Enacts the "automatic utility deferment act" which requires regulated utility providers to automatically suspend termination of service and waive late payment penalties for state employees who are subject to a payroll freeze because the state budget was not passed by April first.
STATE OF NEW YORK
________________________________________________________________________
11090
IN ASSEMBLY
April 24, 2026
___________
Introduced by M. of A. HOOKS -- read once and referred to the Committee
on Corporations, Authorities and Commissions
AN ACT to amend the public service law, in relation to enacting the
"automatic utility deferment act"
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "automatic utility deferment act".
3 § 2. The public service law is amended by adding a new section 119-f
4 to read as follows:
5 § 119-f. Automatic utility deferment for state employees. 1. For
6 purposes of this section, the following terms shall have the following
7 meanings:
8 (a) "Payroll freeze" shall mean any period in which New York state
9 employees do not receive scheduled compensation due to a lapse or delay
10 in enacted appropriations.
11 (b) "Covered employee" shall mean any individual employed on the New
12 York state payroll, including state agency employees, legislative staff,
13 and elected officials.
14 (c) "Regulated utility provider" shall mean any gas corporation, elec-
15 tric corporation, gas and electric corporation, water corporation, steam
16 corporation, municipality rendering equivalent utility services or
17 internet service provider subject to regulation by the commission.
18 (d) "Deferment period" shall mean the duration beginning on the date a
19 payroll freeze takes effect and ending on the date full payroll is
20 restored.
21 (e) "Internet service provider" means any telephone corporation or
22 cable television company that provides individuals, corporations, or
23 other entities with the ability to connect to the internet.
24 2. Upon the commencement of a payroll freeze resulting from a failure
25 to enact the state budget by the first of April in a given year, all
26 regulated utility providers shall automatically suspend termination of
27 service and waive late payment penalties for covered employees for the
28 duration of the deferment period.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15541-01-6
A. 11090 2
1 3. Such deferment period shall apply automatically to covered employ-
2 ees following the declaration of a payroll freeze. No application shall
3 be necessary for covered employees to be granted such deferment period.
4 4. Deferred utility balances shall be repaid by the covered employee
5 on a structured payment plan, commencing no sooner than sixty days after
6 full payroll restoration, divided over a period not to exceed twelve
7 months.
8 5. The commission shall have the authority to enforce the provisions
9 of this section, and a regulated utility corporation which violates any
10 provision of this section shall be subject to penalties as provided in
11 section twenty-five of this chapter or any other applicable provision of
12 this chapter.
13 6. Regulated utility providers shall not report deferred balances to
14 credit reporting agencies during any deferment period or during any
15 structure repayment period.
16 7. Nothing in this section shall be construed to permanently forgive
17 or eliminate any utility debt owed by a covered employee.
18 § 3. Section 32 of the public service law is amended by adding a new
19 subdivision 3-a to read as follows:
20 3-a. A utility corporation or municipality shall be prohibited from
21 terminating any residential utility service of a customer who is a state
22 employee pursuant to the provisions of section one hundred nineteen-f of
23 this chapter.
24 § 4. This act shall take effect immediately.
