BILL NUMBER: S1012
SPONSOR: BROUK
 
TITLE OF BILL:
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
 
PURPOSE OR GENERAL IDEA OF BILL:
To ensure that ratepayer funds are used appropriately, this bill prohib-
its utility companies from using ratepayer funds for political activ-
ities.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the Public Service Law by adding a new article 12.
Section 2 amends section 5 of the Public Service Law by adding a new
subdivision 7.
Section 3 sets the effective date.
 
JUSTIFICATION:
There is no situation in which a utility company in New York State
should be using money they receive from ratepayers for political activ-
ities like lobbying. Dollars from the public should not be used to
further the interests of utility companies, which are to earn greater
revenue and sometimes to defeat environmental and public health
protections.
New York State currently prohibits rate determinations from including
the operational costs of a utility that include the costs of lobbying or
association membership dues. However, lobbying is narrowly defined, and
only covers influencing the legislature and governor on bills before
them.
This bill follows in the footsteps of other states that have recently
enacted laws that provide for more prohibitions on political activities
by utility companies. This legislation will strengthen the prohibition
on lobbying to include a ban on direct or reimbursed expenditures of
ratepayer and large shareholder funds on political donations, the direct
or grassroots influencing of officials and staff, and perks provided to
a utility's board of directors. Further, this bill will require greater
reporting by utility companies and make such reports publicly accessi-
ble.
 
LEGISATIVE HISTORY:
2023: S7637 Referred to Rules.
2024: S7637 Referred to Energy and Telecommunications.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.

Statutes affected:
S1012: 5 public service law