NY State Senate Bill 2015-S1258

Archive: Last Bill Status - In Senate Committee Rules 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

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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 17, 2016	committed to rules
Jun 01, 2016	advanced to third reading
May 25, 2016	2nd report cal.
May 24, 2016	1st report cal.1067
Jan 06, 2016	referred to energy and telecommunications
Jun 25, 2015	committed to rules
Jun 09, 2015	advanced to third reading
Jun 08, 2015	2nd report cal.
Jun 03, 2015	1st report cal.1334
Jan 09, 2015	referred to energy and telecommunications

Votes

- May 24, 2016 - Energy And Telecommunications Committee Vote
  S1258
  
  Aye
  
  11
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Energy And Telecommunications Committee Vote: May 24, 2016
      
      aye (11)
      
      Carlucci
      
      Croci
      
      Dilan
      
      Griffo
      
      Hamilton
      
      Kennedy
      
      Little
      
      Martins
      
      O'Mara
      
      Parker
      
      Ritchie
  Jun 2, 2015 - Energy And Telecommunications Committee Vote
  S1258
  
  Aye
  
  9
  
  Nay
  
  0
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Energy And Telecommunications Committee Vote: Jun 2, 2015
      
      aye (9)
      
      Carlucci
      
      Croci
      
      Dilan
      
      Griffo
      
      Hamilton
      
      Kennedy
      
      O'Mara
      
      Parker
      
      Ritchie
      
      aye wr (1)
      
      Little

2015-S1258 (ACTIVE) - Details

See Assembly Version of this Bill:: A3064
Current Committee:: Senate Rules
Law Section:: Public Service Law
Laws Affected:: Amd §45, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A6707
2011-2012: A2001
2013-2014: S5085, A860
2017-2018: S9020, A5490
2019-2020: S2750, A4220
2021-2022: A8907
2023-2024: A520

2015-S1258 (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.

2015-S1258 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1258

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 45 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 higher rates.

PRIOR LEGISLATIVE HISTORY:

(2000) - A.4590
(2001) - A.6357
(2004) - A.6916
(2006) - A.4575
(2007) - A.7246
(2009) - A.6707
(2014) - S.5085

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

On the ninetieth day after enactment.

2015-S1258 (ACTIVE) - Bill Text download pdf

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

                                  1258

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 9, 2015
                               ___________

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.
                                                           LBD05239-01-5

S. 1258                             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.

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Senate Bill S1258

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

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Votes

May 24, 2016 - Energy And Telecommunications Committee Vote

Energy And Telecommunications Committee Vote: May 24, 2016

Jun 2, 2015 - Energy And Telecommunications Committee Vote

Energy And Telecommunications Committee Vote: Jun 2, 2015

2015-S1258 (ACTIVE) - Details

2015-S1258 (ACTIVE) - Summary

2015-S1258 (ACTIVE) - Sponsor Memo

2015-S1258 (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Jack M. Martins

Archive: Last Bill Status - In Senate Committee Rules Committee

Actions

Votes

2015-S1258 (ACTIVE) - Details

2015-S1258 (ACTIVE) - Summary

2015-S1258 (ACTIVE) - Sponsor Memo

2015-S1258 (ACTIVE) - Bill Text download pdf

Comments