BILL NUMBER:A7449

TITLE OF BILL:

An act to amend the social services law, in relation to extending the
utility repayment agreements from one year to two years

PURPOSE OF THE BILL:

This bill extends the time period for mandatory repayment agreements for
applicants for public assistance, supplemental security income (SSI)
benefits and additional state payments, from one year to two years, for
households whose gross household income exceeds the applicable public
assistance standard of need and who apply for utility arrears payments
pursuant to Social Services Law (SSL) § 131-s(1).

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend SSL § 131-s(1) to extend the time
period for mandatory repayment agreements for applicants from one year
to two years.

Section 2 of the bill would provide for an immediate effective date.

EXISTING LAW:

              

SSL § 131-s(1) enables social services districts to provide utility
arrears payments on behalf of certain applicants for public assistance,
SSI or additional state payments in order to prevent a utility shut-off
or to restore the applicants' utility services. Such applicants whose
gross household income exceeds the applicable public assistance standard
of need must sign repayment agreements and repay the utility assistance
within one year.

Prior legislative history:

This is a new bill.

STATEMENT IN SUPPORT:

SSL § 131-s (1) provides that social services districts may pay utility
companies to avoid shut-offs or to restore service for arrearages in an
amount of up to the four most recent months in which service was
provided. Those households whose gross income exceeds the applicable
public assistance standard of need must sign repayment agreements and
currently must repay the utility assistance within one year.

In the current home energy climate, utility costs are constantly in flux
and can seriously affect the low-income population that social services
districts serve. High monthly payments for repayment of utility assist-
ance can result in households falling behind in their obligations. By
extending the period of time for low income households to repay their

utility arrears assistance from one year to two years, this bill will
reduce each household's monthly payment amounts, thus increasing their
ability to comply with repayment agreements. This bill may also improve
social services districts' collections on utility repayments.

Lastly, by increasing the ability of low-income households to comply
with the terms of the repayment agreements, this bill lessens the need
for the social service districts to utilize costly temporary housing
options. Temporary housing options are utilized when applicants for SSL
§ 131-s have been noncompliant with past repayment agreements. If there
is noncompliance with prior repayment agreements, social services
districts are prohibited from making additional payments under SSL
131-s.

BUDGET IMPLICATIONS:

This bill has no fiscal impact; it would simply spread out repayment
over two years.

EFFECTIVE DATE:

The bill would take effect immediately upon enactment.