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A 5399

Requires BPU to impose penalties during audits.

2024-2025 Regular Session Introduced by Alex Sauickie

Imposes $500/day civil penalties on utilities for incomplete audit information, enforceable via summary court, to speed BPU audits; immediate effect.

Introduced in the Assembly, Referred to Assembly Telecommunications and Utilities Committee
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Bill Summary · A 5399

Summary of Assembly Bill A 5399

Bill at a glance

  • Bill number & title: A 5399 — An Act requiring the Board of Public Utilities (BPU) to impose penalties during audits
  • Subject: Public Utilities
  • Sponsor/Status: Sponsored by Pamela J. Hunter (primary) with cosponsors Chantel Jackson, Albert A. Stirpe, and Harvey Epstein. Introduced February 13, 2025; referred to Assembly Telecommunications and Utilities Committee (and previously to Codes).
  • Effective date: Immediate

Purpose and intent

The bill adds enforcement tools to ensure timely and complete BPU audits of public utilities. It aims to reduce delays caused by insufficient information or cooperation during audits, by imposing daily civil penalties in addition to existing penalties for noncompliance with BPU orders.

Key provisions

  • Existing penalties for noncompliance with BPU orders (retained):

    • General noncompliance: $100 per day.
    • Noncompliance with orders to resume service after discontinuation: $250 per day.
    • Penalties remain recoverable in a state civil action.

  • New penalty for incomplete audits:

    • The Board of Public Utilities shall assess a civil penalty of $500 per day for every day after a public utility has been put on notice that it failed to provide sufficient information for the BPU to complete an audit conducted under R.S. 48:2-16.4.

  • Enforcement mechanism:

    • Civil penalties under this act are collected by the BPU in a summary proceeding under the Penalty Enforcement Law of 1999 (P.L.1999, c. 274; C.2A:58-10 et seq.).

  • Effective enforcement: Immediate effect upon enactment.

Who is affected

  • Entities: Public utilities and any person subject to BPU orders. The bill targets entities under audit who are required to supply information to complete BPU audits.

Procedural and timeline aspects

  • Status timeline: Introduced in the Assembly on February 13, 2025; referred to the Assembly Telecommunications and Utilities Committee (and earlier to Codes). Related companion bills exist (e.g., S 4404) and prior-session related bills include A 10720, A 4484, A 692.

Potential impact and considerations

  • Impact: Provides a measurable incentive (daily $500 penalty) to supply information promptly during audits, likely improving audit timeliness and completeness.
  • Enforcement process: Penalties are to be collected via summary court proceedings under existing Penalty Enforcement Law, facilitating relatively swift collection.
  • Considerations: The increased penalties may raise concerns about proportionality and due process if disputes arise over what information is “sufficient.” Stakeholders may seek clarity on what constitutes “sufficient information” and the notice period before penalties begin.

Compiled from official sources — confirm details with the bill’s official record.

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