What's happening
This bill allows the Public Service Commission to enforce audit recommendations and penalize or revoke authority from service providers found to have committed fraud, abuse, or mismanagement.
Why it matters
Empowers the Public Service Commission (PSC) to enforce audit recommendations. this shifts audit findings from advisory to potentially mandatory, ensuring that service providers must address identified issues of fraud, abuse, or mismanagement rather than simply being encouraged to do so.
Introduces significant consequences for non-compliance. , including civil penalties or even revocation of a service provider’s authority to operate in New York State, which could deter misconduct and incentivize stronger internal controls.
Enhances the accountability and oversight of public service providers. , meaning that failures uncovered in audits can now directly lead to intervention and corrective action, potentially improving reliability and trust in public utilities and services.
Applies these strengthened measures immediately to all future audits. , signaling a more aggressive regulatory stance and possibly leading to faster reforms in response to detected problems.
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Who cares
Public Service Commission
The bill would let the commission order implementation of audit recommendations, set deadlines and penalize noncompliance when an audit flags service-provider fraud, abuse or mismanagement and the commission finds reasonable cause.
Authority service providers
Providers that fail to comply with commission orders could face civil penalties or revocation of their authority to operate in New York.
Management and operations auditors
Their findings of service-provider fraud, abuse or mismanagement could trigger commission orders requiring implementation of audit recommendations.
Headline styles
Enforce Audit Recommendations Law
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A8936
- Ordered to third reading cal.807
- Reported and committed to rules
- Referred to energy and telecommunications
- Referred to rules
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.
Crack Down on Fraudulent Providers
Signed by Governor · Sponsor Fred Thiele
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6868
2019-2020 Regular Sessions
IN SENATE
November 22, 2019
Introduced by Sen. GAUGHRAN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the public authorities law, in relation to comprehensive and regular management and operations audits
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1020-s of the public authorities law, as amended by chapter 388 of the laws of 2011, is amended by adding a new subdivision 3 to read as follows:
3. In the event that a comprehensive and regular management and operations audit, as provided by subdivision (bb) of section one thousand twenty-f of this article, indicates a finding of fraud, abuse, or mismanagement by a service provider of the authority, and upon a finding by the public service commission that reasonable cause exists for the basis of such indication, the public service commission may order that any recommendations contained in the regular management and operations audit be implemented. The public service commission may also provide in their order, the date in which any recommendation must be fully implemented. Failure to comply with any such order can result in the imposition of a civil penalty by the public service commission against the service provider or revocation of the service provider's authority to operate within the state.
§ 2. Subdivision (bb) of section 1020-f of the public authorities law, as amended by section 7 of part A of chapter 173 of the laws of 2013, is amended by adding a new paragraph 5 to read as follows:
5. Notwithstanding the foregoing, in the event that a comprehensive and regular management and operations audit as conducted in accordance with this subdivision indicates a finding of fraud, abuse or mismanagement by a service provider of the authority, and upon a finding by the public service commission that reasonable cause exists for the basis of such indication, the public service commission may order that any recom-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14227-02-9
S. 6868 2
mendations contained in the regular management and operations audit be implemented. The public service commission may also provide in their order, the date in which the recommendations be fully implemented. Failure to comply with any such order can result in the imposition of a civil penalty by the public service commission against the service provider.
§ 3. This act shall take effect immediately and shall apply to all audits conducted on or after such effective date.
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 comprehensive and regular management and operations audits
Purpose
The purpose of this bill is to ensure that the public service commission has the authority to require LIPA and its service providers to implement recommendations made in any comprehensive and regular management and operations audit where fraud, abuse, or mismanagement is found.
Summary of provisions
Section One and Two amend the public authorities law to provide the Public Service Commission with the ability to enforce the adoption of recommendations contained in a comprehensive and regular management and operations audit in circumstances where the report indicates a finding of fraud, abuse or mismanagement by a utility.
Section Three provides that this act shall take effect immediately.
Justification
All service providers who contract with the Long Island Power Authority are required by statute to undergo a comprehensive and regular manage- ment and operations audit at least every five years. The audit is contracted by, and issued to, the Public Service Commission. However, the Public Service Commission does not have the authority to require that the Long Island Power Authority (LIPA) and the utility take steps to implement any of the recommendations contained in the audit. The Long Island Power Authority can ignore the recommendations contained in an audit, so long as they declare the recommendation to be inconsistent and hold a public hearing on the topic.
This optional implementation is problematic generally, but would raise substantially greater concerns in the event that an audit revealed waste, abuse or fraud on behalf of a service provider in its contract with LIPA. The Public Service Commission must be given the authority to require appropriate remediation when fraud, waste and abuse is uncovered in order to protect ratepayers. This legislation accomplishes that by providing a process whereby the Commission can institute an order requiring compliance, and implement a civil penalty including the revo- cation of the service provider's authority to operate within the state in the event that compliance deadlines are not met.
LEGISLATIVE. HISTORY:
New 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.