senate Bill S7109A

Prohibits authorities from imposing additional charges for delivering payment through non-electronic means

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 30 / Apr / 2012
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 22 / May / 2012
    • AMEND (T) AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 22 / May / 2012
    • PRINT NUMBER 7109A
  • 30 / May / 2012
    • 1ST REPORT CAL.944
  • 31 / May / 2012
    • 2ND REPORT CAL.
  • 04 / Jun / 2012
    • ADVANCED TO THIRD READING
  • 11 / Jun / 2012
    • PASSED SENATE
  • 11 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 11 / Jun / 2012
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Summary

Prohibits authorities for imposing additional charges for delivering payment through non-electronic means.

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Bill Details

See Assembly Version of this Bill:
A10644
Versions:
S7109
S7109A
Legislative Cycle:
2011-2012
Current Committee:
Assembly Corporations, Authorities And Commissions
Law Section:
Public Authorities Law
Laws Affected:
Amd §§2855 & 2, add Art 5 Title 1 §999, Pub Auth L; add §6, Pub Serv L

Sponsor Memo

BILL NUMBER:S7109A

TITLE OF BILL:
An act
to amend the public authorities law and the public service law,
in relation to methods of payments
to public utilities

PURPOSE OR GENERAL IDEA OF BILL:
This legislation would prohibit a public authority, public utility
authority, or an entity governed by the public service commission
from imposing a fee on any customer for failure to use an electronic
method of payment. It also prohibits public authorities from imposing
a periodic administrative or other charge on customers.

SUMMARY OF PROVISIONS:
Section One amends section 2855 of the public authorities law, as
added by section 1 of part KK of chapter 59 of the laws of 2006 by
adding a subsection two which prohibits a public authority who offers
electronic means of payment from imposing any charge for failure to
use an electronic method of payment or for delivering payment through
non-electronic means. It also prohibits authorities from imposing any
periodic administrative or other charge with the exception of amounts
due on interest.
This prohibition shall not apply to any services requested by an
account holder, any charges for lost or damaged equipment, for
defaults on payment or charges for dishonored checks.

Section Two defines Public Utility Authorities.

Section Three prohibits a public utility authority who offers
electronic means of payment from imposing any charge for failure to
use an electronic method of payment or for delivering payment through
non-electronic means.

Section Four prohibits an entity governed by the public service
commission who offers electronic means of payment from imposing any
charge for failure to use an electronic method of payment or for
delivering payment through non-electronic means.

Section Five is the effective date.

JUSTIFICATION:
It is common practice for customers of certain public authorities,
public utility authorities, and entities governed by the public
service commission to see a charge for making a payment through
non-electronic means. This legislation would prohibit public
authorities, public utility authorities, and entities governed by the
public service commission from charging customers for using
non-electronic means of payment. With utility costs
already financially crippling for many residents in our state, an

added fee of this nature is an additional charge that customers
should not be forced to incur.

It is also common practice for customers of certain public authorities
to see a "billing charge" on their utility bill. This charge is
generally under one dollar and is passed onto the customer by the
utility for calculating the bill and processing payment. This
legislation would prohibit public authorities from charging customers
to be billed.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7109--A

                            I N  S E N A T E

                             April 30, 2012
                               ___________

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and   Commissions  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the public authorities law and the public  service  law,
  in relation to methods of payments to public utilities

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 2855 of the public authorities  law,  as  added  by
section  1  of  part KK of chapter 59 of the laws of 2006, is amended to
read as follows:
  S 2855. Electronic method of payment; periodic charges.   1.  Notwith-
standing  the  provisions  of  any law to the contrary, if any authority
shall offer any electronic method of payment  for  tolls,  fares,  fees,
rentals,  or other charges, including but not limited to a system called
E-ZPass, such authority shall not impose any periodic administrative  or
other  charge  for  the  privilege  of  using  such electronic method of
payment for such charges. Nothing in this section shall be construed  to
prohibit  any  authority  from  making  any  charge  for  extra services
requested by a holder of such electronic method of payment,  any  charge
for  lost  or  damaged  equipment,  or for defaults, such as charges for
dishonored checks. The authority shall  not  enter  any  agreement  with
bondholders that would require the imposition of administrative or other
periodic charges relating to electronic methods of payment prohibited by
this section.
  2. NO AUTHORITY OFFERING ANY ELECTRONIC METHOD OF PAYMENT SHALL IMPOSE
ANY  PERIODIC  ADMINISTRATIVE  OR  OTHER  CHARGE FOR FAILURE TO USE SUCH
METHOD OF PAYMENT OR OTHERWISE IMPOSE ADDITIONAL ADMINISTRATIVE OR OTHER
CHARGES FOR DELIVERING PAYMENT THROUGH NON-ELECTRONIC MEANS.    NOTWITH-
STANDING  ANY  PROVISIONS  OF  LAW TO THE CONTRARY, AUTHORITIES SHALL BE
PROHIBITED FROM IMPOSING ANY PERIODIC ADMINISTRATIVE  OR  OTHER  CHARGE,
EXCEPTING  AMOUNTS  DUE  AND  INTEREST ON ACCOUNTS OUTSTANDING WHEN SUCH
INTEREST IS COMPUTED AND APPLIED IN ACCORDANCE WITH  THE  LAWS  OF  THIS
STATE, FOR METHOD OF PAYMENT ON ANY ACCOUNT. NOTHING IN THIS SUBDIVISION

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15166-04-2

S. 7109--A                          2

SHALL  BE CONSTRUED TO PROHIBIT ANY AUTHORITY FROM MAKING ANY CHARGE FOR
EXTRA SERVICES REQUESTED BY AN ACCOUNT HOLDER, ANY CHARGE  FOR  LOST  OR
DAMAGED  EQUIPMENT,  OR  FOR  DEFAULTS,  SUCH  AS CHARGES FOR DISHONORED
CHECKS.  THE  AUTHORITIES SHALL NOT ENTER ANY AGREEMENT WITH BONDHOLDERS
THAT WOULD REQUIRE THE IMPOSITION OF ADMINISTRATIVE  OR  OTHER  PERIODIC
CHARGES RELATING TO METHODS OF PAYMENT.
  S  2.  Section  2 of the public authorities law is amended by adding a
new subdivision 7 to read as follows:
  7. "PUBLIC UTILITY AUTHORITIES"  SHALL  MEAN  ANY  ENTITY  ESTABLISHED
PURSUANT TO ARTICLE FIVE OF THIS CHAPTER.
  S  3. Title 1 of article 5 of the public authorities law is amended by
adding a new section 999 to read as follows:
  S 999. GENERAL PROVISIONS.  NO PUBLIC UTILITY AUTHORITY  OFFERING  ANY
ELECTRONIC METHOD OF PAYMENT SHALL IMPOSE ANY PERIODIC ADMINISTRATIVE OR
OTHER  CHARGE  FOR  FAILURE  TO  USE SUCH METHOD OF PAYMENT OR OTHERWISE
IMPOSE ADDITIONAL ADMINISTRATIVE OR OTHER CHARGES FOR DELIVERING PAYMENT
THROUGH  NON-ELECTRONIC  MEANS.    NOTHING  IN  THIS  SECTION  SHALL  BE
CONSTRUED  TO  PROHIBIT  ANY  PUBLIC  UTILITY  AUTHORITY FROM MAKING ANY
CHARGE FOR EXTRA SERVICES REQUESTED BY AN ACCOUNT HOLDER, ANY CHARGE FOR
LOST OR DAMAGED EQUIPMENT, OR FOR DEFAULTS, SUCH AS CHARGES FOR  DISHON-
ORED  CHECKS.  THE PUBLIC UTILITY AUTHORITIES SHALL NOT ENTER ANY AGREE-
MENT WITH BONDHOLDERS THAT WOULD REQUIRE THE IMPOSITION  OF  ADMINISTRA-
TIVE OR OTHER PERIODIC CHARGES RELATING TO METHODS OF PAYMENT.
  S  4.  The  public service law is amended by adding a new section 6 to
read as follows:
  S 6. BILLING BY ENTITIES GOVERNED BY THE  PUBLIC  SERVICE  COMMISSION.
NO  ENTITY  GOVERNED BY THE PUBLIC SERVICE COMMISSION OFFERING ANY ELEC-
TRONIC METHOD OF PAYMENT SHALL IMPOSE  ANY  PERIODIC  ADMINISTRATIVE  OR
OTHER  CHARGE  FOR  FAILURE  TO  USE SUCH METHOD OF PAYMENT OR OTHERWISE
IMPOSE ADDITIONAL ADMINISTRATIVE OR OTHER CHARGES FOR DELIVERING PAYMENT
THROUGH  NON-ELECTRONIC  MEANS.    NOTHING  IN  THIS  SECTION  SHALL  BE
CONSTRUED  TO PROHIBIT ANY ENTITY GOVERNED BY THE PUBLIC SERVICE COMMIS-
SION FROM MAKING ANY CHARGE FOR EXTRA SERVICES REQUESTED BY  AN  ACCOUNT
HOLDER,  ANY CHARGE FOR LOST OR DAMAGED EQUIPMENT, OR FOR DEFAULTS, SUCH
AS CHARGES FOR  DISHONORED  CHECKS.  ENTITIES  GOVERNED  BY  THE  PUBLIC
SERVICE  COMMISSION  SHALL NOT ENTER ANY AGREEMENT WITH BONDHOLDERS THAT
WOULD REQUIRE THE IMPOSITION OF ADMINISTRATIVE OR OTHER PERIODIC CHARGES
RELATING TO METHODS OF PAYMENT.
  S 5. This act shall take effect immediately.

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