Senate Bill S8917

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8917
 
                             I N  S E N A T E
 
                             January 15, 2026
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT  to amend the public authorities law, in relation to prohibiting
   certain charges to finance water infrastructure
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  intent.  The  legislature  hereby  finds and
 declares that water and sewer services are essential public necessities.
 The practice of imposing "rental payments" or analogous charges by muni-
 cipalities upon water authorities  or  water  boards,  and  subsequently
 passing  those  costs  on to ratepayers, functions as an indirect tax on
 essential services. Such charges  disproportionately  burden  low-income
 households  and  undermine  public  confidence in the financing of water
 infrastructure. It is the purpose of this act to prohibit the passing of
 such rental payment obligations onto consumers in the state of New York.
   § 2. Section 1045-j of the public authorities law is amended by adding
 a new subdivision 10 to read as follows:
   10. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW  TO  THE  CONTRARY,
 NEITHER  THE AUTHORITY, THE WATER BOARD, NOR ANY MUNICIPALITY ESTABLISH-
 ING OR SERVED BY SUCH AUTHORITY OR BOARD SHALL INCLUDE, INCORPORATE,  OR
 PASS  THROUGH  TO CONSUMERS OR CUSTOMERS ANY CHARGE, FEE, ASSESSMENT, OR
 RENTAL PAYMENT IMPOSED BY A MUNICIPALITY UPON  THE  AUTHORITY  OR  WATER
 BOARD  FOR  THE USE, OCCUPANCY, OR RENTAL OF MUNICIPAL PROPERTY, INFRAS-
 TRUCTURE, OR RIGHTS-OF-WAY.
   (B) SUCH CHARGE, FEE, ASSESSMENT,  OR  RENTAL  PAYMENT  SHALL  NOT  BE
 CONSIDERED AN OPERATING EXPENSE, CAPITAL EXPENSE, OR REVENUE REQUIREMENT
 FOR  PURPOSES OF CALCULATING WATER OR SEWER RATES, FEES, OR CHARGES. ANY
 SUCH RENTAL PAYMENT OBLIGATION SHALL BE BORNE SOLELY BY THE MUNICIPALITY
 THAT IMPOSES IT.
   § 3. Preemption. This act shall supersede and preempt any  local  law,
 ordinance, rule, or regulation inconsistent with its provisions, includ-
 ing  but  not limited to any provision of the administrative code of the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14090-01-5
              

 S. 8917                             2
 
 city of New York authorizing the imposition or  pass-through  of  rental
 payment obligations on water or sewer customers.
   § 4. Severability. If any clause, sentence, paragraph, subdivision, or
 part of this act is adjudged invalid, such judgment shall not affect the
 remainder of this act.
   §  5.  This  act  shall take effect immediately and shall apply to all
 rate  schedules,  billing  structures,  and  rental  payment  agreements
 executed,  renewed,  or modified on or after such date. Any inconsistent
 rate or fee structure in effect on the effective date of this act  shall
 be amended to comply with this act no later than one hundred eighty days
 thereafter.