Extends utility repayment agreements from one year to two in the case of persons applying for public assistance

BILL NUMBER:A7449

Title of bill

An act to amend the social services law, in relation to extending the utility repayment agreements from one year to two years

Purpose of the bill

This bill extends the time period for mandatory repayment agreements for applicants for public assistance, supplemental security income (SSI) benefits and additional state payments, from one year to two years, for households whose gross household income exceeds the applicable public assistance standard of need and who apply for utility arrears payments pursuant to Social Services Law (SSL) § 131-s(1).

Summary of provisions

Section 1 of the bill would amend SSL § 131-s(1) to extend the time period for mandatory repayment agreements for applicants from one year to two years.

Section 2 of the bill would provide for an immediate effective date.

Existing law

SSL § 131-s(1) enables social services districts to provide utility arrears payments on behalf of certain applicants for public assistance, SSI or additional state payments in order to prevent a utility shut-off or to restore the applicants' utility services. Such applicants whose gross household income exceeds the applicable public assistance standard of need must sign repayment agreements and repay the utility assistance within one year.

Prior legislative history:

This is a new bill.

Statement in support

SSL § 131-s (1) provides that social services districts may pay utility companies to avoid shut-offs or to restore service for arrearages in an amount of up to the four most recent months in which service was provided. Those households whose gross income exceeds the applicable public assistance standard of need must sign repayment agreements and currently must repay the utility assistance within one year.

In the current home energy climate, utility costs are constantly in flux and can seriously affect the low-income population that social services districts serve. High monthly payments for repayment of utility assist- ance can result in households falling behind in their obligations. By extending the period of time for low income households to repay their

utility arrears assistance from one year to two years, this bill will reduce each household's monthly payment amounts, thus increasing their ability to comply with repayment agreements. This bill may also improve social services districts' collections on utility repayments.

Lastly, by increasing the ability of low-income households to comply with the terms of the repayment agreements, this bill lessens the need for the social service districts to utilize costly temporary housing options. Temporary housing options are utilized when applicants for SSL § 131-s have been noncompliant with past repayment agreements. If there is noncompliance with prior repayment agreements, social services districts are prohibited from making additional payments under SSL 131-s.

Budget implications

This bill has no fiscal impact; it would simply spread out repayment over two years.

Effective date

The bill would take effect immediately upon enactment.