S07637 Summary:

BILL NOS07637
 
SAME ASSAME AS A07880-A
 
SPONSORBROUK
 
COSPNSRKRUEGER
 
MLTSPNSR
 
Add Art 12 §§240 & 241, amd §5, Pub Serv L
 
Prohibits public utilities from using funds or being reimbursed by funds raised from ratepayers for contributions or gifts to political candidates, trade associations, public charities, and lobbyists, and for certain travel, entertainment and educational expenditures.
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S07637 Actions:

BILL NOS07637
 
08/18/2023REFERRED TO RULES
01/03/2024REFERRED TO ENERGY AND TELECOMMUNICATIONS
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S07637 Committee Votes:

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S07637 Floor Votes:

There are no votes for this bill in this legislative session.
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S07637 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7637
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                     August 18, 2023
                                       ___________
 
        Introduced  by  Sen.  BROUK  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
 
        AN ACT to amend the public  service  law,  in  relation  to  prohibiting
          public  utilities from using funds or being reimbursed by funds raised
          from ratepayers for certain activities

          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 article
     2  12 to read as follows:
     3                                  ARTICLE 12
     4                             GENERAL PROVISIONS
     5  Section 240. Definitions.
     6          241. Limitations on rates.
     7    § 240. Definitions. As used in this article, unless the context other-
     8  wise indicates, the following terms have the following meanings:
     9    1. "Affiliated interest" means any person who owns directly, indirect-
    10  ly or through a chain of successive ownership, ten percent  or  more  of
    11  the voting securities of a public utility.
    12    2.  "Consumer-owned  transmission  and distribution utility" means any
    13  transmission and distribution utility wholly  owned  by  its  consumers,
    14  including  its  consumers  served  in  the state. "Consumer-owned trans-
    15  mission and distribution utility" includes but is not limited to:
    16    (a) the transmission and distribution portion of a rural  electrifica-
    17  tion cooperative;
    18    (b)  the  transmission  and distribution portion of an electrification
    19  cooperative organized on a cooperative plan under the laws of the state;
    20    (c) a municipal or quasi-municipal transmission and distribution util-
    21  ity located in the state;
    22    (d) the transmission  and  distribution  portion  of  a  municipal  or
    23  quasi-municipal  entity  located  in  the state providing generation and
    24  other services; and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11887-04-3

        S. 7637                             2
 
     1    (e) a transmission and distribution utility wholly owned by a  munici-
     2  pality located in the state.
     3    3.  "Consumer-owned  water  utility"  means any water utility which is
     4  wholly owned by its consumers, including its  consumers  served  in  the
     5  state. "Consumer-owned water utility" includes but is not limited to:
     6    (a)  any  municipal  or  quasi-municipal water district or corporation
     7  located in the state;
     8    (b) any municipal water department located in the state; or
     9    (c) the water portion of any utility wholly owned by a municipality or
    10  district located in the state.
    11    4. (a) "Grassroots lobbying" means communication with members  of  the
    12  general  public to solicit them to communicate directly with any covered
    13  official for the purpose of influencing legislative action,  other  than
    14  legislation  that  is  before  the  legislature  as a result of a direct
    15  initiative by a member of the legislature,  when  that  solicitation  is
    16  made by:
    17    (i) a broadcast, cable or satellite transmission;
    18    (ii) a communication delivered by print media;
    19    (iii)  a letter or other written communication delivered by mail or by
    20  comparable delivery service;
    21    (iv) a communication delivered by  e-mail,  a  website  or  any  other
    22  digital format;
    23    (v) telephone; or
    24    (vi)  a  method  of  communication similar to those listed in subpara-
    25  graphs (i) through (v) of this paragraph.
    26    (b) "Grassroots lobbying" does not include a person communicating with
    27  the person's stockholders, employees, board members, officers  or  dues-
    28  paying members.
    29    5.  "Lobbying"  means to communicate directly with any official in the
    30  legislative branch or any official in the executive  branch  or  with  a
    31  constitutional  officer  for  the purpose of influencing any legislative
    32  action or with the governor or the governor's cabinet and staff for  the
    33  purpose of influencing the approval or veto of a legislative action when
    34  reimbursement  for expenditures or compensation is made for those activ-
    35  ities. "Lobbying" includes the time spent to prepare and submit  to  the
    36  governor,  an  official  in  the  legislative branch, an official in the
    37  executive branch, a constitutional officer or  a  legislative  committee
    38  oral  and  written proposals for, or testimony or analyses concerning, a
    39  legislative action. "Lobbying" does not include time spent by any person
    40  providing information to or participating in a subcommittee, stakeholder
    41  group, task force or other work group regarding a legislative action  by
    42  the  appointment  or  at  the  request  of the governor, a legislator or
    43  legislative committee, a constitutional officer, a state agency  commis-
    44  sioner or the chair of a state board or commission.
    45    6.  "Public  charity"  means an entity formed primarily for charitable
    46  purposes, including but not limited to:
    47    (a) a corporation formed  under  the  business  corporation  law,  the
    48  limited  liability  company  law  or  the not-for-profit corporation law
    49  primarily for charitable purposes; and
    50    (b) a charitable trust.
    51    7. "Public utility" means a public utility company or a public utility
    52  corporation subject to the provisions of this chapter.
    53    8. "Trade association" means a business or industry trade association,
    54  group or related entity incorporated under Section 501 of  the  Internal
    55  Revenue Code of 1986.

        S. 7637                             3
 
     1    §  241.  Limitations on rates. 1. The following expenses, whether paid
     2  directly or indirectly, through reimbursement or otherwise, incurred  by
     3  a public utility or an affiliated interest may not be included or incor-
     4  porated in operating expenses to be recovered in rates:
     5    (a) contributions or gifts to political candidates, political parties,
     6  political  or  legislative  committees  or any committee or organization
     7  working to influence referendum petitions or elections;
     8    (b) contributions to a  trade  association,  chamber  of  commerce  or
     9  public  charity, including, but not limited to, a charity managed by the
    10  public utility or affiliated  interest;  provided,  however,  that  this
    11  paragraph does not apply to a consumer-owned water utility;
    12    (c) any direct or indirect cost associated with (i) travel, lodging or
    13  food  and  beverage expenses for the public utility's board of directors
    14  and officers or the board of directors and officers of such public util-
    15  ity's parent company; (ii) entertainment  or  gifts;  (iii)  any  owned,
    16  leased  or  chartered aircraft for such public utility's board of direc-
    17  tors and officers or the board of directors and officers of such  public
    18  utility's parent company; or (iv) investor relations;
    19    (d) expenditures for lobbying or grassroots lobbying;
    20    (e)  educational  expenditures,  as defined by the commission by rule,
    21  unless approved by the commission as serving a public interest.   Educa-
    22  tional  expenditures include expenditures relating to information deliv-
    23  ered to the public or to public  utility's  customers  by  radio,  tele-
    24  vision,  the  Internet,  print  and other media or through sponsorships,
    25  paid endorsements and public relations campaigns.  This  paragraph  does
    26  not apply to a consumer-owned transmission and distribution utility or a
    27  consumer-owned water utility; or
    28    (f)  any  expenses  associated  with  the  preparation  of the reports
    29  described in subdivisions two and three of this section.
    30    2. On or before January fifteenth, two thousand twenty-five, and annu-
    31  ally thereafter, each public utility's with more than seventy-five thou-
    32  sand customers shall submit to  the  commission  a  report,  in  a  form
    33  prescribed by the commission, containing a written, itemized description
    34  of  any  expenses that may not be included or incorporated in the public
    35  utility's operating expenses under subdivision one of this section.  The
    36  report must also include a written, itemized description of the expenses
    37  that may not be included or incorporated in the public utility's operat-
    38  ing  expenses under subdivision one of this section that are relevant to
    39  the business interests of the public utility paid by a membership organ-
    40  ization of which the public utility is a member. For each  expense,  the
    41  report must include the date, the payee, the amount and a description of
    42  the  purpose of the expense and any other information deemed relevant by
    43  the commission.
    44    3. In addition to the report required under subdivision  two  of  this
    45  section,  if a public utility or an affiliated interest engages in major
    46  political activities, as defined by the commission by rule,  the  public
    47  utility  shall  file a quarterly report containing a written description
    48  of those major political activities and the expenditures associated with
    49  those activities. For each expenditure,  the  report  must  include  the
    50  date,  the  payee,  the  amount  and a description of the purpose of the
    51  expenditure.
    52    4. The public utility shall make available for public  inspection  all
    53  materials  filed with the commission in accordance with subdivisions two
    54  and three of this section. The commission shall make available the annu-
    55  al reports filed by public utilities in accordance with this section  on

        S. 7637                             4
 
     1  its  publicly  accessible website with notice of the availability of the
     2  reports prominently displayed on the website.
     3    §  2.  Section  5 of the public service law is amended by adding a new
     4  subdivision 7 to read as follows:
     5    7. The commission shall adopt  and  implement  rules  and  regulations
     6  necessary  to  implement the provisions of section two hundred forty-one
     7  of this chapter, including, but not limited to, rules concerning  promo-
     8  tional  advertising;  promotional allowances, including, but not limited
     9  to, the granting of  promotional  rebates  or  credits;  advertising  to
    10  promote  corporate image or goodwill; contributions to public charities;
    11  educational expenditures; or political activities, including major poli-
    12  tical activities, by a public  utility  or  an  affiliated  interest  as
    13  defined in section two hundred forty of this chapter.
    14    §  3.  This  act shall take effect on the ninetieth day after it shall
    15  have become a law. Effective immediately, the addition, amendment and/or
    16  repeal of any rule or regulation necessary  for  the  implementation  of
    17  this  act  on its effective date are authorized to be made and completed
    18  on or before such effective date.
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