What's happening
This bill prohibits public utilities and authorities from charging extra fees for using non-electronic payment methods.
Why it matters
Protects consumers who prefer to pay bills by check, cash, or money order from being penalized with extra fees. , ensuring equitable access for those without reliable internet access, bank accounts, or digital literacy.
Targets practices that may disproportionately impact vulnerable populations. such as seniors, low-income residents, or immigrants—who are less likely to use electronic payments but more likely to be burdened by administrative surcharges.
Prevents public utilities and authorities from using fee structures to push customers into electronic payment systems. , preserving customer choice and reducing coercive business practices.
Limits exceptions to only extra services specifically requested by the customer (like expedited processing), losses, or defaults. , preventing utilities from circumventing the rule through broad or vaguely defined charges.
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Who cares
Headline styles
No Fees for Mailed Payments
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to corporations, authorities and commissions
- Returned to senate
- Died in assembly
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 58–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.301
- Referred to corporations, authorities and commissions
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3379
2017-2018 Regular Sessions
IN SENATE
January 23, 2017
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law and the public service law, in relation to methods of payments to public utilities
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2855 of the public authorities law, as added by section 1 of part KK of chapter 59 of the laws of 2006, is amended to read as follows:
§ 2855. Electronic method of payment; periodic charges. 1. Notwithstanding the provisions of any law to the contrary, if any authority shall offer any electronic method of payment for tolls, fares, fees, rentals, or other charges, including but not limited to a system called E-ZPass, such authority shall not impose any periodic administrative or other charge for the privilege of using such electronic method of payment for such charges. Nothing in this section shall be construed to prohibit any authority from making any charge for extra services requested by a holder of such electronic method of payment, any charge for lost or damaged equipment, or for defaults, such as charges for dishonored checks. The authority shall not enter any agreement with bondholders that would require the imposition of administrative or other periodic charges relating to electronic methods of payment prohibited by this section.
2. No authority offering any electronic method of payment shall impose any periodic administrative or other charge for failure to use such method of payment or otherwise impose additional administrative or other charges for delivering payment through non-electronic means. Notwithstanding any provisions of law to the contrary, authorities shall be prohibited from imposing any periodic administrative or other charge, excepting amounts due and interest on accounts outstanding when such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05641-01-7
S. 3379 2
interest is computed and applied in accordance with the laws of this state, for method of payment on any account. Nothing in this subdivision shall be construed to prohibit any authority from making any charge for extra services requested by an account holder, including for expedited and same day payments and for the processing and handling of electronic funds transfers, any charge for lost or damaged equipment, or for defaults, such as charges for dishonored checks. The authorities shall not enter any agreement with bondholders that would require the imposition of administrative or other periodic charges relating to methods of payment.
§ 2. Section 2 of the public authorities law is amended by adding a new subdivision 7 to read as follows:
7. "public utility authorities" shall mean any entity established pursuant to article five of this chapter.
§ 3. Title 1 of article 5 of the public authorities law is amended by adding a new section 999 to read as follows:
§ 999. General provisions. No public utility authority offering any electronic method of payment shall impose any periodic administrative or other charge for failure to use such method of payment or otherwise impose additional administrative or other charges for delivering payment through non-electronic means. Nothing in this section shall be construed to prohibit any public utility authority from making any charge for extra services requested by an account holder, any charge for lost or damaged equipment, or for defaults, such as charges for dishonored checks. The public utility authorities shall not enter any agreement with bondholders that would require the imposition of administrative or other periodic charges relating to methods of payment.
§ 4. The public service law is amended by adding a new section 6 to read as follows:
§ 6. Billing by entities governed by the public service commission. No entity governed by the public service commission offering any electronic method of payment shall impose any periodic administrative or other charge for failure to use such method of payment or otherwise impose additional administrative or other charges for delivering payment through non-electronic means. Nothing in this section shall be construed to prohibit any entity governed by the public service commission from making any charge for extra services requested by an account holder, including for expedited and same day payments and for the processing and handling of electronic funds transfers, any charge for lost or damaged equipment, or for defaults, such as charges for dishonored checks. Entities governed by the public service commission shall not enter any agreement with bondholders that would require the imposition of administrative or other periodic charges relating to methods of payment.
§ 5. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
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, including for expedited and same day payments and for the processing and handling of electronic funds transfers, 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 nonelectronic 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
2015-16 - S. 3132 - Passed Senate. FISCAL IMPLICATIONS :
None.
Effective date
Immediate.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.