senate Bill S5736

Reduces the total amount that a utility can be assessed from one percent to one-third of one percent

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 14 / Jun / 2011
    • REFERRED TO RULES
  • 22 / Jun / 2011
    • ORDERED TO THIRD READING CAL.1518
  • 22 / Jun / 2011
    • PASSED SENATE
  • 22 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 23 / Jun / 2011
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 05 / Jun / 2012
    • REPORTED AND COMMITTED TO FINANCE

Summary

Reduces the total amount that a utility can be assessed from one percent to one-third of one percent.

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Bill Details

Versions:
S5736
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Public Service Law
Laws Affected:
Amd ยง18-a, Pub Serv L

Sponsor Memo

BILL NUMBER:S5736

TITLE OF BILL:

An act
to amend the public service law, in relation to reducing the amount
a utility can be assessed

PURPOSE:

The purpose of this legislation is to allow the 18-A utility
assessment to revert back to the original one third of one percent
when the two percent surcharge sunsets in 2014.

SUMMARY OF PROVISIONS:

Section 1 amends paragraph (g) of subdivision 2 of section 18-a of the
public service law reducing the base assessment from one percent to
one third of one percent.

EXISTING LAW:

Presently, the base assessment is one percent and the surcharge is two
percent minus the amount of the base assessment; effectively a two
percent total. The two percent surcharge is scheduled to sunset on
March 31, 2014 at which time the 18-A assessment will be one percent.

JUSTIFICATION:

In 2009, the 18-A assessment was raised from one third of one percent
to two percent, six times the prior rate. This increase of nearly
$600 million is not used for the purpose of funding the public
service commission but rather is swept into the General Fund. This
surcharge was enacted for five years at which time the two percent
surcharge will expire. However, the assessment rate will not revert
back to the original one third of one percent, it will revert back to
one percent creating a permanent tax increase on New Yorkers utility
bills.

LEGISLATIVE HISTORY:

New legislation.

FISCAL IMPLICATIONS:

None in the current fiscal year.

LOCAL FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.


view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5736

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 14, 2011
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Rules

AN ACT to amend the public service law,  in  relation  to  reducing  the
  amount a utility can be assessed

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Paragraph (g) of subdivision 2  of  section  18-a  of  the
public  service law, as amended by section 2 of part NN of chapter 59 of
the laws of 2009, is amended to read as follows:
  (g) The total amount which may be charged to any public utility compa-
ny under authority of this subdivision for any state fiscal  year  shall
not  exceed ONE-THIRD OF one per centum of such public utility company's
gross operating revenues derived from intrastate utility  operations  in
the last preceding calendar year, or other twelve month period as deter-
mined  by the chairman; provided, however, that no corporation or person
that is subject to the jurisdiction of the commission only with  respect
to  safety,  or  the  power authority of the state of New York, shall be
subject to the general assessment provided for under this subdivision.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13077-01-1

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