|SAME AS||SAME AS UNI. S07435|
|COSPNSR||Lavine, 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|
|MLTSPNSR||De 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.|
|01/18/2018||referred to corporations, authorities and commissions|
|02/13/2018||reported referred to ways and means|
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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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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. LBD14128-03-8S. 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.