S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10726
 
                           I N  A S S E M B L Y
 
                            September 16, 2022
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Paulin) --
   read once and referred to the Committee on Environmental Conservation
 
 AN ACT to amend the public service law, the  environmental  conservation
   law  and  the state finance law, in relation to reporting requirements
   and audits of private water companies

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.    This  act shall be known and may be cited as the "small
 water utility transparency act".
   § 2.  The public service law is amended by adding a new  section  89-q
 to read as follows:
   §  89-Q. POWERS OF THE COMMISSION WITH RESPECT TO PRIVATE WATER COMPA-
 NIES. 1. THE COMMISSION, IN COORDINATION  WITH  THE  COMPTROLLER,  SHALL
 CONDUCT  FULL  AUDITS  OF  REGULATED  PRIVATE WATER COMPANIES WITH GROSS
 ANNUAL REVENUES BELOW TWO HUNDRED FIFTY THOUSAND DOLLARS ON A THREE-  TO
 FIVE-YEAR  CYCLE,  AS  DETERMINED  BY  THE COMMISSION. SUCH AUDITS SHALL
 FOCUS ON CAPITAL INVESTMENT IN THE  PRIVATE  WATER  COMPANY,  COMPLIANCE
 WITH  STATE  AND  FEDERAL  WATER  SAFETY REGULATIONS AND LAWS, FINANCIAL
 CAPACITY OF THE PRIVATE WATER COMPANY, MANAGEMENT ABILITY  AND  FUNCTION
 OF  THE  PRIVATE  WATER  COMPANY,  WATER ADEQUACY AND SUFFICIENCY OF THE
 PRIVATE WATER SYSTEM AND AFFORDABILITY.
   2. THE COMMISSION SHALL  REQUIRE  THAT  ANY  REGULATED  PRIVATE  WATER
 COMPANY  WITH  GROSS  ANNUAL  REVENUES  BELOW TWO HUNDRED FIFTY THOUSAND
 DOLLARS WHICH IS UNDER INVESTIGATION EITHER BY MOTION OF THE COMMISSION,
 PURSUANT TO SECTION EIGHTY-NINE-I OF THIS ARTICLE,  OR  PURSUANT  TO  AN
 ORDER  TO  SHOW CAUSE SHALL FILE REGULAR PUBLIC UPDATES ON THE STATUS OF
 COMPLIANCE WITH SUCH ORDER. THE COMMISSION SHALL  PROMULGATE  RULES  AND
 REGULATIONS  REGARDING  SUCH  REQUIREMENT INCLUDING, BUT NOT LIMITED TO,
 DETERMINING HOW OFTEN SUCH PUBLIC UPDATES  SHALL  BE  PROVIDED  AND  THE
 MANNER  IN  WHICH  SUCH  PUBLIC UPDATES SHALL BE PROVIDED TO THE PUBLIC.
 THE COMMISSION SHALL BE AUTHORIZED TO ESTABLISH AND  COLLECT  FINES  FOR
 NON-COMPLIANCE  WITH  THIS  SUBDIVISION.    SUCH  FINES  MAY  BE  SET AT
 INCREASED RATES FOR REPEATED NON-COMPLIANCE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11615-02-2
              

 A. 10726                            2
 
   3. THE COMMISSION SHALL COOPERATE WITH THE DEPARTMENT OF ENVIRONMENTAL
 CONSERVATION AND SHALL PROVIDE ANY INFORMATION OR DATA COMPILED BY OR IN
 THE POSSESSION OF THE COMMISSION  TO  THE  DEPARTMENT  OF  ENVIRONMENTAL
 CONSERVATION  FOR THE PURPOSES OF AIDING THE DEPARTMENT OF ENVIRONMENTAL
 CONSERVATION IN CARRYING OUT AUDITS OF REGULATED PRIVATE WATER COMPANIES
 WITH GROSS ANNUAL REVENUES BELOW TWO HUNDRED FIFTY THOUSAND DOLLARS. THE
 COMMISSION  SHALL COORDINATE SUCH AUDITS WITH THE DEPARTMENT OF ENVIRON-
 MENTAL CONSERVATION AND SHALL ISSUE JOINT AUDIT REPORTS THAT  MERGE  THE
 SEPARATE  AUDITS  OF  THE COMMISSION AND THE DEPARTMENT OF ENVIRONMENTAL
 CONSERVATION.
   § 3. The environmental conservation law is amended  by  adding  a  new
 section 15-0319 to read as follows:
 § 15-0319. POWERS AND DUTIES WITH RESPECT TO PRIVATE WATER COMPANIES.
   THE  DEPARTMENT  SHALL  CONDUCT FULL AUDITS OF PRIVATE WATER COMPANIES
 WITH GROSS ANNUAL REVENUES BELOW  TWO  HUNDRED  FIFTY  THOUSAND  DOLLARS
 WHICH  ARE  REGULATED  BY  THE  PUBLIC SERVICE COMMISSION ON A THREE- TO
 FIVE-YEAR CYCLE, AS DETERMINED BY  THE  DEPARTMENT.  SUCH  AUDITS  SHALL
 FOCUS ON, BUT SHALL NOT BE LIMITED TO, COMPLIANCE WITH STATE AND FEDERAL
 WATER SAFETY REGULATIONS AND LAWS, WATER QUALITY, WATER ADEQUACY, SUFFI-
 CIENCY OF TESTING PERFORMED BY THE PRIVATE WATER COMPANY. THE DEPARTMENT
 MAY  SEEK  THE ASSISTANCE OF THE PUBLIC SERVICE COMMISSION IN CONDUCTING
 SUCH AUDITS AND MAY RELY ON INFORMATION AND DATA COMPLIED OR PROVIDED BY
 THE PUBLIC SERVICE COMMISSION IN THE COMPLETION OF  SUCH  AUDITS.    THE
 DEPARTMENT  SHALL COORDINATE SUCH AUDITS WITH THE PUBLIC SERVICE COMMIS-
 SION AND SHALL ASSIST THE COMMISSION IN ISSUING JOINT AUDIT REPORTS THAT
 MERGE THE SEPARATE AUDITS OF  THE  DEPARTMENT  AND  THE  PUBLIC  SERVICE
 COMMISSION.
   §  4.    Section 8 of the state finance law is amended by adding a new
 subdivision 21 to read as follows:
   21.  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF  LAW,  AUDIT  REGU-
 LATED  PRIVATE  WATER  COMPANIES  WITH  GROSS  ANNUAL REVENUES BELOW TWO
 HUNDRED FIFTY THOUSAND DOLLARS IN ACCORDANCE WITH SECTION  EIGHTY-NINE-Q
 OF THE PUBLIC SERVICE LAW.
   § 5. This act shall take effect immediately.