BILL NUMBER: S1361A

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to E-ZPass
availability and waiving deposit fees for a certain period after a rate
increase

 
PURPOSE:

This legislation amends the public authorities law to waive the deposit
required when purchasing a new E-ZPass for 60 days following a toll
increase by the New York State Thruway Authority. Underbanked communi-
ties are prevalent throughout New York State, with the Federal Deposit
Insurance Corporation estimating that roughly one in four households
across the state either have no bank account or utilize non-bank
services for financial activities. As a result, the credit or debit card
required to automatically reload an E-ZPass account is difficult to
access for many, with other options like mailing a money order seen as
time consuming and inefficient. At the same time, new toll rates from
the Thruway Authority include higher rates for drivers who do not pay
using EZPass, leading to further inequity.  This legislation addresses
              

this concern by also allowing individuals to reload their E-ZPass
accounts using cash at any retail location where an E-ZPass can be
purchased.

 
SUMMARY OF SPECIFIC PROVISIONS:

The legislation would amend the public authorities law by adding new
section 378-b.

Section one waives the initial deposit that is owed for any new EZ pass
for 60 days following the New York State Thruway Authority's vote to
increase tolls. This section also states that any retail location that
sells EZ pass must also accept cash payments to reload a user's EZ pass
tag.,

Section two establishes the effective date.

 
JUSTIFICATION:

In recent years transportation authorities have turned to cashless toll-
ing to reduce congestion, improve safety and reduce air pollution. In
2020 New York State completed the move to cashless tolling statewide,
requiring drivers to pay their tolls exclusively through Tolls by Mail
or E-ZPass. On December 2, 2020 the New York State Thruway announced
their plans to implement a toll increase in addition to a $2 administra-
tive surcharge per billing statement, for drivers without E-ZPasses to
support the move to cashless tolling. In December of 2022, the Thruway
announced yet another toll increase rot those without E-ZPasses, at a
much higher percentage increase than those with an EZPass.

Currently, New Yorkers can purchase E-ZPasses at a number of locations,
including convenience stores, supermarkets, town and county clerk
offices, AAA branches, Thruway rest stops, and more.  However, in order
to register your pass, drivers are asked to link a valid credit card and
pay an initial deposit. The NYS Thruway allows users to refill and main-
tain their passes by logging into their account online and replenishing
their pass via credit card, or by sending a check or money order to an
E-ZPass Department in Albany.

This system for maintaining an E-ZPass is outdated, and unfairly
discriminates against lower-income individuals, those on a fixed income,
and individuals who may not have access to a line of credit or a
consistent Internet connection. With the New York State Thruway's strong
emphasis on using the E-ZPass, the system must be accessible for every-
one. This legislation would temporarily waive the initial deposit
required by EZPass upon purchase for 60 days after toll increases are
announced. It also allows people to replenish their cards - with cash if
preferred - at any location where the pass can be purchased. This legis-
lation makes EZPass more accessible for all New Yorkers.

 
LEGISLATIVE HISTORY:

2021-22: S.1746A Passed Senate

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take immediately, provided however, that subdivision 2 of
section 378b of the public authorities law shall take effect on the
ninetieth day.