S T A T E O F N E W Y O R K
________________________________________________________________________
8164
2009-2010 Regular Sessions
I N A S S E M B L Y
May 6, 2009
___________
Introduced by M. of A. P. RIVERA -- read once and referred to the
Committee on Corporations, Authorities and Commissions
AN ACT to amend the public service law, in relation to prohibiting the
public utilities from requiring residential service deposits and
prepayment for services
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 36 of the public service law, as added by chapter
713 of the laws of 1981, is amended to read as follows:
S 36. Residential service deposits. [1. On and after January first,
nineteen hundred eighty-two, no] NO utility corporation or municipality
shall require any [new] residential customer[, other than a seasonal or
short term customer,] to post a security deposit OR PREPAY ANY RATE OR
CHARGES FOR SERVICE as a condition of receiving utility service. [In
addition, no utility corporation or municipality shall after the first
day of September, nineteen hundred eighty-two, or such earlier date as
the commission may determine, require a current residential customer to
post a security deposit other than such a customer who is delinquent
according to standards set by the commission.] Deposits AND PREPAYMENTS
held on the first day of September, [nineteen hundred eighty-two] TWO
THOUSAND NINE, or such earlier date as the commission may determine,
shall be returned to the customer immediately, but not later than the
next bill for service[; provided, however, that this provision shall not
apply to deposits of delinquent customers. No utility corporation or
municipality shall require any known recipient of public assistance,
supplemental security income benefits or additional state payments to
post a security deposit as a condition of receiving service.
2. Notwithstanding the provisions of subdivision one of this section,
the commission, after investigation and hearing, may authorize any util-
ity corporation or municipality to require and hold security deposits
from residential customers or applicants for service upon a finding that
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10703-02-9
A. 8164 2
the collection and maintenance of such deposits is cost effective to the
utility as a whole without regard to cash flow and the availability of
capital.
3. In any case where customer deposits are authorized by this section,
a utility corporation or municipality may require a customer or appli-
cant for service to deposit a reasonable sum of money according to the
estimated quantity of such services necessary to supply the customer or
applicant for service for two months, to secure payment for such
services actually rendered, or for the rental of fixtures, instruments
and facilities actually supplied. Every such utility corporation and
municipality shall allow to every such customer or applicant for service
interest on the sum deposited at a rate per annum to be prescribed from
time to time and at least annually by the commission in light of current
economic conditions and current charges paid for moneys borrowed by such
utility, taking into account the expenses incurred by such utility in
obtaining, handling, returning or crediting the sum deposited. Such
interest shall be paid upon the return of the deposit, provided however,
that whenever such deposit has been held for a period of one year, the
interest shall be credited to the customer or applicant for service on
the first billing for utility service rendered after the end of such
period. If a customer or applicant for service is not delinquent in the
payment of any billing during such one year period, the deposit shall be
refunded promptly at the end thereof, without prejudice to the utility's
or municipality's right to require a deposit thereafter in the event of
a delinquency. All utility corporations and municipalities shall exempt
from deposit requirements any customer or applicant for service who is
sixty-two years of age or older, unless the customer or applicant for
service is a bad credit risk according to standards set by the commis-
sion].
S 2. Section 92-b of the public service law, as amended by chapter 716
of the laws of 1985, is amended to read as follows:
S 92-b. Telephone deposits and payment plans for the elderly. 1. [The
commission shall require all telephone corporations to exempt the dwell-
ing units of all subscribing individuals who are sixty-two years of age
or older from any cash deposit requirement except where the corporation
can show that the subscriber is a bad credit risk according to standards
set by the commission] NO TELEPHONE CORPORATION SHALL REQUIRE ANY RESI-
DENTIAL CUSTOMER TO POST A SECURITY DEPOSIT OR PREPAY ANY RATE OR CHARGE
FOR TELEPHONE SERVICE AS A CONDITION FOR RECEIVING SUCH SERVICE. DEPOS-
ITS AND PREPAYMENTS HELD ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND
NINE, OR SUCH EARLIER DATE AS THE COMMISSION MAY DETERMINE, SHALL BE
RETURNED TO THE CUSTOMER IMMEDIATELY, BUT NOT LATER THAN THE NEXT BILL
FOR SERVICE.
2. The commission shall require all telephone corporations to offer
residential customers who are sixty-two years of age or older, as an
alternative to monthly billing, a plan for payment on a quarterly basis,
of charges for telephone service rendered by such corporations, provided
that such customer's average annual billing is not more than one hundred
fifty dollars. The commission may establish such terms and conditions
for plans required under this section as it deems necessary or proper.
S 3. Section 117 of the public service law, as amended by chapter 713
of the laws of 1981, is amended to read as follows:
S 117. Consumer deposits. [Except as the right to require deposits is
further limited by section thirty-six of this chapter, a] NO gas corpo-
ration, [an] electric corporation, [a] gas and electric corporation, [a]
water corporation, [a] steam corporation, [a] telegraph corporation, [a]
A. 8164 3
telephone corporation or [a] municipality rendering equivalent utility
services may[, unless prohibited by the commission,] require any person
to whom such corporation or municipality shall supply gas, electric,
water, steam, telegraph or telephone services to POST A deposit [a
reasonable sum of money according to the estimated quantity of such
services necessary to supply the same for two calendar months,] OR
PREPAY ANY RATE OR CHARGE FOR SERVICE to secure payment for such
services actually rendered, or for the rental of fixtures, instruments
and facilities actually supplied[, but every such corporation and muni-
cipality shall allow to every such depositor interest at a rate per
annum to be prescribed from time to time, at least annually, by the
commission in the light of current economic conditions and current
charges paid for other moneys borrowed by such corporation or munici-
pality, and the expenses incurred by such corporation or municipality in
obtaining, handling and returning or crediting the sum deposited, on the
sum or sums so deposited, payable upon the return of the deposit or at
earlier intervals as hereinafter prescribed. Whenever such deposit has
been held for a period of one year, the interest accrued on such deposit
shall be credited to the depositor on the first billing for utility
service rendered after the next succeeding first day of October. If the
depositor was not delinquent in the payment of any bill in such one year
period, the deposit shall be refunded promptly at the end thereof, but
without prejudice to the right to require a deposit thereafter in the
event of a delinquency or where it can be shown that the financial
condition of a business customer is such that it is likely that the
customer may default in the future, and to retain such deposit for a
prudent period; except that subject to such regulations as the commis-
sion may establish, if the deposit is for utility service rendered to a
business, the deposit may be retained for a prudent period beyond such a
one year period. No provider of utility services shall require of its
customer within its service area a new security deposit where such
customer was not required to post a security deposit or had a security
deposit returned pursuant to this section and such customer establishes
a new residence and continues service with the same provider of utility
services]. DEPOSITS AND PREPAYMENTS HELD ON THE FIRST DAY OF SEPTEMBER,
TWO THOUSAND NINE, OR SUCH EARLIER DATE AS THE COMMISSION MAY DETERMINE,
SHALL BE RETURNED TO THE CUSTOMER IMMEDIATELY, BUT NOT LATER THAN THE
NEXT BILL FOR SERVICE.
S 4. This act shall take effect on the thirtieth day after it shall
have become a law.