Senate Bill S4300

                                BILL NUMBER:S4300

TITLE OF BILL:  An act to amend the public service law, in relation to
electronic service of orders

Purpose of the Bill:

The bill would conform Public Service Law (PSL) § 23 with State
Technology Law (STL) Article III (Electronic Signatures and Records
Act (ESRA)), thereby reducing costs, increasing efficiency and
expediting public notification by streamlining recordkeeping for
electronic issuance of Orders by the Public Service Commission (PSC or
Commission).

Summary of Provisions:

Section 1 of the bill would amend PSL § 23(1) to allow Orders issued
by the PSC to be provided by electronic means pursuant to PSC
regulations except that non-electronic service would be provided upon
request.

Section 2 of the bill would make the bill effective immediately.

Existing Law:

PSL § 23(1) requires that every Order of the Commission be served upon
              

all persons or corporations affected by such Order either by (i)
personal delivery or (ii) mail, in a sealed envelope with prepaid
postage, addressed to persons designated to receive a summons under
the CPLR; electronic service is not authorized.

Prior Legislative History:

2012: A.9856/S.6764 passed the Senate.

Statement in Support:

PSL § 23(1) was enacted in 1910 (Ch. 480), and reflected the need in a
pre-electronic world to provide utility management and other parties
with hard copies of Commission Order. This bill would allow the
Commission to serve its Orders by electronic mail, reserving to
parties the option to receive hard copies if that is their preference.
Selecting an option establishes no additional burden on a party when
lie or she contacts the Commission to indicate a desire to become a
party to a Commission proceeding. Parties can indicate their
preference for service of documents related to the proceeding,
including Commission Orders.

Electronic communication is as reliable as regular mail, and the
limited options set forth in PSL § 23(1) for service of Commission
Orders are inefficient, outdated and expensive. Information can be
transmitted far more quickly and efficiently by electronic means than
by regular mail. Addressees receive the information nearly
instantaneously rather than days later, and electronic service can be
configured to provide for electronic "return receipts" to confirm
delivery. ESRA was accordingly adopted because "it is in the best
interest of the State of New York, its citizens, businesses and


government entities for state and federal law to work in tandem to
promote the use of electronic technology in the everyday lives and
transactions of such individuals and entities." Laws of 2002, Ch. 314
§ 1.

The Commission sends out approximately 650 Orders annually, which must
be sent to multiple parties per case; large proceedings may have over
100 parties. Implementation of electronic service would reduce the
cost of paper, envelopes, printing and mailing. ESRA provides agencies
broad authority to seek the savings of electronic transmittal and
electronic recordkeeping. However, ESRA implementing regulations, 9
NYCRR §540.5(e), provide that "(g)overmental entities using electronic
records shall, in the absence of specific statutory or regulatory
requirements, have the authority to specify the manner and format in
which electronic records will be received, produced, accepted,
acquired, recorded, filed, transmitted, forwarded, acknowledged and
stored." (Emphasis added). Because PSL § 23(1) mandates personal
service or "by mailing a copy thereof, in a sealed package with
postage prepaid," it precludes electronic service of Commission
Orders, without a waiver.

Budget Implications:

A nominal amount of nonpersonal services savings is projected. There
are also large, but unquantifiable, efficiencies due to resources
saved in attempting to design., maintain and refine a process for
waiver of PSL § 23(1).

Local Impact:

None.

Effective Date:

Immediately Upon enactment.