STATE OF NEW YORK
        ________________________________________________________________________

                                          7583

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      May 10, 2019
                                       ___________

        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee on Corporations, Authorities and Commissions

        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-p to read as follows:
     3    § 66-p. 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
    19  supply  service,  transportation  or  other  services  to end-use retail
    20  customers, but does not take title to any of the natural gas sold.
    21    d. "Energy consultant" means any person, firm, association  or  corpo-
    22  ration  who  acts  as  broker in soliciting, negotiating or advising any
    23  electric or natural gas contract, or acts as an agent in  accepting  any
    24  electric or natural gas contract on behalf of an ESCO.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11085-03-9

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     1    e. "Energy service company" or "ESCO" means an entity eligible to sell
     2  electricity  and/or  natural  gas  to end-use customers using the trans-
     3  mission or distribution system of a utility corporation.
     4    2.  Acting  without registering with the commission. a. (i) No person,
     5  firm, association or corporation shall act as an energy broker or energy
     6  consultant without first registering with the commission.
     7    (ii) Any person, firm, association or corporation who or which acts as
     8  an energy broker or energy consultant in violation of  this  subdivision
     9  shall, in addition to other penalties prescribed by law, be subject to a
    10  penalty not to exceed five thousand dollars for each violation.
    11    b.  No person, firm, association or corporation shall identify or hold
    12  himself, herself or itself out to be an energy broker or energy consult-
    13  ant unless registered with the commission.
    14    c. No person shall accept any commission, service  fee,  brokerage  or
    15  other  valuable  consideration for selling, soliciting or negotiating an
    16  energy contract in this state if that person is required  to  be  regis-
    17  tered  under this section and is not so registered, unless stated other-
    18  wise herein.
    19    3. Energy broker and energy  consultant  registration.  a.  An  energy
    20  broker or energy consultant shall register with the commission authoriz-
    21  ing  such  registered  energy  broker  or energy consultant to act as an
    22  energy broker or energy consultant in a manner prescribed by the commis-
    23  sion; provided that such: (i) energy broker or energy consultant  demon-
    24  strates  financial accountability as evidenced by a bond or other method
    25  of financial accountability in an amount not less than one hundred thou-
    26  sand dollars; and (ii) energy consultant demonstrates financial account-
    27  ability as evidenced by a bond or other method of financial accountabil-
    28  ity in an amount not less than fifty thousand dollars.
    29    b. The commission may refuse to register or revoke a registration  if,
    30  in  the  commission's  judgment,  the energy broker or energy consultant
    31  registering has given cause for the revocation or  suspension  of  oper-
    32  ations.
    33    c.  Each  registered energy broker or energy consultant shall annually
    34  pay the commission a five hundred dollar registration fee.
    35    d. Each registered energy broker or energy consultant shall notify the
    36  commission upon changing his, her or its legal name.
    37    4. Disclosure of compensation. a. Energy brokers and  energy  consult-
    38  ants shall be required to disclose their form and amount of compensation
    39  to  customers via a conspicuous statement on any such contract or agree-
    40  ment between the energy agent, energy consultant, energy broker or ener-
    41  gy intermediary and its customer.
    42    b. If an energy service company collects broker compensation on behalf
    43  of an energy broker or energy consultant, such broker compensation shall
    44  be added as a provision to  the  customer  disclosure  label  and  shall
    45  reflect the amount and method of broker compensation.
    46    5.  Rebates  prohibited. a. No energy broker, energy consultant or any
    47  other person acting for or on behalf of  the  energy  broker  or  energy
    48  consultant  shall  offer  or make, directly or indirectly, any rebate of
    49  any portion of the fee, premium or charge made, or pay or  give  to  any
    50  applicant,  or  to  any  person,  firm,  or corporation acting as agent,
    51  representative, attorney, or employee of the energy rate  payer  or  any
    52  interest  therein,  either  directly  or indirectly, any commission, any
    53  part of its fees or charges, or  any  other  consideration  or  valuable
    54  thing,  as  an inducement for, or as compensation for, any energy supply
    55  or energy-related business, nor shall  any  applicant,  or  any  person,
    56  firm,  or  corporation  acting  as  agent,  representative, attorney, or

        A. 7583                             3

     1  employee of the energy rate payer or  of  the  prospective  energy  rate
     2  payer  or  anyone  having  any  interest  in the real property knowingly
     3  receive, directly or indirectly, any such rebate or other  consideration
     4  or  valuable  thing.  Any person or entity who violates this subdivision
     5  shall be subject to a penalty equal to the greater of: (i) five thousand
     6  dollars; or (ii) up to ten times  the  amount  of  any  compensation  or
     7  rebate received or paid.
     8    b. For the purposes of this section, "an inducement for, or as compen-
     9  sation  for, any energy supply business" shall mean a benefit given with
    10  the intention to compensate or offer compensation, directly or indirect-
    11  ly, for any past or present placement for a particular piece  of  energy
    12  supply  or energy-related business to any applicant, or person, firm, or
    13  corporation acting as agent, representative, attorney,  or  employee  of
    14  the energy rate payer, lessee, mortgagee or the prospective energy rate-
    15  payer,  or any interest therein. Nothing contained in subdivision one of
    16  this section to the contrary shall prohibit any energy  supplier  corpo-
    17  ration,  energy broker, or energy consultant, or any other person acting
    18  for or on behalf of the energy service company, energy broker or  energy
    19  consultant  from  undertaking any usual and customary marketing activity
    20  aimed at acquainting present and prospective customers with  the  advan-
    21  tages  of  using  a particular energy supplier, energy broker, or energy
    22  consultant that are not intended for the purpose of  a  reward  for  the
    23  future  placement  of,  or  the past placement of, a particular piece of
    24  energy supply business.
    25    § 2. This act shall take effect on the one hundred eightieth day after
    26  it shall have become a law.