Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3400 Compare Versions

Only one version of the bill is available at this time.

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2	2	HOUSE DOCKET, NO. 1883 FILED ON: 1/15/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 3400
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Steven Owens and Jennifer Balinsky Armini
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act prohibiting the use of ratepayer funds for utility lobbying, promotions, or perks.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Steven Owens29th Middlesex1/15/2025Kristin E. Kassner2nd Essex1/22/2025Erika Uyterhoeven27th Middlesex2/7/2025Carmine Lawrence Gentile13th Middlesex2/18/2025Tara T. Hong18th Middlesex2/23/2025James C. Arena-DeRosa8th Middlesex2/23/2025Paul McMurtry11th Norfolk2/25/2025Natalie M. Blais1st Franklin2/27/2025David Henry Argosky LeBoeuf17th Worcester2/28/2025James B. EldridgeMiddlesex and Worcester2/28/2025Jason M. LewisFifth Middlesex2/28/2025Patrick Joseph Kearney4th Plymouth2/28/2025Lindsay N. Sabadosa1st Hampshire3/1/2025Andres X. Vargas3rd Essex3/4/2025Samantha Montaño15th Suffolk3/5/2025 1 of 5
16	16	HOUSE DOCKET, NO. 1883 FILED ON: 1/15/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 3400
18	18	By Representatives Owens of Watertown and Armini of Marblehead, a petition (accompanied by
19	19	bill, House, No. 3400) of Steven Owens, Kristin E. Kassner and others relative to prohibiting the
20	20	use of ratepayer funds for utility lobbying, promotions, or perks. State Administration and
21	21	Regulatory Oversight.
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Fourth General Court
25	25	(2025-2026)
26	26	_______________
27	27	An Act prohibiting the use of ratepayer funds for utility lobbying, promotions, or perks.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 Chapter 164 of the general laws is hereby amended by striking out section 33A and
31	31	2inserting in place thereof the following section:-
32	32	3 Section 33A. (a) No gas or electric company regulated by the department under this
33	33	4chapter may recover from any ratepayer of such company any direct or indirect expenditure by
34	34	5such company for promotional or political advertising as defined in this section.
35	35	6 For the purposes of this section, the following words and phrases shall have the following
36	36	7meanings:—
37	37	8 ''Advertising'', the commercial use by a utility of any media, including newspaper, printed
38	38	9matter, radio, and television, in order to transmit a message to a substantial number of members
39	39	10of the public or to such utility's consumers, including any costs associated with research,
40	40	11analysis, preparation, planning, or any other related costs identified by the department as related 2 of 5
41	41	12to public communication whose purpose is to promote the sale or consumption of natural gas,
42	42	13electricity, or other thermal energy, unless such advertising is specifically approved or ordered
43	43	14by the department.
44	44	15 ''Political advertising'', any advertising for the purpose of influencing public opinion with
45	45	16respect to legislative, administrative, or electoral matters, or with respect to any controversial
46	46	17issue of public importance.
47	47	18 ''Promotional advertising'', any advertising for the purpose of encouraging any person to
48	48	19select or use the service or additional service of a utility regulated by the department, or the
49	49	20selection or installation of any appliance or equipment designed to use such utility's service.
50	50	21 For the purposes of this section, the terms ''political advertising'' and ''promotional
51	51	22advertising'' shall not include advertising which informs consumers of any utility on how they
52	52	23can conserve energy, reduce peak demand for energy, or other services, or otherwise use the
53	53	24services of any utility in a cost-efficient manner; is required by federal or state laws or
54	54	25regulations; informs consumers regarding service interruptions, safety measures, or emergency
55	55	26conditions; concerns employment opportunities with a utility; or relates to any explanation or
56	56	27justification of existing or proposed rate schedules, or notification of hearings thereon which
57	57	28informs consumers of and stimulates the use of products or services which are subject to direct
58	58	29competition from products or services of entities not regulated by the department or any other
59	59	30government agency. A communication shall be considered advertising, promotional advertising,
60	60	31or political advertising if any portion of the communication is advertising, promotional
61	61	32advertising, or political advertising as defined herein. 3 of 5
62	62	33 (b) No gas or electric company regulated by the department shall recover through rates
63	63	34any direct or indirect cost associated with: (i) membership, dues, sponsorships, or contributions
64	64	35to any entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended,
65	65	36including business or trade associations; (ii) charitable giving expenses, including contributions
66	66	37in cash or other quantifiable value to organizations qualified under section 501(c)(3) or 501(c)(4)
67	67	38of the Internal Revenue Code of 1986, as amended; (iii) executive or legislative lobbying, as
68	68	39those terms are defined in section 39 of chapter 3, or soliciting others to engage in executive or
69	69	40legislative lobbying, including any costs for activities associated with lobbying such as policy
70	70	41research, analysis, preparation, and planning undertaken in support of lobbying; (iv)
71	71	42contributions to political candidates, campaign committees, issue committees, or independent
72	72	43expenditure committees or other political expenses; (v) institutional or good will advertising,
73	73	44which is primarily designed to improve the image of the company or the industry; (vi) litigation
74	74	45to influence, modify, or repeal existing federal, state or local regulations, legislation or
75	75	46ordinances; (vii) any costs, including marketing, administration, customer service, or other costs,
76	76	47for products or services not regulated by the department; (viii) tax penalties or fines issued
77	77	48against such company; (ix) travel, lodging, entertainment, gifts or food and beverage expenses
78	78	49for such company’s board of directors and officers or the board of directors and officers of the
79	79	50parent of such company; (x) any owned, leased or chartered aircraft for such company’s board of
80	80	51directors and officers or the board of directors and officers of the parent of such company; or (xi)
81	81	52investor relations.
82	82	53 (c) No gas or electric company regulated by the department shall recover through rates its
83	83	54direct or indirect costs associated with its attendance in, participation in, preparation for, or
84	84	55appeal of any contested proceeding conducted before the department. Such costs shall include, 4 of 5
85	85	56but need not be limited to, attorneys’ fees, fees to engage expert witnesses or consultants, the
86	86	57portion of employee salaries associated with such attendance, participation, preparation or appeal
87	87	58of a contested proceeding and related costs identified by the department.
88	88	59 (d) On or before March 1, and annually thereafter, each gas or electric company regulated
89	89	60by the department shall report to the department a list of expenses from the previous calendar
90	90	61year to ensure such company’s compliance with this section. Such report shall include, but need
91	91	62not be limited to: (i) a list of all outside services or vendors paid by such company; (ii) an
92	92	63itemized list of all expenses associated with activities described in subsections (a), (b), (c) for
93	93	64which recovery is prohibited by this section, including expenses made to third-party vendors,
94	94	65affiliates of such company, subsidiaries or parent of such company, or such company’s
95	95	66employees in the form of compensation; (iii) for each itemized expense associated with activities
96	96	67described in subsections (a), (b), (c), for which recovery is prohibited by this section, the billing
97	97	68amount, date, identity of payee, and an explanation of the expense sufficient to describe its
98	98	69purpose; (iv) the job title, portion of salary, and expenses of any employees of such company, or
99	99	70any affiliates or parent of such company, for performed work associated with the activities
100	100	71described in subsections (a), (b), (c), for which recovery is prohibited by this section; (v) in the
101	101	72case of an expense associated with activities described in subsections (a), (b), (c) for which
102	102	73recovery is prohibited by this section, made to a third-party vendor by a centralized service
103	103	74company, parent of such company, or other corporate affiliate of such company, the identity of
104	104	75that third-party vendor; and (vi) any other itemized information deemed relevant by the
105	105	76department.
106	106	77 No gas or electric company regulated by the department shall recover through rates any
107	107	78costs associated with the preparation of such report. 5 of 5
108	108	79 (e) The department and the office of ratepayer advocacy established pursuant to section
109	109	8011E of chapter 12 shall monitor and investigate compliance and noncompliance with this section.
110	110	81If the department determines that a gas or electric company regulated by the department
111	111	82improperly recorded an expense for which recovery is prohibited by this section, the department
112	112	83shall assess a non-recoverable penalty against such company in an amount that is not less than
113	113	84the total amount of costs improperly recorded. In addition to assessing a non-recoverable penalty
114	114	85against a company pursuant to this subsection, the department shall order such company to
115	115	86refund the amount improperly recovered, plus interest, to customers. For each penalty assessed
116	116	87and collected from any such company pursuant to this section, a portion of the penalty, as
117	117	88determined by the department, may be distributed to ratepayers through a rebate, or distributed to
118	118	89the department and the office of ratepayer advocacy for the purpose of increasing resources for
119	119	90enforcing this section.