BILL NUMBER: S7858

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the public service law, in relation to utility member-
ship dues used for lobbying activities

 
PURPOSE:

The proposed legislation will prevent public utility companies from
circumventing pre-existing law that already precludes these companies
from charging their customers the cost of legislative lobbying.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 114-a of the Public Service law to add addi-
tional language that will prevent utility companies from charging the
cost of membership dues to customers, when such membership dues are for
membership in a lobbying organization, association, institution or
corporation.
              

Section 2 provides that the act shall take effect immediately.

 
JUSTIFICATION:

Under current law, electric and gas utility companies cannot charge the
cost of legislative lobbying to customers. However, these utility compa-
nies charge customers for the cost of belonging to trade associations.
Often, these trade associations are lobbying at both the state and
federal level for policy that goes against the interest of New York
ratepayers. The trade association provides an invoice to the utility
company that identifies the percentage of lobbying activities as part of
the bill - often less than twenty percent - which is removed from the
amount included in rates. The utility company passes along the remaining
cost to customers without any requirement or burden of proof in how the
funds are used by the trade association or other entity. This bill would
prevent utility companies from charging customers the cost of membership
dues for belonging to any trade association, organization, institution,
corporation, or other entity that engages in legislative lobbying.  This
will ensure that New York ratepayers do not subsidize the political
activities of groups that may seek to influence policy against their
interest. If a utility company believes it is in the interest of the
corporation to belong to such a group, it may charge the cost of member-
ship dues to the shareholders.  Legislative History: New Bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
The act shall take effect immediately