NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3746
SPONSOR: Eichenstein
 
TITLE OF BILL:
An act to amend the public service law, in relation to false material
statements related to a public utility
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill establishes civil penalties for making false material state-
ments to the public service commission in relation to a rate proceeding.
 
SUMMARY OF PROVISIONS:
Section 1 amends the public service law by adding a new subdivision 4-a
that would impose a $250,000 penalty for a public authority or the
employees thereof, to knowingly make a false material statement to the
public service commission in relation to a rate proceeding. Further,
failure to disclose a false material statement made during a rate case
to the commission within three days of discovering the false information
will also result in a $250,000 penalty.
Section 2 provides the effective date.
 
JUSTIFICATION:
The Public Service Commission regulates most of the utilities operating
in the state. Utility rates are set by the Commission, and are based on
the costs to the utility of providing the service. When utilities
provide inaccurate information, rates can be unnecessarily inflated,
causing financial harm to the customers. Instituting a civil forfeiture
for utilities that knowingly submit false information, or those that
discover false information was previously submitted and fail to disclose
such will deter utilities from wrongly inflating consumer rates.
 
PRIOR LEGISLATIVE HISTORY:
2021-2022: A1225
2019-20: S5673/A8286
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
3746
2023-2024 Regular Sessions
IN ASSEMBLY
February 7, 2023
___________
Introduced by M. of A. EICHENSTEIN -- read once and referred to the
Committee on Corporations, Authorities and Commissions
AN ACT to amend the public service law, in relation to false material
statements related to a public utility
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 25 of the public service law is amended by adding a
2 new subdivision 4-a to read as follows:
3 4-a. (a) Notwithstanding the provisions of subdivision one or two of
4 this section, any public utility company or corporation, and the offi-
5 cers, agents or employees thereof that knowingly makes a false material
6 statement, representation or certification to the commission in any rate
7 proceeding shall forfeit to the state of New York a sum not to exceed
8 two hundred fifty thousand dollars. Each false material statement,
9 representation or certification shall constitute a separate and distinct
10 offense for purposes of this section.
11 (b) A public utility company or corporation, and the officers, agents
12 or employees thereof that discover that a false material statement,
13 representation or certification was previously made to the commission in
14 relation to a rate proceeding shall disclose such false material state-
15 ment, representation or certification to the commission within three
16 business days of discovery. Failure to make such disclosure shall
17 constitute a knowing violation of this subdivision and shall cause such
18 public utility company or corporation and the officers, agents or
19 employees thereof to be liable for forfeiture pursuant to this subdivi-
20 sion.
21 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07649-01-3