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A03166 Summary:

BILL NOA03166A
 
SAME ASSAME AS S09414
 
SPONSORDinowitz
 
COSPNSREnglebright, Simon, Dickens, Sayegh, Gottfried, Otis
 
MLTSPNSRCook, Griffin
 
Add §66-t, Pub Serv L
 
Requires energy brokers and energy consultants to register with the public service commission.
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A03166 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         3166--A
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 22, 2021
                                       ___________
 
        Introduced  by  M.  of A. DINOWITZ, ENGLEBRIGHT, SIMON, DICKENS, SAYEGH,
          GOTTFRIED, OTIS -- Multi-Sponsored by -- M. of  A.  COOK,  GRIFFIN  --
          read  once  and referred to the Committee on Corporations, Authorities
          and Commissions -- reported and referred to the Committee on Ways  and
          Means  -- recommitted to the Committee on Ways and Means in accordance
          with Assembly Rule 3, sec. 2 -- reported and referred to the Committee
          on  Rules  --  Rules  Committee  discharged,  bill  amended,   ordered
          reprinted as amended and recommitted to the Committee on Rules
 
        AN  ACT  to  amend  the public service law, in relation to requiring the
          registration of energy brokers and energy consultants
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The public service law is amended by adding a new section
     2  66-t to read as follows:
     3    § 66-t. Registration of energy  brokers  and  energy  consultants.  1.
     4  Definitions. For the purposes of this section, the following terms shall
     5  have the following meanings unless the context indicates otherwise:
     6    a. "Broker compensation" means any payment made to an energy broker or
     7  energy  consultant  for  the purposes of securing or procuring of energy
     8  for the end-use customer, or advising on the securing  or  procuring  of
     9  energy for the end-use consumer.
    10    b.  "Customer  disclosure label" means the statement an energy service
    11  company must provide a customer with whom it enters into a sales  agree-
    12  ment pursuant to the rules and regulations of the public service commis-
    13  sion.
    14    c.  "Energy  broker"  means an entity that assumes the contractual and
    15  legal responsibility for the sale of  electric  supply  service,  trans-
    16  mission or other services to end-use retail customers, but does not take
    17  title  to  any  of  the  electricity sold, or an entity that assumes the
    18  contractual and legal obligation to provide for the sale of natural  gas
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05723-02-2

        A. 3166--A                          2
 
     1  supply  service,  transportation  or  other  services  to end-use retail
     2  customers, but does not take title to any of the natural gas sold.
     3    d.  "Energy  consultant" means any person, firm, association or corpo-
     4  ration who acts as broker in soliciting,  negotiating  or  advising  any
     5  electric  or  natural gas contract, or acts as an agent in accepting any
     6  electric or natural gas contract on behalf of an ESCO.
     7    e. "Energy service company" or "ESCO" means an entity eligible to sell
     8  electricity and/or natural gas to end-use  customers  using  the  trans-
     9  mission or distribution system of a utility corporation.
    10    2.  Acting  without registering with the commission. a. (i) No person,
    11  firm, association or corporation shall act as an energy broker or energy
    12  consultant without first registering with the commission.
    13    (ii) Any person, firm, association or corporation who or which acts as
    14  an energy broker or energy consultant in violation of  this  subdivision
    15  shall, in addition to other penalties prescribed by law, be subject to a
    16  penalty not to exceed five thousand dollars for each violation.
    17    b.  No person, firm, association or corporation shall identify or hold
    18  himself, herself or itself out to be an energy broker or energy consult-
    19  ant unless registered with the commission.
    20    c. No person shall accept any commission, service  fee,  brokerage  or
    21  other  valuable  consideration for selling, soliciting or negotiating an
    22  energy contract in this state if that person is required  to  be  regis-
    23  tered  under this section and is not so registered, unless stated other-
    24  wise herein.
    25    3. Energy broker and energy  consultant  registration.  a.  An  energy
    26  broker or energy consultant shall register with the commission authoriz-
    27  ing  such  registered  energy  broker  or energy consultant to act as an
    28  energy broker or energy consultant in a manner prescribed by the commis-
    29  sion; provided that  such:  (i)  energy  broker  demonstrates  financial
    30  accountability  as  evidenced  by  a  bond  or other method of financial
    31  accountability in an amount not less than one hundred thousand  dollars;
    32  and  (ii)  energy  consultant  demonstrates  financial accountability as
    33  evidenced by a bond or other method of financial  accountability  in  an
    34  amount not less than fifty thousand dollars.
    35    b.  The commission may refuse to register or revoke a registration if,
    36  in the commission's judgment, the energy  broker  or  energy  consultant
    37  registering  has  given  cause for the revocation or suspension of oper-
    38  ations.
    39    c. Each registered energy broker or energy consultant  shall  annually
    40  pay the commission a five hundred dollar registration fee.
    41    d. Each registered energy broker or energy consultant shall notify the
    42  commission upon changing his, her or its legal name.
    43    4.  Disclosure  of compensation. a. Energy brokers and energy consult-
    44  ants shall be required to disclose their form and amount of compensation
    45  to customers via a conspicuous statement on any such contract or  agree-
    46  ment between the energy agent, energy consultant, energy broker or ener-
    47  gy intermediary and its customer.
    48    b. If an energy service company collects broker compensation on behalf
    49  of an energy broker or energy consultant, such broker compensation shall
    50  be  added  as  a  provision  to  the customer disclosure label and shall
    51  reflect the amount and method of broker compensation.
    52    5. Rebates prohibited. a. No energy broker, energy consultant  or  any
    53  other  person  acting  for  or  on behalf of the energy broker or energy
    54  consultant shall offer or make, directly or indirectly,  any  rebate  of
    55  any  portion  of  the fee, premium or charge made, or pay or give to any
    56  applicant, or to any person,  firm,  or  corporation  acting  as  agent,

        A. 3166--A                          3
 
     1  representative,  attorney,  or  employee of the energy rate payer or any
     2  interest therein, either directly or  indirectly,  any  commission,  any
     3  part  of  its  fees  or  charges, or any other consideration or valuable
     4  thing,  as  an inducement for, or as compensation for, any energy supply
     5  or energy-related business, nor shall  any  applicant,  or  any  person,
     6  firm,  or  corporation  acting  as  agent,  representative, attorney, or
     7  employee of the energy rate payer or  of  the  prospective  energy  rate
     8  payer  or  anyone  having  any  interest  in the real property knowingly
     9  receive, directly or indirectly, any such rebate or other  consideration
    10  or  valuable  thing.  Any person or entity who violates this subdivision
    11  shall be subject to a penalty equal to the greater of: (i) five thousand
    12  dollars; or (ii) up to ten times  the  amount  of  any  compensation  or
    13  rebate received or paid.
    14    b. For the purposes of this section, "an inducement for, or as compen-
    15  sation  for, any energy supply business" shall mean a benefit given with
    16  the intention to compensate or offer compensation, directly or indirect-
    17  ly, for any past or present placement for a particular piece  of  energy
    18  supply  or energy-related business to any applicant, or person, firm, or
    19  corporation acting as agent, representative, attorney,  or  employee  of
    20  the energy rate payer, lessee, mortgagee or the prospective energy rate-
    21  payer,  or any interest therein. Nothing contained in subdivision one of
    22  this section to the contrary shall prohibit any energy  supplier  corpo-
    23  ration,  energy broker, or energy consultant, or any other person acting
    24  for or on behalf of the energy service company, energy broker or  energy
    25  consultant  from  undertaking any usual and customary marketing activity
    26  aimed at acquainting present and prospective customers with  the  advan-
    27  tages  of  using  a particular energy supplier, energy broker, or energy
    28  consultant that are not intended for the purpose of  a  reward  for  the
    29  future  placement  of,  or  the past placement of, a particular piece of
    30  energy supply business.
    31    § 2. This act shall take effect on the one hundred eightieth day after
    32  it shall have become a law.
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