Bill Text: NY A03166 | 2021-2022 | General Assembly | Amended
Bill Title: Requires energy brokers and energy consultants to register with the public service commission.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2022-06-03 - substituted by s9414 [A03166 Detail]
Download: New_York-2021-A03166-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3166--A 2021-2022 Regular Sessions IN ASSEMBLY January 22, 2021 ___________ Introduced by M. of A. DINOWITZ, ENGLEBRIGHT, SIMON, DICKENS, SAYEGH, GOTTFRIED, OTIS -- Multi-Sponsored by -- M. of A. COOK, GRIFFIN -- read once and referred to the Committee on Corporations, Authorities and Commissions -- reported and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- reported and referred to the Committee on Rules -- Rules Committee discharged, bill amended, ordered reprinted as amended and recommitted to the Committee on Rules AN ACT to amend the public service law, in relation to requiring the registration of energy brokers and energy consultants The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The public service law is amended by adding a new section 2 66-t to read as follows: 3 § 66-t. Registration of energy brokers and energy consultants. 1. 4 Definitions. For the purposes of this section, the following terms shall 5 have the following meanings unless the context indicates otherwise: 6 a. "Broker compensation" means any payment made to an energy broker or 7 energy consultant for the purposes of securing or procuring of energy 8 for the end-use customer, or advising on the securing or procuring of 9 energy for the end-use consumer. 10 b. "Customer disclosure label" means the statement an energy service 11 company must provide a customer with whom it enters into a sales agree- 12 ment pursuant to the rules and regulations of the public service commis- 13 sion. 14 c. "Energy broker" means an entity that assumes the contractual and 15 legal responsibility for the sale of electric supply service, trans- 16 mission or other services to end-use retail customers, but does not take 17 title to any of the electricity sold, or an entity that assumes the 18 contractual and legal obligation to provide for the sale of natural gas EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05723-02-2A. 3166--A 2 1 supply service, transportation or other services to end-use retail 2 customers, but does not take title to any of the natural gas sold. 3 d. "Energy consultant" means any person, firm, association or corpo- 4 ration who acts as broker in soliciting, negotiating or advising any 5 electric or natural gas contract, or acts as an agent in accepting any 6 electric or natural gas contract on behalf of an ESCO. 7 e. "Energy service company" or "ESCO" means an entity eligible to sell 8 electricity and/or natural gas to end-use customers using the trans- 9 mission or distribution system of a utility corporation. 10 2. Acting without registering with the commission. a. (i) No person, 11 firm, association or corporation shall act as an energy broker or energy 12 consultant without first registering with the commission. 13 (ii) Any person, firm, association or corporation who or which acts as 14 an energy broker or energy consultant in violation of this subdivision 15 shall, in addition to other penalties prescribed by law, be subject to a 16 penalty not to exceed five thousand dollars for each violation. 17 b. No person, firm, association or corporation shall identify or hold 18 himself, herself or itself out to be an energy broker or energy consult- 19 ant unless registered with the commission. 20 c. No person shall accept any commission, service fee, brokerage or 21 other valuable consideration for selling, soliciting or negotiating an 22 energy contract in this state if that person is required to be regis- 23 tered under this section and is not so registered, unless stated other- 24 wise herein. 25 3. Energy broker and energy consultant registration. a. An energy 26 broker or energy consultant shall register with the commission authoriz- 27 ing such registered energy broker or energy consultant to act as an 28 energy broker or energy consultant in a manner prescribed by the commis- 29 sion; provided that such: (i) energy broker demonstrates financial 30 accountability as evidenced by a bond or other method of financial 31 accountability in an amount not less than one hundred thousand dollars; 32 and (ii) energy consultant demonstrates financial accountability as 33 evidenced by a bond or other method of financial accountability in an 34 amount not less than fifty thousand dollars. 35 b. The commission may refuse to register or revoke a registration if, 36 in the commission's judgment, the energy broker or energy consultant 37 registering has given cause for the revocation or suspension of oper- 38 ations. 39 c. Each registered energy broker or energy consultant shall annually 40 pay the commission a five hundred dollar registration fee. 41 d. Each registered energy broker or energy consultant shall notify the 42 commission upon changing his, her or its legal name. 43 4. Disclosure of compensation. a. Energy brokers and energy consult- 44 ants shall be required to disclose their form and amount of compensation 45 to customers via a conspicuous statement on any such contract or agree- 46 ment between the energy agent, energy consultant, energy broker or ener- 47 gy intermediary and its customer. 48 b. If an energy service company collects broker compensation on behalf 49 of an energy broker or energy consultant, such broker compensation shall 50 be added as a provision to the customer disclosure label and shall 51 reflect the amount and method of broker compensation. 52 5. Rebates prohibited. a. No energy broker, energy consultant or any 53 other person acting for or on behalf of the energy broker or energy 54 consultant shall offer or make, directly or indirectly, any rebate of 55 any portion of the fee, premium or charge made, or pay or give to any 56 applicant, or to any person, firm, or corporation acting as agent,A. 3166--A 3 1 representative, attorney, or employee of the energy rate payer or any 2 interest therein, either directly or indirectly, any commission, any 3 part of its fees or charges, or any other consideration or valuable 4 thing, as an inducement for, or as compensation for, any energy supply 5 or energy-related business, nor shall any applicant, or any person, 6 firm, or corporation acting as agent, representative, attorney, or 7 employee of the energy rate payer or of the prospective energy rate 8 payer or anyone having any interest in the real property knowingly 9 receive, directly or indirectly, any such rebate or other consideration 10 or valuable thing. Any person or entity who violates this subdivision 11 shall be subject to a penalty equal to the greater of: (i) five thousand 12 dollars; or (ii) up to ten times the amount of any compensation or 13 rebate received or paid. 14 b. For the purposes of this section, "an inducement for, or as compen- 15 sation for, any energy supply business" shall mean a benefit given with 16 the intention to compensate or offer compensation, directly or indirect- 17 ly, for any past or present placement for a particular piece of energy 18 supply or energy-related business to any applicant, or person, firm, or 19 corporation acting as agent, representative, attorney, or employee of 20 the energy rate payer, lessee, mortgagee or the prospective energy rate- 21 payer, or any interest therein. Nothing contained in subdivision one of 22 this section to the contrary shall prohibit any energy supplier corpo- 23 ration, energy broker, or energy consultant, or any other person acting 24 for or on behalf of the energy service company, energy broker or energy 25 consultant from undertaking any usual and customary marketing activity 26 aimed at acquainting present and prospective customers with the advan- 27 tages of using a particular energy supplier, energy broker, or energy 28 consultant that are not intended for the purpose of a reward for the 29 future placement of, or the past placement of, a particular piece of 30 energy supply business. 31 § 2. This act shall take effect on the one hundred eightieth day after 32 it shall have become a law.