Authorizes utility corporations, telegraph and telephone corporations, and cable television corporations to provide notice of bills to third parties

Summary of provisions

Section one of the bill amends section 40 of the public service law to clarify that third party notification programs already required of utilities must offer notice of amounts due or past due on routine bills, and the amounts paid by or on behalf of the customer, as well as collection and termination notices.

Section two of the bill amends the general business law by adding a new section 393-f that will require every telegraph and telephone corporation, cable television corporation, cellular phone company, or municipality to designate a third party to receive notice of the total amount due or past due on all bills, the amounts of any payments made by or on behalf of the customer, as well as copies of all collection and termination notices.

Section three of the bill is the effective date.

Justification

This legislation will enable customers of utility, phone and cable services providers to designate a relative, friend, or other trusted third party to receive notice of amounts due or past due on routine bills and amounts paid by or on behalf of the customer, as well as any collection or termination notices. Present statutes only apply to traditional utilities and could be interpreted to require third party notification only of collection and termination notices. This bill will expand the requirement, both by adding phone and cable service providers, and by clarifying that third party notification programs must offer information about amounts due and payments of routine bills, as well as collection and termination notices.

We are all cognizant that many people may have difficulty keeping up with bills-because of age, illness, ox other circumstances-even if they are otherwise able to live independently. This legislation will enable people to obtain the regular assistance of a third party in ensuring that such bills are kept up-to-date, thereby enhancing their independence and making it easier for relatives, friends, and caregivers to offer such assistance.

In addition, this bill recognizes that the services of utilities, phone companies and cable services providers are increasingly converging. For example, cable companies are offering phone and internet services, and utilities and phone companies are working on broadband networks that can carry television programming. As these

services continue to converge, they will be more and more likely to offer packages of services that we view as essential for daily living. The legislation would recognize this and ensure that all providers have the same obligation to offer third party billing on the same terms.

Finally, service providers might benefit from timelier bill payment if this legislation is enacted.

The bill was amended 2008 to place some of the requirements in the general business law rather than the public service law, so that all service providers would be covered equally. In addition, because of privacy concerns, a provision of a previous version of the bill that would have required that full copies of bills be sent to a third party has been changed to require only that amounts due, past due, and paid by or on behalf of the customer be sent to the third party, since this information is all that is necessary to assist customers in keeping up with their bills.

Legislative history

2012-13: S.2639/A.3907 - Referred to Energy & Telecommunications 2011-12: S.1112/A.3693 - Referred to Energy & Telecommunications 2009-10: S.4290/A.509 - Referred to Energy & Telecommunications 2008-09: S.7882A/A.10513A - Referred to Rules/Passed Assembly

Fiscal impact on the state

None.

Effective date

This act shall take effect ninety days after it shall have become a law.