NY State Senate Bill 2025-S7230

Senate Bill S7230

2025-2026 Legislative Session

Ensures energy services companies are subject to the same consumer protection regulations regarding unclaimed deposits and refunds currently facing utility companies

download bill text pdf

Current Bill Status - In Senate Committee Finance 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
Apr 04, 2025	referred to finance

2025-S7230 (ACTIVE) - Details

See Assembly Version of this Bill:: A6762
Current Committee:: Senate Finance
Law Section:: Abandoned Property Law
Laws Affected:: Amd §§103, 400, 402 & 403, Ab Prop L

2025-S7230 (ACTIVE) - Summary

Ensures energy services companies are subject to the same consumer protection regulations regarding unclaimed deposits and refunds currently facing utility companies.

2025-S7230 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7230

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the abandoned property law, in relation to ensuring
ESCOs are subject to the same consumer protection regulations regarding
unclaimed deposits and refunds currently facing utility companies

 
PURPOSE:

To close a statutory loophole that allows ESCOs to retain unclaimed
customer deposits or refunds, rather than remitting such unclaimed funds
to the Abandoned Property Fund administered by the State comptroller.

 
SUMMARY OF PROVISIONS:

Abandoned Property Law § 103 is amended to add a definition for "energy
services company" or "ESCO." The definition of "utility services" in
Abandoned Property Law § 103(f) is amended to include gas and electric
service provided by an ESCO. Abandoned Property Law Article 4 is amended
to add ESCOs to the list of entities that are subject to Article 4 of

the Abandoned Property Law, which governs unclaimed funds associated
with utility services.

 
LEGISLATIVE HISTORY:

A.10221 of 2024: Passed Assembly

 
JUSTIFICATION:

This change would make it easier for ESCO customers to obtain their
unclaimed funds and strengthen the deterrence effect of the Commission's
ESCO enforcement orders. The unclaimed funds would not be remitted to
the comptroller unless the ESCO's efforts to contact the rightful owner
have failed. Given how often ESCO customers tend to switch service
providers, ESCOs' customer contact information is especially prone to
going stale. This reduces the likelihood that ESCOs will be able to find
the funds' rightful owners. In addition, some ESCOs may have only short
connections to New York: ESCOs may abandon their New York presence, or
their eligibility may be revoked.  Exploiting the current statutory
loophole, an ESCO may have little incentive to set aside funds for New
York customers. A former customer is more likely to learn about their
unclaimed funds from the state, which regularly publicizes its unclaimed
funds recovery process, than from an ESCO with which the customer no
longer has a relationship. This change would ensure that, when the
Commission penalizes ESCO misconduct by ordering customer refunds, the
ESCO cannot retain those funds indefinitely in spite of their miscon-
duct. They will instead forfeit the funds, either to the rightful owner
or, failing that, the comptroller.

 
FISCAL IMPLICATION:

None.

 
EFFECTIVE DATE:
This act shall take effect on the first day of July next succeeding the
date of which it shall have become law.

2025-S7230 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7230
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               April 4, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the abandoned property  law,  in  relation  to  ensuring
   ESCOs  are subject to the same consumer protection regulations regard-
   ing unclaimed deposits and refunds currently facing utility companies

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  103  of the abandoned property law is amended by
 adding a new subdivision (j) to read as follows:
   (J) "ENERGY SERVICES COMPANY" OR "ESCO" SHALL MEAN AN ENTITY  ELIGIBLE
 TO  SELL  ENERGY SERVICES TO END-USE CUSTOMERS USING THE TRANSMISSION OR
 DISTRIBUTION SYSTEM OF A UTILITY.
   § 2. Subdivision (f) of section 103 of the abandoned property law,  as
 amended by chapter 498 of the laws of 1944 and relettered by chapter 908
 of the laws of 1974, is amended to read as follows:
   (f)  "Utility  services" means gas, electricity or steam supplied by a
 gas, electric, gas and electric or  district  steam  corporation  OR  AN
 ENERGY SERVICES COMPANY, telephone, telegraph or other service furnished
 by  a telephone, telegraph or telegraph and telephone corporation, water
 supplied by a waterworks corporation, or appliances, equipment,  instal-
 lations,  fixtures  or  appurtenances  rented by any such corporation OR
 ESCO.
   § 3. Section 400 of the abandoned property law, the opening  paragraph
 of  subdivision  1  as amended by chapter 498 of the laws of 1944, para-
 graphs (a) and (b) of subdivision 1 as amended by chapter 78 of the laws
 of 1976, and paragraph (c) of subdivision 1 as amended by chapter 833 of
 the laws of 1963, is amended to read as follows:
   § 400. Unclaimed deposits and refunds for utility services.    1.  The
 following  unclaimed moneys held or owing by a gas corporation, an elec-
 tric corporation, a gas  and  electric  corporation,  a  district  steam
 corporation,  AN  ENERGY  SERVICES  COMPANY,  a telegraph corporation, a
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10732-01-5

 S. 7230                             2
 
 telephone corporation, a  telegraph  and  telephone  corporation,  or  a
 waterworks corporation, shall be deemed abandoned property:
   (a)  Any  deposit  made by a consumer or subscriber with such a corpo-
 ration OR ESCO to secure the payment for utility services  furnished  by
 such  corporation OR ESCO, or the amount of such deposit after deducting
 any sums due to such corporation OR ESCO by such consumer or subscriber,
 together with any  interest  due  thereon,  which  shall  have  remained
 unclaimed  by the person or persons appearing to be entitled thereto for
 two years after the termination of the utility services  to  secure  the
 payment  of  which  such  deposit  was made, or, if during such two year
 period utility services are furnished by such  corporation  OR  ESCO  to
 such consumer or subscriber and such deposit is held by such corporation
 OR  ESCO to secure payment therefor, for two years after the termination
 of such utility services.
   (b) Any amount paid by a consumer or subscriber to such a  corporation
 OR  ESCO  in advance or in anticipation of utility services furnished or
 to be furnished by such  corporation  OR  ESCO  which  in  fact  is  not
 furnished,  after  deducting any sums due to such corporation OR ESCO by
 such consumer or subscriber for  utility  services  in  fact  furnished,
 which  shall  have remained unclaimed by the person or persons appearing
 to be entitled thereto for two years after the termination of the utili-
 ty services for which such amount was  paid  in  advance  or  in  antic-
 ipation,  or,  if  during  such period utility services are furnished by
 such corporation OR ESCO to such consumer or subscriber and such  amount
 is  applied to the payment in advance or in anticipation of such utility
 services, for two years after the termination of such utility services.
   (c) The amount of any refund of excess or increased rates  or  charges
 heretofore  or  hereafter  collected by any such corporation OR ESCO for
 utility services lawfully furnished by such corporation  OR  ESCO  which
 has  been  or shall hereafter lawfully be ordered refunded to a consumer
 or other person or persons entitled thereto, together with any  interest
 due  thereon,  less  any  lawful  deductions,  which shall have remained
 unclaimed by the person or persons entitled thereto for two  years  from
 the date it became payable in accordance with the final determination or
 order providing for such refund.
   2.  Any such abandoned property held or owing by such a corporation OR
 ESCO to which the right to receive the same is established to the satis-
 faction of such corporation OR ESCO shall cease to be deemed abandoned.
   § 4. Subdivision 1 of section 402 of the abandoned  property  law,  as
 amended  by  section  11 of part A of chapter 61 of the laws of 2011, is
 amended to read as follows:
   1. Every such corporation OR ESCO shall cause to be published,  on  or
 before  the  first  day  of  September  in each year, a notice entitled:
 "NOTICE OF CERTAIN UNCLAIMED PROPERTY HELD BY (name  of  corporation  OR
 ESCO)."
   §  5.  Paragraph  (a) of subdivision 3 of section 402 of the abandoned
 property law is amended to read as follows:
   (a) that a report of unclaimed amounts of money or other property held
 or owing by it has been made to the state comptroller and that a list of
 the names of the person or persons appearing from the  records  of  such
 corporation OR ESCO to be entitled thereto is on file and open to public
 inspection  at  its  principal  office or place of business in any city,
 village or county where any such abandoned property is payable;
   § 6. Subdivision 4 of section 402 of the  abandoned  property  law  is
 amended to read as follows:
 S. 7230                             3
 
   4.  Such  corporation OR ESCO shall file with the state comptroller on
 or before the tenth day of September in each year proof by affidavit  of
 such publication.
   §  7. Section 403 of the abandoned property law, as amended by section
 12 of part A of chapter 61 of the laws of 2011, is amended  to  read  as
 follows:
   §  403.  Payment of abandoned property. 1. In such succeeding month of
 October, and on or before the tenth day thereof, every such  corporation
 OR ESCO shall pay to the state comptroller all property which, as of the
 first  day  of  July  next  preceding,  was deemed abandoned pursuant to
 section four hundred of this article, held or owing by such  corporation
 OR ESCO.
   2.  Such  payment  shall  be accompanied by a true and accurate report
 setting forth such information as  the  state  comptroller  may  require
 relating to such abandoned property including:
   (a)  as  to  abandoned property specified in paragraphs (a) and (b) of
 subdivision one of section four hundred of this article:
   (i) the name and last known address of each  depositor  or  subscriber
 appearing from the records of such corporation OR ESCO to be entitled to
 receive any such abandoned property;
   (ii) the date when the deposit was made or amount paid;
   (iii) the amount of such deposit or payment;
   (iv)  the  date  when  utility  services furnished to such consumer or
 subscriber ceased;
   (v) any sums due and unpaid to the corporation OR ESCO by such consum-
 er or subscriber, with interest thereon from the date of termination  of
 service;
   (vi)  the  amount  of interest due upon such deposit or payment on any
 balance thereof that has remained with such corporation OR ESCO and  not
 been credited to such consumer's or subscriber's account;
   (vii) the amount of such abandoned property; and
   (viii) such other identifying information as the state comptroller may
 require.
   (b) as to abandoned property specified in paragraph (c) of subdivision
 one of section four hundred of this article:
   (i)  the name and last known address of each person appearing from the
 records of such corporation OR ESCO to be entitled to receive the same;
   (ii) the amount appearing from  such  records  to  be  due  each  such
 person;
   (iii) the date payment became due; and
   (iv)  such  other identifying information as the state comptroller may
 require.
   3. Such report shall be in such form and the abandoned property listed
 shall be  classified  in  such  manner  as  the  state  comptroller  may
 prescribe.  Names of persons entitled to such abandoned property appear-
 ing in such report shall be listed in  alphabetical  order  within  each
 such classification.
   §  8.  This act shall take effect on the first of July next succeeding
 the date on which it shall have become a law.

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