What's happening
This bill imposes fines on public utilities and their employees for knowingly making or failing to disclose false material statements in rate proceedings.
Why it matters
Creates strong financial penalties (up to $250,000 per offense) for public utilities and their employees who knowingly provide false material information during rate cases, increasing accountability for accuracy.
Applies not just to companies, but also to individual officers, agents, and employees, making it personally risky for anyone involved in misrepresentation or lack of transparency.
Requires prompt (within three business days) disclosure to regulators if a false statement is discovered after the fact, incentivizing internal vigilance and self-reporting to avoid further penalties.
Each false statement is treated as a separate violation, so repeated or systemic dishonesty could result in substantial cumulative fines, potentially deterring unethical practices.
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Who cares
Headline styles
Penalize Utility Lies
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to energy and telecommunications
- Returned to senate
- Died in assembly
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1397
- Committee discharged and committed to rules
- 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.
Fine Utilities for Lying
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Judy Griffin
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5673
2019-2020 Regular Sessions
IN SENATE
May 10, 2019
Introduced by Sen. GAUGHRAN -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
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 Assembly, do enact as follows:
Section 1. Section 25 of the public service law is amended by adding a new subdivision 4-a to read as follows:
4-a. (a) Notwithstanding the provisions of subdivision one or two of this section, any public utility company or corporation, and the officers, agents or employees thereof that knowingly makes a false material statement, representation or certification to the commission in any rate proceeding shall forfeit to the state of New York a sum not to exceed two hundred fifty thousand dollars. Each false material statement, representation or certification shall constitute a separate and distinct offense for purposes of this section.
(b) A public utility company or corporation, and the officers, agents or employees thereof that discover that a false material statement, representation or certification was previously made to the commission in relation to a rate proceeding shall disclose such false material statement, representation or certification to the commission within three business days of discovery. Failure to make such disclosure shall constitute a knowing violation of this subdivision and shall cause such public utility company or corporation and the officers, agents or employees thereof to be liable for forfeiture pursuant to this subdivision.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10857-02-9
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 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 that this act shall take effect immediately.
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
This is a new piece of legislation.
Fiscal implications
None to the state.
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.