S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5998
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 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:
 
   Section  1.  The public service law is amended by adding a new section
 66-p to read as follows:
   § 66-P. REGISTRATION OF ENERGY  BROKERS  AND  ENERGY  CONSULTANTS.  1.
 DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT INDICATES OTHERWISE:
   A. "BROKER COMPENSATION" MEANS ANY PAYMENT MADE TO AN ENERGY BROKER OR
 ENERGY  CONSULTANT  FOR  THE PURPOSES OF SECURING OR PROCURING OF ENERGY
 FOR THE END-USE CUSTOMER, OR ADVISING ON THE SECURING  OR  PROCURING  OF
 ENERGY FOR THE END-USE CONSUMER.
   B.  "CUSTOMER  DISCLOSURE LABEL" MEANS THE STATEMENT AN ENERGY SERVICE
 COMPANY MUST PROVIDE A CUSTOMER WITH WHOM IT ENTERS INTO A SALES  AGREE-
 MENT PURSUANT TO THE RULES AND REGULATIONS OF THE PUBLIC SERVICE COMMIS-
 SION.
   C.  "ENERGY  BROKER"  MEANS AN ENTITY THAT ASSUMES THE CONTRACTUAL AND
 LEGAL RESPONSIBILITY FOR THE SALE OF  ELECTRIC  SUPPLY  SERVICE,  TRANS-
 MISSION OR OTHER SERVICES TO END-USE RETAIL CUSTOMERS, BUT DOES NOT TAKE
 TITLE  TO  ANY  OF  THE  ELECTRICITY SOLD, OR AN ENTITY THAT ASSUMES THE
 CONTRACTUAL AND LEGAL OBLIGATION TO PROVIDE FOR THE SALE OF NATURAL  GAS
 SUPPLY  SERVICE,  TRANSPORTATION  OR  OTHER  SERVICES  TO END-USE RETAIL
 CUSTOMERS, BUT DOES NOT TAKE TITLE TO ANY OF THE NATURAL GAS SOLD.
   D. "ENERGY CONSULTANT" MEANS ANY PERSON, FIRM, ASSOCIATION  OR  CORPO-
 RATION  WHO  ACTS  AS  BROKER IN SOLICITING, NEGOTIATING OR ADVISING ANY
 ELECTRIC OR NATURAL GAS CONTRACT, OR ACTS AS AN AGENT IN  ACCEPTING  ANY
 ELECTRIC OR NATURAL GAS CONTRACT ON BEHALF OF AN ESCO.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11085-03-9

 S. 5998                             2
 
   E. "ENERGY SERVICE COMPANY" OR "ESCO" MEANS AN ENTITY ELIGIBLE TO SELL
 ELECTRICITY  AND/OR  NATURAL  GAS  TO END-USE CUSTOMERS USING THE TRANS-
 MISSION OR DISTRIBUTION SYSTEM OF A UTILITY CORPORATION.
   2.  ACTING  WITHOUT REGISTERING WITH THE COMMISSION. A. (I) NO PERSON,
 FIRM, ASSOCIATION OR CORPORATION SHALL ACT AS AN ENERGY BROKER OR ENERGY
 CONSULTANT WITHOUT FIRST REGISTERING WITH THE COMMISSION.
   (II) ANY PERSON, FIRM, ASSOCIATION OR CORPORATION WHO OR WHICH ACTS AS
 AN ENERGY BROKER OR ENERGY CONSULTANT IN VIOLATION OF  THIS  SUBDIVISION
 SHALL, IN ADDITION TO OTHER PENALTIES PRESCRIBED BY LAW, BE SUBJECT TO A
 PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH VIOLATION.
   B.  NO PERSON, FIRM, ASSOCIATION OR CORPORATION SHALL IDENTIFY OR HOLD
 HIMSELF, HERSELF OR ITSELF OUT TO BE AN ENERGY BROKER OR ENERGY CONSULT-
 ANT UNLESS REGISTERED WITH THE COMMISSION.
   C. NO PERSON SHALL ACCEPT ANY COMMISSION, SERVICE  FEE,  BROKERAGE  OR
 OTHER  VALUABLE  CONSIDERATION FOR SELLING, SOLICITING OR NEGOTIATING AN
 ENERGY CONTRACT IN THIS STATE IF THAT PERSON IS REQUIRED  TO  BE  REGIS-
 TERED  UNDER THIS SECTION AND IS NOT SO REGISTERED, UNLESS STATED OTHER-
 WISE HEREIN.
   3. ENERGY BROKER AND ENERGY  CONSULTANT  REGISTRATION.  A.  AN  ENERGY
 BROKER OR ENERGY CONSULTANT SHALL REGISTER WITH THE COMMISSION AUTHORIZ-
 ING  SUCH  REGISTERED  ENERGY  BROKER  OR ENERGY CONSULTANT TO ACT AS AN
 ENERGY BROKER OR ENERGY CONSULTANT IN A MANNER PRESCRIBED BY THE COMMIS-
 SION; PROVIDED THAT SUCH: (I) ENERGY BROKER OR ENERGY CONSULTANT  DEMON-
 STRATES  FINANCIAL ACCOUNTABILITY AS EVIDENCED BY A BOND OR OTHER METHOD
 OF FINANCIAL ACCOUNTABILITY IN AN AMOUNT NOT LESS THAN ONE HUNDRED THOU-
 SAND DOLLARS; AND (II) ENERGY CONSULTANT DEMONSTRATES FINANCIAL ACCOUNT-
 ABILITY AS EVIDENCED BY A BOND OR OTHER METHOD OF FINANCIAL ACCOUNTABIL-
 ITY IN AN AMOUNT NOT LESS THAN FIFTY THOUSAND DOLLARS.
   B. THE COMMISSION MAY REFUSE TO REGISTER OR REVOKE A REGISTRATION  IF,
 IN  THE  COMMISSION'S  JUDGMENT,  THE ENERGY BROKER OR ENERGY CONSULTANT
 REGISTERING HAS GIVEN CAUSE FOR THE REVOCATION OR  SUSPENSION  OF  OPER-
 ATIONS.
   C.  EACH  REGISTERED ENERGY BROKER OR ENERGY CONSULTANT SHALL ANNUALLY
 PAY THE COMMISSION A FIVE HUNDRED DOLLAR REGISTRATION FEE.
   D. EACH REGISTERED ENERGY BROKER OR ENERGY CONSULTANT SHALL NOTIFY THE
 COMMISSION UPON CHANGING HIS, HER OR ITS LEGAL NAME.
   4. DISCLOSURE OF COMPENSATION. A. ENERGY BROKERS AND  ENERGY  CONSULT-
 ANTS SHALL BE REQUIRED TO DISCLOSE THEIR FORM AND AMOUNT OF COMPENSATION
 TO  CUSTOMERS VIA A CONSPICUOUS STATEMENT ON ANY SUCH CONTRACT OR AGREE-
 MENT BETWEEN THE ENERGY AGENT, ENERGY CONSULTANT, ENERGY BROKER OR ENER-
 GY INTERMEDIARY AND ITS CUSTOMER.
   B. IF AN ENERGY SERVICE COMPANY COLLECTS BROKER COMPENSATION ON BEHALF
 OF AN ENERGY BROKER OR ENERGY CONSULTANT, SUCH BROKER COMPENSATION SHALL
 BE ADDED AS A PROVISION TO  THE  CUSTOMER  DISCLOSURE  LABEL  AND  SHALL
 REFLECT THE AMOUNT AND METHOD OF BROKER COMPENSATION.
   5.  REBATES  PROHIBITED. A. NO ENERGY BROKER, ENERGY CONSULTANT OR ANY
 OTHER PERSON ACTING FOR OR ON BEHALF OF  THE  ENERGY  BROKER  OR  ENERGY
 CONSULTANT  SHALL  OFFER  OR MAKE, DIRECTLY OR INDIRECTLY, ANY REBATE OF
 ANY PORTION OF THE FEE, PREMIUM OR CHARGE MADE, OR PAY OR  GIVE  TO  ANY
 APPLICANT,  OR  TO  ANY  PERSON,  FIRM,  OR CORPORATION ACTING AS AGENT,
 REPRESENTATIVE, ATTORNEY, OR EMPLOYEE OF THE ENERGY RATE  PAYER  OR  ANY
 INTEREST  THEREIN,  EITHER  DIRECTLY  OR INDIRECTLY, ANY COMMISSION, ANY
 PART OF ITS FEES OR CHARGES, OR  ANY  OTHER  CONSIDERATION  OR  VALUABLE
 THING,  AS  AN INDUCEMENT FOR, OR AS COMPENSATION FOR, ANY ENERGY SUPPLY
 OR ENERGY-RELATED BUSINESS, NOR SHALL  ANY  APPLICANT,  OR  ANY  PERSON,
 FIRM,  OR  CORPORATION  ACTING  AS  AGENT,  REPRESENTATIVE, ATTORNEY, OR

 S. 5998                             3
 
 EMPLOYEE OF THE ENERGY RATE PAYER OR  OF  THE  PROSPECTIVE  ENERGY  RATE
 PAYER  OR  ANYONE  HAVING  ANY  INTEREST  IN THE REAL PROPERTY KNOWINGLY
 RECEIVE, DIRECTLY OR INDIRECTLY, ANY SUCH REBATE OR OTHER  CONSIDERATION
 OR  VALUABLE  THING.  ANY PERSON OR ENTITY WHO VIOLATES THIS SUBDIVISION
 SHALL BE SUBJECT TO A PENALTY EQUAL TO THE GREATER OF: (I) FIVE THOUSAND
 DOLLARS; OR (II) UP TO TEN TIMES  THE  AMOUNT  OF  ANY  COMPENSATION  OR
 REBATE RECEIVED OR PAID.
   B. FOR THE PURPOSES OF THIS SECTION, "AN INDUCEMENT FOR, OR AS COMPEN-
 SATION  FOR, ANY ENERGY SUPPLY BUSINESS" SHALL MEAN A BENEFIT GIVEN WITH
 THE INTENTION TO COMPENSATE OR OFFER COMPENSATION, DIRECTLY OR INDIRECT-
 LY, FOR ANY PAST OR PRESENT PLACEMENT FOR A PARTICULAR PIECE  OF  ENERGY
 SUPPLY  OR ENERGY-RELATED BUSINESS TO ANY APPLICANT, OR PERSON, FIRM, OR
 CORPORATION ACTING AS AGENT, REPRESENTATIVE, ATTORNEY,  OR  EMPLOYEE  OF
 THE ENERGY RATE PAYER, LESSEE, MORTGAGEE OR THE PROSPECTIVE ENERGY RATE-
 PAYER,  OR ANY INTEREST THEREIN. NOTHING CONTAINED IN SUBDIVISION ONE OF
 THIS SECTION TO THE CONTRARY SHALL PROHIBIT ANY ENERGY  SUPPLIER  CORPO-
 RATION,  ENERGY BROKER, OR ENERGY CONSULTANT, OR ANY OTHER PERSON ACTING
 FOR OR ON BEHALF OF THE ENERGY SERVICE COMPANY, ENERGY BROKER OR  ENERGY
 CONSULTANT  FROM  UNDERTAKING ANY USUAL AND CUSTOMARY MARKETING ACTIVITY
 AIMED AT ACQUAINTING PRESENT AND PROSPECTIVE CUSTOMERS WITH  THE  ADVAN-
 TAGES  OF  USING  A PARTICULAR ENERGY SUPPLIER, ENERGY BROKER, OR ENERGY
 CONSULTANT THAT ARE NOT INTENDED FOR THE PURPOSE OF  A  REWARD  FOR  THE
 FUTURE  PLACEMENT  OF,  OR  THE PAST PLACEMENT OF, A PARTICULAR PIECE OF
 ENERGY SUPPLY BUSINESS.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.