S 597: Establishes the "small water utility transparency act"; requires the public service commission and the department of environmental conservation to conduct audits of certain private water companies; requires certain private water companies which are under certain investigations to file public updates on the status of compliance with such orders.

  
  STATE OF NEW YORK ________________________________________________________________________ 597 2025-2026 Regular Sessions  IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sens. HINCHEY, WEBB -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommu- nications AN ACT to amend the public service law, the environmental conservation law and the state finance law, in relation to reporting requirements and audits of private water companies The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "small 2 water utility transparency act". 3 § 2. The public service law is amended by adding a new section 89-q 4 to read as follows: 5 § 89-q. Powers of the commission with respect to private water compa- 6 nies. 1. The commission, in coordination with the comptroller, shall 7 conduct full audits of regulated private water companies with gross 8 annual revenues below two hundred fifty thousand dollars on a three- to 9 five-year cycle, as determined by the commission. Such audits shall 10 focus on capital investment in the private water company, compliance 11 with state and federal water safety regulations and laws, financial 12 capacity of the private water company, management ability and function 13 of the private water company, water adequacy and sufficiency of the 14 private water system and affordability. 15 2. The commission shall require that any regulated private water 16 company with gross annual revenues below two hundred fifty thousand 17 dollars which is under investigation either by motion of the commission, 18 pursuant to section eighty-nine-i of this article, or pursuant to an 19 order to show cause shall file regular public updates on the status of 20 compliance with such order. The commission shall promulgate rules and 21 regulations regarding such requirement including, but not limited to, 22 determining how often such public updates shall be provided and the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01751-01-5 
 S. 597 2 1 manner in which such public updates shall be provided to the public. 2 The commission shall be authorized to establish and collect fines for 3 non-compliance with this subdivision. Such fines may be set at 4 increased rates for repeated non-compliance. 5 3. The commission shall cooperate with the department of environmental 6 conservation and shall provide any information or data compiled by or in 7 the possession of the commission to the department of environmental 8 conservation for the purposes of aiding the department of environmental 9 conservation in carrying out audits of regulated private water companies 10 with gross annual revenues below two hundred fifty thousand dollars. The 11 commission shall coordinate such audits with the department of environ- 12 mental conservation and shall issue joint audit reports that merge the 13 separate audits of the commission and the department of environmental 14 conservation. 15 § 3. The environmental conservation law is amended by adding a new 16 section 15-0319 to read as follows: 17 § 15-0319. Powers and duties with respect to private water companies. 18 The department shall conduct full audits of private water companies 19 with gross annual revenues below two hundred fifty thousand dollars 20 which are regulated by the public service commission on a three- to 21 five-year cycle, as determined by the department. Such audits shall 22 focus on, but shall not be limited to, compliance with state and federal 23 water safety regulations and laws, water quality, water adequacy, suffi- 24 ciency of testing performed by the private water company. The department 25 may seek the assistance of the public service commission in conducting 26 such audits and may rely on information and data complied or provided by 27 the public service commission in the completion of such audits. The 28 department shall coordinate such audits with the public service commis- 29 sion and shall assist the commission in issuing joint audit reports that 30 merge the separate audits of the department and the public service 31 commission. 32 § 4. Section 8 of the state finance law is amended by adding a new 33 subdivision 21 to read as follows: 34 21. Notwithstanding any inconsistent provision of law, audit regu- 35 lated private water companies with gross annual revenues below two 36 hundred fifty thousand dollars in accordance with section eighty-nine-q 37 of the public service law. 38 § 5. This act shall take effect immediately.