Authorizes utility corporations, telegraph and telephone corporations, and cable television corporations to provide notice of bills to third parties at the request of the customer.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1368
SPONSOR: Rozic (MS) TITLE OF BILL:
An act to amend the public service law and the general business law, in
relation to third party notification
PURPOSE:
To offer utility, phone, cable, and internet residential customers who
have difficulty keeping up with their bills the option of having notice
of amounts due, collection attempts, and termination of services sent to
a trusted third party.
SUMMARY OF PROVISIONS:
Section one of the bill amends Section 40 of the public service law to
clarify that third party notification programs already required of util-
ities must offer notice of amounts due or past due on routine bills and
the amounts paid by or on behalf of the customer, as well as collection
and termination notices.
Section two of the bill amends the general business law by adding a new
section 393-f that will require every telegraph and telephone corpo-
ration, cable television corporation, cellular phone company, or munici-
pality to designate a third party to receive notice of the total amount
due or past due on all bills, the amounts of any payments made by or on
behalf of the customer, as well as copies of all collection and termi-
nation notices.
Section three of the bill establishes the effective date.
JUSTIFICATION:
This legislation will enable customers of utility, phone, cable tele-
vision, and internet service providers to designate a relative, friend,
or other trusted third party to receive notice of amounts due or past
due on routine bills and amounts paid by or on behalf of the customer,
as well as any collection or termination notices. Present statutes only
apply to traditional utilities and could be interpreted to require third
party notification only of collection and termination notices. This bill
will expand the requirement, both by adding phone, cable television,
internet service providers, and by clarifying that third party notifica-
tion programs must offer information about amounts due and payments of
routine bills, as well as collection and termination notices.
We are all cognizant that many people may have difficulty keeping up
with bills - because of age, illness, or other circumstances - even if
they are otherwise able to live independently. This legislation will
enable people to obtain the regular assistance of a third party in
ensuring that such bills are kept up-to-date, thereby enhancing their
independence and making it easier for relatives, friends, and caregivers
to offer such assistance.
In addition, this bill recognizes that the services of utilities, phone
companies, and cable and internet providers are increasingly converging.
For example, cable companies are often in phone and internet services,
and utilities and phone companies are working on broadband networks that
can carry television programming. As these services continue to
converge, they will be more and more likely to offer packages of
services that we view as essential for daily living. In recognition of
this convergence, this legislation would ensure that all providers have
the same obligation to offer third party billing on the same terms.
Finally, service providers might benefit from timelier bill payment if
this legislation is enacted. The bill has been amended to place some of
the requirements in the general business law rather than the public
service law. In addition, because of privacy concerns, a provision of a
previous version of the bill that would have required that full copies
of bills be sent to a third party has been changed to require only that
amounts due, past due, and paid by or on behalf of the customer be sent
to the third party, since this information is all that is necessary to
assist customers in keeping up with their bills.
The State of Connecticut enacted legislation which provides that parents
and providers receive 30 days notice if their subsidy will be ending in
order to protect families from the financial distress that results when
parents lose their subsidies with very little notice.
(Connecticut Mirror, June 2, 2010, See
HTTP://WWW.CTMIRROR.ORG/STORV/6266/CARE-4-KIDS). New York must protect
its families as well.
FISCAL IMPACT ON THE STATE:
None
FISCAL IMPACT ON LOCALITIES:
None, except to the extent they may function as utilities.
IMPACT ON REGULATION OF BUSINESSES AND INDIVIDUALS:
Affected. Service providers would be required to permit third party
notifications.
IMPACT ON FINES, IMPRISONMENT. FORFEITURE OF RIGHTS, OR OTHER PENAL
SANCTIONS:
None.
LEGISLATIVE HISTORY:
2022: A422 (Rozic) - Corporations, Authorities & Commissions
2021: A422 (Rozic) - Corporations, Authorities & Commissions
2020: A3743 (Rozic) - Corporations, Authorities & Commissions
2019: A3743 (Rozic) - Corporations, Authorities & Commissions
2018: A9696 (Rozic) - Corporations, Authorities & Commissions
2017: A04355 (Kavanagh) Corporations, Authorities and Commissions
2016: A05794 (Kavanagh) Corporations, Authorities and Commissions
2015: A05794 (Kavanagh) Corporations, Authorities and Commissions
2014: A03907 (Kavanagh) - Corporations, Authorities and Commissions
2013: A03907 (Kavanagh) - Corporations, Authorities and Commissions
2012: A03693 (Kavanagh) - Third Reading
2011: A03693 (Kavanagh) - Third Reading
2010: A00509 (Kavanagh) - Passed Assembly
2009: A00509 (Kavanagh) - Passed Assembly
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
1368
2023-2024 Regular Sessions
IN ASSEMBLY
January 17, 2023
___________
Introduced by M. of A. ROZIC, COLTON, RIVERA, L. ROSENTHAL -- Multi-
Sponsored by -- M. of A. J. M. GIGLIO, LUPARDO, PEOPLES-STOKES,
ZEBROWSKI -- read once and referred to the Committee on Corporations,
Authorities and Commissions
AN ACT to amend the public service law and the general business law, in
relation to third party notification
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 40 of the public service law, as amended by chapter
2 631 of the laws of 1992, is amended to read as follows:
3 § 40. Voluntary third-party [notice prior to termination of service]
4 notification. 1. Every utility corporation or municipality shall permit
5 a residential customer to designate a third-party to receive notice of
6 the total amount due or past due on all bills, the amounts of any
7 payments paid by or on behalf of such residential customer, and copies
8 of all notices relating to termination of service [or] and notices
9 relating to collection of amounts due sent to such residential customer,
10 provided that the designated third-party indicates in writing a willing-
11 ness to receive such notices.
12 2. Every utility corporation or municipality shall permit a landlord,
13 upon written request of both the landlord and tenant, to designate a
14 third-party to be notified of all requests for discontinuance of service
15 to units owned by such landlord.
16 § 2. The general business law is amended by adding a new section 393-f
17 to read as follows:
18 § 393-f. Voluntary third-party notification. 1. Every telegraph or
19 telephone corporation, cable television corporation, cellular phone
20 company, or municipality shall permit a residential customer to desig-
21 nate a third-party to receive notice of the total amount due or past due
22 on all bills, the amounts of any payments paid by or on behalf of such
23 residential customer, and copies of all notices relating to termination
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00459-01-3
A. 1368 2
1 of service and notices relating to collection of amounts due sent to
2 such residential customer, provided that the designated third-party
3 indicates in writing a willingness to receive such notices.
4 2. Every telegraph or telephone corporation, cable television corpo-
5 ration, cellular phone company, or municipality shall permit a landlord,
6 upon written request of both the landlord and tenant, to designate a
7 third-party to be notified of all requests for discontinuance of service
8 to units owned by such landlord.
9 § 3. This act shall take effect on the ninetieth day after it shall
10 have become a law.
