S T A T E   O F   N E W   Y O R K
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                                 1687--A
    Cal. No. 62

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens. ZELDIN, LARKIN, MAZIARZ, RANZENHOFER -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Corporations, Authorities and Commissions  --  recommitted  to  the
  Committee  on  Corporations, Authorities and Commissions in accordance
  with Senate Rule 6, sec. 8 -- reported favorably from said  committee,
  ordered to first and second report, ordered to a third reading, passed
  by  Senate and delivered to the Assembly, recalled, vote reconsidered,
  restored to third reading, amended and  ordered  reprinted,  retaining
  its place in the order of third reading

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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD01052-02-4

S. 1687--A                          2

  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
SHALL  BE CONSTRUED TO PROHIBIT ANY AUTHORITY FROM MAKING ANY CHARGE FOR
EXTRA SERVICES REQUESTED BY AN ACCOUNT HOLDER, INCLUDING  FOR  EXPEDITED
AND  SAME DAY PAYMENTS AND FOR THE PROCESSING AND HANDLING OF ELECTRONIC
FUNDS TRANSFERS, 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  IMPOSI-
TION  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, INCLUDING FOR EXPEDITED AND SAME DAY PAYMENTS AND FOR THE  PROC-
ESSING  AND  HANDLING OF ELECTRONIC FUNDS TRANSFERS, 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.