NY State Senate Bill 2017-S8666A

Archive: Last Bill Status - In Senate Committee Rules 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

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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 07, 2018	print number 8666a
Jun 07, 2018	amend (t) and recommit to rules reported and committed to rules
May 10, 2018	referred to energy and telecommunications

Votes

- Jun 6, 2018 - Energy And Telecommunications Committee Vote
  S8666A
  
  Aye
  
  10
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Energy And Telecommunications Committee Vote: Jun 6, 2018
      
      aye (10)
      
      Comrie
      
      Dilan
      
      Griffo
      
      Kennedy
      
      Little
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Ritchie
      
      excused (1)
      
      Croci

Bill Amendments

Original

A (Active)

2017-S8666 - Details

See Assembly Version of this Bill:: A10804
Current Committee:: Senate Rules
Law Section:: General Business Law
Laws Affected:: Add Art 42 §§1100 - 1105, Gen Bus L

2017-S8666 - Summary

Establishes licensing requirements for energy brokers and energy consultants and prohibits acting as an energy broker, or energy consultant without a license.

2017-S8666 - Sponsor Memo

                                
 
BILL NUMBER: S8666

SPONSOR: GRIFFO
 
TITLE OF BILL:

An act to amend the public service law, in relation to licensing
requirements for energy aggregators, brokers and consultants

 
PURPOSE OF THE BILL:

The purpose of this bill is to create a regulatory licensure framework
for energy aggregators, energy brokers and energy consultants

 
SUMMARY OF PROVISIONS:

Section 1 creates a new article 12 of the public service law to require
the licensure of energy aggregators, energy broker and energy consult-
ants. It would also set penalties for violations of this article, impose
customer disclosure requirements for how energy aggregators, energy
brokers and energy consultants set their prices and prohibit rebating by
energy brokers while protecting common marketing business practices that

take in the energy industry.

Section 2 establishes the effective date.

 
JUSTIFICATION:

In the current retail choice marketplace, energy service companies are
regulated by the Uniform Business Practices Rules implemented by the
Public Service Commission. However, energy aggregators, energy brokers
and energy consultants who act as third parties for purposes of procur-
ing energy for the end use customer from the energy service company are
not regulated. This has allowed some unscrupulous actors to enter the
market place and led to deceptive marketing practices, slamming and
undisclosed fee splitting and rebates between brokers and third parties.
This bill would set mandate the Public Service Commission create a regu-
latory licensure framework for energy aggregators, energy brokers and
energy consultants to help better protect energy service companies and
end use customers from these practices.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2017-S8666 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8666
 
                             I N  S E N A T E
 
                               May 10, 2018
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- 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 licensing
   requirements for energy aggregators, brokers and consultants
 
   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
                   AGGREGATORS, BROKERS AND CONSULTANTS
 SECTION 240. DEFINITIONS.
         241. ACTING WITHOUT A LICENSE.
         242. ENERGY AGGREGATOR, ENERGY  BROKER  AND  ENERGY  CONSULTANT;
                  LICENSING.
         243. PENALTIES FOR VIOLATIONS.
         244. DISCLOSURE OF COMPENSATION.
         245. REBATES PROHIBITED.
   §  240.  DEFINITIONS.  FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS  UNLESS  THE  CONTEXT  INDICATES
 OTHERWISE:
   1.  "BROKER  COMPENSATION"  IS  ANY  PAYMENT MADE TO AN ENERGY BROKER,
 ENERGY AGGREGATOR OR ENERGY CONSULTANT FOR THE PURPOSES OF  SECURING  OR
 PROCURING ENERGY FOR THE END-USE CUSTOMER.
   2.  "CUSTOMER  DISCLOSURE LABEL" MEANS THE STATEMENT AN ENERGY SERVICE
 COMPANY MUST PROVIDE A CUSTOMER WITH WHOM IT ENTERS INTO A SALES  AGREE-
 MENT PURSUANT TO THE RULES AND REGULATIONS OF THE COMMISSION.
   3.  "ENERGY  AGGREGATOR"  MEANS  ANY  PERSON THAT ARRANGES THE SALE OF
 RETAIL ELECTRICITY OR ELECTRIC-RELATED SERVICES OR  RETAIL  NATURAL  GAS
 SUPPLY OR NATURAL GAS-RELATED SERVICES BETWEEN GOVERNMENT AGGREGATORS OR
 PRIVATE  AGGREGATORS AND ELECTRIC POWER SUPPLIERS OR NATURAL GAS SUPPLI-
 ERS, BUT DOES NOT TAKE TITLE TO THE ELECTRIC OR GAS SOLD.
   4. "ENERGY BROKER" MEANS AN ENTITY THAT ASSUMES  THE  CONTRACTUAL  AND
 LEGAL RESPONSIBILITY FOR THE SALE OF ELECTRIC GENERATION SERVICE, TRANS-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15893-01-8

 S. 8666                             2
 
 MISSION OR OTHER SERVICES TO END-USE RETAIL CUSTOMERS, BUT DOES NOT TAKE
 TITLE TO ANY OF THE POWER SOLD, OR AN ENTITY THAT ASSUMES THE CONTRACTU-
 AL AND LEGAL OBLIGATION TO PROVIDE NATURAL GAS SUPPLY SERVICE TO END-USE
 RETAIL CUSTOMERS, BUT DOES NOT TAKE TITLE TO THE NATURAL GAS.
   5.  "ENERGY  CONSULTANT" MEANS ANY PERSON, FIRM, ASSOCIATION OR CORPO-
 RATION WHO ACTS AS BROKER IN SOLICITING,  NEGOTIATING  OR  ADVISING  ANY
 ELECTRIC  OR  NATURAL GAS CONTRACT, OR ACTS AS AN AGENT IN ACCEPTING ANY
 ELECTRIC OR NATURAL GAS CONTRACT ON BEHALF OF AN ESCO.
   6. "ENERGY SERVICE COMPANY" OR "ESCO" MEANS AN ENTITY ELIGIBLE TO SELL
 ELECTRICITY AND/OR NATURAL GAS TO END-USE  CUSTOMERS  USING  THE  TRANS-
 MISSION  OR  DISTRIBUTION  SYSTEM  OF A UTILITY CORPORATION. ESCO MAY BE
 REFERRED TO HEREIN AS ELECTRIC POWER SUPPLIERS OR NATURAL GAS SUPPLIERS.
   § 241. ACTING WITHOUT A LICENSE. 1. (A) NO PERSON,  FIRM,  ASSOCIATION
 OR CORPORATION SHALL ACT AS AN ENERGY AGGREGATOR, ENERGY BROKER OR ENER-
 GY  CONSULTANT IN THIS STATE WITHOUT HAVING AUTHORITY TO DO SO BY VIRTUE
 OF A LICENSE ISSUED AND IN FORCE PURSUANT  TO  THE  PROVISIONS  OF  THIS
 ARTICLE.
   (B)  ANY PERSON, FIRM, ASSOCIATION OR CORPORATION WHO OR WHICH ACTS AS
 AN ENERGY AGGREGATOR, ENERGY BROKER OR ENERGY CONSULTANT IN VIOLATION OF
 PARAGRAPH (A) OF THIS SUBDIVISION SHALL, IN ADDITION TO OTHER  PENALTIES
 PRESCRIBED  BY  LAW, BE SUBJECT TO A PENALTY NOT TO EXCEED FIVE THOUSAND
 DOLLARS FOR EACH TRANSACTION.
   2. UNLESS LICENSED AS AN ENERGY AGGREGATOR, ENERGY  BROKER  OR  ENERGY
 CONSULTANT,  NO  PERSON,  FIRM, ASSOCIATION OR CORPORATION SHALL IN THIS
 STATE IDENTIFY OR HOLD HIMSELF OR ITSELF OUT TO BE AN ENERGY AGGREGATOR,
 ENERGY BROKER OR ENERGY CONSULTANT.
   3. NO PERSON SHALL ACCEPT ANY COMMISSION, SERVICE  FEE,  BROKERAGE  OR
 OTHER  VALUABLE  CONSIDERATION FOR SELLING, SOLICITING OR NEGOTIATING AN
 ENERGY CONTRACT IN THIS STATE IF THAT PERSON IS REQUIRED TO BE  LICENSED
 UNDER THIS ARTICLE AND IS NOT SO LICENSED, UNLESS STATED OTHERWISE HERE-
 IN.
   4.  EVERY  LICENSEE SHALL NOTIFY THE COMMISSION UPON CHANGING HIS, HER
 OR ITS LEGAL NAME.
   § 242. ENERGY AGGREGATOR, ENERGY BROKER AND ENERGY CONSULTANT; LICENS-
 ING. 1. THE COMMISSION MAY ISSUE A LICENSE TO ANY PERSON, FIRM OR CORPO-
 RATION WHO OR WHICH HAS COMPLIED WITH THE REQUIREMENTS OF THIS  ARTICLE,
 AUTHORIZING  SUCH LICENSEE TO ACT AS AN ENERGY AGGREGATOR, ENERGY BROKER
 OR ENERGY CONSULTANT PROVIDED THAT SUCH:  (I) ENERGY BROKER DEMONSTRATES
 FINANCIAL ACCOUNTABILITY AS EVIDENCED BY  A  BOND  OR  OTHER  METHOD  OF
 FINANCIAL ACCOUNTABILITY IN AN AMOUNT NOT LESS THAN ONE HUNDRED THOUSAND
 DOLLARS;  AND  (II)  ENERGY AGGREGATOR OR ENERGY CONSULTANT DEMONSTRATES
 FINANCIAL ACCOUNTABILITY AS EVIDENCED BY  A  BOND  OR  OTHER  METHOD  OF
 FINANCIAL  ACCOUNTABILITY  IN  AN  AMOUNT  NOT  LESS THAN FIFTY THOUSAND
 DOLLARS.
   2. ANY SUCH LICENSE ISSUED TO ANY PERSON, FIRM  OR  CORPORATION  SHALL
 AUTHORIZE  ONLY  THE  OFFICERS,  DIRECTORS  AND EMPLOYEES THEREOF TO ACT
 INDIVIDUALLY AS ENERGY AGGREGATORS, ENERGY BROKERS AND  ENERGY  CONSULT-
 ANTS, AS APPLICABLE, THEREUNDER. IN ADDITION, A PERSON OR ENTITY THAT IS
 A  CONTRACTOR  IN  AN  EXCLUSIVE RELATIONSHIP WITH A SINGLE LICENSEE MAY
 ALSO ACT UNDER THAT LICENSEE'S LICENSE.  SUCH  LICENSEE  SHALL  BE  HELD
 ACCOUNTABLE FOR THE ACTIONS OF THE EXCLUSIVE CONTRACTOR.
   3.  BEFORE  ANY  ORIGINAL  ENERGY AGGREGATOR, ENERGY BROKER, OR ENERGY
 CONSULTANT LICENSE IS ISSUED THERE SHALL BE ON FILE WITH THE  COMMISSION
 AN  APPLICATION  BY  THE  PROSPECTIVE LICENSEE IN SUCH FORM OR FORMS AND
 SUPPLEMENTS, CONTAINING INFORMATION THE COMMISSION PRESCRIBES, AND MEET-
 ING ELIGIBILITY STANDARDS THE COMMISSION SETS FORTH.

 S. 8666                             3
 
   4. THE COMMISSION MAY REFUSE TO ISSUE ANY APPLICANT LICENSE IF, IN THE
 COMMISSION'S JUDGMENT, THE PROPOSED  LICENSEE  IS  NOT  TRUSTWORTHY  AND
 COMPETENT  TO ACT AS SUCH A LICENSEE, OR HAS GIVEN CAUSE FOR THE REVOCA-
 TION OR SUSPENSION OF SUCH A LICENSE, OR HAS FAILED TO COMPLY  WITH  ANY
 PREREQUISITE FOR THE ISSUANCE OF SUCH LICENSE.
   5.  EACH  LICENSE  APPLICANT  SHALL ANNUALLY PAY THE COMMISSION A FIVE
 HUNDRED DOLLAR LICENSING FEE.
   § 243. PENALTIES FOR VIOLATIONS. 1. THE  COMMISSION  MAY  IN  ANY  ONE
 PROCEEDING,  BY ORDER, REQUIRE THE LICENSEE TO PAY TO THE PEOPLE OF THIS
 STATE A PENALTY IN A SUM NOT EXCEEDING ONE  THOUSAND  DOLLARS  FOR  EACH
 OFFENSE, AND A PENALTY IN A SUM NOT EXCEEDING ONE MILLION DOLLARS IN THE
 AGGREGATE FOR ALL OFFENSES.
   2.  UPON  THE  FAILURE  OF SUCH A LICENSEE TO PAY SUCH PENALTY ORDERED
 PURSUANT TO SUBDIVISION ONE OF THIS SECTION WITHIN TWENTY DAYS AFTER THE
 MAILING OF SUCH ORDER, POSTAGE PREPAID, REGISTERED, AND ADDRESSED TO THE
 LAST KNOWN PLACE OF BUSINESS OF SUCH  LICENSEE,  UNLESS  SUCH  ORDER  IS
 STAYED  BY AN ORDER OF A COURT OF COMPETENT JURISDICTION, THE COMMISSION
 MAY REVOKE THE LICENSE OF SUCH LICENSEE OR MAY SUSPEND THE SAME FOR SUCH
 PERIOD AS HE OR SHE DETERMINES.
   3. THE COMMISSION SHALL RETAIN THE AUTHORITY TO ENFORCE THE PROVISIONS
 OF AND IMPOSE ANY PENALTY OR REMEDY AUTHORIZED BY THIS  CHAPTER  AGAINST
 ANY  PERSON  OR  ENTITY WHO IS UNDER INVESTIGATION FOR OR CHARGED WITH A
 VIOLATION OF THIS CHAPTER, EVEN IF THE PERSON'S OR ENTITY'S  LICENSE  OR
 REGISTRATION HAS BEEN SURRENDERED, OR HAS EXPIRED OR HAS LAPSED BY OPER-
 ATION OF LAW.
   4.  IN  ADDITION  TO ANY PENALTY ORDERED PURSUANT TO THIS SECTION, THE
 COMMISSION MAY REFUSE TO RENEW, REVOKE, OR MAY SUSPEND FOR A PERIOD  THE
 COMMISSION  DETERMINES  THE  LICENSE  OF  ANY  ENERGY AGGREGATOR, ENERGY
 BROKER, AND ENERGY CONSULTANT IF, AFTER NOTICE AND HEARING, THE  COMMIS-
 SION DETERMINES THAT THE LICENSEE HAS:
   (A)  VIOLATED  ANY  APPLICABLE  PUBLIC  SERVICE  LAWS, OR VIOLATED ANY
 APPLICABLE REGULATION, SUBPOENA OR ORDER OF THE COMMISSION OR OF ANOTHER
 STATE'S PUBLIC SERVICE LAW, OR HAS VIOLATED ANY LAW IN THE COURSE OF HIS
 OR HER DEALINGS IN SUCH CAPACITY;
   (B) PROVIDED MATERIALLY INCORRECT, MATERIALLY  MISLEADING,  MATERIALLY
 INCOMPLETE OR MATERIALLY UNTRUE INFORMATION IN THE LICENSE APPLICATION;
   (C)  OBTAINED  OR  ATTEMPTED  TO OBTAIN A LICENSE THROUGH MISREPRESEN-
 TATION OR FRAUD;
   (D)(I) USED FRAUDULENT, COERCIVE OR DISHONEST PRACTICES;
   (II) DEMONSTRATED INCOMPETENCE;
   (III) DEMONSTRATED UNTRUSTWORTHINESS; OR
   (IV) DEMONSTRATED FINANCIAL IRRESPONSIBILITY IN THE CONDUCT  OF  BUSI-
 NESS IN THIS STATE OR ELSEWHERE;
   (E)  IMPROPERLY  WITHHELD,  MISAPPROPRIATED OR CONVERTED ANY MONIES OR
 PROPERTIES RECEIVED IN THE COURSE OF BUSINESS IN  THIS  STATE  OR  ELSE-
 WHERE;
   (F)  INTENTIONALLY  MISREPRESENTED  THE TERMS OF AN ACTUAL OR PROPOSED
 ENERGY SUPPLY CONTRACT;
   (G) ADMITTED OR BEEN FOUND TO HAVE COMMITTED ANY UNFAIR  ENERGY  TRADE
 PRACTICE OR FRAUD;
   (H)  FORGED ANOTHER'S NAME TO AN APPLICATION FOR AN ENERGY CONTRACT OR
 TO ANY DOCUMENT RELATED TO AN ENERGY SUPPLY TRANSACTION;
   (I) KNOWINGLY ACCEPTED ENERGY SUPPLY BUSINESS FROM AN  INDIVIDUAL  WHO
 IS NOT LICENSED; OR
   (J) CEASED TO MEET THE REQUIREMENTS FOR LICENSURE UNDER THIS ARTICLE.

 S. 8666                             4
 
   5. BEFORE REVOKING OR SUSPENDING THE LICENSE OF ANY ENERGY AGGREGATOR,
 ENERGY BROKER, OR ENERGY CONSULTANT LICENSE THE COMMISSION SHALL, EXCEPT
 WHEN  PROCEEDING PURSUANT TO SUBDIVISION SIX OF THIS SECTION, GIVE PRIOR
 WRITTEN NOTICE TO THE LICENSEE AND SHALL HOLD, OR CAUSE TO  BE  HELD,  A
 HEARING NOT LESS THAN TEN DAYS AFTER THE GIVING OF SUCH NOTICE.
   6.  (A)  NO INDIVIDUAL, CORPORATION, FIRM OR ASSOCIATION WHOSE LICENSE
 AS AN ENERGY AGGREGATOR, ENERGY BROKER, OR ENERGY  CONSULTANT  OR  OTHER
 LICENSEE  SUBJECT  TO  SUBDIVISION ONE OF THIS SECTION WHOSE LICENSE HAS
 BEEN REVOKED, AND NO FIRM OR ASSOCIATION OF WHICH SUCH INDIVIDUAL  IS  A
 MEMBER,  AND  NO  CORPORATION  OF WHICH SUCH INDIVIDUAL IS AN OFFICER OR
 DIRECTOR, SHALL BE ENTITLED TO OBTAIN ANY LICENSE UNDER  THE  PROVISIONS
 OF  THIS  ARTICLE FOR A PERIOD OF ONE YEAR AFTER SUCH REVOCATION, OR, IF
 SUCH REVOCATION BE JUDICIALLY REVIEWED, FOR ONE  YEAR  AFTER  THE  FINAL
 DETERMINATION THEREOF AFFIRMING THE ACTION OF THE COMMISSION IN REVOKING
 SUCH LICENSE.
   (B)  IF ANY SUCH LICENSE HELD BY A FIRM, ASSOCIATION OR CORPORATION BE
 REVOKED, NO MEMBER OF SUCH FIRM OR ASSOCIATION AND NO OFFICER OR  DIREC-
 TOR  OF  SUCH  CORPORATION  SHALL  BE  ENTITLED  TO OBTAIN ANY SUCH SAME
 LICENSE, FOR THE SAME PERIOD OF TIME, UNLESS THE COMMISSION  DETERMINES,
 AFTER  NOTICE AND HEARING, THAT SUCH MEMBER, OFFICER OR DIRECTOR WAS NOT
 PERSONALLY AT FAULT IN THE MATTER ON ACCOUNT OF WHICH SUCH  LICENSE  WAS
 REVOKED.
   7.  A  LICENSEE SUBJECT TO THIS ARTICLE SHALL REPORT TO THE COMMISSION
 ANY LEGAL OR ADMINISTRATIVE ACTION TAKEN AGAINST THE LICENSEE IN ANOTHER
 JURISDICTION OR BY ANOTHER GOVERNMENTAL  AGENCY  IN  THIS  STATE  WITHIN
 THIRTY  DAYS  OF  THE FINAL DISPOSITION OF THE MATTER. THIS REPORT SHALL
 INCLUDE A COPY OF THE ORDER, CONSENT TO ORDER OR  OTHER  RELEVANT  LEGAL
 DOCUMENTS.
   8. WITHIN THIRTY DAYS OF THE INITIAL PRETRIAL HEARING DATE, A LICENSEE
 SUBJECT  TO  THIS  ARTICLE  SHALL  REPORT TO THE COMMISSION ANY CRIMINAL
 PROSECUTION OF THE LICENSEE TAKEN IN ANY JURISDICTION. THE REPORT  SHALL
 INCLUDE  A COPY OF THE INITIAL COMPLAINT FILED, THE ORDER RESULTING FROM
 THE HEARING AND ANY OTHER RELEVANT LEGAL DOCUMENTS.
   § 244. DISCLOSURE  OF  COMPENSATION.  1.  ENERGY  AGGREGATORS,  ENERGY
 BROKERS, AND ENERGY CONSULTANTS SHALL BE REQUIRED TO DISCLOSE THEIR FORM
 AND  AMOUNT  OF COMPENSATION TO CUSTOMERS VIA A CONSPICUOUS STATEMENT ON
 ANY SUCH CONTRACT OR AGREEMENT BETWEEN THE ENERGY AGENT, ENERGY CONSULT-
 ANT, ENERGY BROKER OR ENERGY INTERMEDIARY AND ITS CUSTOMER.
   2. BROKER COMPENSATION SHALL BE ADDED AS A PROVISION TO  THE  CUSTOMER
 DISCLOSURE  LABEL  AND  SHALL  REFLECT  THE  AMOUNT AND METHOD OF BROKER
 COMPENSATION.
   § 245. REBATES PROHIBITED. 1. NO ENERGY AGGREGATOR, ENERGY BROKER,  OR
 ENERGY  CONSULTANT  OR  ANY  OTHER PERSON ACTING FOR OR ON BEHALF OF THE
 ENERGY AGGREGATOR, ENERGY BROKER OR ENERGY  CONSULTANT  SHALL  OFFER  OR
 MAKE,  DIRECTLY  OR  INDIRECTLY,  ANY  REBATE OF ANY PORTION OF THE FEE,
 PREMIUM OR CHARGE MADE, OR PAY OR GIVE  TO  ANY  APPLICANT,  OR  TO  ANY
 PERSON,  FIRM, OR CORPORATION ACTING AS AGENT, REPRESENTATIVE, ATTORNEY,
 OR EMPLOYEE OF THE ENERGY RATE PAYER OR  ANY  INTEREST  THEREIN,  EITHER
 DIRECTLY OR INDIRECTLY, ANY COMMISSION, ANY PART OF ITS FEES OR CHARGES,
 OR  ANY  OTHER CONSIDERATION OR VALUABLE THING, AS AN INDUCEMENT FOR, OR
 AS COMPENSATION FOR, ANY ENERGY SUPPLY OR ENERGY-RELATED  BUSINESS,  NOR
 SHALL  ANY  APPLICANT,  OR  ANY  PERSON,  FIRM, OR CORPORATION ACTING AS
 AGENT, REPRESENTATIVE, ATTORNEY, OR EMPLOYEE OF THE ENERGY RATE PAYER OR
 OF THE PROSPECTIVE ENERGY RATE PAYER OR ANYONE HAVING  ANY  INTEREST  IN
 THE  REAL  PROPERTY  KNOWINGLY RECEIVE, DIRECTLY OR INDIRECTLY, ANY SUCH
 REBATE OR OTHER CONSIDERATION OR VALUABLE THING. ANY  PERSON  OR  ENTITY

 S. 8666                             5
 
 WHO VIOLATES THIS SECTION SHALL BE SUBJECT TO A PENALTY OF FIVE THOUSAND
 DOLLARS;  OR  UP  TO  TEN TIMES THE AMOUNT OF ANY COMPENSATION OR REBATE
 RECEIVED OR PAID.
   2. FOR THE PURPOSES OF THIS SECTION, "AN INDUCEMENT FOR, OR AS COMPEN-
 SATION  FOR, ANY ENERGY SUPPLY BUSINESS" SHALL MEAN A BENEFIT GIVEN WITH
 THE INTENTION TO COMPENSATE OR OFFER COMPENSATION, DIRECTLY OR INDIRECT-
 LY, FOR ANY PAST OR PRESENT PLACEMENT FOR A PARTICULAR PIECE  OF  ENERGY
 SUPPLY  OR ENERGY-RELATED BUSINESS TO ANY APPLICANT, OR PERSON, FIRM, OR
 CORPORATION ACTING AS AGENT, REPRESENTATIVE, ATTORNEY,  OR  EMPLOYEE  OF
 THE  ENERGY RATE PAYER, LESSEE, MORTGAGEE OR THE PROSPECTIVE ENERGY RATE
 PAYER, OR ANY INTEREST THEREIN.  NOTHING CONTAINED IN SUBDIVISION ONE OF
 THIS SECTION TO THE CONTRARY SHALL PROHIBIT ANY ENERGY  SUPPLIER  CORPO-
 RATION OR ENERGY AGGREGATOR, ENERGY BROKER, OR ENERGY CONSULTANT, OR ANY
 OTHER  PERSON  ACTING  FOR OR ON BEHALF OF THE ENERGY SERVICE COMPANY OR
 ENERGY AGGREGATOR, ENERGY BROKER OR ENERGY CONSULTANT  FROM  UNDERTAKING
 ANY  USUAL AND CUSTOMARY MARKETING ACTIVITY AIMED AT ACQUAINTING PRESENT
 AND PROSPECTIVE CUSTOMERS WITH THE  ADVANTAGES  OF  USING  A  PARTICULAR
 ENERGY  SUPPLIER OR ENERGY AGGREGATOR, ENERGY BROKER, OR ENERGY CONSULT-
 ANT THAT ARE NOT INTENDED FOR THE PURPOSE OF A  REWARD  FOR  THE  FUTURE
 PLACEMENT  OF,  OR  THE  PAST PLACEMENT, OF A PARTICULAR PIECE OF ENERGY
 SUPPLY BUSINESS.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

2017-S8666A (ACTIVE) - Details

See Assembly Version of this Bill:: A10804
Current Committee:: Senate Rules
Law Section:: General Business Law
Laws Affected:: Add Art 42 §§1100 - 1105, Gen Bus L

2017-S8666A (ACTIVE) - Summary

Establishes licensing requirements for energy brokers and energy consultants and prohibits acting as an energy broker, or energy consultant without a license.

2017-S8666A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8666A

SPONSOR: GRIFFO
 
TITLE OF BILL:  An act to amend the general business law, in relation
to licensing requirements for energy brokers and consultants

 
PURPOSE OF THE BILL:

The purpose of this bill is to create a regulatory licensure framework
for energy brokers and energy consultants.

 
SUMMARY OF PROVISIONS:

Section 1 creates a new article 42 of the general business law to
require the licensure of, energy broker and energy consultants. It would
also set penalties for violations of this article, impose customer
disclosure requirements for how energy brokers and energy consultants
set their prices and prohibit rebating by energy brokers while protect-
ing common marketing business practices that take place in the energy
industry.

Section 2 establishes the effective date.

 
JUSTIFICATION:

In the current retail choice marketplace, energy service companies are
regulated by the Uniform Business Practices Rules implemented by the
Public Service Commission. However, energy brokers and energy consult-
ants who act as third parties for purposes of procuring energy for the
end use customer from the energy service company are not regulated. This
has allowed some unscrupulous actors to enter the market place and led
to deceptive marketing practices, slamming and undisclosed fee splitting
and rebates between brokers and third parties. This bill would mandate
the Department of State to create a regulatory licensure framework for,
energy brokers and energy consultants to help better protect energy
service companies and end use customers from these practices.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2017-S8666A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8666--A
 
                             I N  S E N A T E
 
                               May 10, 2018
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations -- reported favorably from said committee and committed to the
   Committee  on  Rules  --  committee  discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the general  business  law,  in  relation  to  licensing
   requirements for energy brokers and consultants
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 42 to read as follows:
                                ARTICLE 42
                      ENERGY BROKERS AND CONSULTANTS
 SECTION 1100. DEFINITIONS.
         1101. ACTING WITHOUT A LICENSE.
         1102. ENERGY BROKER AND ENERGY CONSULTANT; LICENSING.
         1103. PENALTIES FOR VIOLATIONS.
         1104. DISCLOSURE OF COMPENSATION.
         1105. REBATES PROHIBITED.
   § 1100. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE,  THE  FOLLOWING
 TERMS  SHALL  HAVE  THE  FOLLOWING MEANINGS UNLESS THE CONTEXT INDICATES
 OTHERWISE:
   1. "BROKER COMPENSATION" IS ANY PAYMENT MADE TO AN  ENERGY  BROKER  OR
 ENERGY  CONSULTANT  FOR THE PURPOSES OF SECURING OR PROCURING ENERGY FOR
 THE END-USE CUSTOMER.
   2. "CUSTOMER DISCLOSURE LABEL" MEANS THE STATEMENT AN  ENERGY  SERVICE
 COMPANY  MUST PROVIDE A CUSTOMER WITH WHOM IT ENTERS INTO A SALES AGREE-
 MENT PURSUANT TO THE RULES AND REGULATIONS OF THE PUBLIC SERVICE COMMIS-
 SION.
   3.  "DEPARTMENT" MEANS THE DEPARTMENT OF STATE.
   4. "SECRETARY" MEANS THE SECRETARY OF STATE.
   5. "ENERGY BROKER" MEANS AN ENTITY THAT ASSUMES  THE  CONTRACTUAL  AND
 LEGAL RESPONSIBILITY FOR THE SALE OF ELECTRIC GENERATION SERVICE, TRANS-
 MISSION OR OTHER SERVICES TO END-USE RETAIL CUSTOMERS, BUT DOES NOT TAKE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15893-03-8

 S. 8666--A                          2
 
 TITLE TO ANY OF THE POWER SOLD, OR AN ENTITY THAT ASSUMES THE CONTRACTU-
 AL AND LEGAL OBLIGATION TO PROVIDE NATURAL GAS SUPPLY SERVICE TO END-USE
 RETAIL CUSTOMERS, BUT DOES NOT TAKE TITLE TO THE NATURAL GAS.
   6.  "ENERGY  CONSULTANT" MEANS ANY PERSON, FIRM, ASSOCIATION OR CORPO-
 RATION WHO ACTS AS BROKER IN SOLICITING,  NEGOTIATING  OR  ADVISING  ANY
 ELECTRIC  OR  NATURAL GAS CONTRACT, OR ACTS AS AN AGENT IN ACCEPTING ANY
 ELECTRIC OR NATURAL GAS CONTRACT ON BEHALF OF AN ESCO.
   7. "ENERGY SERVICE COMPANY" OR "ESCO" MEANS AN ENTITY ELIGIBLE TO SELL
 ELECTRICITY AND/OR NATURAL GAS TO END-USE  CUSTOMERS  USING  THE  TRANS-
 MISSION OR DISTRIBUTION SYSTEM OF A UTILITY CORPORATION.
   §  1101. ACTING WITHOUT A LICENSE. 1. (A) NO PERSON, FIRM, ASSOCIATION
 OR CORPORATION SHALL ACT AS AN ENERGY BROKER  OR  ENERGY  CONSULTANT  IN
 THIS  STATE  WITHOUT  HAVING  AUTHORITY  TO DO SO BY VIRTUE OF A LICENSE
 ISSUED AND IN FORCE PURSUANT TO THE PROVISIONS OF THIS ARTICLE.
   (B) ANY PERSON, FIRM, ASSOCIATION OR CORPORATION WHO OR WHICH ACTS  AS
 AN  ENERGY  BROKER OR ENERGY CONSULTANT IN VIOLATION OF PARAGRAPH (A) OF
 THIS SUBDIVISION SHALL, IN ADDITION TO  OTHER  PENALTIES  PRESCRIBED  BY
 LAW,  BE  SUBJECT  TO  A PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS FOR
 EACH TRANSACTION.
   2. UNLESS LICENSED AS  AN  ENERGY  BROKER  OR  ENERGY  CONSULTANT,  NO
 PERSON, FIRM, ASSOCIATION OR CORPORATION SHALL IN THIS STATE IDENTIFY OR
 HOLD HIMSELF OR ITSELF OUT TO BE AN ENERGY BROKER OR ENERGY CONSULTANT.
   3.  NO  PERSON  SHALL ACCEPT ANY COMMISSION, SERVICE FEE, BROKERAGE OR
 OTHER VALUABLE CONSIDERATION FOR SELLING, SOLICITING OR  NEGOTIATING  AN
 ENERGY  CONTRACT IN THIS STATE IF THAT PERSON IS REQUIRED TO BE LICENSED
 UNDER THIS ARTICLE AND IS NOT SO LICENSED, UNLESS STATED OTHERWISE HERE-
 IN.
   4. EVERY LICENSEE SHALL NOTIFY THE DEPARTMENT UPON CHANGING  HIS,  HER
 OR ITS LEGAL NAME.
   §  1102. ENERGY BROKER AND ENERGY CONSULTANT; LICENSING. 1. THE SECRE-
 TARY MAY ISSUE A LICENSE TO ANY PERSON, FIRM OR CORPORATION WHO OR WHICH
 HAS COMPLIED WITH THE REQUIREMENTS OF  THIS  ARTICLE,  AUTHORIZING  SUCH
 LICENSEE  TO  ACT AS AN ENERGY BROKER OR ENERGY CONSULTANT PROVIDED THAT
 SUCH:   (I)  ENERGY  BROKER  DEMONSTRATES  FINANCIAL  ACCOUNTABILITY  AS
 EVIDENCED  BY  A  BOND OR OTHER METHOD OF FINANCIAL ACCOUNTABILITY IN AN
 AMOUNT NOT LESS THAN ONE  HUNDRED  THOUSAND  DOLLARS;  AND  (II)  ENERGY
 CONSULTANT  DEMONSTRATES FINANCIAL ACCOUNTABILITY AS EVIDENCED BY A BOND
 OR OTHER METHOD OF FINANCIAL ACCOUNTABILITY IN AN AMOUNT NOT  LESS  THAN
 FIFTY THOUSAND DOLLARS.
   2.  ANY  SUCH  LICENSE ISSUED TO ANY PERSON, FIRM OR CORPORATION SHALL
 AUTHORIZE ONLY THE OFFICERS, DIRECTORS  AND  EMPLOYEES  THEREOF  TO  ACT
 INDIVIDUALLY  AS  ENERGY  BROKERS AND ENERGY CONSULTANTS, AS APPLICABLE,
 THEREUNDER. IN ADDITION, A PERSON OR ENTITY THAT IS A CONTRACTOR  IN  AN
 EXCLUSIVE  RELATIONSHIP  WITH  A SINGLE LICENSEE MAY ALSO ACT UNDER THAT
 LICENSEE'S LICENSE. SUCH LICENSEE SHALL  BE  HELD  ACCOUNTABLE  FOR  THE
 ACTIONS OF THE EXCLUSIVE CONTRACTOR.
   3.  BEFORE  ANY ORIGINAL ENERGY BROKER OR ENERGY CONSULTANT LICENSE IS
 ISSUED THERE SHALL BE ON FILE WITH THE DEPARTMENT AN APPLICATION BY  THE
 PROSPECTIVE  LICENSEE  IN SUCH FORM OR FORMS AND SUPPLEMENTS, CONTAINING
 INFORMATION THE SECRETARY PRESCRIBES, AND MEETING ELIGIBILITY  STANDARDS
 THE  SECRETARY  SETS FORTH.   EACH APPLICANT SHALL ALSO PROVIDE A SIGNA-
 TURE, ON A FORM OR FORMS THE PUBLIC SERVICE COMMISSION PRESCRIBES,  THAT
 SUCH  APPLICANT  HAS  READ  THE  UNIFORM BUSINESS PRACTICES RULES ISSUED
 PURSUANT TO THE RULES AND REGULATIONS OF THE PUBLIC SERVICE COMMISSION.
   4. THE SECRETARY MAY REFUSE TO ISSUE ANY APPLICANT LICENSE IF, IN  THE
 SECRETARY'S  JUDGMENT,  THE  PROPOSED  LICENSEE  IS  NOT TRUSTWORTHY AND

 S. 8666--A                          3
 
 COMPETENT TO ACT AS SUCH A LICENSEE, OR HAS GIVEN CAUSE FOR THE  REVOCA-
 TION  OR  SUSPENSION OF SUCH A LICENSE, OR HAS FAILED TO COMPLY WITH ANY
 PREREQUISITE FOR THE ISSUANCE OF SUCH LICENSE.
   5.  EACH  LICENSE  APPLICANT  SHALL ANNUALLY PAY THE DEPARTMENT A FIVE
 HUNDRED DOLLAR LICENSING FEE.
   § 1103. PENALTIES FOR VIOLATIONS. 1. THE  SECRETARY  MAY  IN  ANY  ONE
 PROCEEDING,  BY ORDER, REQUIRE THE LICENSEE TO PAY TO THE PEOPLE OF THIS
 STATE A PENALTY IN A SUM NOT EXCEEDING ONE  THOUSAND  DOLLARS  FOR  EACH
 OFFENSE, AND A PENALTY IN A SUM NOT EXCEEDING ONE MILLION DOLLARS IN THE
 AGGREGATE FOR ALL OFFENSES.
   2.  UPON  THE  FAILURE  OF SUCH A LICENSEE TO PAY SUCH PENALTY ORDERED
 PURSUANT TO SUBDIVISION ONE OF THIS SECTION WITHIN TWENTY DAYS AFTER THE
 MAILING OF SUCH ORDER, POSTAGE PREPAID, REGISTERED, AND ADDRESSED TO THE
 LAST KNOWN PLACE OF BUSINESS OF SUCH  LICENSEE,  UNLESS  SUCH  ORDER  IS
 STAYED  BY  AN ORDER OF A COURT OF COMPETENT JURISDICTION, THE SECRETARY
 MAY REVOKE THE LICENSE OF SUCH LICENSEE OR MAY SUSPEND THE SAME FOR SUCH
 PERIOD AS HE OR SHE DETERMINES.
   3. THE DEPARTMENT SHALL RETAIN THE AUTHORITY TO ENFORCE THE PROVISIONS
 OF AND IMPOSE ANY PENALTY OR REMEDY AUTHORIZED BY THIS  CHAPTER  AGAINST
 ANY  PERSON  OR  ENTITY WHO IS UNDER INVESTIGATION FOR OR CHARGED WITH A
 VIOLATION OF THIS CHAPTER, EVEN IF THE PERSON'S OR ENTITY'S  LICENSE  OR
 REGISTRATION HAS BEEN SURRENDERED, OR HAS EXPIRED OR HAS LAPSED BY OPER-
 ATION OF LAW.
   4.  IN  ADDITION  TO ANY PENALTY ORDERED PURSUANT TO THIS SECTION, THE
 SECRETARY MAY REFUSE TO RENEW, REVOKE, OR MAY SUSPEND FOR A  PERIOD  THE
 SECRETARY  DETERMINES  THE  LICENSE  OF  ANY  ENERGY  BROKER  AND ENERGY
 CONSULTANT IF, AFTER NOTICE AND HEARING, THE SECRETARY  DETERMINES  THAT
 THE LICENSEE HAS:
   (A)  VIOLATED  ANY  APPLICABLE  PUBLIC  SERVICE  LAWS, OR VIOLATED ANY
 APPLICABLE REGULATION, SUBPOENA OR ORDER OF THE PUBLIC  SERVICE  COMMIS-
 SION,  THE  DEPARTMENT  OR OF ANOTHER STATE'S PUBLIC SERVICE LAW, OR HAS
 VIOLATED ANY LAW IN THE COURSE OF HIS OR HER DEALINGS IN SUCH CAPACITY;
   (B) PROVIDED MATERIALLY INCORRECT, MATERIALLY  MISLEADING,  MATERIALLY
 INCOMPLETE OR MATERIALLY UNTRUE INFORMATION IN THE LICENSE APPLICATION;
   (C)  OBTAINED  OR  ATTEMPTED  TO OBTAIN A LICENSE THROUGH MISREPRESEN-
 TATION OR FRAUD;
   (D)(I) USED FRAUDULENT, COERCIVE OR DISHONEST PRACTICES;
   (II) DEMONSTRATED INCOMPETENCE;
   (III) DEMONSTRATED UNTRUSTWORTHINESS; OR
   (IV) DEMONSTRATED FINANCIAL IRRESPONSIBILITY IN THE CONDUCT  OF  BUSI-
 NESS IN THIS STATE OR ELSEWHERE;
   (E)  IMPROPERLY  WITHHELD,  MISAPPROPRIATED OR CONVERTED ANY MONIES OR
 PROPERTIES RECEIVED IN THE COURSE OF BUSINESS IN  THIS  STATE  OR  ELSE-
 WHERE;
   (F)  INTENTIONALLY  MISREPRESENTED  THE TERMS OF AN ACTUAL OR PROPOSED
 ENERGY SUPPLY CONTRACT;
   (G) ADMITTED OR BEEN FOUND TO HAVE COMMITTED ANY UNFAIR  ENERGY  TRADE
 PRACTICE OR FRAUD;
   (H)  FORGED ANOTHER'S NAME TO AN APPLICATION FOR AN ENERGY CONTRACT OR
 TO ANY DOCUMENT RELATED TO AN ENERGY SUPPLY TRANSACTION;
   (I) KNOWINGLY ACCEPTED ENERGY SUPPLY BUSINESS FROM AN  INDIVIDUAL  WHO
 IS NOT LICENSED; OR
   (J) CEASED TO MEET THE REQUIREMENTS FOR LICENSURE UNDER THIS ARTICLE.
   5.  BEFORE  REVOKING OR SUSPENDING THE LICENSE OF ANY ENERGY BROKER OR
 ENERGY CONSULTANT LICENSE THE SECRETARY SHALL,  EXCEPT  WHEN  PROCEEDING
 PURSUANT  TO  SUBDIVISION SIX OF THIS SECTION, GIVE PRIOR WRITTEN NOTICE

 S. 8666--A                          4
 
 TO THE LICENSEE AND SHALL HOLD, OR CAUSE TO BE HELD, A HEARING NOT  LESS
 THAN TEN DAYS AFTER THE GIVING OF SUCH NOTICE.
   6.  (A)  NO INDIVIDUAL, CORPORATION, FIRM OR ASSOCIATION WHOSE LICENSE
 AS AN ENERGY BROKER OR ENERGY CONSULTANT OR OTHER  LICENSEE  SUBJECT  TO
 SUBDIVISION  ONE  OF THIS SECTION WHOSE LICENSE HAS BEEN REVOKED, AND NO
 FIRM OR ASSOCIATION OF WHICH SUCH INDIVIDUAL IS A MEMBER, AND NO  CORPO-
 RATION  OF  WHICH  SUCH  INDIVIDUAL  IS AN OFFICER OR DIRECTOR, SHALL BE
 ENTITLED TO OBTAIN ANY LICENSE UNDER THE PROVISIONS OF THIS ARTICLE  FOR
 A  PERIOD  OF  ONE YEAR AFTER SUCH REVOCATION, OR, IF SUCH REVOCATION BE
 JUDICIALLY REVIEWED, FOR ONE YEAR AFTER THE FINAL DETERMINATION  THEREOF
 AFFIRMING THE ACTION OF THE DEPARTMENT IN REVOKING SUCH LICENSE.
   (B)  IF ANY SUCH LICENSE HELD BY A FIRM, ASSOCIATION OR CORPORATION BE
 REVOKED, NO MEMBER OF SUCH FIRM OR ASSOCIATION AND NO OFFICER OR  DIREC-
 TOR  OF  SUCH  CORPORATION  SHALL  BE  ENTITLED  TO OBTAIN ANY SUCH SAME
 LICENSE, FOR THE SAME PERIOD OF TIME, UNLESS THE  SECRETARY  DETERMINES,
 AFTER  NOTICE AND HEARING, THAT SUCH MEMBER, OFFICER OR DIRECTOR WAS NOT
 PERSONALLY AT FAULT IN THE MATTER ON ACCOUNT OF WHICH SUCH  LICENSE  WAS
 REVOKED.
   7.  A  LICENSEE SUBJECT TO THIS ARTICLE SHALL REPORT TO THE DEPARTMENT
 ANY LEGAL OR ADMINISTRATIVE ACTION TAKEN AGAINST THE LICENSEE IN ANOTHER
 JURISDICTION OR BY ANOTHER GOVERNMENTAL  AGENCY  IN  THIS  STATE  WITHIN
 THIRTY  DAYS  OF  THE FINAL DISPOSITION OF THE MATTER. THIS REPORT SHALL
 INCLUDE A COPY OF THE ORDER, CONSENT TO ORDER OR  OTHER  RELEVANT  LEGAL
 DOCUMENTS.
   8. WITHIN THIRTY DAYS OF THE INITIAL PRETRIAL HEARING DATE, A LICENSEE
 SUBJECT  TO  THIS  ARTICLE  SHALL  REPORT TO THE DEPARTMENT ANY CRIMINAL
 PROSECUTION OF THE LICENSEE TAKEN IN ANY JURISDICTION. THE REPORT  SHALL
 INCLUDE  A COPY OF THE INITIAL COMPLAINT FILED, THE ORDER RESULTING FROM
 THE HEARING AND ANY OTHER RELEVANT LEGAL DOCUMENTS.
   § 1104. DISCLOSURE OF  COMPENSATION.  1.  ENERGY  BROKERS  AND  ENERGY
 CONSULTANTS  SHALL  BE  REQUIRED  TO  DISCLOSE  THEIR FORM AND AMOUNT OF
 COMPENSATION TO CUSTOMERS  VIA  A  CONSPICUOUS  STATEMENT  ON  ANY  SUCH
 CONTRACT OR AGREEMENT BETWEEN THE ENERGY AGENT, ENERGY CONSULTANT, ENER-
 GY BROKER OR ENERGY INTERMEDIARY AND ITS CUSTOMER.
   2.  BROKER  COMPENSATION SHALL BE ADDED AS A PROVISION TO THE CUSTOMER
 DISCLOSURE LABEL AND SHALL REFLECT  THE  AMOUNT  AND  METHOD  OF  BROKER
 COMPENSATION.
   §  1105. REBATES PROHIBITED. 1. NO ENERGY BROKER, ENERGY CONSULTANT OR
 ANY OTHER PERSON ACTING FOR OR ON BEHALF OF THE ENERGY BROKER OR  ENERGY
 CONSULTANT  SHALL  OFFER  OR MAKE, DIRECTLY OR INDIRECTLY, ANY REBATE OF
 ANY PORTION OF THE FEE, PREMIUM OR CHARGE MADE, OR PAY OR  GIVE  TO  ANY
 APPLICANT,  OR  TO  ANY  PERSON,  FIRM,  OR CORPORATION ACTING AS AGENT,
 REPRESENTATIVE, ATTORNEY, OR EMPLOYEE OF THE ENERGY RATE  PAYER  OR  ANY
 INTEREST  THEREIN,  EITHER  DIRECTLY  OR INDIRECTLY, ANY COMMISSION, ANY
 PART OF ITS FEES OR CHARGES, OR  ANY  OTHER  CONSIDERATION  OR  VALUABLE
 THING,  AS  AN INDUCEMENT FOR, OR AS COMPENSATION FOR, ANY ENERGY SUPPLY
 OR ENERGY-RELATED BUSINESS, NOR SHALL  ANY  APPLICANT,  OR  ANY  PERSON,
 FIRM,  OR  CORPORATION  ACTING  AS  AGENT,  REPRESENTATIVE, ATTORNEY, OR
 EMPLOYEE OF THE ENERGY RATE PAYER OR  OF  THE  PROSPECTIVE  ENERGY  RATE
 PAYER  OR  ANYONE  HAVING  ANY  INTEREST  IN THE REAL PROPERTY KNOWINGLY
 RECEIVE, DIRECTLY OR INDIRECTLY, ANY SUCH REBATE OR OTHER  CONSIDERATION
 OR  VALUABLE THING. ANY PERSON OR ENTITY WHO VIOLATES THIS SECTION SHALL
 BE SUBJECT TO A PENALTY OF FIVE THOUSAND DOLLARS; OR UP TO TEN TIMES THE
 AMOUNT OF ANY COMPENSATION OR REBATE RECEIVED OR PAID.
   2. FOR THE PURPOSES OF THIS SECTION, "AN INDUCEMENT FOR, OR AS COMPEN-
 SATION FOR, ANY ENERGY SUPPLY BUSINESS" SHALL MEAN A BENEFIT GIVEN  WITH

 S. 8666--A                          5
 
 THE INTENTION TO COMPENSATE OR OFFER COMPENSATION, DIRECTLY OR INDIRECT-
 LY,  FOR  ANY PAST OR PRESENT PLACEMENT FOR A PARTICULAR PIECE OF ENERGY
 SUPPLY OR ENERGY-RELATED BUSINESS TO ANY APPLICANT, OR PERSON, FIRM,  OR
 CORPORATION  ACTING  AS  AGENT, REPRESENTATIVE, ATTORNEY, OR EMPLOYEE OF
 THE ENERGY RATE PAYER, LESSEE, MORTGAGEE OR THE PROSPECTIVE ENERGY  RATE
 PAYER, OR ANY INTEREST THEREIN.  NOTHING CONTAINED IN SUBDIVISION ONE OF
 THIS  SECTION  TO THE CONTRARY SHALL PROHIBIT ANY ENERGY SUPPLIER CORPO-
 RATION, ENERGY BROKER, OR ENERGY CONSULTANT, OR ANY OTHER PERSON  ACTING
 FOR  OR ON BEHALF OF THE ENERGY SERVICE COMPANY, ENERGY BROKER OR ENERGY
 CONSULTANT FROM UNDERTAKING ANY USUAL AND CUSTOMARY  MARKETING  ACTIVITY
 AIMED  AT  ACQUAINTING PRESENT AND PROSPECTIVE CUSTOMERS WITH THE ADVAN-
 TAGES OF USING A PARTICULAR ENERGY SUPPLIER, ENERGY  BROKER,  OR  ENERGY
 CONSULTANT  THAT  ARE  NOT  INTENDED FOR THE PURPOSE OF A REWARD FOR THE
 FUTURE PLACEMENT OF, OR THE PAST PLACEMENT, OF  A  PARTICULAR  PIECE  OF
 ENERGY SUPPLY BUSINESS.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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Senate Bill S8666A

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Archive: Last Bill Status - In Senate Committee Rules Committee

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Jun 6, 2018 - Energy And Telecommunications Committee Vote

Energy And Telecommunications Committee Vote: Jun 6, 2018

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Sponsored By

Joseph A. Griffo

Archive: Last Bill Status - In Senate Committee Rules Committee

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Bill Amendments

2017-S8666 - Details

2017-S8666 - Summary

2017-S8666 - Sponsor Memo

2017-S8666 - Bill Text download pdf

2017-S8666A (ACTIVE) - Details

2017-S8666A (ACTIVE) - Summary

2017-S8666A (ACTIVE) - Sponsor Memo

2017-S8666A (ACTIVE) - Bill Text download pdf

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