S T A T E O F N E W Y O R K
________________________________________________________________________
7366
2025-2026 Regular Sessions
I N A S S E M B L Y
March 25, 2025
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Introduced by M. of A. BURDICK -- read once and referred to the Commit-
tee 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01751-01-5
A. 7366 2
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.