Relates to the electronic service of orders

Summary of provisions

Section 1 of the bill would amend PSL § 23(1) to allow orders issued by the Commission to be provided by electronic means pursuant to Commission regulations, unless non-electronic service is requested.

Section 2 of the bill would make the bill effective immediately.

Existing law

PSL §23(1) requires that every order of the Commission be served upon all persons or corporations affected by such order either by: 1) personal delivery; or 2) mail, in a sealed envelope with prepaid postage, addressed to persons designated to receive a summons under the Civil Practice Law and Rules.

Prior legislative history

A similar proposal was introduced as part of the 2009-20 10 Executive Budget but not included in the enacted Budget.

Statement in support

PSL §23(1) was enacted in 1910 and it mandates either personal delivery or delivery by mail. Today, electronic communication is as reliable as mail. The bill would further the intent of the Electronic Signatures and Records Act ("ESRA"), State Technology Law Article III, which was adopted because "it is in the best interest of the State of New York, its citizens, businesses and government entities for state and federal law to work in tandem to promote the use of electronic technology in the everyday lives and transactions of such individuals and entities." Laws of 2002, Ch. 314, § 1.

The Commission sends out approximately 650 orders annually, which must be sent to multiple parties per case; large proceedings may have over 100 parties. Implementation of electronic service would vastly reduce

the cost of paper, envelopes, printing and mailing, and allow limited staff to focus on other duties. ESRA provides agencies broad authority to seek the savings of electronic transmittal and electronic recordkeeping. However, ESRA implementing regulations, 9 NYCRR §540.5(e), state that "(g)overnmental entities using electronic records shall, in the absence of specific statutory or regulatory requirements, have the authority to specify the manner and format in which electronic records will be received, produced, accepted, acquired, recorded, filed, transmitted, forwarded, acknowledged and stored (emphasis added)." Because, in its current form, PSL §23(1) specifically mandates personal service or "by mailing a copy thereof, in a sealed package with postage prepaid," it precludes electronic service of Commission Orders, without a waiver.

The Commission has recently developed an electronic document management system and promulgated implementing regulations. The Commission now receives a majority of filings electronically, posts all documents filed by every party and all documents issued by the Commission on its web site, and serves Commission-issued documents - primarily ALJ rulings, Secretary Notices, and Commission orders - by sending links to the documents to those on its party and service lists who have requested electronic service. Parties requesting mail service of hard copy documents receive such service, as required by ESRA, and that will not change under the proposed legislation. Rather, the legislation would eliminate the need for the Commission to seek explicit consents from each party to waive their right to service by regular mail. Accordingly, parties wishing to receive service of Commission Orders and who request non-electronic service would continue to receive service by either personal delivery or by mail.

Budget implications

A nominal amount of non-personal services savings is projected. There are also large, but unquantifiable, efficiencies due to resources saved in attempting to design, maintain and refine a process for waiver of PSL §23(1).

Local impact

None.

Effective date

The bill would be effective immediately upon enactment.