NY State Senate Bill 2013-S5085

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2014	referred to energy and telecommunications
May 08, 2013	referred to energy and telecommunications

2013-S5085 (ACTIVE) - Details

See Assembly Version of this Bill:: A860
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §45, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A6707
2011-2012: A2001
2015-2016: S1258, A3064
2017-2018: S9020, A5490
2019-2020: S2750, A4220
2021-2022: A8907
2023-2024: A520

2013-S5085 (ACTIVE) - Summary

Makes provisions regarding the payment of utility bills to authorized payment agencies providing that such payment shall be deemed to be a payment to the utility on the date of payment to the agent, requiring written contracts between a utility and its payment agent and review of such contracts by the public service commission.

2013-S5085 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5085

TITLE OF BILL:  An act to amend the public service law, in relation to
protecting residential utility customers who make bill payments to
authorized payment agents, to provide for written contracts between
electric corporations and payment agents, and to provide for public
service commission review of the credit-worthiness of payment agents
in certain cases

PURPOSE OR GENERAL IDEA OF BILL: This bill would protect consumers
that pay their utility bills to an authorized payment agent. Under
present law, if certain kinds of Payment agents fail to remit utility
payments promptly, consumers could be forced to pay the same bills
twice or suffer disconnection, late penalties or other charges. This
bill would not only prevent these results, but also avoid utility rate
increases due to credit losses occurring when payment agents fail to
remit payments to the utility.

SUMMARY OF SPECIFIC PROVISIONS: This bill would provide that payment
of utility charges to an authorized payment agent would be the same as
payment to the utility. Timely payment to an authorized payment agent
would prevent penalties or extra charges, even if the payment agent
fails to remit the funds to the utility or remits the funds after the
designated payment date.

In addition, this bill would prohibit any person from acting as a

payment agent for an electric utility without a written agreement.
Each agreement would have to make the utility, and not the consumer,
responsible for the acts of the agent. In addition, the bill would
provide for Public Service Commission review of certain agreements
that could result in significant financial losses to a utility and
rate increases for consumers.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:  Amends Section 45
of the Public Service Law by amending and numbering the current
section as subdivision 1, and adding new subdivisions 2, 3 and 4.

JUSTIFICATION: Whenever a third party collects money from consumers
and holds it for one or more creditors of the consumers, there are
risks related to the credit-worthiness of the third party. Utility
companies often permit payment of utility bills to a third-party
payment agent. Moreover, if and when electric utility competition
becomes a reality in New York, the use of agents to collect bills will
probably become more common. Without appropriate protection, consumers
might suffer, if a payment agent remits their payments late or not at
all. Consumers could be forced to pay the same bill twice, or they
could be subject to late payment penalties, termination of service,
and reconnection charges.

There is some protection for consumers under current Section 4 of the
Public Service Law, but it is less than what is afforded to
commercial, industrial and other utility customers under Section 118.
This bill would prevent the possibility of double payments,
disconnection, late penalties and other charges for consumers that
make timely payment of their electric bills to an authorized payment
agent.


The bill also would establish that it is the policy of the State of
New York that the utilities, rather than consumers, should bear the
credit risks of payment agents. Finally, the bill provides for Public
Service Commission review of certain contracts with payment agents to
prevent large credit losses that utilities might later attempt to pass
on to ratepayers in the form of :nigher rates.

PRIOR LEGISLATIVE HISTORY:  (2000) - A.4590 (2001) - A.6357 (2004) -
A.6916 (2006) - A.4575 (2007) - A.7246 (2009) - A.6707

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: On the ninetieth day after enactment

2013-S5085 (ACTIVE) - Bill Text download pdf

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

                                  5085

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               May 8, 2013
                               ___________

Introduced  by  Sen. MARTINS -- 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 protecting resi-
  dential utility customers who make bill payments to authorized payment
  agents, to provide for written contracts between electric corporations
  and payment agents, and  to  provide  for  public  service  commission
  review of the credit-worthiness of payment agents in certain cases

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

  Section 1. Section 45 of the public service law, as added  by  chapter
713 of the laws of 1981, is amended to read as follows:
  S 45. Payment  agencies.  1. A utility corporation or municipality may
permit its customers to pay their bills to  [a]  AN  AUTHORIZED  payment
agent. The date of payment to any such AUTHORIZED PAYMENT agent shall be
regarded  as the date of payment to the utility or municipality, AND THE
PAYMENT SHALL BE REGARDED AS IF IT WERE PAID DIRECTLY TO THE UTILITY  OR
MUNICIPALITY  ON  SUCH DATE. WHERE A CUSTOMER OF SUCH UTILITY OR MUNICI-
PALITY HAS PAID A BILL TO AN AUTHORIZED PAYMENT AGENT  ON  OR  BEFORE  A
DESIGNATED  DUE  DATE,  NO  PENALTY OR EXTRA CHARGE SHALL ACCRUE ON SUCH
BILL FOR THE REASON THAT THE PAYMENT DID NOT REACH  THE  CORPORATION  OR
MUNICIPALITY ON OR BEFORE THE DESIGNATED DUE DATE.
  2.  NO  PARTY SHALL ACT AS PAYMENT OR COLLECTION AGENT WITH RESPECT TO
MORE THAN TWENTY RESIDENTIAL UNITS FOR THE  PURPOSE  OF  COLLECTING  AND
REMITTING  TO SUCH ELECTRIC CORPORATION ANY CHARGES FOR ELECTRIC SERVICE
TO SUCH RESIDENTIAL UNITS, INCLUDING BUT  NOT  LIMITED  TO  DISTRIBUTION
SERVICE,  UNLESS  SUCH  PARTY  HAS A WRITTEN CONTRACT WITH SUCH ELECTRIC
CORPORATION IN COMPLIANCE WITH SUBDIVISION THREE OF THIS SECTION.  NOTH-
ING  IN  THIS  SUBDIVISION SHALL BE CONSTRUED TO PREVENT ANY PERSON FROM
APPOINTING ANY FAMILY MEMBER, OTHER  VOLUNTEER  CAREGIVER,  OR  PERSONAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02901-01-3

S. 5085                             2

BUSINESS  MANAGER  AS  HIS  OR HER AGENT FOR PAYING UTILITY BILLS TO ANY
UTILITY CORPORATION.
  3.  NO  ELECTRIC  CORPORATION  SHALL  ENTER  INTO  ANY  CONTRACT WHICH
PROVIDES IN WHOLE OR IN PART FOR COLLECTING AND REMITTING TO SUCH  ELEC-
TRIC  CORPORATION  ANY  CHARGES  FOR ELECTRIC SERVICE, INCLUDING BUT NOT
LIMITED TO DISTRIBUTION SERVICE, UNLESS SUCH CONTRACT SHALL PROVIDE THAT
ANY PARTY ACTING AS A PAYMENT OR COLLECTION AGENT SHALL BE  THE  AUTHOR-
IZED PAYMENT AGENT OF THE ELECTRIC CORPORATION.
  4. EACH ELECTRIC CORPORATION WHICH ENTERS INTO ANY CONTRACT SUBJECT TO
SUBDIVISION  THREE  OF  THIS  SECTION SHALL SUBMIT TO THE COMMISSION FOR
APPROVAL EACH SUCH CONTRACT WHICH  IS  INTENDED  TO  RESULT  IN  OR  HAS
RESULTED  IN  THE  AUTHORIZED PAYMENT AGENT HAVING IN ITS CUSTODY AT ANY
ONE TIME MORE THAN FIFTY THOUSAND DOLLARS TO BE REMITTED TO  SUCH  ELEC-
TRIC CORPORATION WITH RESPECT TO PAYMENTS RECEIVED WITH RESPECT TO RESI-
DENTIAL  UNITS.  THE  COMMISSION SHALL APPROVE SUCH CONTRACTS ONLY IF IT
CONCLUDES THAT THE AUTHORIZED PAYMENT AGENT, WITH OR WITHOUT SUCH  SECU-
RITY  AS  THE  COMMISSION  SHALL  ORDER, IS CREDIT-WORTHY IN VIEW OF THE
FORESEEABLE INDEBTEDNESS OF THE AUTHORIZED PAYMENT AGENT TO THE ELECTRIC
CORPORATION.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S5085

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

2013-S5085 (ACTIVE) - Details

2013-S5085 (ACTIVE) - Summary

2013-S5085 (ACTIVE) - Sponsor Memo

2013-S5085 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5085

Share this bill

Sponsored By

Jack M. Martins

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

2013-S5085 (ACTIVE) - Details

2013-S5085 (ACTIVE) - Summary

2013-S5085 (ACTIVE) - Sponsor Memo

2013-S5085 (ACTIVE) - Bill Text download pdf

Comments