Provides that the New York city municipal water finance authority shall include, incorporate, or pass through to consumers or customers any charge, fee, assessment, or rental payment imposed by a municipality upon the authority or water board for the use, occupancy, or rental of municipal property, infrastructure, or rights-of-way.
STATE OF NEW YORK
________________________________________________________________________
8917
IN SENATE
January 15, 2026
___________
Introduced by Sen. COMRIE -- read twice and ordered printed, and when
printed to be committed to the Committee on Corporations, Authorities
and Commissions
AN ACT to amend the public authorities law, in relation to prohibiting
certain charges to finance water infrastructure
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative intent. The legislature hereby finds and
2 declares that water and sewer services are essential public necessities.
3 The practice of imposing "rental payments" or analogous charges by muni-
4 cipalities upon water authorities or water boards, and subsequently
5 passing those costs on to ratepayers, functions as an indirect tax on
6 essential services. Such charges disproportionately burden low-income
7 households and undermine public confidence in the financing of water
8 infrastructure. It is the purpose of this act to prohibit the passing of
9 such rental payment obligations onto consumers in the state of New York.
10 § 2. Section 1045-j of the public authorities law is amended by adding
11 a new subdivision 10 to read as follows:
12 10. (a) Notwithstanding any other provision of law to the contrary,
13 neither the authority, the water board, nor any municipality establish-
14 ing or served by such authority or board shall include, incorporate, or
15 pass through to consumers or customers any charge, fee, assessment, or
16 rental payment imposed by a municipality upon the authority or water
17 board for the use, occupancy, or rental of municipal property, infras-
18 tructure, or rights-of-way.
19 (b) Such charge, fee, assessment, or rental payment shall not be
20 considered an operating expense, capital expense, or revenue requirement
21 for purposes of calculating water or sewer rates, fees, or charges. Any
22 such rental payment obligation shall be borne solely by the municipality
23 that imposes it.
24 § 3. Preemption. This act shall supersede and preempt any local law,
25 ordinance, rule, or regulation inconsistent with its provisions, includ-
26 ing but not limited to any provision of the administrative code of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14090-01-5
S. 8917 2
1 city of New York authorizing the imposition or pass-through of rental
2 payment obligations on water or sewer customers.
3 § 4. Severability. If any clause, sentence, paragraph, subdivision, or
4 part of this act is adjudged invalid, such judgment shall not affect the
5 remainder of this act.
6 § 5. This act shall take effect immediately and shall apply to all
7 rate schedules, billing structures, and rental payment agreements
8 executed, renewed, or modified on or after such date. Any inconsistent
9 rate or fee structure in effect on the effective date of this act shall
10 be amended to comply with this act no later than one hundred eighty days
11 thereafter.
