S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7637
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              August 18, 2023
                                ___________
 
 Introduced  by  Sen.  BROUK  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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

   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 article
 12 to read as follows:
                                 ARTICLE 12
                            GENERAL PROVISIONS
 SECTION 240. DEFINITIONS.
         241. LIMITATIONS ON RATES.
   § 240. DEFINITIONS. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHER-
 WISE INDICATES, THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
   1. "AFFILIATED INTEREST" MEANS ANY PERSON WHO OWNS DIRECTLY, INDIRECT-
 LY OR THROUGH A CHAIN OF SUCCESSIVE OWNERSHIP, TEN PERCENT  OR  MORE  OF
 THE VOTING SECURITIES OF A PUBLIC UTILITY.
   2.  "CONSUMER-OWNED  TRANSMISSION  AND DISTRIBUTION UTILITY" MEANS ANY
 TRANSMISSION AND DISTRIBUTION UTILITY WHOLLY  OWNED  BY  ITS  CONSUMERS,
 INCLUDING  ITS  CONSUMERS  SERVED  IN  THE STATE. "CONSUMER-OWNED TRANS-
 MISSION AND DISTRIBUTION UTILITY" INCLUDES BUT IS NOT LIMITED TO:
   (A) THE TRANSMISSION AND DISTRIBUTION PORTION OF A RURAL  ELECTRIFICA-
 TION COOPERATIVE;
   (B)  THE  TRANSMISSION  AND DISTRIBUTION PORTION OF AN ELECTRIFICATION
 COOPERATIVE ORGANIZED ON A COOPERATIVE PLAN UNDER THE LAWS OF THE STATE;
   (C) A MUNICIPAL OR QUASI-MUNICIPAL TRANSMISSION AND DISTRIBUTION UTIL-
 ITY LOCATED IN THE STATE;
   (D) THE TRANSMISSION  AND  DISTRIBUTION  PORTION  OF  A  MUNICIPAL  OR
 QUASI-MUNICIPAL  ENTITY  LOCATED  IN  THE STATE PROVIDING GENERATION AND
 OTHER SERVICES; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11887-04-3
              

 S. 7637                             2
 
   (E) A TRANSMISSION AND DISTRIBUTION UTILITY WHOLLY OWNED BY A  MUNICI-
 PALITY LOCATED IN THE STATE.
   3.  "CONSUMER-OWNED  WATER  UTILITY"  MEANS ANY WATER UTILITY WHICH IS
 WHOLLY OWNED BY ITS CONSUMERS, INCLUDING ITS  CONSUMERS  SERVED  IN  THE
 STATE. "CONSUMER-OWNED WATER UTILITY" INCLUDES BUT IS NOT LIMITED TO:
   (A)  ANY  MUNICIPAL  OR  QUASI-MUNICIPAL WATER DISTRICT OR CORPORATION
 LOCATED IN THE STATE;
   (B) ANY MUNICIPAL WATER DEPARTMENT LOCATED IN THE STATE; OR
   (C) THE WATER PORTION OF ANY UTILITY WHOLLY OWNED BY A MUNICIPALITY OR
 DISTRICT LOCATED IN THE STATE.
   4. (A) "GRASSROOTS LOBBYING" MEANS COMMUNICATION WITH MEMBERS  OF  THE
 GENERAL  PUBLIC TO SOLICIT THEM TO COMMUNICATE DIRECTLY WITH ANY COVERED
 OFFICIAL FOR THE PURPOSE OF INFLUENCING LEGISLATIVE ACTION,  OTHER  THAN
 LEGISLATION  THAT  IS  BEFORE  THE  LEGISLATURE  AS A RESULT OF A DIRECT
 INITIATIVE BY A MEMBER OF THE LEGISLATURE,  WHEN  THAT  SOLICITATION  IS
 MADE BY:
   (I) A BROADCAST, CABLE OR SATELLITE TRANSMISSION;
   (II) A COMMUNICATION DELIVERED BY PRINT MEDIA;
   (III)  A LETTER OR OTHER WRITTEN COMMUNICATION DELIVERED BY MAIL OR BY
 COMPARABLE DELIVERY SERVICE;
   (IV) A COMMUNICATION DELIVERED BY  E-MAIL,  A  WEBSITE  OR  ANY  OTHER
 DIGITAL FORMAT;
   (V) TELEPHONE; OR
   (VI)  A  METHOD  OF  COMMUNICATION SIMILAR TO THOSE LISTED IN SUBPARA-
 GRAPHS (I) THROUGH (V) OF THIS PARAGRAPH.
   (B) "GRASSROOTS LOBBYING" DOES NOT INCLUDE A PERSON COMMUNICATING WITH
 THE PERSON'S STOCKHOLDERS, EMPLOYEES, BOARD MEMBERS, OFFICERS  OR  DUES-
 PAYING MEMBERS.
   5.  "LOBBYING"  MEANS TO COMMUNICATE DIRECTLY WITH ANY OFFICIAL IN THE
 LEGISLATIVE BRANCH OR ANY OFFICIAL IN THE EXECUTIVE  BRANCH  OR  WITH  A
 CONSTITUTIONAL  OFFICER  FOR  THE PURPOSE OF INFLUENCING ANY LEGISLATIVE
 ACTION OR WITH THE GOVERNOR OR THE GOVERNOR'S CABINET AND STAFF FOR  THE
 PURPOSE OF INFLUENCING THE APPROVAL OR VETO OF A LEGISLATIVE ACTION WHEN
 REIMBURSEMENT  FOR EXPENDITURES OR COMPENSATION IS MADE FOR THOSE ACTIV-
 ITIES. "LOBBYING" INCLUDES THE TIME SPENT TO PREPARE AND SUBMIT  TO  THE
 GOVERNOR,  AN  OFFICIAL  IN  THE  LEGISLATIVE BRANCH, AN OFFICIAL IN THE
 EXECUTIVE BRANCH, A CONSTITUTIONAL OFFICER OR  A  LEGISLATIVE  COMMITTEE
 ORAL  AND  WRITTEN PROPOSALS FOR, OR TESTIMONY OR ANALYSES CONCERNING, A
 LEGISLATIVE ACTION. "LOBBYING" DOES NOT INCLUDE TIME SPENT BY ANY PERSON
 PROVIDING INFORMATION TO OR PARTICIPATING IN A SUBCOMMITTEE, STAKEHOLDER
 GROUP, TASK FORCE OR OTHER WORK GROUP REGARDING A LEGISLATIVE ACTION  BY
 THE  APPOINTMENT  OR  AT  THE  REQUEST  OF THE GOVERNOR, A LEGISLATOR OR
 LEGISLATIVE COMMITTEE, A CONSTITUTIONAL OFFICER, A STATE AGENCY  COMMIS-
 SIONER OR THE CHAIR OF A STATE BOARD OR COMMISSION.
   6.  "PUBLIC  CHARITY"  MEANS AN ENTITY FORMED PRIMARILY FOR CHARITABLE
 PURPOSES, INCLUDING BUT NOT LIMITED TO:
   (A) A CORPORATION FORMED  UNDER  THE  BUSINESS  CORPORATION  LAW,  THE
 LIMITED  LIABILITY  COMPANY  LAW  OR  THE NOT-FOR-PROFIT CORPORATION LAW
 PRIMARILY FOR CHARITABLE PURPOSES; AND
   (B) A CHARITABLE TRUST.
   7. "PUBLIC UTILITY" MEANS A PUBLIC UTILITY COMPANY OR A PUBLIC UTILITY
 CORPORATION SUBJECT TO THE PROVISIONS OF THIS CHAPTER.
   8. "TRADE ASSOCIATION" MEANS A BUSINESS OR INDUSTRY TRADE ASSOCIATION,
 GROUP OR RELATED ENTITY INCORPORATED UNDER SECTION 501 OF  THE  INTERNAL
 REVENUE CODE OF 1986.
 S. 7637                             3
 
   §  241.  LIMITATIONS ON RATES. 1. THE FOLLOWING EXPENSES, WHETHER PAID
 DIRECTLY OR INDIRECTLY, THROUGH REIMBURSEMENT OR OTHERWISE, INCURRED  BY
 A PUBLIC UTILITY OR AN AFFILIATED INTEREST MAY NOT BE INCLUDED OR INCOR-
 PORATED IN OPERATING EXPENSES TO BE RECOVERED IN RATES:
   (A) CONTRIBUTIONS OR GIFTS TO POLITICAL CANDIDATES, POLITICAL PARTIES,
 POLITICAL  OR  LEGISLATIVE  COMMITTEES  OR ANY COMMITTEE OR ORGANIZATION
 WORKING TO INFLUENCE REFERENDUM PETITIONS OR ELECTIONS;
   (B) CONTRIBUTIONS TO A  TRADE  ASSOCIATION,  CHAMBER  OF  COMMERCE  OR
 PUBLIC  CHARITY, INCLUDING, BUT NOT LIMITED TO, A CHARITY MANAGED BY THE
 PUBLIC UTILITY OR AFFILIATED  INTEREST;  PROVIDED,  HOWEVER,  THAT  THIS
 PARAGRAPH DOES NOT APPLY TO A CONSUMER-OWNED WATER UTILITY;
   (C) ANY DIRECT OR INDIRECT COST ASSOCIATED WITH (I) TRAVEL, LODGING OR
 FOOD  AND  BEVERAGE EXPENSES FOR THE PUBLIC UTILITY'S BOARD OF DIRECTORS
 AND OFFICERS OR THE BOARD OF DIRECTORS AND OFFICERS OF SUCH PUBLIC UTIL-
 ITY'S PARENT COMPANY; (II) ENTERTAINMENT  OR  GIFTS;  (III)  ANY  OWNED,
 LEASED  OR  CHARTERED AIRCRAFT FOR SUCH PUBLIC UTILITY'S BOARD OF DIREC-
 TORS AND OFFICERS OR THE BOARD OF DIRECTORS AND OFFICERS OF SUCH  PUBLIC
 UTILITY'S PARENT COMPANY; OR (IV) INVESTOR RELATIONS;
   (D) EXPENDITURES FOR LOBBYING OR GRASSROOTS LOBBYING;
   (E)  EDUCATIONAL  EXPENDITURES,  AS DEFINED BY THE COMMISSION BY RULE,
 UNLESS APPROVED BY THE COMMISSION AS SERVING A PUBLIC INTEREST.   EDUCA-
 TIONAL  EXPENDITURES INCLUDE EXPENDITURES RELATING TO INFORMATION DELIV-
 ERED TO THE PUBLIC OR TO PUBLIC  UTILITY'S  CUSTOMERS  BY  RADIO,  TELE-
 VISION,  THE  INTERNET,  PRINT  AND OTHER MEDIA OR THROUGH SPONSORSHIPS,
 PAID ENDORSEMENTS AND PUBLIC RELATIONS CAMPAIGNS.  THIS  PARAGRAPH  DOES
 NOT APPLY TO A CONSUMER-OWNED TRANSMISSION AND DISTRIBUTION UTILITY OR A
 CONSUMER-OWNED WATER UTILITY; OR
   (F)  ANY  EXPENSES  ASSOCIATED  WITH  THE  PREPARATION  OF THE REPORTS
 DESCRIBED IN SUBDIVISIONS TWO AND THREE OF THIS SECTION.
   2. ON OR BEFORE JANUARY FIFTEENTH, TWO THOUSAND TWENTY-FIVE, AND ANNU-
 ALLY THEREAFTER, EACH PUBLIC UTILITY'S WITH MORE THAN SEVENTY-FIVE THOU-
 SAND CUSTOMERS SHALL SUBMIT TO  THE  COMMISSION  A  REPORT,  IN  A  FORM
 PRESCRIBED BY THE COMMISSION, CONTAINING A WRITTEN, ITEMIZED DESCRIPTION
 OF  ANY  EXPENSES THAT MAY NOT BE INCLUDED OR INCORPORATED IN THE PUBLIC
 UTILITY'S OPERATING EXPENSES UNDER SUBDIVISION ONE OF THIS SECTION.  THE
 REPORT MUST ALSO INCLUDE A WRITTEN, ITEMIZED DESCRIPTION OF THE EXPENSES
 THAT MAY NOT BE INCLUDED OR INCORPORATED IN THE PUBLIC UTILITY'S OPERAT-
 ING  EXPENSES UNDER SUBDIVISION ONE OF THIS SECTION THAT ARE RELEVANT TO
 THE BUSINESS INTERESTS OF THE PUBLIC UTILITY PAID BY A MEMBERSHIP ORGAN-
 IZATION OF WHICH THE PUBLIC UTILITY IS A MEMBER. FOR EACH  EXPENSE,  THE
 REPORT MUST INCLUDE THE DATE, THE PAYEE, THE AMOUNT AND A DESCRIPTION OF
 THE  PURPOSE OF THE EXPENSE AND ANY OTHER INFORMATION DEEMED RELEVANT BY
 THE COMMISSION.
   3. IN ADDITION TO THE REPORT REQUIRED UNDER SUBDIVISION  TWO  OF  THIS
 SECTION,  IF A PUBLIC UTILITY OR AN AFFILIATED INTEREST ENGAGES IN MAJOR
 POLITICAL ACTIVITIES, AS DEFINED BY THE COMMISSION BY RULE,  THE  PUBLIC
 UTILITY  SHALL  FILE A QUARTERLY REPORT CONTAINING A WRITTEN DESCRIPTION
 OF THOSE MAJOR POLITICAL ACTIVITIES AND THE EXPENDITURES ASSOCIATED WITH
 THOSE ACTIVITIES. FOR EACH EXPENDITURE,  THE  REPORT  MUST  INCLUDE  THE
 DATE,  THE  PAYEE,  THE  AMOUNT  AND A DESCRIPTION OF THE PURPOSE OF THE
 EXPENDITURE.
   4. THE PUBLIC UTILITY SHALL MAKE AVAILABLE FOR PUBLIC  INSPECTION  ALL
 MATERIALS  FILED WITH THE COMMISSION IN ACCORDANCE WITH SUBDIVISIONS TWO
 AND THREE OF THIS SECTION. THE COMMISSION SHALL MAKE AVAILABLE THE ANNU-
 AL REPORTS FILED BY PUBLIC UTILITIES IN ACCORDANCE WITH THIS SECTION  ON
 S. 7637                             4
 
 ITS  PUBLICLY  ACCESSIBLE WEBSITE WITH NOTICE OF THE AVAILABILITY OF THE
 REPORTS PROMINENTLY DISPLAYED ON THE WEBSITE.
   §  2.  Section  5 of the public service law is amended by adding a new
 subdivision 7 to read as follows:
   7. THE COMMISSION SHALL ADOPT  AND  IMPLEMENT  RULES  AND  REGULATIONS
 NECESSARY  TO  IMPLEMENT THE PROVISIONS OF SECTION TWO HUNDRED FORTY-ONE
 OF THIS CHAPTER, INCLUDING, BUT NOT LIMITED TO, RULES CONCERNING  PROMO-
 TIONAL  ADVERTISING;  PROMOTIONAL ALLOWANCES, INCLUDING, BUT NOT LIMITED
 TO, THE GRANTING OF  PROMOTIONAL  REBATES  OR  CREDITS;  ADVERTISING  TO
 PROMOTE  CORPORATE IMAGE OR GOODWILL; CONTRIBUTIONS TO PUBLIC CHARITIES;
 EDUCATIONAL EXPENDITURES; OR POLITICAL ACTIVITIES, INCLUDING MAJOR POLI-
 TICAL ACTIVITIES, BY A PUBLIC  UTILITY  OR  AN  AFFILIATED  INTEREST  AS
 DEFINED IN SECTION TWO HUNDRED FORTY OF THIS CHAPTER.
   §  3.  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.