PRINTER'S NO. 2018
No. 1709 Session of 1981
INTRODUCED BY MANDERINO, HOEFFEL, WARGO, SHUPNIK, O'DONNELL,
MORRIS, WAMBACH, BROWN, STUBAN, PISTELLA, WACHOB, MICHLOVIC,
COLAFELLA, DOMBROWSKI, BELFANTI, KOWALYSHYN, GALLAGHER,
SWAIM, LLOYD, FEE, F. E. TAYLOR, DeMEDIO, BLAUM, VAN HORNE,
ITKIN, CLARK, LUCYK, EVANS AND MRKONIC, JUNE 24, 1981
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 24, 1981
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, further providing for citizen
3 representation on the boards of directors of certain public
4 utilities; fixing the qualifications of such individuals; and
5 establishing procedures for the selection of citizen
6 representatives.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Title 66, act of November 25, 1970 (P.L.707,
10 No.230), known as the Pennsylvania Consolidated Statutes, is
11 amended by adding a chapter to read:
12 CHAPTER 20
13 CITIZEN REPRESENTATION ON BOARDS OF DIRECTORS
14 Sec.
15 2001. Definitions.
16 2002. Citizen representation on boards of directors.
17 2003. Qualifications of citizen representatives.
18 2004. Duties of citizen representatives.
1 2005. Advisory board.
2 2006. Powers and duties of advisory board.
3 2007. Public utility acceptance of citizen representatives.
4 § 2001. Definitions.
5 The following words and phrases when used in this chapter
6 shall have, unless the context clearly indicates otherwise, the
7 meanings given to them in this section:
8 "Citizen representative." An individual who meets the
9 qualifications of section 2003 (relating to qualifications of
10 citizen representatives), is appointed by an advisory board
11 pursuant to section 2006 (relating to powers and duties of
12 advisory board), is accepted by the public utility to serve on
13 the board of directors pursuant to section 2007 (relating to
14 public utility acceptance of citizen representatives) and
15 performs the duties set forth in section 2004 (relating to
16 duties of citizen representatives).
17 "Public utility." Any privately owned public utility as
18 defined in paragraph (1)(i), (ii) and (vi) of the definition of
19 "public utility" as set forth in section 102 (relating to
20 definitions).
21 § 2002. Citizen representation on boards of directors.
22 As a condition of receiving, maintaining or renewing a
23 certificate of public convenience pursuant to section 1103
24 (relating to procedure to obtain certificates of public
25 convenience), each public utility as defined in this chapter
26 shall accept at least one citizen representative on its board of
27 directors for every three noncitizen representatives on its
28 board, such citizen representatives to be chosen by the
29 independent advisory board for its service area.
30 § 2003. Qualifications of citizen representatives.
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1 Each citizen representative shall live in the service area of
2 the public utility on which the citizen representative serves on
3 the board of directors and shall be a consumer of the services
4 of the public utility. A citizen representative shall not be:
5 (1) A director, stockholder or employee of any public
6 utility.
7 (2) An officer or employee of the commission.
8 (3) An officer or employee of the Office of Consumer
9 Advocate.
10 § 2004. Duties of citizen representatives.
11 Each citizen representative shall be entitled to take part in
12 all deliberations and to vote on all decisions in the same
13 manner as the members of the board of directors chosen by the
14 stockholders of the public utility. For performing the duties of
15 a member of the board of directors, a citizen representative
16 shall receive such compensation and expenses as are paid to
17 other members of the board.
18 § 2005. Advisory board.
19 (a) Membership.--There is hereby established an advisory
20 board to choose individuals to serve as citizen representatives
21 on the board of directors of certain public utilities. The
22 advisory board shall consist of seven members to be selected in
23 the following manner:
24 (1) Three members appointed by the Governor without
25 Senate confirmation.
26 (2) Two members, one to be appointed by the President
27 pro tempore of the Senate and one appointed by the Minority
28 Leader of the Senate.
29 (3) Two members, one to be appointed by the Speaker of
30 the House of Representatives and one appointed by the
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1 Minority Leader of the House of Representatives.
2 (b) Terms.--Except for the first members of the advisory
3 board, all other members of the advisory board shall serve for a
4 term of five years. The initial appointees of the advisory board
5 shall serve for the following terms:
6 (1) The two members appointed by the Senate leadership
7 shall serve for a term of two years.
8 (2) The two members appointed by the leadership of the
9 House of Representatives shall serve for a term of four
10 years.
11 (3) The Governor in his appointments shall designate two
12 members to serve for a term of three years and one member to
13 serve for a term of five years.
14 (c) Restrictions on advisory board members.--No individual,
15 while a member or employee of the advisory board, shall:
16 (1) Serve on the board of directors, own stock in or be
17 an employee of any public utility.
18 (2) Be an officer or an employee of the commission.
19 (3) Be an officer or an employee of the Office of
20 Consumer Advocate.
21 (d) Vacancies.--A majority of the advisory board by
22 resolution shall declare vacant the position on the board of any
23 member who takes part in any activities prohibited in subsection
24 (c). An individual appointed to fill a vacancy occurring other
25 than by the expiration of a term of office shall be appointed
26 for the unexpired term of the member he succeeds. Any vacancy
27 occurring on the advisory board shall be filled within 30 days
28 in the manner in which that position was originally filled.
29 (e) Officers.--The advisory board shall elect a chairperson
30 and a vice chairperson. In the absence of the chairperson or in
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1 the event of a vacancy, the vice chairperson shall act as
2 chairperson.
3 (f) Quorum.--Four members of the advisory board shall
4 constitute a quorum and the votes of a majority of the members
5 present is required for any action or recommendation of the
6 advisory board. The chairman or any four members of the advisory
7 board may call a meeting provided that advance written notice is
8 mailed to each member and to any such person who requests notice
9 for such meetings.
10 (g) Compensation.--Members of the advisory board shall be
11 compensated at a rate of $50 per day and shall receive
12 reimbursement for their actual and necessary expenses while
13 performing the business of the advisory board.
14 (h) Renomination.--Members of the advisory board are
15 eligible for renomination to the board.
16 § 2006. Powers and duties of advisory board.
17 The advisory board shall have the power and duty to:
18 (1) Accept applications and resumes from any individual
19 interested in becoming a citizen representative on a public
20 utility.
21 (2) Evaluate the qualifications of individuals who apply
22 and verify that they meet the qualifications stated in
23 section 2003 (relating to qualifications of citizen
24 representatives).
25 (3) Nominate, within a period of 90 days from the date
26 that applications are first accepted, two individuals to
27 serve as citizen representatives on the public utility board
28 of directors for which he has applied.
29 (4) Declare vacant the seat of anyone chosen to serve as
30 a citizen representative who takes part in any of the
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1 activities listed in section 2004 (relating to duties of
2 citizen representatives) or who accepts compensation for
3 activities enumerated in section 2004 and nominate, within 30
4 days of a vacancy for any reason, one individual to serve as
5 a citizen representative.
6 (5) Hire an executive director, a general counsel and
7 such other staff as are necessary to carry out its duties
8 pursuant to this chapter. The executive director shall be
9 responsible for the administrative operations of the advisory
10 board and shall perform such other duties as may be delegated
11 or assigned to him by the advisory board, except that the
12 advisory board shall not delegate the making of regulations
13 to the executive director. The general counsel shall be the
14 chief legal officer of the advisory board.
15 (6) Contract for the services of experts and consultants
16 as necessary to carry out its duties pursuant to this
17 chapter.
18 § 2007. Public utility acceptance of citizen representatives.
19 (a) New public utilities.--Each public utility, if it is
20 granted a certificate of public convenience, shall accept the
21 citizen representatives nominated by the advisory board.
22 (b) Existing public utilities.--Each public utility that has
23 already been granted a certificate of public convenience shall,
24 in order to maintain or renew that certificate of public
25 convenience, agree to accept the two citizen representatives
26 nominated by the advisory board by no later than July 1, 1981 or
27 the date of the next election for members of the board of
28 directors which is closest to the effective date of this
29 chapter, whichever is sooner.
30 (c) Vacancies.--Upon the advisory board's nomination to fill
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1 a vacancy, the public utility shall accept, within 30 days, the
2 nominated candidate to fill out the remainder of the term.
3 During the period of vacancy there shall be no infringement on
4 the utilities certificate of public convenience.
5 Section 2. This act shall take effect immediately.
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