NY State Senate Bill 2021-S1367

Senate Bill S1367

2021-2022 Legislative Session

Requires disclosure terms relating to prepaid calling cards to be provided in languages other than English and increases fines for violations of disclosure requirements

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Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to energy and telecommunications
Jan 11, 2021	referred to energy and telecommunications

co-Sponsors

2021-S1367 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §92-f, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S3730
2015-2016: S949
2017-2018: S3455
2019-2020: S2065
2023-2024: S810

2021-S1367 (ACTIVE) - Summary

Requires disclosure terms relating to pre-paid calling cards to be provided in languages other than English and increases fines for violations of disclosure requirements.

2021-S1367 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1367

SPONSOR: SERRANO
 
TITLE OF BILL:

An act to amend the public service law, in relation to requiring disclo-
sure terms relating to prepaid calling cards to be provided in languages
other than English and increasing fines for violations of disclosure
requirements

 
PURPOSE:

To enhance consumer protection in prepaid calling cards.

 
SUMMARY OF PROVISIONS:

Creates subdivision 3-a of section 92-f of the public service law to
require that if any language other than English is used in the sale or
advertising of prepaid calling cards then that language must likewise be
used in disclosure provisions.

-Defines "promotional material."

-Creates a requirement of clear and conspicuous disclosure in the sale
of prepaid calling cards over the Internet.

-Requires any promotional calling rate to state the expiration of the
promotional rate.

-Requires the disclosure of any additional surcharge associated with the
calling rate.

-increases the penalties for any violations of the act.

 
JUSTIFICATION:

Calling cards are often used by new immigrants with families and friends
abroad and by friends and families of military personnel as a means to
make inexpensive phone calls overseas. A study by Consumer Reports
unveiled some of the unscrupulous practices that result in calling card
consumers getting less than what they bargained for.  Among a few of
their findings:

-Of the 130 calling cards purchased about three quarters of the cards
didn't disclose the proper rates.

-Many of the cards had unclear post-call fees, periodic fees, and
surcharges.

-Other calling cards that did display fees or disclosure information did
so in font so small that a magnifying glass was needed. This bill seeks
to put an end to these problems by establishing fair standards and
enhancing the disclosure requirements so consumers have a clear under-
standing of what they're getting when purchasing calling cards.

 
LEGISLATIVE HISTORY:

2013: S.3730- Referred to Energy & Telecommunications 2014: S.3730-
Reported and committed to Finance
2015-2016: S.949 - Referred to Energy & Telecommunications
2017-2018: S.3455 - Referred to Energy & Telecommunications
2019-2020: S.2065 - Referred to Energy & Telecommunications

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect 120 days after it shall have become a law.

2021-S1367 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1367
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 11, 2021
                                ___________
 
 Introduced  by  Sens. SERRANO, PARKER -- read twice and ordered printed,
   and when printed to be committed to the Committee on Energy and  Tele-
   communications
 
 AN ACT to amend the public service law, in relation to requiring disclo-
   sure  terms  relating  to  prepaid  calling  cards  to  be provided in
   languages other than English and increasing fines  for  violations  of
   disclosure requirements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 92-f of the public service law is amended by adding
 a new subdivision 3-a to read as follows:
   3-A. A. IF A LANGUAGE OR LANGUAGES OTHER THAN ENGLISH  IS  USED  ON  A
 PREPAID  TELEPHONE  CALLING  CARD,  ITS  PACKAGING,  OR IN POINT OF SALE
 ADVERTISING, OR PROMOTIONAL MATERIAL RELATING TO A PREPAID CALLING  CARD
 OR  PREPAID  TELEPHONE CALLING SERVICE, ALL DISCLOSURE REQUIRED PURSUANT
 TO THE PROVISIONS OF THIS SECTION SHALL BE PROVIDED IN THE SAME LANGUAGE
 OR  LANGUAGES,  IN  ADDITION  TO  ENGLISH.  ALL  NON-ENGLISH  DISCLOSURE
 PROVISIONS  SHALL BE CLEARLY PRINTED IN A CLEAR AND CONSPICUOUS LOCATION
 ON THE CALLING CARD ITSELF, OR IF THE CALLING CARD IS PACKAGED IN OPAQUE
 PACKING, ON THE PACKAGING.
   B. AS USED IN THIS SUBDIVISION, "PROMOTIONAL  MATERIAL"  INCLUDES  ALL
 MATERIALS PREPARED BY THE COMPANY THAT PROVIDES PREPAID CALLING SERVICES
 THROUGH  PREPAID  CALLING  CARDS  AND  ANY  SIGNS  FOR DISPLAY BY RETAIL
 MERCHANTS OR ANY OTHER PROMOTIONAL MATERIAL  THAT  IS  PREPARED  AT  THE
 DIRECTION OF THE PREPAID CALLING SERVICE.
   C.  IF  THE  CALLING CARD IS PURCHASED ON THE INTERNET, THE DISCLOSURE
 REQUIREMENTS SHALL BE DISPLAYED IN A CLEAR AND CONSPICUOUS  LOCATION  ON
 THE  WEBSITE  THROUGH  WHICH  THE  CALLING  CARD IS PURCHASED, INCLUDING
 INSTRUCTIONS AND DIRECTIONS TO ANY LINK WITH SUCH DISCLOSURES, PRIOR  TO
 PURCHASING THE SERVICES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03277-01-1

 S. 1367                             2
 
   § 2. Subdivision 3 of section 92-f of the public service law, as added
 by chapter 651 of the laws of 1999, is amended to read as follows:
   3.  Any company that provides prepaid calling services through prepaid
 calling cards shall print legibly on each card or packaging the  follow-
 ing information:
   a.  any  surcharges  or  fees, including monthly fees, per-call access
 fees, or surcharges for the first minute of use that may  be  applicable
 to the use of the prepaid calling card or prepaid calling services with-
 in the United States;
   b.  any additional or different prices, rates, or unit values applica-
 ble to international usage of the prepaid calling card or prepaid  call-
 ing services;
   c. any minimum charge per call, such as a three minute minimum charge;
   d. any charge for calls that do not connect; [and,]
   e. any recharge policy[.];
   F. IF APPLICABLE, THE EXPIRATION DATE OR OTHER LIMITATION ON THE PERI-
 OD OF TIME FOR WHICH THE DISPLAYED, PROMOTED, OR ADVERTISED MINUTES WILL
 BE AVAILABLE TO THE CUSTOMER; AND
   G.  ANY  CONNECTION  OR  DISCONNECTION FEE OR ANY SURCHARGE ASSOCIATED
 WITH THE CALLING CARD THAT IS NOT PART OF THE STANDARD  RATE  ASSOCIATED
 WITH EACH MINUTE USED BY THE CARD.
   § 3. Subdivision 8 of section 92-f of the public service law, as added
 by chapter 651 of the laws of 1999, is amended to read as follows:
   8.  Enforcement.  The commission shall have the power, consistent with
 federal law, to assess a penalty  not  to  exceed  [one]  FIVE  thousand
 dollars  against  any  company  that  provides  prepaid calling cards or
 services that knowingly fails or neglects to comply with  any  provision
 of  this section or any regulation or order of the commission implement-
 ing or enforcing the provisions of this section FOR  A  FIRST  VIOLATION
 AND  TEN  THOUSAND  DOLLARS  FOR  A  SECOND OR SUBSEQUENT VIOLATION. All
 moneys recovered from any administrative penalty shall be paid into  the
 state treasury to the credit of the general fund.
   § 4. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

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Senate Bill S1367

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Sponsored By

Jose M. Serrano