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A09044 Summary:

BILL NOA09044
 
SAME ASSAME AS UNI. S07435
 
SPONSOREnglebright
 
COSPNSRLavine, Thiele, McDonald, Seawright, Gunther, D'Urso, Simon, Miller MG, Colton, Skoufis, Galef, Hunter, Jaffee, Zebrowski, Pichardo, Lifton, Cahill, Gottfried, Crespo, Jenne, Abinanti, Sepulveda, Glick, Richardson, Davila, Ra, Steck, Buchwald
 
MLTSPNSRDe La Rosa, Schimminger
 
 
Relates to directing the public service commission and the department of public service to study and report upon the potential to pass the tax savings incurred by public utility companies to ratepayers; requires two public hearings on such topic; repealer.
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A09044 Actions:

BILL NOA09044
 
01/18/2018referred to corporations, authorities and commissions
02/13/2018reported referred to ways and means
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A09044 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9044
 
SPONSOR: Englebright (MS)
  TITLE OF BILL: An act to direct the public service commission and the department of public service to study and report upon the potential to pass the tax savings incurred by public utility companies to ratepayers; and providing for the repeal of such provisions upon the expiration thereof   PURPOSE OR GENERAL IDEA OF BILL: The general idea of the bill is to create a report on ways that public utility companies can pass their tax savings on to their respective ratepayers.   SUMMARY OF PROVISIONS: Section 1 of the bill states that the Public Service Commission (PSC), in consultation with the Department of Public Service (DPS), shall make recommendations concerning federal tax savings by public utility compa- nies including any parent company or contracted company. The PSC shall make specific recommendations regarding passing such tax savings on to their respective ratepayers. Section 2 states that the PSC shall hold at least two public hearing on the matter. Section 3 requires that the PSC & Department of Public Service submit their findings to the Governor and the Legislature on or before ninety days after enactment. Section 4 sets the effective date.   JUSTIFICATION: The new federal tax changes include a corporate tax rate reduction from 35 percent to 21 percent. Due to utility accounting practices the savings may be greater than the 14% reductions. For public utility companies, this could mean a windfall of hundreds of millions of dollars. It only makes sense that such a significant tax savings be passed along to the ratepayers of the public utility companies that will see this benefit. This legislation enables the PSC and The Department of Public Service to determine the best way forward in passing these savings along to rate- payers either through regulatory or legislative measures. With ever increasing costs across the board, this is one way that the State can ensure that individual ratepayers are reaping the benefits of the new federal tax reform, rather than just corporations.   PRIOR LEGISLATIVE HISTORY: New bill 2018.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This act shall take effect immediately and shall expire and be deemed repealed January 1, 2019.
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A09044 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 7435                                                  A. 9044
 
                SENATE - ASSEMBLY
 
                                    January 18, 2018
                                       ___________
 
        IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
          ed,  and  when  printed to be committed to the Committee on Energy and
          Telecommunications
 
        IN ASSEMBLY -- Introduced by M. of A. ENGLEBRIGHT, LAVINE, THIELE, McDO-
          NALD -- read once and  referred  to  the  Committee  on  Corporations,
          Authorities and Commissions

        AN  ACT  to  direct  the public service commission and the department of
          public service to study and report upon the potential to pass the  tax
          savings  incurred  by  public  utility  companies  to  ratepayers; and
          providing for the repeal of such provisions upon the expiration there-
          of
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The public service commission shall examine, evaluate and
     2  make recommendations in  consultation  with  the  department  of  public
     3  service,  who  shall  also  examine,  evaluate  and make recommendations
     4  concerning the tax savings caused by federal tax reform  of  any  public
     5  utility  company as defined in subdivision 23 of section 2 of the public
     6  service law including any parent company, subsidiary thereof  or  affil-
     7  iate  and  any public authority created under the public authorities law
     8  who contracts with for-profit utility companies including such  for-pro-
     9  fit  utility companies, parent company, subsidiary thereof or affiliate.
    10  The commission and the department shall study specifically whether  such
    11  tax  savings  should be passed on to ratepayers of such companies in the
    12  form of refunds or decreased rates, and should make  recommendations  on
    13  the  regulatory  and  statutory provisions necessary to make passing the
    14  savings to ratepayers possible.
    15    § 2. The public service commission shall  hold  at  least  two  public
    16  hearings  in the state for the purpose of conducting their duties pursu-
    17  ant to section one of this act.
    18    § 3. On or before the ninetieth day after this act shall take  effect,
    19  the public service commission and the department of public service shall
    20  submit  a  report  of their findings, conclusions and recommendations to
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14128-03-8

        S. 7435                             2                            A. 9044
 
     1  the governor and the legislature, and shall submit with such report such
     2  regulatory and legislative proposals as deemed  necessary  to  implement
     3  such recommendations.
     4    §  4.  This  act shall take effect immediately and shall expire and be
     5  deemed repealed January 1, 2019.
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