Prohibits authorities from imposing additional charges for delivering payment through non-electronic means

BILL NUMBER:S7109A

Title of bill

An act to amend the public authorities law and the public service law, in relation to methods of payments to public utilities

Purpose or general idea of bill

This legislation would prohibit a public authority, public utility authority, or an entity governed by the public service commission from imposing a fee on any customer for failure to use an electronic method of payment. It also prohibits public authorities from imposing a periodic administrative or other charge on customers.

Summary of provisions

Section One amends section 2855 of the public authorities law, as added by section 1 of part KK of chapter 59 of the laws of 2006 by adding a subsection two which prohibits a public authority who offers electronic means of payment from imposing any charge for failure to use an electronic method of payment or for delivering payment through non-electronic means. It also prohibits authorities from imposing any periodic administrative or other charge with the exception of amounts due on interest. This prohibition shall not apply to any services requested by an account holder, any charges for lost or damaged equipment, for defaults on payment or charges for dishonored checks.

Section Two defines Public Utility Authorities.

Section Three prohibits a public utility authority who offers electronic means of payment from imposing any charge for failure to use an electronic method of payment or for delivering payment through non-electronic means.

Section Four prohibits an entity governed by the public service commission who offers electronic means of payment from imposing any charge for failure to use an electronic method of payment or for delivering payment through non-electronic means.

Section Five is the effective date.

Justification

It is common practice for customers of certain public authorities, public utility authorities, and entities governed by the public service commission to see a charge for making a payment through non-electronic means. This legislation would prohibit public authorities, public utility authorities, and entities governed by the public service commission from charging customers for using non-electronic means of payment. With utility costs already financially crippling for many residents in our state, an

added fee of this nature is an additional charge that customers should not be forced to incur.

It is also common practice for customers of certain public authorities to see a "billing charge" on their utility bill. This charge is generally under one dollar and is passed onto the customer by the utility for calculating the bill and processing payment. This legislation would prohibit public authorities from charging customers to be billed.

Legislative history

New bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately.