NY State Senate Bill 2019-S8937

Senate Bill S8937

2019-2020 Legislative Session

Relates to requiring a compensation statement by certain public utility corporations and service providers

download bill text pdf

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 21, 2020	referred to rules

2019-S8937 (ACTIVE) - Details

See Assembly Version of this Bill:: A10976
Current Committee:: Senate Rules
Law Section:: Public Service Law
Laws Affected:: Add §111-a, Pub Serv L; amd §1020-f, Pub Auth L
Versions Introduced in 2021-2022 Legislative Session:: S1544

2019-S8937 (ACTIVE) - Summary

Requires a compensation statement to be filed annually with the public service commission by any public utility corporation or service provider with a gross annual operating revenue of more than one million dollars.

2019-S8937 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8937

SPONSOR: KAMINSKY
 
TITLE OF BILL:

An act to amend the public service law and the public authorities law,
in relation to requiring a compensation statement to be filed by certain
public utility corporations and service providers

 
PURPOSE:

To allow the public to review executive compensation of public utili-
ties.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new section to the public service law, to require
public utilities and service providers to annually, and for five years
prior, disclose executive compensation and the compensation for employ-
ees making over $125,000. The department will be required to publish
this information on their website.

Section 2. Amends public authorities to require LIPA and their service
provider to comply with the reporting requirement.

Section 3. Effective date.

 
JUSTIFICATION;:

NEW YORKERS DEPEND ON UTILITIES TO PROVIDE ESSENTIAL SERVICES LIKE ELEC-
TRICITY, WATER, AND TELECOMMUNICATION. THE DELIVERY OF THESE SERVICES
ARE REGULATED BY THE STATE, WHICH ALSO OVERSEES THE PRICES UTILITIES CAN
CHARGE THEIR CUSTOMERS. EVEN WITH REGULATORY OVERSIGHT OVER RATES, THESE
LARGE CORPORATIONS REAP LARGE PROFITS, YET SO MANY PROVIDE INADEQUATE
SERVICE, AS WAS SEEN WITH TROPICAL STORM ISAIAS.  THESE PROFITS ARE THEN
USED TO COMPENSATE THE UTILITY COMPANY'S TOP EMPLOYEES, YET THIS SALARY
AND BONUS INFORMATION IS KEPT CONFIDENTIAL.

SINCE RATEPAYERS FINANCE UTILITY COMPANIES, IT IS ONLY FAIR FOR THEM TO
KNOW HOW THEIR MONEY IS BEING SPENT, INCLUDING HOW MUCH IS BEING USED TO
COMPENSATE EXECUTIVES. SUCH INFORMATION SHOULD BE SUBJECT TO PUBLIC
REVIEW. FURTHER, PUBLIC OVERSIGHT OF SALARIES WILL ONLY ASSIST IN DEVEL-
OPING A MORE TRANSPARENT AND OBJECTIVE PROCESS FOR SETTING EXECUTIVE
COMPENSATION THROUGH THE RATE-MAKING PROCESS. THE CONCEPT OF REQUIRING
UTILITIES TO PROVIDE THIS INFORMATION IS EVEN MORE NECESSARY FOR PSEG-LI
SINCE IT ACTS AS A CONTRACTOR FOR A PUBLIC AUTHORITY (LIPA) AND LIPA'S
SALARIES ARE ALREADY SOMETHING DISCLOSED TO THE PUBLIC. DURING AN AUGUST
2020 JOINT LEGISLATIVE HEARING, PSEG-LI REFUSED TO DISCLOSE ITS EXECU-
TIVE COMPENSATION INFORMATION.

THIS BILL WILL IMPROVE THE STATE'S OVERSIGHT OF UTILITIES BY REQUIRING
LARGE UTILITY COMPANIES AND SERVICE PROVIDERS - LIKE PSEG-LI - TO REPORT
HOW MUCH THEY COMPENSATE THEIR EXECUTIVES ON AN ANNUAL BASIS.  THIS
INFORMATION WILL ALSO BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT OF
PUBLIC SERVICE'S WEBSITE.

 
LEGISLATIVE HISTORY:

NONE.
 
FISCAL IMPLICATIONS:

NONE.

 
EFFECTIVE DATE:
IMMEDIATELY.

2019-S8937 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8937
 
                             I N  S E N A T E
 
                              August 21, 2020
                                ___________
 
 Introduced  by Sen. KAMINSKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the public service law and the public  authorities  law,
   in  relation  to  requiring  a  compensation  statement to be filed by
   certain public utility corporations and service providers
 
   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 section
 111-a to read as follows:
   § 111-A. ADDITIONAL  INFORMATION  IN  ANNUAL  REPORTS;  DISCLOSURE  OF
 COMPENSATION. 1. ANY PUBLIC UTILITY CORPORATION OR SERVICE PROVIDER WITH
 A  GROSS ANNUAL OPERATING REVENUE OF MORE THAN ONE MILLION DOLLARS SHALL
 PREPARE AND FILE WITH THE DEPARTMENT, ON OR BEFORE OCTOBER  THIRTY-FIRST
 OF  EACH YEAR, A COMPENSATION STATEMENT SHOWING FOR THE PRECEDING CALEN-
 DAR YEAR:
   A. THE NAMES, TITLES, AND DUTIES OF ALL  EXECUTIVE  OFFICERS  AND  THE
 COMPENSATION  RECEIVED  BY  EACH SUCH EXECUTIVE OFFICER. FOR PURPOSES OF
 THIS SECTION "EXECUTIVE  OFFICER"  INCLUDES  THE  PRESIDENT,  SECRETARY,
 TREASURER,  AND  VICE  PRESIDENT IN CHARGE OF A PRINCIPAL BUSINESS UNIT,
 DIVISION OR FUNCTION OF  SUCH  PUBLIC  UTILITY  CORPORATION  OR  SERVICE
 PROVIDER; OR ANY OTHER OFFICER WHO PERFORMS A POLICY MAKING FUNCTION, OR
 ANY  OTHER  PERSON WHO PERFORMS SIMILAR POLICY MAKING FUNCTIONS FOR SUCH
 PUBLIC UTILITY CORPORATION OR SERVICE PROVIDER;
   B. THE NAMES, TITLES AND DUTIES OF ALL EMPLOYEES OTHER THAN SUCH OFFI-
 CERS DESCRIBED IN PARAGRAPH A OF THIS SUBDIVISION WHO RECEIVE A  COMPEN-
 SATION  AT  THE RATE OF ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS OR MORE
 PER ANNUM, AND THE COMPENSATION RECEIVED BY EACH SUCH EMPLOYEE; AND
   C. THE PROPORTION OF THE COMPENSATION DISCLOSED IN PARAGRAPHS A AND  B
 OF  THIS SUBDIVISION, THAT IS PAID, DIRECTLY OR INDIRECTLY, BY THE RATE-
 PAYERS.
   2. ANY PUBLIC UTILITY CORPORATION OR SERVICE  PROVIDER  WITH  A  GROSS
 ANNUAL  OPERATING REVENUE OF MORE THAN ONE MILLION DOLLARS SHALL PROVIDE
 A COMPENSATION STATEMENT FOR SIX YEARS PRECEDING THE EFFECTIVE  DATE  OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD17172-05-0

 S. 8937                             2
 
 THIS  SECTION.  SUCH  REPORT  SHALL CONTAIN THE INFORMATION SPECIFIED IN
 SUBDIVISION ONE OF THIS SECTION.
   3. THE COMPENSATION STATEMENT FOR EACH SUCH PUBLIC UTILITY CORPORATION
 OR SERVICE PROVIDER SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S
 WEBSITE.
   § 2. Section 1020-f of the public authorities law, as added by chapter
 517  of the laws of 1986, is amended by adding a new subdivision (ii) to
 read as follows:
   (II) THE AUTHORITY AND THE SERVICE PROVIDER SHALL ASSIST AND COOPERATE
 WITH THE DEPARTMENT OF PUBLIC SERVICE WITH RESPECT TO PROVIDING ANY DATA
 OR INFORMATION NECESSARY TO COMPLY WITH SECTION ONE HUNDRED ELEVEN-A  OF
 THE PUBLIC SERVICE LAW.
   § 3. This act shall take effect immediately.

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