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: A5794
SPONSOR: Kavanagh (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 offering 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.
LEGISLATIVE HISTORY:
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
FISCAL IMPACT ON THE STATE:
None
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.
