NY State Senate Bill 2023-S1791

Senate Bill S1791

2023-2024 Legislative Session

Requires the public service commission and the department of environmental conservation to conduct audits of private water companies

download bill text pdf

Current Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 14, 2024	referred to environmental conservation delivered to assembly passed senate
May 08, 2024	advanced to third reading
May 07, 2024	2nd report cal.
May 06, 2024	1st report cal.910
Feb 13, 2024	reported and committed to finance
Jan 03, 2024	referred to energy and telecommunications
Jan 31, 2023	reported and committed to finance
Jan 17, 2023	referred to energy and telecommunications

Votes

- May 14, 2024 - Floor Vote
  S1791
  
  60
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 14, 2024
      
      aye (60)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Webb
      
      Weber
      
      Weik
      
      excused (2)
      
      Sepúlveda
      
      Walczyk
  May 6, 2024 - Finance Committee Vote
  S1791
  
  20
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Finance Committee Vote: May 6, 2024
      
      aye (20)
      
      Bailey
      
      Borrello
      
      Breslin
      
      Comrie
      
      Cooney
      
      Gallivan
      
      Gounardes
      
      Griffo
      
      Hinchey
      
      Hoylman-Sigal
      
      Krueger
      
      Liu
      
      Martins
      
      Oberacker
      
      Parker
      
      Rivera
      
      Salazar
      
      Skoufis
      
      Stavisky
      
      Thomas
      
      excused (1)
      
      O'Mara
  Feb 13, 2024 - Energy And Telecommunications Committee Vote
  S1791
  
  9
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Feb 13, 2024
      
      aye (9)
      
      Borrello
      
      Gonzalez
      
      Hinchey
      
      Kavanagh
      
      Kennedy
      
      Mannion
      
      Mattera
      
      O'Mara
      
      Parker
  Jan 31, 2023 - Energy And Telecommunications Committee Vote
  S1791
  
  8
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Jan 31, 2023
      
      aye (8)
      
      Gonzalez
      
      Hinchey
      
      Kavanagh
      
      Kennedy
      
      Mannion
      
      Mattera
      
      O'Mara
      
      Parker
      
      aye wr (1)
      
      Walczyk

co-Sponsors

2023-S1791 (ACTIVE) - Details

Current Committee:: Assembly Environmental Conservation
Law Section:: Public Service Law
Laws Affected:: Add §89-q, Pub Serv L; add §15-0319, En Con L; amd §8, St Fin L
Versions Introduced in 2021-2022 Legislative Session:: S8534

2023-S1791 (ACTIVE) - Summary

Establishes the "small water utility transparency act"; requires the public service commission and the department of environmental conservation to conduct audits of certain private water companies; requires certain private water companies which are under certain investigations to file public updates on the status of compliance with such orders.

2023-S1791 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1791

SPONSOR: HINCHEY
 
TITLE OF BILL:

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

 
PURPOSE:

This bill will provide greater oversight of small private water compa-
nies throughout the state by granting more auditing authority to certain
state agencies and the Comptroller's office. It also gives DPS the
authority to institute and enforce a graduated penalty system for
noncompliance of health and safety standards.

 
SUMMARY OF PROVISIONS:

Section 1: This act shall be known and may be cited as the "small water
utility transparency act",

Section 2: The Public Service Commission (PSC), in coordination with the
State Comptroller, shall conduct full audits of regulated private water
companies on a three to five-year cycle.

The PSC 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 or an order to
show cause on the status of compliance. The commission shall be author-
ized to establish and collect fines for non-compliance. Such fines may
be set at increased rates for repeated non-compliance.

Section 3: The Department of Environmental Conservation (DEC) is given
the aforementioned auditing powers in section 2 and must coordinate
auditing efforts with the PSC.

Section 4: Requires the State Comptroller's office to audit private
water companies under the state finance law.

Section 5: Effective Date

 
JUSTIFICATION:

The Public Service Commission (PSC) regulates the rates and services of
approximately 300 small, private water companies serving approximately
830,000 people. Private water companies are found all across New York
State and the majority of them are very small. For example, there are
119 companies with less than 50 customers, another 40 companies with 50
to 100 customers, and approximately 118 systems run by homeowners' asso-
ciations. While each individual system is small, nearly one million New
Yorkers rely on these private water companies for their water supply.

Currently, there is a patchwork of impractical regulations surrounding
small water companies in New York State that allows many to fall through
the cracks and skirt their responsibilities to maintain their water
systems and provide dean, safe water to their customers. Several state
agencies(including the PSC, Department of Environmental Conservation,
and State Comptroller's office)need to play a more defined, coordinated
role in the oversight of these companies to ensure that they uphold
their responsibilities, maintain their systems, and deliver reliable
dean water..

This legislation seeks to protect consumers who rely on private water
companies for their water. We've seen, time and again, small water
companies ignore their responsibility to provide dean water and instead
focus on profit margins and personal gain. The Small Water Utility Tran-
sparency Act will create the first-ever state audits of private water
companies.

 
LEGISLATIVE HISTORY:

06/01122 S8534 referred to corporations, authorities and commissions

 
FISCAL IMPLICATIONS:

None:

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S1791 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1791
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2023
                                ___________
 
 Introduced  by  Sen. HINCHEY -- 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, 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04276-01-3

 S. 1791                             2
 
 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.
   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.

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Senate Bill S1791

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Sponsored By

Michelle Hinchey