authorizes the Public Service Commission to assess a penalty up to $25,000 for violating any order relating to federal natural gas safety standards.

ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED	FY 2009	FY 2010	FY 2011
General Revenue	$0	$0 to Unknown	$0 to Unknown

Total Estimated Net Effect on General Revenue Fund	$0	$0 to Unknown	$0 to Unknown

ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011
State School Moneys Fund*	$0 to Unknown	$0	$0

Total Estimated Net Effect on Other State Funds*	$0 to Unknown	$0	$0

Numbers within parentheses: ( ) indicate costs or losses. This fiscal note contains 5 pages.

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on FTE	0	0	0

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011
Local Government	$0	$0	$0

Officials from the Department of Economic Development - Public Service Commission and the Office of Public Counsel assume this proposal will have no fiscal impact on their respective agencies.

According the Department of Natural Resources (DOR), the proposed legislation establishes natural gas safety requirements for Missouri natural gas plants operating within the state to be consistent with federally mandated natural gas safety standards or such stricter natural gas safety standards as may be approved by the Commission and penalty provisions if those standards are not met. DOR does not anticipate any direct fiscal impact from this proposal.

DOR officials further state that, while the federal government is primarily responsible for developing, issuing, and enforcing pipeline safety regulations, the pipeline safety statutes provide for state assumption of the intrastate regulatory, inspection, and enforcement responsibilities under an annual certification. To qualify for certification, a state must adopt the minimum federal regulations and may adopt additional or more stringent regulations as long as they are not incompatible. A state must also provide for injunctive and monetary sanctions substantially the same as those authorized by the pipeline safety statutes. The regulations are written as minimum performance standards. The regulations are published in the Code of Federal Regulations, 49 CFR Parts 190-199.

Oversight assumes that, to the extent any additional natural gas safety penalty monies would be collected, they would be placed in the State School Monies Fund, per §386.600, RSMo, and considered as Total State Revenue. Proceeds to the State School Moneys Fund are distributed to the local school districts, and may result in a deduction in the state General Revenue allocation to fund local school districts in the following year.

No direct fiscal impact to small businesses would be expected as a result of this proposal.

This proposal creates penalties for corporations, persons, and public utilities that violate any law, order, decision, decree, rule, direction, demand, or requirement of the Missouri Public Service Commission relating to federally mandated natural gas safety standards. Municipalities that own gas plants are only liable for violations of natural gas safety laws, rules, and orders.

The maximum penalty per violation will be $25,000, and the maximum penalty for multiple violations or a continuing violation of the same rule will be $250,000; beginning January 1, 2015, the maximum penalties will be $30,000 and $300,000; beginning January 1, 2025, the maximum penalties will be $35,000 and $350,000; beginning January 1, 2035, the maximum penalties will be $40,000 and $400,000; and beginning January 1, 2040, the maximum penalties will be $50,000 and $500,000.

This legislation would not duplicate any other program and would not require additional capital improvements or rental space.

FISCAL IMPACT - State Government	FY 2009 (10 Mo.)	FY 2010	FY 2011
GENERAL REVENUE

Savings - Reduction in allocation to local school districts	$0	$0 to Unknown	$0 to Unknown

ESTIMATED NET EFFECT ON GENERAL REVENUE	$0	$0 to Unknown	$0 to Unknown

STATE SCHOOL MONEYS FUND

Revenue – Public Service Commission
Penalties from violations of federally mandated natural gas safety standards	$0 to Unknown	$0 to Unknown	$0 to Unknown

Transfer Out - Distribution to School Districts	$0	($0 to Unknown)	($0 to Unknown)

ESTIMATED NET EFFECT ON STATE SCHOOL MONEYS FUND	$0 to Unknown	$0	$0