A03166 Summary:

BILL NOA03166
 
SAME ASSAME AS S04032
 
SPONSORDinowitz
 
COSPNSREnglebright, Simon, Dickens, Sayegh, Gottfried, Otis
 
MLTSPNSRCook, Griffin
 
Add 66-r, Pub Serv L
 
Requires energy brokers and energy consultants to register with the public service commission.
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A03166 Actions:

BILL NOA03166
 
01/22/2021referred to corporations, authorities and commissions
05/25/2021reported referred to codes
06/02/2021reported referred to ways and means
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A03166 Committee Votes:

CORPORATIONS, AUTHORITIES AND COMMISSIONS Chair:Paulin DATE:05/25/2021AYE/NAY:25/1 Action: Favorable refer to committee Codes
PaulinAyeLemondesAye
CookAyeBlankenbushAye
GalefAyeFriendAye
RodriguezAyeLalorAye
QuartAyePalmesanoNay
OtisAyeAngelinoAye
RozicAyeJensenAye
KimAye
SeawrightAye
DilanAye
RichardsonAye
De La RosaAye
Pheffer AmatoAye
VanelAye
CarrollAye
NiouAye
FallAye
Jean-PierreAye
Gonzalez-RojasAye

CODES Chair:Dinowitz DATE:06/02/2021AYE/NAY:22/0 Action: Favorable refer to committee Ways and Means
DinowitzAyeMorinelloAye
PretlowAyeGiglioAye
CookAyeMontesanoAye
CymbrowitzAyeReillyAye
O'DonnellAyeMikulinAye
LavineAyeTannousisAye
PerryAye
AbinantiAye
WeprinAye
HevesiAye
FahyAye
SeawrightAye
RosenthalAye
WalkerAye
VanelAye
CruzAye

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A03166 Floor Votes:

There are no votes for this bill in this legislative session.
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A03166 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3166
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 22, 2021
                                       ___________
 
        Introduced  by  M.  of A. DINOWITZ, ENGLEBRIGHT, SIMON, DICKENS, SAYEGH,
          GOTTFRIED -- Multi-Sponsored by -- M. of A. COOK, GRIFFIN -- read once
          and referred to the Committee on Corporations, Authorities and Commis-
          sions
 
        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. Section 66-p of the public service law, as added by chapter
     2  705 of the laws of 2019, is renumbered to be  section  66-q  and  a  new
     3  section 66-r is added to read as follows:
     4    §  66-r.  Registration  of  energy  brokers and energy consultants. 1.
     5  Definitions. For the purposes of this section, the following terms shall
     6  have the following meanings unless the context indicates otherwise:
     7    a. "Broker compensation" means any payment made to an energy broker or
     8  energy consultant for the purposes of securing or  procuring  of  energy
     9  for  the  end-use  customer, or advising on the securing or procuring of
    10  energy for the end-use consumer.
    11    b. "Customer disclosure label" means the statement an  energy  service
    12  company  must provide a customer with whom it enters into a sales agree-
    13  ment pursuant to the rules and regulations of the public service commis-
    14  sion.
    15    c. "Energy broker" means an entity that assumes  the  contractual  and
    16  legal  responsibility  for  the  sale of electric supply service, trans-
    17  mission or other services to end-use retail customers, but does not take
    18  title to any of the electricity sold, or  an  entity  that  assumes  the
    19  contractual  and legal obligation to provide for the sale of natural gas
    20  supply service, transportation  or  other  services  to  end-use  retail
    21  customers, but does not take title to any of the natural gas sold.
    22    d.  "Energy  consultant" means any person, firm, association or corpo-
    23  ration who acts as broker in soliciting,  negotiating  or  advising  any
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05723-01-1

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

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