NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10221
SPONSOR: Rules (Woerner) TITLE OF BILL:
An act to amend the abandoned property law, in relation to unclaimed
deposits and refunds for utility services furnished by energy services
companies
PURPOSE:
To close a statutory loophole that allows ESCOs to retain unclaimed
customer deposits or refunds, rather than remitting such unclaimed funds
to the Abandoned Property Fund administered by the State comptroller.
SUMMARY OF PROVISIONS:
Abandoned Property Law § 103 is amended to add a definition for "energy
services company" or "ESCO." The defmition of "utility services" in
Abandoned Property Law § 103(f) is amended to include gas and electric
service provided by an ESCO. Abandoned Property Law Article 4 is amended
to add ESCOs to the list of entities that are subject to Article 4 of
the Abandoned Property Law, which governs unclaimed funds associated
with utility services.
EXISTING LAW:
Currently, Abandoned Property Law § 400 deems any "utility" customer
deposits or refunds "abandoned" if the funds go unclaimed for two
years.' Once the funds have been dormant for two years, utility compa-
nies must attempt to contact the rightful owner one final time via U.S.
mail pursuant to Abandoned Property Law § 402. If that effort fails, the
utility must then publish in two local newspapers a notice that aban-
doned property will soon be remitted to the state comptroller. Any funds
that remain unclaimed after these efforts must be remitted to the comp-
troller. Once the funds have been transferred to the comptroller, the
customer may obtain them through the Office of Unclaimed Funds, and the
utility is relieved of any remaining liability to the customer.
LEGISLATIVE HISTORY:
New bill.
STATEMENT IN SUPPORT:
This change would make it easier for ESCO customers to obtain their
unclaimed funds and strengthen the deterrence effect of the Commission's
ESCO enforcement orders. The unclaimed funds would not be remitted to
the comptroller unless the ESCO's efforts to contact the rightful owner
have failed. Given how often ESCO customers tend to switch service
providers, ESCOs' customer contact information is especially prone to
going stale. This reduces the likelihood that ESCOs will be able to fmd
the funds' rightful owners. In addition, some ESCOs may have only short
connections to New York: ESCOs may abandon their New York presence, or
their eligibility may be revoked. Exploiting the current statutory
loophole, an ESCO may have little incentive to set aside funds for New
York customers. A former customer is more likely to learn about their
unclaimed funds from the state, which regularly publicizes its unclaimed
funds recovery process, than from an ESCO with which the customer no
longer has a relationship. This change would ensure that, when the
Commission penalizes ESCO misconduct by ordering customer refunds, the
ESCO cannot retain those funds indefmitely in spite of their misconduct.
They will instead forfeit the funds, either to the rig htful owner or,
failing that, the comptroller.
BUDGET IMPLICATION:
None.
1 Notably, although the Abandoned Property Law currently applies to,
among other entities, "electric corporations" and "gas corporations,"
the Court of Appeals has held that ESCOs are not gas or electric corpo-
rations under the Public Service Law. Natl. Energy Marketers Assn. v New
York State Pub. Serv. 3 N.Y.3d 336, 347 (2019).
STATE OF NEW YORK
________________________________________________________________________
10221
IN ASSEMBLY
May 14, 2024
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Woerner,
Weinstein) -- (at request of the Department of Public Service) -- read
once and referred to the Committee on Ways and Means
AN ACT to amend the abandoned property law, in relation to unclaimed
deposits and refunds for utility services furnished by energy services
companies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 103 of the abandoned property law is amended by
2 adding a new subdivision (j) to read as follows:
3 (j) "Energy services company" or "ESCO" shall mean an entity eligible
4 to sell energy services to end-use customers using the transmission or
5 distribution system of a utility.
6 § 2. Subdivision (f) of section 103 of the abandoned property law, as
7 amended by chapter 498 of the laws of 1944 and relettered by chapter 908
8 of the laws of 1974, is amended to read as follows:
9 (f) "Utility services" means gas, electricity or steam supplied by a
10 gas, electric, gas and electric or district steam corporation or an
11 energy services company, telephone, telegraph or other service furnished
12 by a telephone, telegraph or telegraph and telephone corporation, water
13 supplied by a waterworks corporation, or appliances, equipment, instal-
14 lations, fixtures or appurtenances rented by any such corporation or
15 company.
16 § 3. The opening paragraph of subdivision 1 of section 400 of the
17 abandoned property law, as amended by chapter 498 of the laws of 1944,
18 is amended to read as follows:
19 The following unclaimed moneys held or owing by a gas corporation, an
20 electric corporation, a gas and electric corporation, a district steam
21 corporation, an energy services company, a telegraph corporation, a
22 telephone corporation, a telegraph and telephone corporation, or a
23 waterworks corporation, shall be deemed abandoned property:
24 § 4. Paragraphs (a) and (b) of subdivision 1 of section 400 of the
25 abandoned property law, as amended by chapter 78 of the laws of 1976,
26 are amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14458-01-4
A. 10221 2
1 (a) Any deposit made by a consumer or subscriber with such a corpo-
2 ration or company to secure the payment for utility services furnished
3 by such corporation or company, or the amount of such deposit after
4 deducting any sums due to such corporation or company by such consumer
5 or subscriber, together with any interest due thereon, which shall have
6 remained unclaimed by the person or persons appearing to be entitled
7 thereto for two years after the termination of the utility services to
8 secure the payment of which such deposit was made, or, if during such
9 two year period utility services are furnished by such corporation or
10 company to such consumer or subscriber and such deposit is held by such
11 corporation or company to secure payment therefor, for two years after
12 the termination of such utility services.
13 (b) Any amount paid by a consumer or subscriber to such a corporation
14 or company in advance or in anticipation of utility services furnished
15 or to be furnished by such corporation or company which in fact is not
16 furnished, after deducting any sums due to such corporation or company
17 by such consumer or subscriber for utility services in fact furnished,
18 which shall have remained unclaimed by the person or persons appearing
19 to be entitled thereto for two years after the termination of the utili-
20 ty services for which such amount was paid in advance or in antic-
21 ipation, or, if during such period utility services are furnished by
22 such corporation or company to such consumer or subscriber and such
23 amount is applied to the payment in advance or in anticipation of such
24 utility services, for two years after the termination of such utility
25 services.
26 § 5. Paragraph (c) of subdivision 1 of section 400 of the abandoned
27 property law, as amended by chapter 833 of the laws of 1963, is amended
28 to read as follows:
29 (c) The amount of any refund of excess or increased rates or charges
30 heretofore or hereafter collected by any such corporation or company for
31 utility services lawfully furnished by such corporation or company which
32 has been or shall hereafter lawfully be ordered refunded to a consumer
33 or other person or persons entitled thereto, together with any interest
34 due thereon, less any lawful deductions, which shall have remained
35 unclaimed by the person or persons entitled thereto for two years from
36 the date it became payable in accordance with the final determination or
37 order providing for such refund.
38 § 6. Subdivision 2 of section 400 of the abandoned property law is
39 amended to read as follows:
40 2. Any such abandoned property held or owing by such a corporation or
41 company to which the right to receive the same is established to the
42 satisfaction of such corporation or company shall cease to be deemed
43 abandoned.
44 § 7. Subdivision 1 of section 402 of the abandoned property law, as
45 amended by section 11 of part A of chapter 61 of the laws of 2011, is
46 amended to read as follows:
47 1. Every such corporation or company shall cause to be published, on
48 or before the first day of September in each year, a notice entitled:
49 "NOTICE OF CERTAIN UNCLAIMED PROPERTY HELD BY (name of corporation or
50 company)."
51 § 8. Paragraph (a) of subdivision 3 of section 402 of the abandoned
52 property law is amended to read as follows:
53 (a) that a report of unclaimed amounts of money or other property held
54 or owing by it has been made to the state comptroller and that a list of
55 the names of the person or persons appearing from the records of such
56 corporation or company to be entitled thereto is on file and open to
A. 10221 3
1 public inspection at its principal office or place of business in any
2 city, village or county where any such abandoned property is payable;
3 § 9. Subdivision 4 of section 402 of the abandoned property law is
4 amended to read as follows:
5 4. Such corporation or company shall file with the state comptroller
6 on or before the tenth day of September in each year proof by affidavit
7 of such publication.
8 § 10. Subdivisions 1 and 2 of section 403 of the abandoned property
9 law, as amended by section 12 of part A of chapter 61 of the laws of
10 2011, are amended to read as follows:
11 1. In such succeeding month of October, and on or before the tenth day
12 thereof, every such corporation or company shall pay to the state comp-
13 troller all property which, as of the first day of July next preceding,
14 was deemed abandoned pursuant to section four hundred of this article,
15 held or owing by such corporation or company.
16 2. Such payment shall be accompanied by a true and accurate report
17 setting forth such information as the state comptroller may require
18 relating to such abandoned property including:
19 (a) as to abandoned property specified in paragraphs (a) and (b) of
20 subdivision one of section four hundred of this article:
21 (i) the name and last known address of each depositor or subscriber
22 appearing from the records of such corporation or company to be entitled
23 to receive any such abandoned property;
24 (ii) the date when the deposit was made or amount paid;
25 (iii) the amount of such deposit or payment;
26 (iv) the date when utility services furnished to such consumer or
27 subscriber ceased;
28 (v) any sums due and unpaid to the corporation or company by such
29 consumer or subscriber, with interest thereon from the date of termi-
30 nation of service;
31 (vi) the amount of interest due upon such deposit or payment on any
32 balance thereof that has remained with such corporation or company and
33 not been credited to such consumer's or subscriber's account;
34 (vii) the amount of such abandoned property; and
35 (viii) such other identifying information as the state comptroller may
36 require.
37 (b) as to abandoned property specified in paragraph (c) of subdivision
38 one of section four hundred of this article:
39 (i) the name and last known address of each person appearing from the
40 records of such corporation or company to be entitled to receive the
41 same;
42 (ii) the amount appearing from such records to be due each such
43 person;
44 (iii) the date payment became due; and
45 (iv) such other identifying information as the state comptroller may
46 require.
47 § 11. This act shall take effect immediately.
