BILL NUMBER:S2639

TITLE OF BILL:
An act
to amend the public service law and the general business law,
in relation to
third party notification

PURPOSE:
To offer residential utility, phone and cable customers who have
difficulty keeping up with their bills, the option of having notice
of amounts due, collection attempts, and termination of services sent
to a trusted third party.

SUMMARY OF PROVISIONS:

Section one of the bill amends section 40 of the public service law to
clarify that third party notification programs already required of
utilities must offer notice of amounts due or past due on routine
bills, and the amounts paid by or on behalf of the customer, as well
as collection and termination notices.

Section two of the bill amends the general business law by adding a
new section 393-f that will require every telegraph and telephone
corporation, cable television corporation, cellular phone company, or
municipality to designate a third party to receive notice of the
              

total amount due or past due on all bills, the amounts of any
payments made by or on behalf of the customer, as well as copies of
all collection and termination notices.

Section three of the bill is the effective date.

JUSTIFICATION:
This legislation will enable customers of utility, phone and cable
services providers to designate a relative, friend, or other trusted
third party to receive notice of amounts due or past due on routine
bills and amounts paid by or on behalf of the customer, as well as
any collection or termination notices. Present statutes only apply to
traditional utilities and could be interpreted to require third party
notification only of collection and termination notices. This bill
will expand the requirement, both by adding phone and cable service
providers, and by clarifying that third party notification programs
must offer information about amounts due and payments of routine
bills, as well as collection and termination notices.

We are all cognizant that many people may have difficulty keeping up
with bills-because of age, illness, ox other circumstances-even if
they are otherwise able to live independently. This legislation will
enable people to obtain the regular assistance of a third party in
ensuring
that such bills are kept up-to-date, thereby enhancing their
independence and making it easier for relatives, friends, and
caregivers to offer such assistance.

In addition, this bill recognizes that the services of utilities,
phone companies and cable services providers are increasingly


converging. For example, cable companies are offering phone and
internet services, and utilities and phone companies are working on
broadband networks that can carry television programming. As these
services continue to converge, they will be more and more likely to
offer packages of services that we view as essential for daily
living. The legislation would recognize this and ensure that all
providers have the same obligation to offer third party billing on
the same terms.

Finally, service providers might benefit from timelier bill payment if
this legislation is enacted.

The bill was amended 2008 to place some of the requirements in the
general business law rather than the public service law, so that all
service providers would be covered equally. In addition, because of
privacy concerns, a provision of a previous version of the bill that
would have required that full copies of bills be sent to a third
party has been changed to require only that amounts due, past due,
and paid by or on behalf of the customer be sent to the third party,
since this information is all that is necessary to assist customers
in keeping up with their bills.

LEGISLATIVE HISTORY:
2011-12: S.1112/A.3693 - Referred to Energy & Telecommunications
2009-10: S.4290/A.509 - Referred to Energy & Telecommunications
2008-09: S.7820-A/A.10513-A - Referred to Rules/Passed Assembly
Passed Assembly;

S.78820-A (Leibell) - Rules

FISCAL IMPACT ON THE STATE: None.

EFFECTIVE DATE:
This act shall take effect ninety days after it shall have become a law.