What's happening
This bill requires New York City to retroactively credit hospitals and charities for water charges when services were not supplied or were improperly billed.
Why it matters
The bill holds New York City accountable for ensuring that hospitals and charities are not billed for water services they did not actually receive. , requiring the city to proactively verify that all charges are accurate before they are imposed.
It mandates retroactive credits for overcharges caused by billing errors, such as the use of improper meter multipliers. even if the city was aware or should have been aware of the mistake—ensuring organizations can recover funds for past errors.
Hospitals and charities can now seek credits for up to ten years of past overcharges, including interest, and previously time-barred or settled claims are revived. , potentially resulting in significant financial relief for eligible institutions.
By applying these provisions retroactively and reviving old claims, the bill could open the city to substantial financial liability. , incentivizing better billing practices and oversight while offering organizations a path to recover lost funds.
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Who cares
New York City hospitals, orphan asylums and other covered charitable institutions
The bill would require the city to check for charges for water services not supplied and credit eligible overcharges and related interest.
New York City water billing officials
The bill would require credits for periods billed using an improper meter multiplier when the city had actual or constructive knowledge of the error.
Covered institutions with cooling tower meters
Actual meter readings would be used to calculate credits for services not supplied, beginning with the meter’s installation date.
Covered institutions with settled or time-barred claims
The bill would revive those claims so institutions could pursue its remedies for overcharges, missing credits or improper usage estimates.
Headline styles
Stop Charges for Unused Services
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to cities
- Referred to cities
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Stop Charges for Unused Services
In Assembly Committee · Cities · Sponsor David Weprin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4436
2019-2020 Regular Sessions
IN SENATE
March 11, 2019
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Cities
AN ACT to amend chapter 696 of the laws of 1887, relating to providing hospitals, orphan asylums and other charitable institutions in the city of New York with water, in relation to credits for charges in which services were not supplied
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3 of chapter 696 of the laws of 1887, relating to providing hospitals, orphan asylums and other charitable institutions in the city of New York with water, is amended by adding a new subdivision c to read as follows:
c. 1. Notwithstanding any other law, rule or regulation to the contrary, before any water charges are imposed on any entity enumerated in section one of this act, the city of New York shall make certain that there are no charges being levied for services which were not supplied to such entity.
2. In instances where the city of New York has employed an improper meter multiplier, and where the city of New York has had active or constructive knowledge of the existence of such incorrect multiplier, the city of New York shall grant the entity credit for the period when billing was based on the improper multiplier. Such credit shall be available in instances, including, but not limited to, where an entity has installed a cooling tower meter, in accordance with city regulations, and an average daily flow has been determined from actual meter readings. In such cases, the average daily flow shall be measured and recorded by the city of New York and then applied, using typical processes for such calculations, to the periods in which services were not supplied to establish the amount of the credit to be granted for the relevant period, beginning with the date of installation of the meter.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08236-01-9
S. 4436 2
3. In any instance where there have been charges levied for services not supplied, credits allowed under this subdivision shall be applied retroactively up to ten years from the effective date of this subdivision. Any interest charges levied against such entity for services not supplied shall be credited to such entity's account.
4. This subdivision shall apply retroactively to all relevant claims of overcharges, failure to apply appropriate credits, and/or improper estimation of an entity's usage, without limitation, for all periods pre-dating the effective date of this subdivision. Any claims by an entity previously determined by court order to be time-barred or resolved through settlement are hereby revived, and action thereon may be commenced to avail such entity of the rights and remedies set forth in this subdivision.
§ 2. 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 chapter 696 of the laws of 1887, relating to providing hospitals, orphan asylums and other charitable institutions in the city of New York with water, in relation to credits for charges in which services were not supplied
Purpose
To provide hospitals, orphan asylums and other charitable institutions in the City of New York with water and sewer charges that accurately reflect their usage.
Summary of specific provisions
Section 3: Amends chapter 696 of the laws of 1887, relating to providing hospitals, orphan asylum and other charitable institutions in the city of New York with water, in relation to credits for charges in which services were not supplied. In instances where the City has employed an improper meter multiplier, and where the City of New York has had active or constructive notice of the existence of such incorrect multiplier, the City shall grant the entity credit for the time period during which billing charges was based on an improper meter multiplier.
Existing law
Currently, the Department of Environmental Protection cannot issue bills for previously unbilled service or upwardly adjust previously issued billing to a property after four years from the time service was provided to such property. The current law also allows for a reasonable administrative delay between the end date of the service period being billed, or the date of discovery of an unbilled or under-billed period, and the actual new bill issued. In addition, the current law effectively shortens the time period within which a customer can challenge a bill for which an improper multiplier was used. Had the Water Board been subjected to the New York State Civil Practice Laws & Rules, organiza- tions would have provided a six year statute of limitation to challenge incorrect meter bills.
Justification
This bill addresses an issue that has had a tremendously burdensome impact on large non-profit institutions in New York City. On large water meters the amount of water that registers through the meter can be so great that to determine the actual amount of water that registers through the meter you must determine what the "meter multiplier" is. This has to be done because the meter has made a complete turn on the primary register. The multiplier tells how many complete turns have been made. This enables the City to compute the actual amount of water that passed through the meter is. Presently when the City discovers that it has made an error with respect to a meter multiplier no-adjustment may be made beyond a four year period. The effect is that if it is deter- mined that the institution had been over billed for a period of 6 years the institution will only be able to get credit for 4 of those years.
Legislative history
2017-18: S3259 - Referred to Cities 2015-16: S.7383 - Referred to Cities
Fiscal implications
No State fiscal impact, City impact is unknown
Local fiscal implications
Unknown
Effective date
This Act Shall Take Effect Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.