NY State Senate Bill 2023-S723

Senate Bill S723

2023-2024 Legislative Session

Limits certain charging practices by companies that provide prepaid telephone calling cards and increases fines for violations of limitation requirements

download bill text pdf

Current 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 03, 2024	referred to energy and telecommunications
Jan 06, 2023	referred to energy and telecommunications

2023-S723 (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: S3729
2015-2016: S1176
2017-2018: S3451
2019-2020: S2063
2021-2022: S1365

2023-S723 (ACTIVE) - Summary

Limits certain charging practices by companies that provide prepaid telephone calling cards and increases fines for violations of limitation requirements.

2023-S723 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S723

SPONSOR: SERRANO
 
TITLE OF BILL:

An act to amend the public service  law, in relation to limiting certain
charging practices by companies that provide prepaid telephone calling
cards and increasing fines for violations of limitation requirements

 
PURPOSE:

To enhance consumer protection in prepaid calling cards.

 
SUMMARY OF PROVISIONS:

Creates a new subdivision 4-a of Section 92-F of the public service law
to prevent companies from:

- Calculating for usage charges by rounding up beyond the next minute.

- Charging or unconnected calls.

- Publicizing a connection fee if there is a disconnection fee.

The bill also increases penalties for 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. Unfortunately, due to unscrupu-
lous practices many consumers get less than what they bargain for. For
instance, many calling card companies round up to the next 3 or even 5
minute increment, while others advertise that there is no connection fee
for a call, but then charge a disconnection fee. A study by Consumer
Reports helped to unveil 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:

2013-2014:S.3729 - Referred to Energy and Telecommunications

2015-2016:S.1176 - Referred to Energy and Telecommunications

2017-2018:S.8451 - Referred to Energy and Telecommunications

2019-2020:S.2063 - Referred to Energy and Telecommunications

2021-2022:S.1365 - Referred to Energy and Telecommunications

 
FISCAL IMPLICATIONS:

None to the State.

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

2023-S723 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    723
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2023
                                ___________
 
 Introduced  by  Sen. SERRANO -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN ACT to amend the public service  law, in relation to limiting certain
   charging practices by companies that provide prepaid telephone calling
   cards and increasing fines for violations of limitation 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 4-a to read as follows:
   4-A. NO COMPANY THAT PROVIDES PREPAID CALLING SERVICES THROUGH PREPAID
 CALLING CARDS SHALL:
   A. CALCULATE USAGE CHARGES BY ROUNDING UP BEYOND THE NEXT  MINUTE  FOR
 TELEPHONE PHONE CALLS;
   B.  CHARGE  MINUTES  FOR  UNCONNECTED TELEPHONE PHONE CALLS, INCLUDING
 CALLS THAT ARE DROPPED OR TO WHICH THERE IS NO ANSWER OR A BUSY SIGNAL;
   C. PUBLICIZE OR  DISPLAY  ADVERTISEMENTS  STATING  THAT  THERE  IS  NO
 CONNECTION  FEE  ASSOCIATED  WITH  A  PLAN OR CALLING CARD IF THERE IS A
 DISCONNECTION FEE ASSOCIATED WITH THE PLAN OR CALLING CARD.
   § 2.  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.
   §  3.    This  act  shall take effect on the one hundred twentieth day
 after it shall have become a law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02784-01-3

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