What's happening
This bill clarifies that municipalities in the Long Island Power Authority area retain all powers granted under article 14-A of the general municipal law.
Why it matters
Reaffirms municipal autonomy. The bill explicitly protects the rights of local governments within the Long Island Power Authority (LIPA) service area to establish, own, and operate public utility services, which could encourage more local control over energy and utility decisions.
Prevents state preemption. By making clear that nothing in the LIPA statute overrides powers granted under article 14-A of the general municipal law, it blocks any legal arguments that LIPA’s existence limits municipal authority—potentially heading off future legal disputes.
Supports municipal utility innovation. This clarification could embolden municipalities to consider new or alternative public utility ventures (such as municipal broadband or green energy projects), knowing their legal powers remain intact in the LIPA region.
Impacts residents and ratepayers. By preserving these municipal rights, the bill could lead to more competition or alternative service options for residents, potentially affecting utility rates, reliability, and the types of services offered in the LIPA area.
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Who cares
Headline styles
Let Towns Run Utilities
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Expand Local Utility Powers
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Fred Thiele
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 3009 A. 2351
2017-2018 Regular Sessions
SENATE - ASSEMBLY
January 18, 2017
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
IN ASSEMBLY -- Introduced by M. of A. THIELE, RAIA, GRAF, GARBARINO, RA -- Multi-Sponsored by -- M. of A. McKEVITT -- read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to the powers granted to municipal corporations within the Long Island Power Authority service area regarding the establishment, ownership and operation of public utility services
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1020-h of the public authorities law, as added by chapter 517 of the laws of 1986, is amended by adding a new subdivision 12 to read as follows:
12. Nothing in this title shall be construed as preempting, or otherwise limiting, the rights of any municipality located in whole or in part in the service area from exercising any power or authority granted to it by article fourteen-A of the general municipal law.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07153-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to the powers granted to municipal corporations within the Long Island Power Authority service area regarding the establishment, ownership and operation of public utility services
Purpose
To clarify the Long Island Power Authority Act by providing that it does not preempt municipalities from exercising their authority to establish a municipal power agency under the General Municipal Law.
Summary of provisions
Adds a new subdivision 12 to Section 1020(h) of the public authorities law.
Justification
Under Article 14-a of the General Municipal Law, counties, towns, cities and villages in New York State are permitted to establish public utility companies. Section 360 of the State General municipal Law provides that, "any municipal corporation may construct, lease, purchase, own, acquire, use and/or operate any public utility service within or without its territorial limits, for the purpose of furnishing to itself or for compensation to its inhabitants, any service similar to that furnished by any public utility company specified in article four of the public service law. Municipal corporations" as used in this article shall mean a county, city, town or village.
Indeed, there are over 40 municipalities across the State of New York, which have established municipal power companies, including a few on Long Island such as the villages of Greenport, Freeport and Rockville Centre. However, since 1986, local governments on Long Island have been prohibited from forming a new municipal utility. The reason: the law that created the Long Island Power Authority (LIPA), a state authority, preempts counties, town, villages and cities from establishing a municipal power company within LIPA's service area. This legislation would end the state preemption of new municipal power companies on Long Island and would permit local governments to consider the creation of municipal power companies in the future.
Legislative history
2015-16:S.1443/A.1457 2013-14:S.3061A/A.3888A 2011-12:S.3447/A.5494 2009-10:S.3646/A.7200 2007-08:S.666/A.1282 2005-06:S.1367/A.2536 2003-04:S.752/A.1402 2001-02:S.2105/A.3605 1999-00:S.1628/A.2826 1997-98:S.1376/A.2126 1995-96:S.5047/A.7267
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.