An Act To Improve the Ability of the Public Utilities Commission To Enforce State Laws, Rules and Requirements
Maine Legislature, Session 121, LD 1483
Committee: Utilities and Energy
Sponsors: BLISS, HALL
Amends: 23 MRSA §3360-A, 25 MRSA §2933, 35-A MRSA §112, 35-A MRSA §115, 35-A MRSA §116, 35-A MRSA §117, 35-A MRSA §703, 35-A MRSA §704, 35-A MRSA §1509, 35-A MRSA §1510-A, 35-A MRSA §3206-A, 35-A MRSA §4512, 35-A MRSA §4515, 35-A MRSA §4516, 35-A MRSA §4516-A, 35-A MRSA §4704, 35-A MRSA §4705, 35-A MRSA §7105, 35-A MRSA §7106, 35-A MRSA §7107

Legislative Document 
No. 1483 
H.P.1088 
House of Representatives, March 31, 2003 
An Act To Improve the Ability of the Public Utilities Commission 
To Enforce State Laws, Rules and Requirements 
Submitted by the Public Utilities Commission pursuant to Joint Rule 204. 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative BLISS of South Portland. 
Cosponsored by Senator HALL of Lincoln. 
Printed on recycled paper 
111~/h·17bc~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 5 MRS A §IOO51, sub-§I, as amended by PL 
~!OOl, c. 229, 
§2, is further amended to read: 
1. 
Jurisdiction. 
Except as provided in section 10004; 
Title 8, 
section 279-B; Title 10, 
section 8003; Title 20-A, 
sections 10712 and 10713; Title 29-A; and Title 32, chapters 2-B, 
and l14t-afie.-!l'.J..-t..J-e-...a.5---A-r~t,.1&:a-~1~6, the District Court has 
exclusive jurisdiction upon complaint of any agency or, if the 
licensing agency fails or refuses to act within a 
reasonable 
time, upon complaint of the Attorney General to revoke or suspend 
licenses issued by the agency and has original jurisdiction upon 
complaint of an agency to determine whether renewal or reissuance 
of a license of that agency may be refused. 
Sec. 2. 5 MRSA §IOO51, sub-§4, as amended by PL 1999, c. 547, 
Pt. B, §19 and affected by §80, is repealed. 
Sec. 3. 23 MRSA §3360-A, sub-§6-C, as amended by PL 2001, c. 
577, §§9 to 11, is further amended to read: 
6-C. 
Penalties. 
In an adjudicatory proceeding, the Public 
Utilities Commission may, 
in accordance with this subsection, 
impose 
an 
administrative penalty for 
any violation of 
this 
subsection. 
The administrative penalty may 
not 
l:lxceed 
$500, 
except that.L if the person has been found in violation of this 
subsection within the prior 12 months.L the administrative penalty 
may not exceed $5,000. 
Administrative penalties imposed pursuant 
to this subsection are in addition to any other remedies or 
forfeitures provided by law and any liability that. may result 
from the act or omission constituting the violation. 
PFi€H,·-t;e 
Before 
imposing 
any 
penal ties 
under 
this 
subsection, 
the 
commission shall consider evidence of the record of t:he violator, 
including, to the extent applicable, the number of successful 
excavations undertaken by the violator or the number of locations 
successfully marked by the violator during the prior 12 months. 
The commission may require a person who violates any provision of 
this section to participate, at the expense of the violator, in 
an educational program developed and conducted by the system. 
The 
Public 
Utilities 
Commission 
may 
impose 
administrative 
penalties for any of the following violations: 
A. 
Failure of an excavator to give notice of an excavation 
as required under subsection 3, except to the extent the 
excavator is exempt 
from the provl.sl.ons of subsection 3 
pursuant to other provisions of this section; 
Page l-LRI46l(1) 
B. 
Excavation by an excavator in a reckless or negligent 
manner that poses a threat to an underground facility; 
C. Excavation by an excavator that does not comply with the 
requirements of subsection 4-C, except to the extent the 
excavator is exempt from the provisions of subsection 4-C 
pursuant to subsection 5-C; 
D. 
Failure of an underground facility operator to mark the 
location of the operator's underground facilities within the 
time limits required by subsection 4; 
E. 
Marking by an underground facility 
location 
of 
an 
underground 
facility 
in 
negligent manner; or 
operator of 
a 
reckless 
the 
or 
F. 
Failure of an excavator to comply with the requirements 
of subsection 5-C, 5-D or 5-E. 
Sec. 4. 23 MRSA §3360-A, sub-§ 12, as amended by PL 1999, c . 
718, §13, is further amended to read: 
12. 
Injunctions; costs. 
The 
owner 
or 
operator 
of 
an 
underground facility el' may reguest that the Public Utilities 
Commission 
ffiay--eeffiffieaee--aa--ae~iea--ia--a--eeHI'~--e~--eeffipe~ea~ 
:fH!'i6Elie~ieB-~-nq--a--t.-empo-r-ar-Y--l'e6~l'aiaiaCJ issue a cease and 
desist order 
el'--ifi.j~fi€~iea to prevent a person from undertaking 
an 
excavation that may 
result in damage 
to the 
underground 
facility. 
The 
eeHI'~ Public Utilities Commission may 
issue 
a 
~effipel'aFy-£e6~l'aiaiaCJ cease and desist order eF-4BjHBe~4ea if the 
eeH!'~ commission 
determines 
that 
the 
excavation or 
proposed 
excavation: 
A.. 
Is being conducted or is likely to be conducted in a 
negligent or unsafe manner; and 
B. 
Is 
causing 
or 
is 
likely 
to 
cause 
damage 
to 
the 
underground facility. 
If the owner or operator prevails in an action brought pursuant 
to this subsection, the owner or operator is entitled to an award 
of 
the 
costs 
of 
bringing 
the 
action, 
including 
reasonable 
attorney's fees. 
Sec. 5. 25 MRSA §2933, sub-§4, as amended by PL 2001, c. 667, 
Pt. c, §16, is further amended to read: 
4. 
Penalties. 
On 
petition 
by 
the 
bureau, 
the 
Public 
Utili ties Commission, in an adjudicatory proceeding, may impose 
the following administrative penalties for a violation by a local 
exchange carrier of subsection 1 or 2 or any rules adopted by the 
bureau implementing subsection 1 or 2: 
A. 
An administrative penalty of up to $1,000 for each day 
of the violation; and 
B. 
In extraordinary cases, 
as 
determined by the Public 
Utili ties 
Commission, 
revocation 
of 
the 
commission's 
authorization of the local exchange carrier's authority to 
provide local exchange service in this State. 
PeBa*~ies-€~~e€~eQ-~-&a&-eemmissieR-~£~-~~~-&a&&&&~~&-m~SE 
ee-~it~-~~-~ae--~~&~~e-~-~~it-~-~~~~~~-Reime~FsemeRE 
~~Ra-~RaeF-~it*e-~9-AT-seetieR-ll+T 
Sec. 6. 25 MRSA §2933, last 1f, as enac ted by PL 2001, c . 
, 
§2, is amended to read: 
Rules adopted pursuant to this section are routine technical 
rules pursuant to Title 5, chapter 375, subchapter ~~-A 2-A. 
Sec. 7. 35-A MRSA §112, sub-§4, 1fA, as enacted by PL 1987, c. 
141, Pt. A, §6, is amended to read: 
A. 
The commission may require, by order or subpoena to be 
served on any public utility or its agent in the same manner 
that a summons is served in a civil action in 
t~he Superior 
Court, 
the 
production 
of 
any 
books, 
accounts, 
papers, 
records or verified copies of them kept by a public utility 
or within the control of a public utility in any office or 
place wi thin or outside the State, so that an examination 
may be made by the commission or under its direction. 
Sec. 8. 35-A MRSA §112, sub-§4, 1[B, as enacted by PL 1987, c. 
141, Pt. A, §6, is repealed. 
Sec. 9. 35-A MRSA §115, sub-§I, 1fD, as enacted by PL 1987, c. 
141, Pt. A, §6, is amended to read: 
D. 
Report all possible criminal violations of this Title 
and all other laws relating to public utilities to the 
Attorney General. 
Sec. 10. 35-A MRSA §115, sub-§3, as amended by PL 1999, c. 
398, Pt. A, §12 and affected by §§104 and 105, is furt:her amended 
to read: 
3. 
Administrative penalties. 
Unless otherwise provided, 
the following provisions apply to 
fe~fe~~~~&-aRa administrative 
penalties. 
A. 
A complaint for the ~eeeye~y enforcement of a-~e~~ei~~~e 
e~ an administrative penalty may be made by the commission 
e~-eRe-e~-i~s-~e~ge~s. 
B. 
A 
suit 
to 
~eeeye~ 
enforce 
any 
administrative penalty may be brought in 
State in the Superior Court in the county 
office of the public utility is located 
County. 
:Ee~:Eei~Q.£e---e~ 
the name 
f 
the 
where the main 
or in Kennebec 
C. 
An action commenced by the commission must be prosecuted 
by the Attorney General. 
Sec. 11. 35-A MRSA §116, sub-§6, as enacted by PL 1987, c. 
141, Pt. A, §6, is repealed. 
Sec. 12. 35-A MRSA §116, sub-§8, 1[1>, as enacted by PL 1991, c. 
591, Pt. CC, §2, is repealed. 
Sec. 13. 35-A MRSA §117, sub-§3, as enacted by PL 1987, c. 
141, Pt. A, §6, is amended to read: 
3. 
Administrative penalties. 
~iRes All 
administrative 
~alties collected by the commission wRieR-4~-~-~&&~~~~-a 
~ei~B~F&emeR~-e:E-ee~~issieR-e*peRses-sRall must be deposited into 
the 
Public 
Utilities 
Commission 
Reimbursement 
Fund. 
Administrative penalties not needed to reimburse the commission 
for 
additional 
expenses 
associated 
with 
the 
enforcement 
activities that resulted in the collection of the penalty must be 
aepesi~ea--iR transferred to 
the 
General 
Fund of 
the 
State 
Treasury. 
Sec. 14. 35-A MRSA §703, sub-§4, as amended by PL 1987, c. 
490, Pt. A, §2, is repealed. 
Sec. 15. 35-A MRSA §704, sub-§3, as amended by PL 1999, c. 
547, Pt. B, §76 and affected by §80, is repealed. 
Sec. 16. 35-A MRSA §704, sub-§4, as enac ted by PL 1987, c. 
141, Pt. A, 
§6 and amended by PL 1999, c. 547, Pt. B, §78 and 
affected by §80, is further amended to read: 
4. 
Property loss suffered by a customer. 
Upon a finding by 
the District Court of a property loss suffered by a customer 
causally related to a willful or reckless violation by a public 
utility 
se~-tW.-t.--in--&b1-&see-t;.i-<m--6 of any substantive rule adopted 
by the commission pursuant to the authority granted in this 
section, the court may order the public utility to compensate the 
customer for the actual loss, less any 
se~--&~~ setoff for a 
balance found to be due the utility by the customer for unpaid 
utility 
service. 
That loss may not include consequential damages. 
No 
action for damages resulting from a termination wa~ea ~ 
was in 
willful or reckless violation of the 
e9mm~ssi9as commission's 
rules may be commenced until at least 60 days after notice of a 
claim setting forth the nature of the termination and the damages 
suffered has been provided to the utility. 
That notice saall 
must be provided to the utility in writing within 30 days of the 
termination. 
Sec. 17. 35·A MRSA §707, sub·§5, as enacted by PL 1987, c. 
141, Pt. A, §6, is repealed. 
Sec. 18. 35·A MRSA §709, sub·§6, as enacted by PL 1987, c. 
141, Pt. A, §6, is repealed. 
Sec. 19. 35·A MRSA c. 15 is amended by repealing the chapter 
headnote and enacting the following in its place: 
CHAPTER 15 
SARCTIa.tS AIm ADMINISTRATIVE PENALTIES 
Sec. 20. 35·A MRSA §§1503 to 1507, as enacted by PL 1987, c. 
141, Pt. A, §6, are repealed. 
Sec. 21. 35·A MRSA §1507·A is enacted to read: 
S1507-A. 
False statements 
It is a Class C crime for any person to make or cause to be 
made, 
in any 
document filed with the 
commission or 
in any 
proceeding under this Title, any statement that, at t.he time and 
in light of the circumstances under which it is made, is false or 
misleading in any material respect and that the person knows is 
false or misleading in any material respect. 
Sec. 22. 35·A MRSA §1508, as enacted by PL 1987, c. 141, Pt. 
A, §6, is repealed. 
Sec. 23. 35·A MRS A §1508·A is enacted to read: 
S1508-A. 
Administratiye penalty 
1. 
Penalty. 
Unless 
otherwise 
specified 
in 
law, 
the 
commission 
may, 
in 
an 
adjudicatory 
proceeding, 
impose 
an 
administrative penalty as specified in this section. 
A. 
For violations by a public utility or a 
competitive 
electricity provider of this Title, a commission rule or a 
commission 
order, 
the 
commission 
may 
impose 
an 
administrative penalty for each violation in an amount that 
does not exceed $25,000. 
Each day a violation continues 
constitutes a separate offense. 
The maximum administrative 
penalty may not exceed $500,000 for any related series of 
violations. 
E. 
For 
violations 
in 
which 
a 
public 
utility 
or 
a 
competitive electricity provider was explicitly notified by 
the 
commission 
that it is 
not 
in compliance with 
the 
requirements 
of 
this 
Title, 
a 
commission 
rule 
or 
a 
commission order and that failure to comply could result in 
the imposition of administrative penalties, the commission 
may impose an administrative penalty that does not exceed 
$500,000. 
C. 
The commission may impose an administrative penalty on 
any person that violates this Title, a commission rule or a 
commission order in an amount that does not exceed $1, 000. 
Each 
day 
a 
violation 
continues 
constitutes 
a 
separate 
offense. 
The maximum administrative penalty may not exceed 
$25,000 for any related series of violations. 
2. 
Considerations. 
In 
determining 
administrative penalty under this section, 
take into account: 
the 
amount 
of 
an 
the commission shall 
A. 
The severity of the violation, including the intent of 
the 
violator 
and 
the 
nature, 
circumstances, 
extent 
and 
gravity of the prohibited acts: 
E. 
The history of any previous violations: 
C. 
The amount necessary to deter future violations: 
D. 
Good faith attempts to comply after notification of a 
violation; and 
E. 
Such other matters as justice requires. 
Sec. 24. 35-A MRSA §1509, as enacted by PL 1987, c. 141, Pt. 
A, §6, is amended to read: 
§1509. 
Limitation on imposing penalty 
An action wa~ea ~ 
may result in the imposition of a-e~v~± 
eF---<3-r.:-imi-:aal an administrative penalty under this chapter saall 
must be 
commenced within 
years after the cause of action 
accrues. 
Sec. 25. 35-A MRS A §1510, as enacted by PL 1989, c. 86, is 
repealed. 
Sec. 26. 35-A MRSA §1510-A is enacted to read: 
§15l0-A. 
Disposition of administrative penalty 
Administrative penalties collected by the commission must be 
deposited in the Public Utilities Commission Reimbursement Fund 
under section 117. 
Sec. 27. 35-A MRSA §§1511 and 1512 are enacted to read: 
S15ll. 
Revocation: suspension 
The commission may, in an adjudicatory proceeding, suspend 
or revoke the authority of a public utility to provide service 
upon a finding that the public utility is unfit to provide safe, 
adeguate 
and 
reliable 
service 
at 
rates 
that 
are 
just 
and 
reasonable. 
The commission shall provide notice and a reasonable 
opportunity for the public utility to comply with its obligations 
under this Title prior to suspending or revoking the authority of 
a public utility to provide service pursuant to this section. 
The authority granted in this section is in addition to the 
commission's authority under section 1321. 
§15l2. 
Unauthorized service 
The commission may order any person to cease and desist from 
providing service if it finds that the person has not obtained 
commission authorization to provide the service as reguired by 
this 
Title. 
The 
commission 
may 
impose 
the 
sanctions 
and 
penalties of this chapter upon any person that provides service 
without first obtaining commission authorization as reguired by 
this Title. 
Sec. 28. 3S-A MRSA §3203, sub-§7, as enacted by PL 1997, c. 
316, §3, is repealed and the following enacted in its place: 
7. 
Penalties. 
The 
commission may 
impose administrative 
penalties upon a competitive electricity provider in accordance 
with chapter 15. 
Sec. 29. 35-A MRSA §3206-A, sub-§l, as enacte.d by PL 1999, c. 
398, Pt. G, §4, is amended to read: 
1. 
Penalties. 
The 
commission 
shall 
require 
an 
investor-owned transmission and distribution utility to divest an 
affiliated competitive provider if the commission determines in 
an adjudicatory proceeding that: 
A. 
The distribution utility or an affiliated competitive 
provider has knowingly violated section 3205 or section 3206 
or any rule adopted by the commission pursuant to those 
sections; and 
B. 
The violation resulted or had the potential to result in 
substantial injury to retail consumers of electric energy or 
to the competitive retail market for electric energy. 
The 
commission 
may 
impose administrative penalties of 
up to 
$100,000 for a violation of section 3205 or section 3206 or any 
rule adopted by the commission pursuant to those sections. 
Each 
day of a violation constitutes a separate offense. 
In addition, 
the commission may require disgorgement of profits or revenues 
realized as a result of a violation of section 3205 or section 
3206 or any rule adopted by the commission pursuant to those 
sections. 
PeBal~ies--eellee~eQ--9y--~ae--eemmissieB--~BQeF--~ais 
seetieB-~~&~-~-£epe£~~eQ--iB--~~-~~~-Y~~~~~~e£--beffiffiissieB 
Reiffi9~FseffieB~-~~BQ-~BQeF-See~ieB-±±+T 
Sec. 30. 35-A MRSA §4512, sub-§ 1, as enac ted by PL 1987, c. 
141, Pt. A, §6, is repealed. 
Sec. 31. 35-A MRSA §4512, sub-§2, as enacted by PL 1987, c. 
141, Pt. A, §6, is amended to read: 
2. 
Damaqes. 
In addition to the 
~eFfe4~~£e--pFev4QeQ--iB 
sH9seet49B--± administrative penalty imposed pursuant to this 
Title, a natural gas pipeline utility that fails to comply with 
an order of the commission shall reimburse any person whose 
property is damaged as a result of the failure for the amount of 
the property damage 1-
and be liable in double damages for any 
injury resulting to a person from the failure. 
Sec. 32. 35-A MRSA §4515, as enacted by PL 1987, c. 141, Pt. 
A, §6, is amended to read: 
§4515. 
Cease and desist orders 
-A-
The commission may order a natural gas pipeline utility 
to cease and desist from operating or acting in violation of a 
statute or rule or order 
e~-~-he--GOI'RfA-i-&s-~-ffiay--be---e-n.jG-i-ned--~F9ffi 
tae-e~e£~~~eB-~-~~-a~eB-e9ffipla4B~-~~~~-~-S~peFieF 
b9HFt-~-&~~a~-&y-~~-eemmissieB. 
Whenever practicable, the 
commission shall notify a natural gas pipeline utility against 
whom 
aB-~£~~~~~--~~~~v&-Fe±ie~ a cease and desist order is 
contemplated and afford it an opportunity to present its views 
andT-eHeept-~B-~-he-~~-~-*~~~-a»G-will~al-viela~ieBT shall 
afford 
it reasonable opportunity to comply. 
Failure to notify 
and afford such an opportunity does not preclude the granting of 
appropriate relief. 
Sec. 33. 35-A MRSA §4516, as amended by PL 1993, c . 113, § 1, 
is repealed. 
Sec. 34. 35-A MRSA §4516-A is enacted to read: 
§4516-A. 
Administrative penalty 
1. 
Violation of this Title. 
The commission may impose an 
administrative penalty on a natural gas pipeline utility that 
violates 
any 
prov1s1on of this Title relating to safety of 
pipeline facilities or transportation of gas or any rule issued 
under this Title in an amount not to exceed $100,000 for each 
violation. 
Each day of violation constitutes a separate offense. 
2. 
Maximum 
administrative 
penalty. 
The 
maximum 
administrative penalty may not exceed $1,000,000 for any related 
series of violations. 
3. 
Determining 
amount of penalty. 
In 
determining 
the 
amount 
of 
the 
penalty, 
the 
commission 
shall 
consider 
the 
following: 
A. 
The nature, circumstances and gravity of the violation; 
B. 
The 
degree 
of 
the 
natural 
gas 
pipelinl~ utility's 
culpability; 
C. 
The natural gas pipeline utility's history of prior 
offenses: 
D. 
The natural gas pipeline utility's ability to~ 
E. 
Any good faith by the natural gas pipeline utility in 
attempting to achieve compliance: 
F. 
The effect on the natural gas pipeline utility's abili~ 
to continue in business: and 
G. 
Such other matters as justice may require. 
4. 
P~nt of penalty.' The amount of the administrative 
penalty may be: 
A. 
Deducted from any sums owing by the State to the natural 
gas pipeline utility: or 
B. 
Recovered in a civil action in the state courts. 
5. 
Limitation on imposing penalty. 
Any action that may 
result in the imposition of an administrative penalty pursuant to 
this section must be commenced within 5 years after the cause of 
action accrues. 
Sec. 35. 35-A MRSA §4704, as enacted by PL 1987, c. 141, Pt. 
A, §6, is amended to read: 
§4704. 
Cease and desist orders 
--A:-
The commission may order a gas utility to cease and 
desist from opera~ing or acting in violation of a statute or rule 
or order of the commission may-ee-~~~~~~~~-&p&~a&~&-eF 
aeEieB-~~eB-€~a~~-~~~~~~~~~~~~~&-aBQ-BFe~~RE 
By-~~-€emmi66ieB. Whenever practicable, the commission shall 
notify a gas utility against whom 
aB-aetieB-fe~-iBj~Betive-~e~ie~ 
a 
cease 
and desist order is contemplated and afford it an 
opportunity to present its views 
andT-~-iB-~-*--ea6e--o-t--a 
*BewiB~--~-~~~~~--vie~aEieBT shall 
afford 
it 
reasonable 
opportunity to comply. 
Failure to notify and afford such an 
opportunity does not preclude the granting of appropriate relief. 
Sec. 36. 35-A MRSA §4705, as amended by PL 1993, c. 113, §2, 
is repealed. 
Sec. 37. 35-A MRS A §4705-A is enacted to read: 
§4705-A. 
Administrative penalty 
1. 
Violation of this Title. 
The commission may impose an 
administrative 
penalty 
on 
a 
gas 
utility that violates 
any 
provision of this Title relating to safety of gas facilities or 
any rule issued under this Title in an amount not to exceed 
$100,000 for each violation. 
Each day of violation constitutes a 
separate offense. 
2. 
Maximum 
administrative 
penalty. 
The 
maximum 
administrative penalty may not exceed $1,000,000 for any related 
series of violations. 
3. 
Determining amount of penalty. 
In determining 
the 
amount 
of 
the 
penalty, 
the 
commission 
shall 
consider 
the 
following: 
A. 
The nature, circumstances and gravity of the violation; 
B. 
The degree of the gas utility's culpability; 
c. 
The gas utility'S history of prior offenses; 
D. 
The gas utility's ability to pay: 
E. 
Any good faith by the gas utility in att:empting to 
achieve compliance: 
F. 
The effect on the gas utility' s ability to continue in 
business: and 
G. 
Such other matters as justice may reguire. 
4. 
Payment of penalty. 
The amount of the penalt~{ may be: 
A. 
Deducted from any sums owing by the State to the gas 
utility: or 
B. 
Recovered in a civil action in the state courts. 
5. 
Limitation on imposing penalty. 
Any action that may 
result in the imposition of an administrative penalty pursuant to 
this section must be commenced within 5 years after the cause of 
action accrues. 
Sec. 38. 35-A MRSA §7105, sub-§3, as enac ted by PL 1991, c. 
654, §4 and affected by §5, is repealed. 
Sec. 39. 35-A MRSA §7106, sub-§2, llA, as enacted by PL 1997, 
c. 702, §l, is amended to read: 
A. 
The 
commission may 
impose 
an administrative penalty 
against any person who violates this section or any rule or 
order 
adopted pursuant to this section. 
In determining 
whether to impose a penalty, the commission may consider 
whether the violation was intentional. 
The penalty for a 
violation may be in an amount not to exceed $5,000 for each 
day the violation continues, up to a maximum of $40,000 for 
a first offense and a maximum of $110,000 for subsequent 
offenses. 
The amount of the penalty must be based on: 
(1) 
The 
intent of 
extent and 
severity of 
the violation, 
including 
the 
the violator, 
the 
nature, 
circumstances, 
gravity of any prohibited acts; 
(2) 
The history of previous violations; aaa 
(3) 
The amount necessary to deter future violationsTl.. 
(4) 
Good faith attempts to comply after notification 
of a violation: and 
(5) 
Such other matters as justice reguires. 
Page ll-LR146l(1) 
Sec. 40. 35·A MRSA §7106, sub.§2, ,C, as enacted by PL 1997, 
c. 702, §1, is repealed. 
Sec. 41. 35·A MRSA §7106, sub·§2, 1(1) is enacted to read: 
D. 
The commission may order a telephone utility to withhold 
funds collected on behalf of a carrier that is subject to an 
administrative penalty proceeding conducted pursuant to this 
section if it finds that it is more likely than not that 
penalties will 
be 
imposed 
or 
customer 
refunds will 
be 
ordered that,are equal to or greater than the amount ordered 
withheld. 
The commission shall provide the carrier notice 
and an opportunity to be heard prior to ordering funds to be 
wi thheld. 
If the commission finds that there is a clear 
danger 
that, 
if notified in advance, 
the carrier will 
conceal 
or 
otherwise 
make 
funds 
unavailable 
to satisfy 
penalties or customer refunds prior to providing notice and 
an opportunity to be heard, it may issue an order to the 
public utility to withhold 
the 
funds 
without providing 
notice or an opportunity to be heard. 
To issue such an 
order, 
the 
commission must also 
make 
the first finding 
required by this paragraph. 
The commission shalL without 
delay, provide a copy of the order to the carrier along with 
written 
notice 
that 
the 
carrier, 
on 
request, 
will 
be 
provided with an opportunity to contest the finding that it 
is more likely than not that penalties will be imposed or 
customer 
refunds will be 
ordered that are equal 
to or 
greater than the amount ordered withheld. 
Sec. 42. 35·A MRSA §7107, sub·§3, as enacted by PL 1999, c. 
59, §l and affected by §3, is repealed. 
Sec. 43. 35·A MRSA §7107, sub·§3.A is enacted to read: 
3-A. 
Denial or revocation of registration: notice. 
The 
commission 
may 
by 
order, 
after 
notice 
and 
opportunity 
for 
hearing, deny, suspend or revoke an application for registratioh 
as, 
or 
the 
registration of, 
a 
service provider 
or billing 
aggregator if the commission finds that the order is in the 
public interest and that the applicant or registrant, 
or 
a 
principal of the applicant or registrant: 
A. 
Has knowingly misrepresented or omitted a material fact 
on the application for registration as a service provider or 
billing aggregator or has filed an incomplete application 
and does not take reasonable steps to provide the missing 
information: 
B. 
Has, in the case of a service provider, knowingly or 
repeatedly billed one or more customers for unauthorized 
service or, in the case of a billing aggregator, knowingly 
or repeatedly forwarded the charge for a service or product 
to a billing agent on behalf of a service provider who was 
required 
to 
be 
registered 
with 
the 
commission 
under 
subsection 2 and was not properly registered: 
c. 
Has engaged in any other false or deceptive billing 
practices prohibited by commission rule: 
D. 
Has acted as a service provider or billing aggregator in 
the State without being licensed to do so: 
~Isthen permanently or temporarily enjoined by any court 
of competent jurisdiction from violating any law governing 
the conduct of billing aggregators or service providers or 
from engaging in, or continuing, 
any conduct or practice 
indicating a lack of fitness to engage in the business of a 
billing aggregator or service provider: 
F. 
Has, within the last 10 years, pleaded guilty or nolo 
contendere to, or been convicted of, any crime indicating a 
lack of fitness to engage in the business of 
a billing 
aggregator or service provider; 
G. 
Is the subject of any of the following orders currently 
effective that were issued within the last 5 years: 
(1) 
An order by a state or federal agency, entered 
after 
notice 
and 
opportunity 
for 
hearing, 
denying, 
suspending 
or 
revoking 
the 
person's 
license 
or 
registration 
as 
a 
service 
provider 
or 
billing 
aggregator, 
or 
the 
substantial 
equivalent 
of 
those 
terms, as defined in this section: 
(2) 
A cease and desist order issued by any state or 
federal agency with general authority to enforce laws 
prohibiting unfair or deceptive acts or practices in a 
trade 
or 
business 
or 
with 
specific 
authority 
to 
regulate billing aggregators or service providers: or 
( 3) 
An 
order 
entered 
by 
a 
court 
of 
competent 
jurisdiction or entered after notice and an opportunity 
for 
hearing 
by 
any 
state 
or 
federal 
occupational 
licensing 
agency 
denying, 
suspending, 
revoking 
or 
restricting the 
person's 
oCG~pational license 
as 
a 
result of allegations of misconduct. 
This subparagraph 
also applies when the denial, suspension, 
n~yocation or 
restriction of the license is pursuant to a 
consent 
agreement between the person and the licensing agency, 
whether or not the agency also issued an order; or 
H. 
Has, within the last 5 years, entered into a consent 
agreement with a state or federal enforcement or regulatory 
agency in which the person agreed to discontinue engaging in 
one or more practices alleged by the agency to have been an 
unfair or deceptive act or practice. 
Sec. 44. 35-A MRSA §7107, sub-§5, as enac ted by PL 1999, c. 
59, §1 and affect~d by §3, is amended to read: 
5. 
Enforcement authority. 
In addition to any authority the 
commission may have pursuant to other law, the commission may 
enforce this section in accordance with this subsection. 
A. 
In an adjudicatory proceeding, the commission may impose 
an administrative penalty upon the following entities for 
the following violations: 
(1) 
A service provider who provides or charges for an 
unauthorized service; 
(2) 
A service provider or billing aggregator who is 
required to be registered under subsection 2 and who is 
not properly registered pursuant to that subsection; 
(3) 
A billing agent who knowingly bills on behalf of a 
service provider who is required to be registered under 
subsection 
and 
who 
is 
not 
properly 
registered 
pursuant to that subsection at the time the billing 
agent's bill is generated; and 
(4) 
A billing agent that fails to comply with any of 
the requirements of subsection 4. 
B. 
The amount of any administrative penalty imposed under 
paragraph 
A 
may 
not 
exceed 
$1, 000 
per 
violator 
for 
violations arising out of the same incident or complaint and 
must be based on: 
(1) 
The 
intent of 
extent and 
severity of 
the violation, 
including the 
the violator, 
the 
nature, 
circumstances, 
gravity of any prohibited acts; 
(2) 
The history of previous violations; aRe 
(3) 
The amount necessary to deter future violationsTL 
(4) 
Good faith attempts to comply after notification 
of a violation; and 
(5) 
Such other matters as justice requires._ 
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SUMMARY 
This bill replaces provisions of law that authorize the 
Public Utilities Commission to issue penalties for noncompliance 
with 
various 
laws 
and 
orders 
with 
prov1s1ons 
that 
treat 
administrative penalties consistently throughout the statutes. 
The bill establishes the conditions under which the commission 
may issue administrative penalties and the maximum penalty levels 
and considerations the commission must take into account when 
determining penalty levels. 
Page l5-LR146l(1)