| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Jan 06, 2010 |
referred to energy and telecommunications |
| Mar 05, 2009 |
referred to energy and telecommunications |
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Senate Bill S2885
2009-2010 Legislative Session
Creates the citizens' utility advocacy board, inc., a not-for-profit corporation
download bill text pdfSponsored By
(R, C, IP) Senate District
Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2009-S2885 (ACTIVE) - Details
- Current Committee:
- Senate Energy And Telecommunications
- Law Section:
- Public Service Law
- Laws Affected:
- Add Art 12 ยงยง300 - 328, Pub Serv L
2009-S2885 (ACTIVE) - Summary
Creates the citizens' utility advocacy board, inc., a not-for-profit corporation to promote adequate representation of residential utility consumers; to collect operating funds; to assist in the redress of residential utility consumer complaints; and to provide for residential utility consumer membership in such corporation and residential utility consumer direction of the actions of such corporation.
2009-S2885 (ACTIVE) - Sponsor Memo
BILL NUMBER: S2885
TITLE OF BILL :
An act to amend the public service law, in relation to establishing
the citizens' utility advocacy board, inc.
PURPOSE OR GENERAL IDEA OF BILL :
This legislation seeks to once again establish a not-for-profit
corporation known as the citizens' utility advocacy board, inc (CUB)
with the responsibility to promote adequate representation of
residential utility consumers; to collect operating funds; to assist
in the redress of residential utility consumer complaints; and to
provide for residential utility consumer membership in such
corporation and residential utility consumer direction of the actions
of such corporation.
SUMMARY OF SPECIFIC PROVISIONS :
The public service law is amended by adding a new article 12 to
establish a citizens' utility advocacy board.
JUSTIFICATION :
The intent of this legislation is to recognize and remedy the fact
that individual action by residential consumers for the purposes of
participating in utility matters and communicating their views is
rendered impracticable by reason of the disproportionate expense of
taking such action. Such participation and representation can be best secured by the creation of a permanent, not-for-profit, statewide organization which is under the democratic control of its membership, solely responsive to that membership's goals, and which is funded by voluntary contributions. The formation of such an entity by consumers acting voluntarily is impeded because consumers have neither the resources nor an efficient mechanism to contact all residential utility customers, raise initial funds and join such an entity, In addition, in order to create such an entity, it is necessary to establish a democratically structured organization and to provide for the dissemination to all customers of information as to the formation and purposes of such organization and to provide an efficient means for joining and contributing to such organization. For these reasons, this legislation seeks to once again establish a not-for-profit corporation known as the citizens' utility advocacy board, inc. (CUB) with the responsibility to promote adequate representation of residential utility consumers; to collect operating funds; to assist in the redress of residential utility consumer complaints; and to provide for residential utility consumer membership in such corporation and residential utility consumer direction of the actions of such corporation. In 1991 (then-Governor Mario Cuomo issued Executive Order No. 141) establishing a Citizens Utility Board (CUB). CUB's purpose was to provide a seat for ratepayers in the regulatory process. They would have a representative to deal with the Public Service Commission (PSC), ensuring that their viewpoint be heard when decisions impacting millions of consumers were being made. Over 20,000 New Yorkers quickly joined. As an independent entity entirely reliant upon voluntary contributions, the most invaluable section of this Executive Order gave CUB access to state agency mailings. However, in 1995, Governor Pataki revoked this privilege: He claimed that since the goal of the Public Service Commission was to protect consumers, allowing CUB even this minimal privilege was unnecessary. Since that time, CUB has been dormant. In 2006 Common Cause/NY released a study which showed that the energy industry spent just shy of $ 10 million lobbying the state between 2003 and 2006. Over the past year power outages in Queens and Staten Island have revealed that our electric system is bursting at the seams; plagued by ineffective power plants, an antiquated transmission system and rapidly growing demand. Many of Our colleagues have been up in arms due to rate increases like the one granted to Central Hudson and massive power line projects like the one proposed by NYRI. Some have argued that deregulation, a policy actively pursued by the Pataki administration over the last decade, has worsened rather than improved reliability and cost effectiveness. New York utility ratepayers are suffering from a double whammy of increasing rates and a bewildering marketplace. As a result, consumers are unable to benefit from market forces in order to comparison shop and end up paying more and more. The promise of deregulation was a promise of lower utility rates, but it is a promise that has not materialized. Proponents of utility deregulation promised that the free market would bring lower rates to consumers. In November of 2002, the Public Utility Law Project (PULP) examined the progress of electricity deregulation in New York. The PULP report pointed out that, despite delivery rate reductions, by most accounts total cost, that is cost of delivery combined with the cost of electricity, had gone up substantially. Confusion about deregulation has not given consumers greater choices. Increased consumer choice, especially in the case of residential consumers, has failed to materialize. Of the 5.6 million residential customers who are eligible to purchase their energy from an entity other than a utility company only a bit more than 400,000, or 7%, currently do so. The majority of marketing for those alternatives has been focused on the more lucrative industrial and commercial users Residential consumers are largely unaware they have choices in receiving their natural gas and electricity. PSC proceedings are offered in a way that minimizes public participation. It is incredibly difficult for typical New Yorkers to remain on top of the goings-on of the PSC. In an age where widespread usage of the Internet has allowed bodies such as our own to offer live, free coverage of sessions, proceedings of the PSC are available only if the consumer pays a large fee ($125) Obviously, the fee does nothing to limit the participation of powerful interest groups, but does create an obstacle to average ratepayers. Also, the PSC's usual meeting time is 10:30 in the morning - a time when the average citizen has no possible way to participate. The time has come to once again allow ratepayers a regulatory "seat at the table" through the offering of a Citizens Utility Board (CUB), a non-profit, non-partisan, ratepayer-directed organization with a clear mission: to represent the interests of residential utility customers across the state. CUBs empower utility ratepayers by organizing them into democratically governed advocacy groups. They give consumers an effective voice in regulatory proceedings concerning utilities by arming them with the kind of expertise normally afforded only by the utilities, state regulatory commissions and special interest interveners CUBs afford consumers the opportunity to make an impact on utility rate proceedings and policy debates. They also provide a forum for residential ratepayers to coordinate their efforts, control rates and establish policies that benefit consumers. This bill is modeled off of the successful Illinois CUB. When the Illinois General Assembly created CUB in 1983, it gave the nonprofit, nonpartisan organization a clear mission: to represent the interests of residential utility customers across the state. Since its inception in 1984, CUB has been doing just that -- working for lower rates and better service from the state's investor-owned electric, gas and telephone companies, Over the last 22 years, CUB has saved consumers more than $10 billion by mitigating rate hikes and winning consumer refunds. LEGISLATIVE HISTORY : S.1723 of 2007/2008 - Senate Energy Committee FISCAL IMPLICATIONS : None. EFFECTIVE DATE : This act shall take place on the thirtieth day after it shall have become law.
2009-S2885 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
2885
2009-2010 Regular Sessions
I N S E N A T E
March 5, 2009
___________
Introduced by Sen. BONACIC -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations
AN ACT to amend the public service law, in relation to establishing the
citizens' utility advocacy board, inc.
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public service law is amended by adding a new article
12 to read as follows:
ARTICLE 12
CITIZENS' UTILITY ADVOCACY BOARD
SECTION 300. SHORT TITLE.
301. LEGISLATIVE FINDINGS.
302. DEFINITIONS.
303. CREATION OF THE CORPORATION; PURPOSE; MEMBERSHIP.
304. DUTIES, RIGHTS AND POWERS OF THE CORPORATION.
305. NOTICE OF IMPENDING PROCEEDINGS.
306. JUDICIAL REVIEW OF AGENCY DECISIONS; ENFORCEMENT.
307. STATE-ASSISTED FUNDRAISING BY THE CORPORATION.
308. PROHIBITED ACTS.
309. BOARD OF DIRECTORS.
310. DUTIES OF THE BOARD OF DIRECTORS.
311. APPOINTMENT OF INTERIM BOARD OF DIRECTORS.
312. ELECTION OF DIRECTORS.
313. QUALIFICATIONS OF CANDIDATES.
314. NOMINATION.
315. STATEMENT OF FINANCIAL INTERESTS.
316. STATEMENT OF PERSONAL BACKGROUND AND POSITIONS.
317. RESTRICTIONS ON AND REPORTING OF CAMPAIGN CONTRIBUTIONS AND
EXPENDITURES.
318. ELECTION PROCEDURES.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00623-01-9
S. 2885 2
319. INSTALLATION OF ELECTED CANDIDATES.
320. RECALL OF DIRECTORS.
321. VACANCIES.
322. OFFICERS.
323. EXECUTIVE DIRECTOR; QUALIFICATIONS; APPOINTMENTS; DUTIES.
324. ANNUAL MEMBERSHIP MEETING.
325. CONSTRUCTION WITH OTHER LAWS.
326. PROHIBITIONS AND CONFLICTS OF INTEREST.
327. PENALTIES.
328. SEVERABILITY.
S 300. SHORT TITLE. THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE
"CITIZENS' UTILITY ADVOCACY BOARD ACT".
S 301. LEGISLATIVE FINDINGS. 1. THE LEGISLATURE FINDS THAT:
(A) INDIVIDUAL ACTION BY RESIDENTIAL CONSUMERS FOR THE PURPOSES OF
PARTICIPATING IN UTILITY MATTERS AND COMMUNICATING THEIR VIEWS IS
RENDERED IMPRACTICABLE BY REASON OF THE DISPROPORTIONATE EXPENSE OF
TAKING SUCH ACTION;
(B) SUCH PARTICIPATION AND REPRESENTATION CAN BE BEST SECURED BY THE
CREATION OF A PERMANENT, NOT-FOR-PROFIT ORGANIZATION WHICH IS UNDER THE
DEMOCRATIC CONTROL OF ITS MEMBERSHIP, SOLELY RESPONSIVE TO THAT MEMBER-
SHIP'S GOALS, AND WHICH IS FUNDED BY VOLUNTARY CONTRIBUTIONS;
(C) THE FORMATION OF SUCH AN ENTITY BY CONSUMERS ACTING VOLUNTARILY IS
IMPEDED BECAUSE CONSUMERS HAVE NEITHER THE RESOURCES NOR AN EFFICIENT
MECHANISM TO CONTACT ALL RESIDENTIAL UTILITY CUSTOMERS, RAISE INITIAL
FUNDS AND JOIN SUCH AN ENTITY; AND
(D) IN ORDER TO CREATE SUCH AN ENTITY, IT IS NECESSARY TO ESTABLISH A
DEMOCRATICALLY STRUCTURED ORGANIZATION AND TO PROVIDE FOR THE DISSEM-
INATION TO ALL CUSTOMERS OF INFORMATION AS TO THE FORMATION AND PURPOSES
OF SUCH ORGANIZATION AND TO PROVIDE AN EFFICIENT MEANS FOR JOINING AND
CONTRIBUTING TO SUCH ORGANIZATION.
2. FOR THESE REASONS THERE SHALL BE ESTABLISHED A NOT-FOR-PROFIT
CORPORATION KNOWN AS THE CITIZENS' UTILITY ADVOCACY BOARD, INC. WITH THE
RESPONSIBILITY TO PROMOTE ADEQUATE REPRESENTATION OF RESIDENTIAL UTILITY
CONSUMERS; TO COLLECT OPERATING FUNDS; TO ASSIST IN THE REDRESS OF RESI-
DENTIAL UTILITY CONSUMER COMPLAINTS; AND TO PROVIDE FOR RESIDENTIAL
UTILITY CONSUMER MEMBERSHIP IN SUCH CORPORATION AND RESIDENTIAL UTILITY
CONSUMER DIRECTION OF THE ACTIONS OF SUCH CORPORATION.
S 302. DEFINITIONS. THE WORDS AND PHRASES USED IN THIS ARTICLE SHALL
HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING CLEARLY APPEARS
IN THE CONTEXT.
1. "UTILITY COMPANY", "PUBLIC UTILITY COMPANY", "UTILITY CORPORATION"
AND "PUBLIC UTILITY CORPORATION" MEAN A CORPORATION OR OTHER ENTITY
ENGAGED IN THE BUSINESS OF SUPPLYING UTILITY SERVICES TO PERSONS WITHIN
THIS STATE IF RATES OR CHARGES FOR SUCH UTILITY SERVICES HAVE BEEN
ESTABLISHED OR ARE SUBJECT TO APPROVAL BY A LOCAL, STATE OR FEDERAL
AUTHORITY.
2. "UTILITY SERVICES" MEANS ELECTRICITY, WATER, NATURAL GAS, STEAM AND
TELEPHONE SERVICES SUPPLIED BY A PUBLIC UTILITY.
3. "RESIDENTIAL UTILITY CONSUMER" MEANS ANY PERSON IN THIS STATE WHOSE
RESIDENCE IS FURNISHED WITH A UTILITY SERVICE BY A PUBLIC UTILITY COMPA-
NY.
4. "REGULATORY AGENCY" MEANS ANY LOCAL, STATE, OR FEDERAL DEPARTMENT,
COMMISSION, OFFICE, AUTHORITY OR OTHER PUBLIC BODY WITH THE LEGAL
AUTHORITY:
(A) TO ESTABLISH OR ALTER RATES OR CHARGES FOR THE PROVISION OR SALE
OF UTILITY SERVICES WITHIN THIS STATE;
S. 2885 3
(B) TO PLAN OR TO APPROVE, REJECT, OR MODIFY PLANS FOR THE
CONSTRUCTION OF FACILITIES FOR THE PRODUCTION OR PROVISION OF UTILITY
SERVICES WITHIN THIS STATE;
(C) TO FORMULATE OR REVIEW ENERGY POLICIES AFFECTING THIS STATE; OR
(D) OTHERWISE TO REGULATE THE ACTIVITIES OF UTILITY COMPANIES DOING
BUSINESS WITHIN THIS STATE; PROVIDED THAT LOCAL, STATE AND FEDERAL
COURTS AND LEGISLATIVE BODIES SHALL NOT BE DEEMED TO BE "REGULATORY
AGENCIES" FOR THE PURPOSES OF THIS ARTICLE.
5. "FORMAL PROCEEDING" MEANS ANY FORMAL MEETING OF A REGULATORY AGENCY
OR SUBDIVISION THEREOF, INCLUDING A MEETING CONDUCTED BY AN ADMINISTRA-
TIVE LAW JUDGE OR OTHER AGENT OF THE REGULATORY AGENCY, REGARDING:
(A) THE ESTABLISHMENT OR ALTERATION OF RATES OR CHARGES FOR THE
PROVISION OR SALE OF UTILITY SERVICES WITHIN THIS STATE;
(B) THE ESTABLISHMENT, ABROGATION, OR AMENDMENT OF RULES OR REGU-
LATIONS, OR THE INVESTIGATION OF OR INQUIRY INTO ACTIVITIES AND PROCE-
DURES OF UTILITY COMPANIES, CONCERNING RESIDENTIAL UTILITY CONSUMERS,
PUBLIC UTILITY COMPANIES, OR ENERGY POLICIES AFFECTING THIS STATE OR
CONCERNING THE CONDUCT OF REGULATORY AGENCY PROCEEDINGS THEMSELVES; OR
(C) ADJUDICATION OF THE CLAIMS OR PETITIONS OF RESIDENTIAL UTILITY
CONSUMERS, PUBLIC UTILITY COMPANIES OR OTHER PERSONS OR GROUPS OF
PERSONS; OR
(D) CERTIFICATION OF THE CONSTRUCTION OR OPERATION OF UTILITY PLANTS,
INCLUDING PIPELINES AND TRANSMISSION LINES.
6. "STATE AGENCY" MEANS ANY DEPARTMENT, BOARD, BUREAU, COMMISSION,
DIVISION, OFFICE, COUNCIL, COMMITTEE, OFFICER, PUBLIC BENEFIT CORPO-
RATION OR AUTHORITY, INSTITUTION OR ENTITY OF THE EXECUTIVE BRANCH OF
STATE GOVERNMENT.
7. "CORPORATION" MEANS THE CITIZENS' UTILITY ADVOCACY BOARD, INC.
8. "MEMBER" MEANS ANY PERSON WHO MEETS THE REQUIREMENTS FOR MEMBERSHIP
IN THE CORPORATION SET FORTH IN SECTION THREE HUNDRED THREE OF THIS
ARTICLE.
9. "DIRECTOR" MEANS ANY MEMBER OF THE CORPORATION DULY ELECTED OR
APPOINTED TO THE BOARD OF DIRECTORS OF THE CORPORATION.
10. "UTILITY DISTRICT" OR "DISTRICT" MEANS AN AREA COMPRISED OF TWO
CONTIGUOUS CONGRESSIONAL DISTRICTS AS SUCH CONGRESSIONAL DISTRICTS ARE
DESCRIBED IN STATE LAW. THE BOARD OF DIRECTORS SHALL CERTIFY THE BOUNDA-
RIES OF EACH UTILITY DISTRICT NO LESS THAN SIXTY DAYS PRIOR TO THE
CORPORATION'S FIRST GENERAL ELECTION. IN THE EVENT THAT AN ODD NUMBER OF
CONGRESSIONAL DISTRICTS ARE CREATED WITHIN THE STATE, THE BOARD OF
DIRECTORS SHALL HAVE THE AUTHORITY TO DETERMINE HOW THE ADDITIONAL
CONGRESSIONAL DISTRICT SHALL BE REPRESENTED. IN THE EVENT THAT THE BOUN-
DARIES OR NUMBER OF CONGRESSIONAL DISTRICTS ARE ADJUSTED, THE BOARD OF
DIRECTORS SHALL RECERTIFY THE BOUNDARIES OF EACH UTILITY DISTRICT NO
LESS THAN FOUR MONTHS AFTER SUCH ADJUSTMENT. THE BOARD MEMBER, REPRES-
ENTING ANY UTILITY DISTRICT WHOSE BOUNDARIES ARE CHANGED IN SUCH RECER-
TIFICATION, SHALL RESIGN WITHIN THIRTY DAYS OF SUCH RECERTIFICATION AND
THE VACANCY SHALL BE FILLED PURSUANT TO SECTION THREE HUNDRED TWENTY-ONE
OF THIS ARTICLE.
11. "CAMPAIGN EXPENDITURE" MEANS A PURCHASE, PAYMENT, DISTRIBUTION,
LOAN, ADVANCE, DEPOSIT OR GIFT OF MONEY OR ANYTHING OF VALUE, MADE FOR
THE PURPOSE OF ELECTING A CANDIDATE TO THE BOARD OF DIRECTORS, OR A
CONTRACT, PROMISE, OR AGREEMENT THEREFOR.
12. "CAMPAIGN CONTRIBUTION" MEANS MONEY, GOODS, SERVICES, OR OTHER
BENEFITS PAID, MADE, LOANED, GIVEN, CONFERRED OR PROMISED, INCLUDING BUT
NOT LIMITED TO, USE OF OFFICE SPACE, TELEPHONES, EQUIPMENT, STAFF
SERVICES AND PROVISIONS OF MEALS, DRINKS, ENTERTAINMENT, SERVICES OR
S. 2885 4
TRANSPORTATION MADE FOR THE PURPOSE OF ELECTING A CANDIDATE TO THE BOARD
OF DIRECTORS.
13. THE "IMMEDIATE FAMILY" OF A PERSON MEANS THE PERSON AND HIS OR HER
SPOUSE AND THEIR DEPENDENTS.
14. "ENCLOSURE" MEANS A CARD, LEAFLET, ENVELOPE OR COMBINATION THEREOF
FURNISHED BY THE CORPORATION UNDER THIS SECTION.
15. "MAILING" MEANS ANY COMMUNICATION BY A STATE AGENCY THAT IS SENT
THROUGH THE UNITED STATES POSTAL SERVICE TO MORE THAN FIFTY THOUSAND
PERSONS WITHIN A TWELVE-MONTH PERIOD.
S 303. CREATION OF THE CORPORATION; PURPOSE; MEMBERSHIP. 1. THERE IS
HEREBY CREATED A NOT-FOR-PROFIT MEMBERSHIP CORPORATION TO BE KNOWN AS
THE "CITIZENS' UTILITY ADVOCACY BOARD, INC." HEREIN REFERRED TO AS THE
CORPORATION. THE PURPOSE OF SUCH CORPORATION SHALL BE: (A) TO ASSIST IN
ESTABLISHING ADEQUATE AND AFFORDABLE UTILITY SERVICE TO ALL RESIDENTIAL
CUSTOMERS IN ORDER TO PRESERVE THE HEALTH AND GENERAL WELFARE OF THE
CITIZENS OF THIS STATE;
(B) TO FOSTER AND ENCOURAGE ACTIVE CITIZEN PARTICIPATION IN UTILITY
MATTERS AND TO FACILITATE EFFECTIVE REPRESENTATION AND ADVOCACY OF THE
INTERESTS OF RESIDENTIAL UTILITY CONSUMERS BEFORE REGULATORY AGENCIES,
THE LEGISLATURE, THE COURTS AND OTHER BODIES; AND FOR THESE PURPOSES TO
CREATE A PERMANENT NOT-FOR-PROFIT ORGANIZATION;
(C) TO CREATE AN EFFICIENT FUNDING MECHANISM FOR THE ORGANIZATION,
INVOLVING NO COMPULSORY BURDEN WHATSOEVER ON THE TAXPAYERS OF THIS
STATE, WHEREBY RESIDENTIAL UTILITY CONSUMERS AND OTHERS MAY VOLUNTARILY
CONTRIBUTE TO THE ORGANIZATION; AND
(D) TO ENSURE THAT PUBLIC POLICIES AFFECTING THE PROVISION, QUALITY
AND COST OF UTILITY SERVICES FAIRLY REFLECT THE NEEDS AND CONCERNS OF
THOSE CONSUMERS.
2. THE MEMBERSHIP OF THE CORPORATION SHALL CONSIST OF ALL RESIDENTIAL
UTILITY CONSUMERS SIXTEEN YEARS OF AGE OR OLDER WHO HAVE CONTRIBUTED TO
THE CORPORATION AN ANNUAL MEMBERSHIP FEE AT SUCH TIMES AS SHALL BE SET
BY THE BOARD OF DIRECTORS; PROVIDED, HOWEVER, THAT ANY PERSON MAY RESIGN
FROM MEMBERSHIP.
S 304. DUTIES, RIGHTS AND POWERS OF THE CORPORATION. 1. THE CORPO-
RATION SHALL:
(A) REPRESENT AND PROMOTE THE INTERESTS OF THE RESIDENTIAL UTILITY
CONSUMERS OF THIS STATE. ALL ACTIONS BY THE CORPORATION UNDER THIS ARTI-
CLE SHALL BE DIRECTED TOWARD SUCH DUTY.
(B) INFORM, INSOFAR AS POSSIBLE, ALL RESIDENTIAL UTILITY CONSUMERS
ABOUT THE CORPORATION, INCLUDING THE PROCEDURE FOR OBTAINING MEMBERSHIP
IN THE CORPORATION.
(C) ESTABLISH ANNUAL MEMBERSHIP FEE WHICH SHALL BE SET AT A LEVEL THAT
PROVIDES SUFFICIENT FUNDING FOR THE CORPORATION TO EFFECTIVELY PERFORM
ITS POWERS AND DUTIES, AND IS AFFORDABLE FOR AS MANY UTILITY CONSUMERS
AS IS POSSIBLE, BUT NEVERTHELESS NOT LESS THAN FIVE DOLLARS.
(D) HAVE ALL RIGHTS AND POWERS ACCORDED GENERALLY TO, AND BE SUBJECT
TO ALL DUTIES IMPOSED GENERALLY UPON, NOT-FOR-PROFIT MEMBERSHIP CORPO-
RATIONS UNDER THE LAWS OF THIS STATE.
2. IN ADDITION, THE CORPORATION SHALL HAVE THE FOLLOWING RIGHTS AND
POWERS:
(A) TO SOLICIT AND ACCEPT GIFTS, LOANS, GRANTS OR OTHER AID IN ORDER
TO SUPPORT ACTIVITIES CONCERNING THE INTERESTS OF RESIDENTIAL UTILITY
CONSUMERS, EXCEPT THAT THE CORPORATION MAY NOT ACCEPT GIFTS, LOANS OR
OTHER AID FROM ANY PUBLIC UTILITY OR FROM ANY DIRECTOR, EMPLOYEE OR
AGENT OR MEMBER OF THE IMMEDIATE FAMILY OF A DIRECTOR, EMPLOYEE OR AGENT
OF ANY PUBLIC UTILITY.
S. 2885 5
(B) TO SEEK TAX-EXEMPT STATUS UNDER STATE AND FEDERAL LAW.
(C) TO CONDUCT, SUPPORT, AND ASSIST RESEARCH, SURVEYS, INVESTIGATIONS,
PLANNING ACTIVITIES, CONFERENCES, DEMONSTRATION PROJECTS AND PUBLIC
INFORMATION ACTIVITIES CONCERNING THE INTERESTS OF RESIDENTIAL UTILITY
CONSUMERS. THE CORPORATION MAY ACCEPT GRANTS, CONTRIBUTIONS AND LEGISLA-
TIVE APPROPRIATIONS FOR SUCH ACTIVITIES.
(D) TO CONTRACT FOR SERVICES WHICH CANNOT REASONABLY BE PERFORMED BY
ITS EMPLOYEES.
(E) TO REPRESENT THE INTERESTS OF RESIDENTIAL UTILITY CONSUMERS BEFORE
REGULATORY AGENCIES, LEGISLATIVE BODIES AND OTHER PUBLIC BODIES.
(F) TO INITIATE, TO INTERVENE AS A PARTY, TO MAINTAIN OR TO OTHERWISE
PARTICIPATE ON BEHALF OF RESIDENTIAL UTILITY CONSUMERS IN ANY PROCEEDING
WHICH MAY AFFECT THE INTERESTS OF RESIDENTIAL UTILITY CONSUMERS.
(G) TO SUPPORT OR OPPOSE BALLOT PROPOSITIONS CONCERNING MATTERS WHICH
IT DETERMINES MAY AFFECT THE INTERESTS OF RESIDENTIAL UTILITY CONSUMERS.
3. THE CORPORATION SHALL HAVE, IN ADDITION TO THE RIGHTS AND POWERS
ENUMERATED IN THIS ARTICLE, SUCH OTHER INCIDENTAL RIGHTS AND POWERS AS
ARE REASONABLY NECESSARY FOR THE EFFECTIVE REPRESENTATION AND PROTECTION
OF THE INTERESTS OF RESIDENTIAL UTILITY CONSUMERS.
4. THE CORPORATION SHALL NOT SPONSOR, ENDORSE, OR OTHERWISE SUPPORT,
NOR SHALL IT OPPOSE, ANY POLITICAL PARTY OR THE CANDIDACY OF ANY PERSON
FOR PUBLIC OFFICE.
S 305. NOTICE OF IMPENDING PROCEEDINGS. EACH REGULATORY AGENCY OF THIS
STATE AS DEFINED IN SUBDIVISION FOUR OF SECTION THREE HUNDRED TWO OF
THIS ARTICLE SHALL NOTIFY OR CAUSE NOTICE TO BE GIVEN IN THE STATE
REGISTER, IN ADVANCE OF THE TIME, PLACE, AND SUBJECT OF EACH FORMAL
PROCEEDING OF THE REGULATORY AGENCY, IN WHICH THE CORPORATION MAY BE
ELIGIBLE TO PARTICIPATE. THE AGENCY SHALL SO NOTIFY OR CAUSE NOTICE TO
BE GIVEN TO THE CORPORATION AT LEAST THIRTY DAYS BEFORE THE SCHEDULED
DATE OF SUCH PROCEEDING OR WITHIN FIVE DAYS AFTER THE DATE AND CALENDAR
FOR SUCH PROCEEDING IS FIXED, WHICHEVER IS LATER. IN ADDITION, THE AGEN-
CY SHALL GIVE NOTICE OR CAUSE NOTICE TO BE GIVEN WITHIN FIVE DAYS TO THE
CORPORATION OF ANY FILED STATEMENT PROPOSING TO MODIFY OR INCREASE
RATES, SERVICES, SCHEDULE OF RATES OR ANY OTHER RATING RULE OR TO ADOPT
OR AMEND ANY RATE OR SERVICE RULE OR REGULATIONS.
S 306. JUDICIAL REVIEW OF AGENCY DECISIONS; ENFORCEMENT. THE CORPO-
RATION SHALL BE DEEMED TO HAVE AN INTEREST SUFFICIENT TO MAINTAIN,
INTERVENE AS OF RIGHT IN, OR OTHERWISE PARTICIPATE IN ANY CIVIL ACTION,
PROCEEDING OR APPEAL FOR THE REVIEW OF ENFORCEMENT OF ANY REGULATORY
AGENCY DECISION OR ACTION, OR REFUSAL TO ACT, WHICH THE CORPORATION
DETERMINES MAY SUBSTANTIALLY AFFECT THE INTERESTS OF RESIDENTIAL UTILITY
CONSUMERS PROVIDED THAT THE CORPORATION PARTICIPATED AT THE REGULATORY
AGENCY DECISION LEVEL. IF THE CORPORATION DID NOT PARTICIPATE IN THE
REGULATORY AGENCY DECISION OR ACTION AT THE AGENCY LEVEL, THE COURT MAY
GRANT THE CORPORATION THE RIGHT TO PARTICIPATE IN ANY CIVIL ACTION,
PROCEEDING OR APPEAL IF THE INTEREST OF THE RESIDENTIAL UTILITY CONSUM-
ERS IS SIGNIFICANTLY AFFECTED.
S 307. STATE-ASSISTED FUNDRAISING BY THE CORPORATION. 1. THE CORPO-
RATION SHALL HAVE THE AUTHORITY TO PREPARE AND FURNISH TO ANY STATE
AGENCY AN ENCLOSURE WHICH THE STATE AGENCY SHALL INCLUDE WITHIN ANY
MAILING DESIGNATED BY THE CORPORATION. THE CORPORATION SHALL PROVIDE THE
AGENCY WITH ANY SUCH ENCLOSURE AT A TIME REASONABLY IN ADVANCE OF THE
MAILING. THE CORPORATION MAY NOT REQUIRE ANY STATE AGENCY TO MAIL AN
ENCLOSURE MORE THAN FOUR TIMES IN ANY CALENDAR YEAR.
S. 2885 6
2. ENCLOSURES FURNISHED BY THE CORPORATION UNDER THIS SECTION SHALL BE
LIMITED TO SOLICITING INFORMATION AND MONEY FROM CONSUMERS AND EXPLAIN-
ING:
(A) THE PURPOSE, HISTORY, NATURE, ACTIVITIES AND ACHIEVEMENTS OF THE
CORPORATION;
(B) THAT THE CORPORATION IS OPEN TO MEMBERSHIP BY RESIDENTIAL CONSUM-
ERS;
(C) THAT THE CORPORATION IS NOT CONNECTED TO ANY UTILITY COMPANY OR
GOVERNMENTAL AGENCY;
(D) THAT THE CORPORATION IS A NOT-FOR-PROFIT CORPORATION DIRECTED BY
ITS CONSUMER MEMBERS;
(E) THE PROCEDURE FOR CONTRIBUTING TO OR BECOMING A MEMBER OF THE
CORPORATION; AND
(F) THE YEARLY MEMBERSHIP FEE.
3. PRIOR TO FURNISHING AN ENCLOSURE TO A STATE AGENCY FOR MAILING, THE
CORPORATION SHALL SEEK AND OBTAIN THE APPROVAL OF THE COMMISSION OF THE
CONTENT OF THE ENCLOSURE. THE COMMISSION SHALL APPROVE THE ENCLOSURE IF
IT DETERMINES THAT THE ENCLOSURE: (A) IS NOT FALSE OR MISLEADING; AND
(B) CONTAINS AND IS LIMITED TO THE INFORMATION PERMITTED BY THIS
SECTION. THE COMMISSION SHALL BE DEEMED TO HAVE APPROVED THE ENCLOSURE
UNLESS IT DISAPPROVES THE ENCLOSURE WITHIN FOURTEEN DAYS OF RECEIPT.
4. THE CORPORATION SHALL REIMBURSE EACH STATE AGENCY FOR ALL REASON-
ABLE INCREMENTAL COSTS INCURRED BY THE STATE AGENCY IN COMPLYING WITH
THIS SECTION ABOVE THE AGENCY'S NORMAL MAILING AND HANDLING COSTS,
PROVIDED THAT:
(A) THE STATE AGENCY SHALL FIRST FURNISH THE CORPORATION WITH AN ITEM-
IZED ACCOUNTING OF SUCH ADDITIONAL COSTS; AND
(B) THE CORPORATION SHALL NOT BE REQUIRED TO REIMBURSE THE STATE AGEN-
CY FOR POSTAGE COSTS IF THE WEIGHT OF THE CORPORATION'S ENCLOSURE DOES
NOT INCREASE THE COST OF THE STATE AGENCY MAILING. IF THE CORPORATION'S
ENCLOSURE INCREASES THE COST OF THE STATE AGENCY MAILING, THEN IT WILL
BE REQUIRED TO REIMBURSE THE STATE AGENCY FOR POSTAGE COST OVER AND
ABOVE WHAT THE AGENCY'S POSTAGE COST WOULD HAVE BEEN WITHOUT THE CORPO-
RATION'S ENCLOSURE.
S 308. PROHIBITED ACTS. 1. NO PUBLIC UTILITY COMPANY OR OFFICER,
EMPLOYEE OR AGENT OF THE PUBLIC UTILITY COMPANY MAY INTERFERE OR THREAT-
EN TO INTERFERE WITH OR CAUSE ANY INTERFERENCE WITH THE UTILITY SERVICE
OF, OR PENALIZE OR THREATEN TO PENALIZE OR CAUSE TO BE PENALIZED, ANY
PERSON WHO CONTRIBUTES TO THE CORPORATION OR PARTICIPATES IN ANY OF ITS
ACTIVITIES, IN RETRIBUTION FOR SUCH CONTRIBUTION OR PARTICIPATION.
2. NO PERSON MAY ACT WITH INTENT TO PREVENT, INTERFERE WITH OR HINDER
THE ACTIVITIES PERMITTED UNDER THIS ARTICLE.
3. NO PERSON SHALL USE ANY LIST OF CONTRIBUTORS TO THE CORPORATION,
NOR ANY PART OF SUCH LIST, FOR PURPOSES OTHER THAN THE CONDUCT OF BUSI-
NESS OF THE CORPORATION AS PRESCRIBED IN THIS ARTICLE. NO PERSON SHALL
DISCLOSE ANY SUCH LIST OR PART THEREOF TO ANY OTHER PERSON UNLESS THERE
IS SUBSTANTIAL REASON TO BELIEVE THAT SUCH LIST OR PART THEREOF IS
INTENDED TO BE USED FOR THE LAWFUL PURPOSES DESCRIBED IN THIS ARTICLE.
ANY PERSON WHO VIOLATES THIS SUBDIVISION SHALL BE SUBJECT TO A CIVIL
PENALTY OF NOT MORE THAN TEN THOUSAND DOLLARS.
S 309. BOARD OF DIRECTORS. 1. THE AFFAIRS OF THE CORPORATION SHALL BE
MANAGED BY A BOARD OF DIRECTORS CONSISTING OF ONE MEMBER FROM EACH UTIL-
ITY DISTRICT.
2. THE DIRECTORS SHALL SERVE WITHOUT SALARY, BUT EACH DIRECTOR MAY BE
ENTITLED TO REIMBURSEMENT FOR ACTUAL AND NECESSARY EXPENSES. ALLOWANCES
FOR MILEAGE, BOARD AND MEALS AND THE PURPOSES FOR WHICH SUCH ALLOWANCES
S. 2885 7
MAY BE MADE, SHALL BE THE SAME AS RATES AUTHORIZED FOR EMPLOYEES OF
STATE AGENCIES WHILE AWAY FROM THEIR HOMES OR REGULAR PLACES OF BUSINESS
IN THE PERFORMANCE OF SERVICE TO THE BOARD.
3. THE TERM OF OFFICE FOR MEMBERS OF THE BOARD OF DIRECTORS SHALL BE
THREE YEARS AND NO MEMBER SHALL SERVE MORE THAN TWO CONSECUTIVE TERMS.
ONE THIRD OF THE DIRECTORS FIRST ELECTED SHALL SERVE FOR A ONE-YEAR
TERM; ONE-THIRD OF SUCH DIRECTORS SHALL SERVE A TWO-YEAR TERM; AND ONE-
THIRD OF SUCH DIRECTORS SHALL SERVE A FULL THREE-YEAR TERM.
4. NO DIRECTOR OR MEMBERS OF HIS OR HER IMMEDIATE FAMILY SHALL, EITHER
DIRECTLY OR INDIRECTLY, BE EMPLOYED FOR COMPENSATION AS A STAFF MEMBER
OR CONSULTANT OF THE CORPORATION.
5. ANY DIRECTOR WHO SHALL HANDLE, DISBURSE, OR RECEIVE MONEY ON BEHALF
OF THE CORPORATION SHALL BE BONDED. SUCH BOND SHALL BE A COST TO THE
CORPORATION.
S 310. DUTIES OF THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS SHALL
HAVE THE FOLLOWING DUTIES:
1. TO ESTABLISH THE POLICIES OF THE CORPORATION REGARDING APPEARANCES
BEFORE THE COMMISSION, OTHER REGULATORY AGENCIES, THE COURTS, AND OTHER
PUBLIC BODIES, AND REGARDING OTHER ACTIVITIES WHICH THE CORPORATION HAS
THE AUTHORITY TO PERFORM UNDER THIS ARTICLE;
2. TO MAINTAIN UP-TO-DATE MEMBERSHIP ROLLS, AND TO KEEP THEM IN CONFI-
DENCE TO THE EXTENT REQUIRED BY THE PROVISIONS OF SECTION THREE HUNDRED
EIGHT OF THIS ARTICLE;
3. TO KEEP MINUTES, BOOKS AND RECORDS WHICH SHALL REFLECT ALL THE ACTS
AND TRANSACTIONS OF THE BOARD OF DIRECTORS WHICH SHALL BE OPEN TO EXAM-
INATION BY ANY MEMBER DURING REGULAR BUSINESS HOURS;
4. TO MAKE ALL REPORTS, STUDIES AND OTHER INFORMATION COMPILED BY THE
CORPORATION PURSUANT TO PARAGRAPH (C) OF SUBDIVISION TWO OF SECTION
THREE HUNDRED FOUR OF THIS ARTICLE, AND ALL DATA PERTAINING TO THE
FINANCES OF THE CORPORATION, AVAILABLE FOR PUBLIC INSPECTION DURING
REGULAR BUSINESS HOURS;
5. TO MAINTAIN FOR INSPECTION BY THE MEMBERSHIP QUARTERLY STATEMENTS
OF THE FINANCIAL AND SUBSTANTIVE OPERATIONS OF THE CORPORATION, AS
PREPARED IN ACCORDANCE WITH PARAGRAPH (E) OF SUBDIVISION THREE OF
SECTION THREE HUNDRED TWENTY-THREE OF THIS ARTICLE;
6. TO CAUSE THE CORPORATION'S BOOKS TO BE AUDITED BY A CERTIFIED
PUBLIC ACCOUNTANT AT LEAST ONCE EACH FISCAL YEAR, AND TO MAKE THE AUDIT
AVAILABLE TO THE GENERAL PUBLIC;
7. TO PREPARE, AS SOON AS PRACTICABLE AFTER THE CLOSE OF THE CORPO-
RATION'S FISCAL YEAR, AN ANNUAL REPORT OF THE CORPORATION'S FINANCIAL
AND SUBSTANTIVE OPERATIONS TO BE MADE AVAILABLE FOR PUBLIC INSPECTION;
8. TO REPORT TO THE MEMBERSHIP AT THE ANNUAL MEMBERSHIP MEETING ON THE
PAST AND PROJECTED ACTIVITIES AND POLICIES OF THE CORPORATION. IN ADDI-
TION, THE CORPORATION SHALL SPONSOR ON BEHALF OF EACH DIRECTOR AT LEAST
ONE MEETING PER YEAR IN SUCH DIRECTOR'S UTILITY DISTRICT;
9. TO EMPLOY AN EXECUTIVE DIRECTOR AND TO DIRECT AND SUPERVISE HIS OR
HER ACTIVITIES;
10. TO HOLD REGULAR MEETINGS, INCLUDING MEETINGS BY TELEPHONE CONFER-
ENCE, AT LEAST ONCE EVERY THREE MONTHS ON SUCH DATES AND AT SUCH PLACES
AS SUCH BOARD MAY DETERMINE. SPECIAL MEETINGS MAY BE CALLED BY THE
CHAIRPERSON OF THE BOARD OR BY AT LEAST ONE-QUARTER OF THE DIRECTORS
UPON AT LEAST FIVE DAYS' NOTICE. ONE-HALF OF THE DIRECTORS PLUS ONE
SHALL CONSTITUTE A QUORUM. ALL MEETINGS OF THE BOARD OF DIRECTORS AND OF
ITS COMMITTEES AND SUBCOMMITTEES SHALL BE OPEN TO THE PUBLIC. COMPLETE
MINUTES OF THE MEETINGS SHALL BE KEPT; AND
S. 2885 8
11. TO CARRY OUT ALL OTHER DUTIES AND RESPONSIBILITIES IMPOSED UPON
THE CORPORATION AND THE BOARD OF DIRECTORS BY THIS ARTICLE.
S 311. APPOINTMENT OF INTERIM BOARD OF DIRECTORS. 1. WITHIN NINETY
DAYS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, AN INTERIM BOARD OF
DIRECTORS SHALL BE APPOINTED BY THE GOVERNOR, TO SERVE UNTIL A BOARD OF
DIRECTORS IS FIRST ELECTED. IF THE NUMBER OF MEMBERS OF THE CORPORATION
FAILS TO REACH THE LEVEL REQUIRED BY SECTION THREE HUNDRED TWELVE OF
THIS ARTICLE WITHIN TWO YEARS OF THE APPOINTMENT OF THE COMPLETE INTERIM
BOARD OF DIRECTORS, THE CORPORATION SHALL BE DISSOLVED AFTER HAVING
SATISFIED ITS DEBTS, LIABILITIES AND OBLIGATIONS TO THE EXTENT POSSIBLE
FROM FUNDS MADE AVAILABLE TO THE CORPORATION.
2. THE METHOD OF APPOINTMENT OF INTERIM DIRECTORS SHALL BE AS FOLLOWS:
THREE SHALL BE APPOINTED BY THE GOVERNOR, THREE SHALL BE APPOINTED BY
THE GOVERNOR FROM A LIST CONTAINING NO LESS THAN FIVE NAMES SUBMITTED BY
THE TEMPORARY PRESIDENT OF THE SENATE; THREE SHALL BE APPOINTED BY THE
GOVERNOR FROM A LIST CONTAINING NO LESS THAN FIVE NAMES SUBMITTED BY THE
SPEAKER OF THE ASSEMBLY; ONE SHALL BE APPOINTED BY THE GOVERNOR FROM A
LIST OF NOT LESS THAN FIVE NAMES SUBMITTED BY THE MINORITY LEADER OF THE
SENATE; ONE SHALL BE APPOINTED BY THE GOVERNOR FROM A LIST OF NOT LESS
THAN FIVE NAMES SUBMITTED BY THE MINORITY LEADER OF THE ASSEMBLY. INDI-
VIDUALS CONSIDERED FOR APPOINTMENT TO THE INTERIM BOARD SHALL HAVE THE
SAME QUALIFICATIONS AS CANDIDATES FOR THE BOARD OF DIRECTORS PURSUANT TO
SECTION THREE HUNDRED THIRTEEN OF THIS ARTICLE, AND SHALL, TO THE EXTENT
POSSIBLE, REPRESENT EACH REGION OF THE STATE.
3. THE INTERIM BOARD OF DIRECTORS SHALL:
(A) AS SOON AS POSSIBLE AFTER APPOINTMENT, ORGANIZE FOR THE TRANS-
ACTION OF BUSINESS.
(B) INFORM THE RESIDENTIAL UTILITY CONSUMERS OF THIS STATE OF THE
EXISTENCE, NATURE AND PURPOSE OF THE CORPORATION, AND ENCOURAGE RESIDEN-
TIAL UTILITY CONSUMERS TO JOIN THE CORPORATION, TO PARTICIPATE IN THE
CORPORATION'S ACTIVITIES AND TO CONTRIBUTE TO THE CORPORATION.
(C) ELECT OFFICERS.
(D) EMPLOY SUCH STAFF AS THE DIRECTORS DEEM NECESSARY TO CARRY OUT THE
PURPOSES OF THIS ARTICLE.
(E) MAKE ALL NECESSARY PREPARATIONS FOR THE FIRST ELECTION OF DIREC-
TORS, OVERSEE THE ELECTION CAMPAIGN AND TALLY THE VOTES.
(F) SOLICIT FUNDS FOR THE CORPORATION.
(G) DESIGNATE BY A RANDOM METHOD THE LENGTH OF THE TERM OF OFFICE OF
EACH DIRECTOR POSITION TO BE FILLED AFTER THE FIRST ELECTION OF DIREC-
TORS.
(H) CARRY OUT ALL OTHER DUTIES AND EXERCISE ALL OTHER POWER ACCORDED
TO THE BOARD OF DIRECTORS UNDER THIS ARTICLE.
S 312. ELECTION OF DIRECTORS. 1. NOT MORE THAN SIXTY DAYS AFTER THE
MEMBERSHIP OF THE CORPORATION REACHES TWENTY-FIVE THOUSAND PERSONS WITH
AT LEAST ONE HUNDRED MEMBERS IN EACH DISTRICT, THE INTERIM BOARD OF
DIRECTORS SHALL SET A DATE FOR THE FIRST GENERAL ELECTION OF DIRECTORS
AND SHALL SO NOTIFY EVERY MEMBER. THE DATE SET FOR ELECTIONS SHALL BE
NOT LESS THAN FOUR MONTHS NOR MORE THAN EIGHT MONTHS AFTER SUCH NOTIFI-
CATION.
2. EACH GENERAL ELECTION OF DIRECTORS OTHER THAN THE FIRST ELECTION OF
DIRECTORS SHALL BE HELD NOT LESS THAN ELEVEN MONTHS AND NOT MORE THAN
THIRTEEN MONTHS AFTER THE LAST PRECEDING GENERAL ELECTION. THE DATE OF
SUCH ELECTIONS SHALL BE FIXED BY THE BOARD OF DIRECTORS AT LEAST FOUR
MONTHS IN ADVANCE OF THE DATE CHOSEN FOR THE ELECTION.
S 313. QUALIFICATIONS OF CANDIDATES. 1. NO PRESENT EMPLOYEE, DIRECTOR,
CONSULTANT, ATTORNEY, ACCOUNTANT, REAL ESTATE AGENT, SHAREHOLDER, BOND-
S. 2885 9
HOLDER OF ANY PUBLIC UTILITY DOING BUSINESS IN THIS STATE AND NO EMPLOY-
EE OF THE COMMISSION OR THE DEPARTMENT SHALL BE ELIGIBLE TO BE A DIREC-
TOR. NO DIRECTOR OR ANY CANDIDATE FOR THE BOARD OF DIRECTORS MAY HOLD AN
ELECTIVE PUBLIC OFFICE OR BE A CANDIDATE FOR AN ELECTIVE PUBLIC OFFICE
OR BE APPOINTED TO HOLD STATE OFFICE. THESE QUALIFICATIONS SHALL ALSO
APPLY TO IMMEDIATE FAMILY MEMBERS OF PERSONS ENUMERATED ABOVE.
2. TO BE ELIGIBLE FOR ELECTION TO THE BOARD OF DIRECTORS A CANDIDATE
MUST:
(A) MEET THE QUALIFICATIONS FOR CANDIDATES;
(B) BE A MEMBER OF THE CORPORATION AND A RESIDENT OF THE DISTRICT
WHICH HE OR SHE SEEKS TO REPRESENT;
(C) SUBMIT A PETITION FOR NOMINATION;
(D) SUBMIT A STATEMENT OF FINANCIAL INTEREST AND A STATEMENT OF
PERSONAL BACKGROUND AND POSITION; AND
(E) AFFIRM, UNDER PENALTY OF PERJURY, THAT THE INFORMATION CONTAINED
IN THE STATEMENT OF FINANCIAL INTEREST AND PERSONAL BACKGROUND AND POSI-
TION IS TRUE AND COMPLETE.
S 314. NOMINATION. 1. THE INTERIM BOARD OF DIRECTORS AND EVERY SUBSE-
QUENT BOARD SHALL MAKE AVAILABLE FOR INSPECTION BY ANY MEMBER, UPON
REQUEST, A LIST OF THE CURRENT MEMBERS IN THAT MEMBER'S DISTRICT.
2. A CANDIDATE FOR ELECTION TO THE BOARD OF DIRECTORS SHALL CIRCULATE
A PETITION FOR NOMINATION NO SOONER THAN ONE HUNDRED TWENTY DAYS PRECED-
ING THE ELECTION AND SHALL FILE THE PETITION WITH THE CORPORATION NO
LATER THAN SIXTY DAYS PRIOR TO THE ELECTION. THE PETITION FOR NOMINATION
SHALL BE SIGNED BY AT LEAST ONE HUNDRED OF THE CORPORATION'S CURRENT
MEMBERS RESIDING IN THE CANDIDATE'S DISTRICT. UPON RECEIPT OF A MEMBER'S
NOMINATING PETITION AND CONFIRMATION OF THE CURRENT MEMBERSHIP OF THE
CANDIDATE AND CONFIRMATION OF THE CURRENT MEMBERSHIP OF THE INDIVIDUALS
WHO SIGNED SUCH PETITION, THE BOARD OF DIRECTORS SHALL CERTIFY THAT SUCH
MEMBER IS A NOMINATED CANDIDATE FOR THE BOARD OF DIRECTORS.
S 315. STATEMENT OF FINANCIAL INTERESTS. A CANDIDATE FOR ELECTION TO
THE BOARD OF DIRECTORS WHOSE NOMINATION IS CERTIFIED SHALL SUBMIT TO THE
BOARD OF DIRECTORS, NOT LATER THAN SIXTY DAYS PRIOR TO THE ELECTION, A
STATEMENT OF FINANCIAL INTERESTS UPON A FORM PROVIDED BY THE BOARD OF
DIRECTORS. THE STATEMENT OF FINANCIAL INTERESTS, WHICH SHALL BE OPEN FOR
PUBLIC INSPECTION, SHALL INCLUDE THE FOLLOWING INFORMATION:
1. THE OCCUPATION, EMPLOYER AND POSITION AT PLACE OF EMPLOYMENT OF
THE CANDIDATE AND OF HIS OR HER IMMEDIATE FAMILY MEMBERS.
2. A LIST OF ALL CORPORATE AND ORGANIZATIONAL DIRECTORSHIPS OR OTHER
OFFICES, AND OF FIDUCIARY RELATIONSHIPS, HELD IN THE PAST THREE YEARS BY
THE CANDIDATE AND BY HIS OR HER IMMEDIATE FAMILY MEMBERS.
3. SUCH OTHER INFORMATION AS THE BOARD OF DIRECTORS SHALL REQUIRE
CANDIDATES TO DISCLOSE, WHICH DISCLOSURE REQUIRED OF OTHER PUBLIC OFFI-
CIALS AT THE TIME AND SHALL BE IN THE JUDGMENT OF THE BOARD OF DIRECTORS
IN THE BEST INTERESTS OF THE CORPORATION.
4. AN AFFIRMATION, SUBJECT TO PENALTY OF PERJURY, THAT THE INFORMATION
CONTAINED IN THE STATEMENT OF FINANCIAL INTERESTS IS TRUE AND COMPLETE.
S 316. STATEMENT OF PERSONAL BACKGROUND AND POSITIONS. A CANDIDATE FOR
ELECTION TO THE BOARD OF DIRECTORS SHALL SUBMIT TO THE BOARD OF DIREC-
TORS, NOT LATER THAN SIXTY DAYS PRIOR TO THE ELECTION, ON A FORM TO BE
PROVIDED BY THE BOARD OF DIRECTORS, A STATEMENT CONCERNING HIS OR HER
PERSONAL BACKGROUND AND POSITIONS ON ISSUES RELATING TO REGULATED PUBLIC
UTILITIES OR THE OPERATIONS OF THE CORPORATION. THE STATEMENT SHALL
CONTAIN AN AFFIRMATION, SUBJECT TO PENALTY OF PERJURY, THAT THE INFORMA-
TION CONTAINED IN THE STATEMENT OF PERSONAL BACKGROUND IS TRUE AND
S. 2885 10
COMPLETE AND THAT THE CANDIDATE MEETS THE QUALIFICATIONS PRESCRIBED FOR
DIRECTORS.
S 317. RESTRICTIONS ON AND REPORTING OF CAMPAIGN CONTRIBUTIONS AND
EXPENDITURES. 1. NO CANDIDATE MAY INCUR MORE THAN TWO THOUSAND DOLLARS
TO CAMPAIGN EXPENDITURES FROM THE TIME HE OR SHE COMMENCES CIRCULATION
OF PETITIONS FOR NOMINATION OR FROM FOUR MONTHS PRIOR TO THE ELECTION
WHICHEVER IS EARLIER, THROUGH THE DATE OF THE ELECTION.
2. NO CANDIDATE MAY ACCEPT MORE THAN TWO HUNDRED FIFTY DOLLARS IN
CAMPAIGN CONTRIBUTIONS FROM ANY ONE CONTRIBUTOR DURING THE YEAR PRECED-
ING THE DATE OF THE ELECTION.
3. NO CANDIDATE SHALL ACCEPT CAMPAIGN CONTRIBUTIONS FROM A UTILITY
COMPANY, PUBLIC UTILITY COMPANY, UTILITY CORPORATION, PUBLIC UTILITY
CORPORATION OR ANY ORGANIZATION SUPPORTED WITH PUBLIC FUNDS.
4. EACH CANDIDATE FOR ELECTION TO THE BOARD OF DIRECTORS SHALL KEEP
COMPLETE RECORDS OF ALL CONTRIBUTIONS TO HIS OR HER CAMPAIGN OF FIFTY
DOLLARS OR MORE MADE DURING THE YEAR PRECEDING THE DATE OF THE ELECTION.
SUCH RECORDS SHALL BE AVAILABLE FOR INSPECTION BY THE PUBLIC.
5. NO EARLIER THAN THE NEXT DAY SUCCEEDING THE ELECTION AND NO LATER
THAN THIRTY DAYS AFTER THE ELECTION, EACH CANDIDATE SHALL SUBMIT TO THE
BOARD OF DIRECTORS, ON A FORM PROVIDED BY THE BOARD OF DIRECTORS, AN
ACCURATE STATEMENT OF HIS OR HER CAMPAIGN CONTRIBUTIONS ACCEPTED AND
CAMPAIGN EXPENSES INCURRED, AND SHALL AFFIRM TO THE BOARD OF DIRECTORS,
SUBJECT TO PENALTY OF PERJURY, THAT HE OR SHE HAS FULLY COMPLIED WITH
THE REQUIREMENTS OF THIS SUBDIVISION.
6. IF THE BOARD OF DIRECTORS DETERMINES THAT THE CANDIDATE'S CAMPAIGN
EXPENSES HAVE EXCEEDED THE LIMITS CONTAINED IN THIS SECTION, THE CANDI-
DATE SHALL BE DISQUALIFIED AND MAY BE REQUIRED TO PAY THE EXPENSES
INCURRED BY THE CORPORATION IN MAILING THAT CANDIDATE'S STATEMENT OF
PERSONAL BACKGROUND AND POSITION. THE CORPORATION MAY PURSUE ALL CIVIL
REMEDIES TO RECOVER THE COST OF MAILING THAT CANDIDATE'S STATEMENT OF
PERSONAL BACKGROUND AND POSITION. IN THE EVENT OF DISQUALIFICATION, THE
BOARD OF DIRECTORS SHALL CALL A SPECIAL ELECTION TO BE HELD NOT FEWER
THAN FOUR MONTHS AND NOT MORE THAN SIX MONTHS AFTER THE CAMPAIGN
CONTRIBUTION FOR ANY PURPOSE EXCEPT FOR CAMPAIGN EXPENDITURES.
S 318. ELECTION PROCEDURES. 1. THE BOARD OF DIRECTORS SHALL SEND OR
HAVE SENT TO EACH MEMBER, TO BE POST-MARKED NO LATER THAN TWENTY DAYS
BEFORE THE DATE FIXED FOR A SPECIAL OR GENERAL ELECTION, THE FOLLOWING:
(A) AN OFFICIAL BALLOT LISTING ALL CANDIDATES FOR THE BOARD OF DIREC-
TORS FROM THEIR DISTRICT WHO HAVE COMPLIED WITH THE REQUIREMENTS OF THIS
ARTICLE;
(B) EACH SUCH CANDIDATE'S STATEMENT OF FINANCIAL INTERESTS; AND
(C) EACH SUCH CANDIDATE'S STATEMENT OF PERSONAL BACKGROUND AND POSI-
TION.
2. EACH RESIDENTIAL UTILITY CONSUMER WHO IS A MEMBER OF THE CORPO-
RATION ON THE THIRTIETH DAY PRECEDING A SPECIAL OR GENERAL ELECTION MAY
CAST A VOTE IN SUCH ELECTION BY RETURNING HIS OR HER OFFICIAL BALLOT,
PROPERTY MARKED, TO THE PRINCIPAL OFFICE OF THE CORPORATION BY NINE P.M.
OF THE DATE FIXED FOR THE ELECTION. VOTING SHALL BE BY SECRET BALLOT.
THE CANDIDATE RECEIVING THE GREATEST NUMBER OF VOTES IN EACH DISTRICT
SHALL BE DECLARED ELECTED.
3. THE BOARD OF DIRECTORS MAY PRESCRIBE RULES FOR THE CONDUCT OF
ELECTIONS AND ELECTION CAMPAIGNS NOT INCONSISTENT WITH THIS ARTICLE.
S 319. INSTALLATION OF ELECTED CANDIDATES. THE PRESIDENT OF THE BOARD
OF DIRECTORS SHALL INSTALL IN OFFICE WITHIN THIRTY DAYS AFTER THE
ELECTION ALL ELECTED CANDIDATES WHO MEET THE QUALIFICATIONS PRESCRIBED
IN THIS ARTICLE.
S. 2885 11
S 320. RECALL OF DIRECTORS. UPON RECEIPT BY THE PRESIDENT OF THE BOARD
OF DIRECTORS OF A PETITION TO RECALL ANY DIRECTOR, WITH THE VALID SIGNA-
TURES OF AT LEAST FORTY PERCENT OF THE MEMBERS OF THE UTILITY DISTRICT
THE DIRECTOR REPRESENTS, THE BOARD OF DIRECTORS SHALL CALL A SPECIAL
ELECTION TO BE HELD NOT FEWER THAN FOUR MONTHS AND NOT MORE THAN SIX
MONTHS AFTER RECEIPT OF THE PETITION, FOR THE PURPOSE OF ELECTING A
DIRECTOR TO SERVE OUT THE TERM OF THE RECALLED DIRECTOR; PROVIDED THAT
NO DIRECTOR MAY BE RECALLED WITHIN SIX MONTHS OF HIS OR HER ELECTION. A
DIRECTOR MAY BECOME A CANDIDATE IN AN ELECTION FOLLOWING HIS OR HER OWN
RECALL. A DIRECTOR RECALLED SHALL CONTINUE TO SERVE UNTIL THE INSTALLA-
TION IN OFFICE OF HIS OR HER SUCCESSOR.
S 321. VACANCIES. WHEN A DIRECTOR DIES, RESIGNS, IS DISQUALIFIED, OR
OTHERWISE VACATES HIS OR HER OFFICE, EXCEPT AS PROVIDED IN SECTION THREE
HUNDRED TWENTY OF THIS ARTICLE, THE BOARD OF DIRECTORS SHALL SELECT,
WITHIN THREE MONTHS, A SUCCESSOR FROM THE SAME DISTRICT AS SUCH DIRECTOR
FOR THE REMAINDER OF THE DIRECTOR'S TERM OF OFFICE. ANY DIRECTOR MAY
NOMINATE ANY QUALIFIED PERSON AS SUCCESSOR. THE BOARD OF DIRECTORS SHALL
SELECT THE SUCCESSOR FROM AMONG THOSE NOMINATED, BY A TWO-THIRDS MAJORI-
TY OF THE REMAINING DIRECTORS PRESENT AND VOTING. THE SUCCESSOR SHALL BE
INSTALLED IN OFFICE BY THE PRESIDENT OF THE BOARD OF DIRECTORS.
S 322. OFFICERS. 1. AT THE FIRST REGULAR MEETING OF THE BOARD OF
DIRECTORS AT WHICH A QUORUM IS PRESENT AND SUBSEQUENT TO THE INITIAL
APPOINTMENTS OF DIRECTORS, AND AT THE FIRST REGULAR MEETING OF THE BOARD
OF DIRECTORS AT WHICH A QUORUM IS PRESENT SUBSEQUENT TO THE INSTALLATION
OF NEW DIRECTORS FOLLOWING EACH ANNUAL ELECTION, THE BOARD SHALL ELECT
BY MAJORITY VOTE OF MEMBERS PRESENT AND VOTING FROM AMONG THE DIRECTORS
A PRESIDENT, A VICE-PRESIDENT, A SECRETARY, AND A TREASURER. THE BOARD
SHALL ALSO HAVE THE POWER TO ELECT A COMPTROLLER AND SUCH OTHER OFFICERS
AS IT DEEMS NECESSARY.
2. OFFICERS SHALL BE INSTALLED BY THE PRESIDENT IMMEDIATELY UPON THEIR
ELECTION. THE TERM OF OFFICE FOR OFFICERS SHALL BE ONE YEAR; PROVIDED
THAT AN OFFICER MAY RESIGN, OR MAY BE REMOVED FROM OFFICE BY A
TWO-THIRDS VOTE OF ALL THE DIRECTORS. AFTER AN OFFICER'S TERM OF OFFICE
HAS EXPIRED, THE OFFICER SHALL CONTINUE TO SERVE UNTIL HIS OR HER
SUCCESSOR IS INSTALLED.
3. WHEN AN OFFICER DIES, RESIGNS, IS REMOVED OR OTHERWISE VACATES HIS
OR HER OFFICE, THE BOARD OF DIRECTORS SHALL ELECT A SUCCESSOR TO SERVE
OUT SUCH OFFICER'S TERM OF OFFICE.
4. THE OFFICERS SHALL EXERCISE SUCH POWERS AND PERFORM SUCH DUTIES AS
ARE PRESCRIBED BY THIS ARTICLE OR ARE DELEGATED TO THEM BY THE BOARD OF
DIRECTORS.
S 323. EXECUTIVE DIRECTOR; QUALIFICATIONS; APPOINTMENTS; DUTIES. 1.
THE EXECUTIVE DIRECTOR HIRED BY THE BOARD OF DIRECTORS SHALL HAVE THE
SAME QUALIFICATIONS AS A CANDIDATE. THE EXECUTIVE DIRECTOR MAY NOT BE A
CANDIDATE FOR THE BOARD OF DIRECTORS WHILE SERVING AS EXECUTIVE DIREC-
TOR. THE BY-LAWS OF THE CORPORATION SHALL PROVIDE A METHOD FOR DISCHARG-
ING THE EXECUTIVE DIRECTOR, BUT IN NO EVENT SHALL SUCH DISCHARGE OCCUR
UNLESS ONE-HALF OF THE DIRECTORS PLUS ONE SHALL HAVE CONSENTED TO SUCH
DISCHARGE.
2. THE BOARD OF DIRECTORS SHALL REQUIRE ALL APPLICANTS FOR THE POSI-
TION OF EXECUTIVE DIRECTOR OF THE CORPORATION TO FILE A FINANCIAL STATE-
MENT. THE BOARD OF DIRECTORS SHALL REQUIRE THE EXECUTIVE DIRECTOR TO
FILE A FINANCIAL STATEMENT ANNUALLY.
3. THE EXECUTIVE DIRECTOR SHALL HAVE THE FOLLOWING DUTIES:
(A) TO IMPLEMENT THE POLICIES ESTABLISHED BY THE BOARD OF DIRECTORS;
(B) TO EMPLOY AND DISCHARGE EMPLOYEES OF THE CORPORATION;
S. 2885 12
(C) TO SUPERVISE THE OFFICES, FACILITIES AND WORK OF THE EMPLOYEES OF
THE CORPORATION;
(D) TO HAVE CUSTODY OF AND MAINTAIN THE BOOKS, RECORDS AND MEMBERSHIP
ROLLS OF THE CORPORATION;
(E) TO PREPARE AND SUBMIT TO THE BOARD OF DIRECTORS ANNUAL AND QUAR-
TERLY STATEMENTS OF THE FINANCIAL AND SUBSTANTIVE OPERATIONS OF THE
CORPORATION, AND FINANCIAL ESTIMATES FOR THE OPERATIONS OF THE CORPO-
RATION;
(F) TO ATTEND AND PARTICIPATE IN MEETINGS OF THE BOARD OF DIRECTORS AS
A NON-VOTING DIRECTOR; AND
(G) TO EXERCISE SUCH OTHER POWERS AND PERFORM SUCH OTHER DUTIES AS THE
BOARD OF DIRECTORS DELEGATES.
S 324. ANNUAL MEMBERSHIP MEETING. AN ANNUAL MEETING OF THE MEMBERSHIP
SHALL BE HELD ON A DATE AND AT A PLACE WITHIN THE STATE TO BE DETERMINED
BY THE BOARD OF DIRECTORS. ALL MEMBERS SHALL BE ELIGIBLE TO ATTEND,
PARTICIPATE IN AND VOTE AT THE ANNUAL MEMBERSHIP MEETING. THE MEETING
SHALL BE OPEN TO THE PUBLIC.
S 325. CONSTRUCTION WITH OTHER LAWS. 1. THE NOT-FOR-PROFIT CORPORATION
LAW APPLIES TO THE CORPORATION; PROVIDED THAT IF ANY PROVISION OF THE
NOT-FOR-PROFIT CORPORATION LAW CONFLICTS WITH ANY PROVISION OF THIS
ARTICLE, THE CONFLICTING PROVISION OF THE NOT-FOR-PROFIT CORPORATION LAW
SHALL NOT APPLY IN SUCH CASE. IF ANY PROVISION OF THIS ARTICLE RELATES
TO A MATTER EMBRACED IN THE NOT-FOR-PROFIT CORPORATION LAW BUT IS NOT IN
CONFLICT WITH SUCH PROVISION, BOTH PROVISIONS SHALL APPLY.
2. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO LIMIT THE RIGHT OF
ANY INDIVIDUAL OR GROUP OR CLASS OF INDIVIDUALS TO INITIATE, INTERVENE
IN, OR OTHERWISE PARTICIPATE IN ANY PROCEEDING BEFORE ANY REGULATORY
AGENCY OR COURT; NOR TO REQUIRE ANY PETITION OR NOTIFICATION TO THE
CORPORATION AS A CONDITION PRECEDENT TO SUCH RIGHT, NOR TO RELIEVE ANY
UTILITY AGENCY, COURT OR OTHER PUBLIC BODY OF ANY OBLIGATION, OR AFFECT
ITS DISCRETION TO PERMIT INTERVENTION OR PARTICIPATION BY A CONSUMER OR
GROUP OR CLASS OF CONSUMERS IN ANY PROCEEDING OR ACTIVITY, NOR TO LIMIT
THE RIGHT OF ANY INDIVIDUAL OR INDIVIDUALS TO OBTAIN ADMINISTRATIVE OR
JUDICIAL REVIEW.
3. THE INTERVENTION OR PARTICIPATION OF THE CORPORATION IN A PROCEED-
ING OR ACTIVITY SHALL NOT AFFECT THE OBLIGATION OF ANY REGULATORY AGENCY
OR OTHER PUBLIC BODY TO OPERATE IN THE PUBLIC INTEREST.
4. THIS ARTICLE BEING NECESSARY FOR THE WELFARE OF THE STATE AND ITS
INHABITANTS SHALL BE LIBERALLY CONSTRUED TO EFFECT ITS PURPOSES.
S 326. PROHIBITIONS AND CONFLICTS OF INTEREST. 1. NO PERSON MAY OFFER
OR GIVE ANYTHING OF MONETARY VALUE TO ANY DIRECTOR, EMPLOYEE OR AGENT OF
THE CORPORATION IF THE OFFER OR GIFT INFLUENCES, OR IS INTENDED TO
INFLUENCE, THE ACTION OR JUDGMENT OF THE DIRECTOR, EMPLOYEE OR AGENT OF
THE CORPORATION IN HIS OR HER CAPACITY AS DIRECTOR, EMPLOYEE OR AGENT OF
THE CORPORATION.
2. NO DIRECTOR, EMPLOYEE OR AGENT OF THE CORPORATION MAY SOLICIT OR
ACCEPT ANYTHING OF MONETARY VALUE FROM ANY PERSON IF THEIR SOLICITATION
OR ACCEPTANCE INFLUENCES, OR IS INTENDED TO INFLUENCE, THE OFFICIAL
ACTION OR JUDGMENT OF THE DIRECTOR, EMPLOYEE OR AGENT IN HIS OR HER
CAPACITY AS DIRECTOR, EMPLOYEE OR AGENT OF THE CORPORATION.
3. ANY PERSON WHO KNOWINGLY AND WILLFULLY VIOLATES THIS SECTION SHALL
BE SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN TEN THOUSAND DOLLARS.
4. THE BOARD SHALL REMOVE FROM OFFICE ANY DIRECTOR, EMPLOYEE OR AGENT
VIOLATING THE PROVISION OF THIS SECTION.
S 327. PENALTIES. A VIOLATION OF ANY PROVISION OF THIS ARTICLE
PERTAINING TO CONDUCT BY A UTILITY OR OFFICERS OR EMPLOYEES THEREOF
S. 2885 13
SHALL BE SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN TEN THOUSAND
DOLLARS FOR EACH VIOLATION.
S 328. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH OR PART OF
THIS ARTICLE OR THE APPLICATION THEREOF BE ADJUDGED BY A COURT OF COMPE-
TENT JURISDICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR
OR INVALIDATE THE REMAINDER, AND THE APPLICATION THEREOF, BUT SHALL BE
CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH OR PART
THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDGMENT
SHALL HAVE BEEN RENDERED.
S 2. This act shall take effect on the thirtieth day after it shall
have become a law.
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