Prohibits utility companies from harassing, oppressing or abusing any residential customer in connection with the handling of a residential customer complaint, the offering and/or negotiating of a deferred payment agreement, or the collection of an unpaid balance or any other obligation owed by such customer.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3359
SPONSOR: Paulin TITLE OF BILL:
An act to amend the public service law, in relation to prohibiting util-
ity companies from harassing, oppressing or abusing any residential
customer in connection with the handling of a complaint or unpaid
balance
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to protect customers' rights when negotiat-
ing with a utility company over a complaint or unpaid balance.
SUMMARY OF PROVISIONS:
Section one of the bill would amend the public service law by adding a
new section 53-a that would prohibit utilities from engaging in abusive
and unscrupulous conduct toward a residential customer. A utility corpo-
ration or municipality, or energy services companies (ESCO) shall not
engage in any conduct that would harass, oppress or abuse a residential
customer in connection with handling a complaint, negotiating a deferred
payment agreement or the collection of an unpaid balance.
Any utility, municipal utility or ESCO in violation of Section 1 shall
be subject to fines, penalties and enforcement by the department pursu-
ant to sections 24, 25, 25-a and 26 of this chapter.
The commission shall promulgate rules and regulations necessary to
implement and enforce the provisions of this section.
Section two of the bill provides the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
N/A
JUSTIFICATION:
This bill is a protective measure to help clarify utility customers
rights under the Home Energy Fair Practices Act (HEFPA), which ensure
fair treatment of all residential energy customers and serves to
strengthen consumer protections and consumer confidence in the State's
competitive energy market.
During difficult economic times, customers can easily fall behind in
utility payments. However, a utility company's representative should not
engage in unfair practices to collect debt or resolve a complaint.
Customers should not be subjected to abusive language or deceptive
payment practices. Customers have reported unscrupulous practices by
utility corporations such as accepting a "payment arrangement," rather
than entering into a deferred payment agreement or they have been
encouraging customers to make exceptionally large down payments to avoid
disconnection of service. Taking inspiration from federal and state law
regulating the conduct of consumer debt collectors, this bill will
protect customer rights while ensuring utility companies collect custom-
er debt and resolve complaints under the high ethical standards.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the state.
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become law. Effective immediately, the addition, amendment and/or repeal
of any rule or regulation necessary for implementation of this act on
its effective date are authorized to be made and completed on or before
such effective date.
STATE OF NEW YORK
________________________________________________________________________
3359
2021-2022 Regular Sessions
IN ASSEMBLY
January 26, 2021
___________
Introduced by M. of A. PAULIN -- read once and referred to the Committee
on Corporations, Authorities and Commissions
AN ACT to amend the public service law, in relation to prohibiting util-
ity companies from harassing, oppressing or abusing any residential
customer in connection with the handling of a complaint or unpaid
balance
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public service law is amended by adding a new section
2 53-a to read as follows:
3 § 53-a. Prohibition of utilities engaging in detrimental conduct
4 towards a residential customer. 1. A utility corporation or munici-
5 pality, or energy services companies subject to the department's uniform
6 business practices and section three hundred forty-nine and three
7 hundred forty-nine-d of the general business law, also known as ESCOs,
8 shall not engage in any conduct the natural consequence of which is to
9 harass, oppress, or abuse any residential customer in connection with
10 the handling of a residential customer complaint, the offering and/or
11 negotiating of a deferred payment agreement, or the collection of an
12 unpaid balance or any other obligation owed by such customer.
13 2. All utilities or municipal utilities or ESCOs in violation of this
14 section shall be subject to fines, penalties and enforcement by the
15 department pursuant to sections twenty-four, twenty-five, twenty-five-a,
16 and twenty-six of this chapter, and all such other legal or equitable
17 remedies as may be necessary or convenient for protection of consumers
18 against the prohibited behaviors described in subdivision one of this
19 section.
20 3. The commission shall promulgate rules and regulations necessary to
21 implement and enforce the provisions of this section.
22 § 2. This act shall take effect on the thirtieth day after it shall
23 have become a law. Effective immediately, the addition, amendment and/or
24 repeal of any rule or regulation necessary for the implementation of
25 this act on its effective date are authorized to be made and completed
26 on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08935-01-1
