Relates to the collection of charges of certain authorities

Title of bill

An act to amend the public authorities law, in relation to method of collection of charges by certain public authorities

Purpose

To clarify the Water Authority of Great Neck North and the Water Authority of Western Nassau County to charge and collect rates, fees and other charges for the use or availability of its water facilities or for the services or commodities by providing that such rates, fees and other charges shall be a lien upon the real property upon which or in connection with which such services are provided or made available. The act provides that unpaid rates, fees and charges in arrears for ninety days shall be transmitted to the county legislature, which shall levy such sum against the properties liable for such rates, fees and charges.

Summary of provisions

Section 1 of this bill amends the public authorities law by adding new section 1197-u and Section 2 of this bill amends the public authorities law by adding new section 1198-u. These amendments clarify the respective authorities' power to collect rates, fees and other charges for the use or availability of its water' facilities or of the services or commodities provided by the authorities. The act also provides that all such rates, fees and other charges shall be a lien upon the real property in a similar manner to water rates, fees and charges of water districts. Authority rates, fees and charges that are ninety days in arrears on the first day of November in each year, shall be transmitted to the legislative body of the county of Nassau, which shall levy such sums against the properties liable for such amounts under the heading "water charge." The county shall then pay over to the chief financial officer of the authority amounts collected by the county.

Section 3 establishes the effective date.

Justification

Each year the authorities have to write off uncollected water rates, fees and charges due to nonpayment of water bills. These amounts are primarily attributable to customers who move out of the county of Nassau without paying their final water bill or giving notice to the authority that they are moving. It is difficult and costly to collect from former customers who no longer reside in the county. New York law currently provides that water rates and charges for water districts automatically become liens of the real property where water services are provided.

Because of this law, unpaid water bills in water districts are usually paid upon the sale of the property as they become liens on the property.

Legislative history

This is a new bill.

Fiscal implications

None to the state.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law.