S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7963
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 16, 2025
                                ___________
 
 Introduced  by M. of A. TAPIA -- read once and referred to the Committee
   on Corporations, Authorities and Commissions
 
 AN ACT to amend the public service law, in relation to eliminating  late
   fees for residential utility customers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 42 of the public service law, as added  by  chapter
 713 of the laws of 1981 and subdivision 3 as added by chapter 388 of the
 laws of 2011, is amended to read as follows:
   § 42. Other  charges.  1.  A  utility  corporation or municipality may
 impose late payment charges not in excess of one  and  one-half  percent
 per month on the unpaid balance of any bill including any interest ther-
 eon,  PROVIDED, HOWEVER, THAT NO SUCH LATE PAYMENT CHARGE MAY BE IMPOSED
 ON ANY RESIDENTIAL CUSTOMER, REGARDLESS  OF  WHETHER  THE  BILL  IS  THE
 SUBJECT  OF A PENDING COMPLAINT. Any such late payment [charge, however,
 may not be imposed if the bill is the subject  of  a  pending  complaint
 with  the  utility  or municipality provided, however, that such] charge
 may be imposed  retroactively,  ONLY  IN  THE  CASE  OF  NON-RESIDENTIAL
 CUSTOMERS,  if the complaint is finally resolved in favor of the utility
 or municipality.
   2. [Except as provided in subdivision one  of  this  section,  no]  NO
 utility  corporation or municipality may charge any residential customer
 a late payment charge, penalty, fee, interest, or other  charge  of  any
 kind  for  any late payment, collection effort, service disconnection or
 deferred payment agreement occasioned by the customer's failure  to  pay
 timely for gas or electric service.
   3.  The  rights  and responsibilities of residential customers partic-
 ipating in green  jobs-green  New  York  on-bill  recovery  pursuant  to
 section sixty-six-m of this chapter shall be substantially comparable to
 those  of electric and gas customers not participating in on-bill recov-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11200-01-5
 A. 7963                             2
              

 
 ery, and charges for on-bill recovery shall be treated  as  charges  for
 utility service for the purpose of this article, provided that:
   (a)  all  determinations and safeguards related to the termination and
 reconnection of service shall apply to on-bill recovery  charges  billed
 by a utility pursuant to such section;
   (b)  in  the event that the responsibility for making utility payments
 has been assumed by occupants of a multiple dwelling pursuant to section
 thirty-three of this article or by occupants of  a  two-family  dwelling
 pursuant  to  section  thirty-four of this article, such occupants shall
 not be billed for  any  arrears  of  on-bill  recovery  charges  or  any
 prospective  on-bill  recovery charges, which shall remain the responsi-
 bility of the incurring customer;
   (c) deferred payment agreements pursuant to  section  thirty-seven  of
 this  article  shall  be available to customers participating in on-bill
 recovery on the same terms as other customers,  and  the  utility  shall
 retain  the  same  discretion to defer termination of service as for any
 other delinquent customer;
   (d) where a customer has a budget billing plan  or  levelized  payment
 plan pursuant to section thirty-eight of this article, the utility shall
 recalculate  the  payments  under  such  plan  to  reflect the projected
 effects of installing energy efficiency measures as soon as  practicable
 after  receipt  of  information on the energy audit and qualified energy
 efficiency services selected;
   (e) on-bill recovery charges shall not be subject to the provisions of
 section forty-one of this article;
   (f) [late payment charges on unpaid on-bill recovery charges shall  be
 determined  as provided in this section, or as otherwise consented to by
 the customer in the agreement for  green  jobs-green  New  York  on-bill
 recovery  and  any  such charges shall be remitted to the New York state
 energy research and development authority] NO LATE PAYMENT CHARGES SHALL
 BE IMPOSED ON UNPAID ON-BILL RECOVERY CHARGES FOR RESIDENTIAL CUSTOMERS;
   (g) notwithstanding the provisions  of  section  forty-three  of  this
 article,  when a complaint is related solely to work performed under the
 green jobs-green New York  program  or  to  the  appropriate  amount  of
 on-bill  recovery  charges, the utility shall only be required to inform
 the customer of the complaint handling procedures of the New York  state
 energy  research and development authority, which shall retain responsi-
 bility for handling such complaints, and such complaints  shall  not  be
 deemed  to  be  complaints about utility service in any other commission
 action or proceeding; and
   (h) billing information provided pursuant  to  section  forty-four  of
 this  article  shall  include  information  on green jobs-green New York
 on-bill recovery charges, including the basis for such charges, and  any
 information  or  inserts  provided by the New York state energy research
 and development authority related thereto. In addition, at least annual-
 ly the authority shall provide the utility with information  for  inclu-
 sion  or insertion in the customer's bill that sets forth the amount and
 duration of remaining  on-bill  recovery  charges  and  the  authority's
 contact  information  and  procedures  for resolving customer complaints
 with such charges.
   § 2. This act shall take effect immediately.