PRINTER'S NO. 602
No. 554 Session of 2005
INTRODUCED BY BEBKO-JONES, CALTAGIRONE, CASORIO, FREEMAN,
LEDERER, PALLONE, TIGUE, WALKO AND WASHINGTON,
FEBRUARY 15, 2005
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 15, 2005
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, providing for the election of
3 commission members.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 301 of Title 66 of the Pennsylvania
7 Consolidated Statutes is amended to read:
8 § 301. Establishment, members, qualifications and chairman.
9 (a) [Appointment] Election and terms of members.--The
10 Pennsylvania Public Utility Commission, established by the
11 former act of March 31, 1937 (P.L.160, No.43), as an independent
12 administrative commission, is hereby continued as such. [Prior
13 to the third Tuesday in January of 1987, the commission shall
14 consist of five members who shall be appointed by the Governor,
15 by and with the advice and consent of two-thirds of all the
16 members of the Senate, for a term of ten years, provided that
17 the term of any member appointed to fill a vacancy existing on
18 the effective date of this amendatory act and prior to the third
1 Tuesday in January of 1987 shall expire on March 31, 1987.
2 Vacancies on April 1, 1987, shall be filled as follows: One term
3 shall be until April 1, 1990, and one term shall be until April
4 1, 1992. Confirmation of such gubernatorial appointees shall be
5 by a majority of the members of the Senate. If other vacancies
6 occur between the effective date of this amendatory act and
7 April 1, 1987, the term shall be the balance of the term to
8 which the predecessor had been appointed. Vacancies after April
9 1, 1987, shall be filled for the balance of the term to which a
10 predecessor had been appointed. Thereafter, the commission shall
11 consist of five members appointed by the Governor, by and with
12 the advice and consent of a majority of the members of the
13 Senate, for a term of five years. The Governor may submit the
14 nomination to the Senate within 60 days prior to the expiration
15 of the term or the effective date of the resignation of the
16 member whom the nominee would replace and shall submit that
17 nomination no later than 90 days after the expiration of the
18 term or the effective date of the resignation. A commissioner
19 may continue to hold office for a period not to exceed six
20 months beyond the expiration of his term if his successor has
21 not been duly appointed and qualified according to law.] The
22 commission shall consist of five elected members.
23 (b) Qualifications and restrictions.--Each commissioner, at
24 the time of his [appointment] election and qualification, shall
25 be a resident of this Commonwealth and shall have been a
26 qualified elector therein for a period of at least one year next
27 preceding his [appointment] election, and shall also be not less
28 than 25 years of age. No person shall be [appointed] elected a
29 member of the commission or hold any place, position or office
30 under it, who occupies any official relation to any public
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1 utility or who holds any other appointive or elected office of
2 the Commonwealth or any political subdivision thereof.
3 Commencing July 1, 1977, commissioners shall devote full time to
4 their official duties. No commissioner shall hold any office or
5 position, the duties of which are incompatible with the duties
6 of his office as commissioner, or be engaged in any business,
7 employment or vocation, for which he shall receive any
8 remuneration, except as provided in this chapter. No employee,
9 appointee or official engaged in the service of or in any manner
10 connected with, the commission shall hold any office or
11 position, or be engaged in any employment or vocation, the
12 duties of which are incompatible with his employment in the
13 service of or in connection with the work of the commission. No
14 commissioner shall be paid or accept for any service connected
15 with the office, any fee or emolument other than the salary and
16 expenses provided by law. No commissioner shall participate in
17 any hearing or proceeding in which he has any direct or indirect
18 pecuniary interest. Within 90 days of confirmation, each
19 commissioner shall disclose, at that time and thereafter
20 annually, the existence of all security holdings in any public
21 utility or its affiliates held by such commissioner, his or her
22 spouse and any minor or unemancipated children and must either
23 divest or place in a blind trust such securities. As used in
24 this part, blind trust means a trust over which neither the
25 commissioners, their spouses, nor any minor or unemancipated
26 children shall exercise any managerial control, and from which
27 neither the commissioners, their spouses, nor any minor or
28 unemancipated children shall receive any income from the trust
29 during the commissioner's tenure of office. Such disclosure
30 statement shall be filed with the secretary of the commission
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1 and shall be open to inspection by the public during the normal
2 business hours of the commission during the tenure of the
3 commissioner. Every commissioner, and every individual or
4 official, employed or appointed to office under, in the service
5 of, or in connection with, the work of the commission, is
6 forbidden, directly or indirectly, to solicit or request from,
7 or to suggest or recommend to any public utility, or to any
8 officer, attorney, agent or employee thereof, the appointment of
9 any individual to any office, place or position in, or the
10 employment of any individual in any capacity by, such public
11 utility. Every commissioner, every bureau or office director and
12 every administrative law judge elected, employed or appointed to
13 office under, in the service of or in connection with the work
14 of the commission, is prohibited from accepting employment with
15 any public utility subject to the rules and regulations of the
16 commission for a period of one year, and every commissioner is
17 prohibited from appearing before the commission on behalf of any
18 public utility subject to the rules and regulations of the
19 commission for a period of three years, after terminating
20 employment or service with the commission. If any person
21 elected, employed or appointed in the service of the commission
22 violates any provision of this section, the commission shall
23 forthwith remove him from the office or employment held by him.
24 (c) Chairman.--A member designated by the [Governor]
25 commissioners shall be the chairman of the commission during
26 such member's term of office.[, except that within 120 days
27 following the third Tuesday in January 1987, and, every four
28 years thereafter, the Governor shall designate a chairman. The
29 commissioners shall annually elect a member to serve as the vice
30 chairman of the commission.] The chairman shall designate a
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1 member to serve as vice chairman of the commission at the
2 pleasure of the chairman. When present, the chairman shall
3 preside at all meetings, but in his absence the vice chairman
4 or, in his absence, a member, designated by the chairman, shall
5 preside and shall exercise, for the time being, all the powers
6 of the chairman. The chairman shall have such powers and duties
7 as authorized by the commission as provided in section 331(b)
8 (relating to powers of commission and administrative law
9 judges).
10 (d) Quorum.--A majority of the members of the commission
11 serving in accordance with law shall constitute a quorum and
12 such majority, acting unanimously, shall be required for any
13 action, including the making of any order or the ratification of
14 any act done or order made by one or more of the commissioners.
15 No vacancy in the commission shall impair the right of a quorum
16 of the commissioners to exercise all the rights and perform all
17 the duties of the commission.
18 (e) Compensation.--Each of the commissioners shall receive
19 an annual salary of [$55,000] $97,787, except the chairman, who
20 shall receive an annual salary of [$57,500] $100,361.
21 (f) Open proceedings.--The proceedings of the commission
22 shall [be conducted in accordance with the provisions of the act
23 of July 19, 1974 (P.L.486, No.175), referred to as the Public
24 Agency Open Meeting Law] comply with the provisions of 65
25 Pa.C.S. Ch. 7 (relating to open meetings).
26 (g) Monitoring cases.--Each commissioner shall be
27 responsible for monitoring specified cases as shall be assigned
28 to him in a manner determined by the commission. All proceedings
29 properly before the commission shall be assigned immediately
30 upon filing.
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1 Section 2. Title 66 is amended by adding sections to read:
2 § 301.1. Districts and elections.
3 (a) Public utility commissioner districts.--The Commonwealth
4 shall be divided into five public utility commissioner
5 districts, which shall be composed of compact and contiguous
6 territory as nearly equal in population as practicable. Each
7 district shall elect one commissioner. Unless absolutely
8 necessary, no county, city, incorporated town, borough, township
9 or ward shall be divided in forming a district. Apportionment
10 shall be conducted by the Legislative Reapportionment Commission
11 in the manner provided by law for the apportionment of
12 legislative districts.
13 (b) Election.--Commissioners shall be elected in even-
14 numbered years. The term of office shall begin on the second
15 Monday of the January following election and shall continue for
16 four years. However, for the first election of public utility
17 commissioners, commissioners from odd-numbered districts shall
18 be elected to a term of four years and commissioners from even-
19 numbered districts shall be elected to a term of two years.
20 Thereafter, all terms shall be for four years.
21 (c) Vacancies.--In the event of a vacancy, the Governor
22 shall appoint a person to serve for the remainder of the term in
23 cases where less than two years of service remain in the term
24 that became vacant. In cases where more than two years of
25 service remain in a vacated term, the Governor shall appoint a
26 person to fill the vacancy until the next general election to be
27 held that is more than 90 days after the vacancy occurs, at
28 which time a commissioner shall be elected to fill the vacancy
29 for the remainder of the term. A commissioner so elected shall
30 assume his office 30 days after being elected, at which time the
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1 term of service of the commissioner appointed by the Governor to
2 fill the vacancy shall end.
3 (d) Initial districts.--Initial districts for the purposes
4 of this section shall exist until the reapportionment of
5 districts pursuant to the 2000 Federal Decennial Census. These
6 districts shall be as follows:
7 (1) District I shall consist of the following counties:
8 Allegheny, Beaver, Crawford, Erie, Greene, Lawrence, Mercer
9 and Washington; and the following municipalities of Venango
10 County: Canal Township, Franklin City, Frenchcreek Township,
11 Oil City, Polk Borough, Sandycreek Township, Sugarcreek
12 Borough and Utica Borough.
13 (2) District II shall consist of the following counties:
14 Adams, Armstrong, Bedford, Blair, Butler, Cambria, Cameron,
15 Centre, Clarion, Clearfield, Clinton, Cumberland, Elk,
16 Fayette, Forest, Franklin, Fulton, Huntingdon, Indiana,
17 Jefferson, Juniata, McKean, Mifflin, Perry, Snyder, Somerset,
18 Union, Warren and Westmoreland; and the following
19 municipalities of Venango County: Allegheny Township,
20 Barkeyville Borough, Cherrytree Township, Clinton Township
21 Clintonville Borough, Cooperstown Borough, Cornplanter
22 Township, Cranberry Township, Emlenton Borough, Irwin
23 Township, Jackson Township, Mineral Township, Oakland
24 Township, Oilcreek Township, Pinegrove Township,
25 Pleasantville Borough, Plum Township, President Township,
26 Richland Township, Rockland Township, Rouseville Borough,
27 Scrubgrass Township and Victory Township.
28 (3) District III shall consist of the following
29 counties: Berks, Bradford, Carbon, Columbia, Lackawanna,
30 Lehigh, Luzerne, Lycoming, Monroe, Montour, Northampton,
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1 Northumberland, Pike, Potter, Schuylkill, Sullivan,
2 Susquehanna, Tioga, Wayne and Wyoming; and the following
3 municipalities of Lebanon County: Annville Township, Bethel
4 Township, Cleona Borough, East Hanover Township, Heidelberg
5 Township, Jackson Township, Jonestown Borough, Lebanon City,
6 Millcreek Township, Myerstown Borough, North Annville
7 Township, North Cornwall Township, North Lebanon Township,
8 Richland Borough, South Annville Township, South Lebanon
9 Township, Swatara Township, Union Township, West Cornwall
10 Township and West Lebanon Township.
11 (4) District IV shall consist of the following counties:
12 Chester, Dauphin, Lancaster, Montgomery and York; the
13 following municipalities of Bucks County: Bedminster
14 Township, Bridgeton Township, Buckingham Township, Chalfont
15 Borough, Doylestown Borough, Doylestown Township, Dublin
16 Borough, Durham Township, East Rockhill Township, Haycock
17 Township, Hilltown Township, Ivyland Borough, Lower Makefield
18 Township, Milford Township, New Britain Borough, New Britain
19 Township, New Hope Borough, Newtown Borough, Newtown
20 Township, Nockamixon Township, Northampton Township, Perkasie
21 Borough, Plumstead Township, Quakertown Borough, Richland
22 Township, Richlandtown Borough, Riegelsville Borough,
23 Sellersville Borough, Silverdale Borough, Solebury Township,
24 Springfield Township, Telford Borough, Tinicum Township,
25 Trumbauersville Borough, Upper Makefield Township, Upper
26 Southampton Township, Warminster Township, Warrington
27 Township, Warwick Township, West Rockhill Township,
28 Wrightstown Township and Yardley Borough; and the following
29 municipalities of Lebanon County: Cornwall Borough, Mt.
30 Gretna Borough, North Londonderry Township, Palmyra Borough
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1 and South Londonderry Township.
2 (5) District V shall consist of the following counties:
3 Delaware and Philadelphia; and the following municipalities
4 of Bucks County: Bensalem Township, Bristol Borough, Bristol
5 Township, Falls Township, Hulmeville Borough, Langhorne
6 Borough, Langhorne Manor Borough, Lower Southampton Township,
7 Middletown Township, Morrisville Borough, Penndel Borough and
8 Tullytown Borough.
9 (e) Nominations.--Candidates for nomination to the office of
10 commissioner shall present a nominating petition containing
11 2,000 signatures of registered and enrolled members of the
12 appropriate party and district. The filing fee shall be $100,
13 payable as provided in section 913(b.1) of the act of June 3,
14 1937 (P.L.1333, No.320), known as the Pennsylvania Election
15 Code.
16 § 301.2. Campaigns.
17 (a) General rule.--Campaigns to elect public utility
18 commissioners may be conducted by candidates with moneys from a
19 public utility campaign financing fund. A public utility
20 campaign financing fund committee shall be selected to supervise
21 the collection, administration and distribution of moneys to
22 candidates.
23 (b) Committee.--The committee shall consist of the Majority
24 and Minority Leaders of the Senate and the Majority and Minority
25 Leaders of the House of Representatives, or their designated
26 representatives, and a chairman who shall be a resident of this
27 Commonwealth and appointed by the Governor. The committee
28 members shall serve for two-year terms, which terms shall run
29 concurrently with the legislative session. Committee members
30 shall be reimbursed for reasonable expenses incurred while
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1 conducting official business of the committee.
2 (c) Tax.--In order to create and maintain the fund, an
3 annual 0.5% tax is hereby imposed on the gross profits of each
4 public utility company. Public utility companies shall not pass
5 the cost of this tax on to their customers. The allowable rate
6 of return granted to a public utility shall be adjusted downward
7 to reflect the reduction in gross profits of a public utility as
8 a result of this tax. Funds not used in an election shall be
9 placed in an interest-bearing account to be available for use in
10 the next election.
11 (d) Availability of moneys.--
12 (1) Campaign financing moneys shall be available to
13 primary election candidates who are registered with a
14 political party which is legally recognized and which may
15 nominate candidates in a primary election. These candidates
16 shall, when filing their nominating petitions, file a
17 security deposit with the committee in the amount of 10% of
18 the moneys they will receive from the fund, as follows:
19 (i) Documentation indicating the source of the
20 security deposit moneys, including the name, address,
21 occupation and employment of each source and the date
22 received by the candidate, shall be filed with the
23 Department of State and with the committee.
24 (ii) Within ten days of depositing the security
25 deposit and qualifying as a candidate for the primary,
26 candidates shall receive 20¢ for each voter registered in
27 their district in the candidate's political party
28 according to the voter registration for the November
29 election immediately preceding the primary.
30 (iii) Candidates who receive at least 15% of the
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1 total votes cast in the primary election shall have their
2 security deposits refunded by the committee. Each
3 candidate shall return contributions used to make his
4 security deposit to contributors in the exact amount
5 contributed by each. Those who do not receive at least
6 15% of the vote shall lose the security deposit, and the
7 moneys forfeited shall be added to the fund.
8 (iv) Candidates who wish to receive moneys from the
9 fund may, from the time of the commencement of any action
10 in furtherance of their candidacy, spend up to $10,000 of
11 private campaign contributions and shall file a source
12 and expenditure disclosure statement, indicating the
13 sources of private contributions, with the nominating
14 petition. No private contributions from a public utility
15 political action committee or public utility employees
16 shall be accepted by the candidate.
17 (2) As used in this subsection, the term "action in
18 furtherance of their candidacy" means any action taken by, or
19 on behalf of a candidate, with the candidate's knowledge and
20 consent, to promote his candidacy for the Pennsylvania Public
21 Utility Commission and includes, but is not limited to:
22 (i) Circulating petitions bearing the candidate's
23 name.
24 (ii) Raising funds totaling $1,000 or more for a
25 campaign.
26 (iii) Expending funds of $1,000 or more.
27 (e) Payments to candidates.--To conduct their campaigns for
28 the general election, successful candidates in the primary
29 election shall automatically receive campaign financing fund
30 moneys amounting to 15¢ for each voter registered in their
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1 district, with registration being computed according to the
2 number of voters registered at the time of the most recently
3 held primary election. A check in the proper amount shall be
4 sent to the candidates within ten days of the certification of
5 the primary election results.
6 (f) Limits on spending.--Candidates accepting moneys from
7 the fund shall not spend more in their campaign than the amount
8 given to them from the fund, plus that portion of $10,000 which
9 the candidate raised from private sources as permitted by
10 subsection (d)(1)(iv).
11 (g) Formula for payments.--Candidates of political bodies,
12 as defined in the act of June 3, 1937 (P.L.1333, No.320), known
13 as the Pennsylvania Election Code, other than political parties
14 may receive moneys from the fund for the general election
15 calculated by the same formula as is used for party candidates
16 receiving campaign financing fund moneys in the general
17 election, except that, when political body candidates file their
18 nominating petitions, they shall deposit a security deposit
19 representing 10% of the moneys they will receive based on the
20 general election formula of 15¢ per voter registered at the time
21 of the most recently held primary election. They shall receive
22 these moneys within ten days after primary election results are
23 certified. If the candidate receives 15% of the total vote cast
24 in the election, the security deposit shall be refunded to him,
25 and he, in turn, shall return the moneys to those persons who
26 contributed it. If the candidate does not receive 15% of the
27 vote, the security deposit shall be forfeited by the candidate
28 to the committee, which shall deposit the forfeited sum in the
29 fund.
30 (h) Repayment to fund.--All campaign financing fund moneys
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1 distributed to candidates, but not used by them during their
2 primary or general campaigns, shall be returned to the committee
3 within 30 days of the election for which the moneys were
4 distributed.
5 (i) Requirements of Pennsylvania Election Code, etc.--Those
6 candidates who do not accept moneys from the campaign financing
7 fund shall adhere to the requirements of Article XVI of the
8 Pennsylvania Election Code and the regulations promulgated
9 thereunder. A violation of Article XVI or regulations shall also
10 constitute a violation of this section. The candidate is subject
11 to the following additional restrictions:
12 (1) No public utility political action committee (PAC)
13 money shall be accepted nor shall any individual contribution
14 by any public utility employee be accepted.
15 (2) Individual contributions, except those made by the
16 candidate to himself, shall not exceed $100 per contributor.
17 Permitted PAC contributions are limited to $500 per PAC. Any
18 contribution exceeding $50 must be reported in a manner which
19 indicates the contributor's occupation and employer.
20 (3) Privately financed candidates must report each
21 contribution within seven days of its receipt to both the
22 committee and the Bureau of Commissions, Elections and
23 Legislation of the Department of State.
24 (j) Advertisements.--Any political campaign advertisements
25 sponsored, financed or underwritten by a public utility or by a
26 public utility PAC shall address only the issues of a particular
27 campaign and shall not name or in any way promote any candidate
28 for the Pennsylvania Public Utility Commission.
29 (k) Violations.--Any candidate who violates the provisions
30 of this section may, at the discretion of the committee, be
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1 required to return all, or a portion of, public financing moneys
2 received to the fund, and the committee may impose additional
3 civil penalties of not more than $25,000 per occurrence. In
4 addition, any willful violation of this section by any person
5 shall be considered a misdemeanor of the third degree and
6 prosecuted accordingly.
7 (l) Regulations.--The committee shall promulgate regulations
8 providing for the investigation of alleged violations of this
9 section and for the establishment of a fair hearing procedure to
10 determine the extent of the violation and the appropriate
11 penalties. In addition, any information regarding willful
12 violations of this section shall be reported immediately by the
13 committee to the Attorney General.
14 (m) Definitions.--As used in this section, the following
15 words and phrases shall have the meanings given to them in this
16 subsection:
17 "Gross profits." The gross receipts of a public utility for
18 the fiscal year, minus the operating expenses for the fiscal
19 year, that are included in the base rate.
20 Section 3. In the general election of the first even-
21 numbered year following the effective date of this act, all five
22 public utility commissioners will be elected. To finance this
23 campaign only, moneys from the General Fund shall be used if
24 necessary, in addition to moneys from the public utility
25 campaign financing fund.
26 Section 4. Terms of public utility commissioners appointed
27 before the date when commissioners elected under this act assume
28 office shall terminate at noon of the second Monday of January
29 following the first general election in which commissioners are
30 elected.
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1 Section 5. This act shall take effect immediately.
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