NY State Senate Bill 2019-S2750

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to energy and telecommunications
Jan 29, 2019	referred to energy and telecommunications

2019-S2750 (ACTIVE) - Details

See Assembly Version of this Bill:: A4220
Current Committee:: Senate Energy And Telecommunications
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
2015-2016: S1258, A3064
2017-2018: S9020, A5490
2021-2022: A8907
2023-2024: A520

2019-S2750 (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.

2019-S2750 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2750

SPONSOR: COMRIE
 
TITLE OF BILL:

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

 
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 penal-
ties 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 util-
ity 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, respon-
sible 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.  With-
out 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 penal-
ties, 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:

S 9020 COMRIE Same as A 5490 Weprin (MS)

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
On the ninetieth day after enactment.

2019-S2750 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2750
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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:
   § 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.
                                                            LBD08431-01-9

 S. 2750                             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.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

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Senate Bill S2750

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

2019-S2750 (ACTIVE) - Details

2019-S2750 (ACTIVE) - Summary

2019-S2750 (ACTIVE) - Sponsor Memo

2019-S2750 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2750

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Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

2019-S2750 (ACTIVE) - Details

2019-S2750 (ACTIVE) - Summary

2019-S2750 (ACTIVE) - Sponsor Memo

2019-S2750 (ACTIVE) - Bill Text download pdf

Comments