S T A T E O F N E W Y O R K
________________________________________________________________________
1838
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sens. PARKER, HASSELL-THOMPSON -- read twice and ordered
printed, and when printed to be committed to the Committee on Consumer
Protection
AN ACT to amend the general business law and the public service law, in
relation to the provision of residential wireless telephone service
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "wireless telephone service consumer protection act".
S 2. Statement of legislative findings and purpose. The legislature
finds that residential consumers in New York are offered the opportunity
to purchase wireless telephone service from a variety of service provid-
ers and that the conduct of such providers in making and implementing
these offers varies widely. In many instances, consumers are required to
evaluate service offerings without receiving a full and fair disclosure
of the terms of the service offering or an adequate means to evaluate
the offering in practice. The purpose of this legislation is to provide
a regulatory program for wireless telephone service provider conduct and
for the terms and conditions of such service other than the entry of or
the rates charged by any such provider.
S 3. The general business law is amended by adding a new section 398-e
to read as follows:
S 398-E. DISCLOSURE, NOTIFICATION AND CONSUMER PROTECTION REQUIREMENTS
IN WIRELESS TELECOMMUNICATIONS CONSUMER TRANSACTIONS. 1. DEFINITIONS.
FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
(A) "AUTHORIZED RETAILER" MEANS A RETAILER AUTHORIZED BY A WIRELESS
TELEPHONE SERVICE CARRIER, INCLUDING RESELLERS OF WIRELESS TELEPHONE
SERVICE PROVIDED BY A WIRELESS TELEPHONE SERVICE CARRIER, TO BE AN AGENT
OF SUCH WIRELESS TELEPHONE CARRIER OR RESELLER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05389-01-3
S. 1838 2
(B) "DIVISION" MEANS THE CONSUMER PROTECTION DIVISION.
(C) "ENHANCED WIRELESS 911 SERVICE" MEANS THE SERVICE REQUIRED TO BE
PROVIDED BY WIRELESS TELEPHONE SERVICE PROVIDERS PURSUANT TO THE FCC
ORDER.
(D) "FCC ORDER" MEANS ALL ORDERS ISSUED BY THE FEDERAL COMMUNICATIONS
COMMISSION PURSUANT TO THE PROCEEDING ENTITLED "REVISION OF THE COMMIS-
SION'S RULE TO ENSURE COMPATIBILITY WITH ENHANCED 911 EMERGENCY CALLING
SYSTEMS (CC DOCKET NO. 94-102; RM-8143) OR ANY SUCCESSOR PROCEEDING,
REGARDING THE DELIVERY OF ANI AND ALI AS OF THE DATES AND ACCORDING TO
THE OTHER CRITERIA ESTABLISHED THEREIN AND THE RULES ADOPTED BY THE
FEDERAL COMMUNICATIONS COMMISSION IN ANY SUCH PROCEEDING, AS SUCH RULES
MAY BE AMENDED FROM TIME TO TIME.
(E) "SECRETARY" MEANS THE SECRETARY OF THE CONSUMER PROTECTION DIVI-
SION.
(F) "SERVICE PLAN" MEANS A CONTRACT ENTERED INTO BETWEEN A WIRELESS
TELEPHONE SERVICE CARRIER AND A RETAIL CUSTOMER FOR THE PROVISION OF
WIRELESS TELEPHONE SERVICE OVER A MUTUALLY AGREED UPON PERIOD OF TIME.
(G) "WIRELESS TELEPHONE SERVICE" MEANS A TWO-WAY REAL TIME VOICE TELE-
COMMUNICATIONS SERVICE THAT IS INTERCONNECTED TO A PUBLIC SWITCHED TELE-
PHONE NETWORK AND IS PROVIDED BY A COMMERCIAL MOBILE RADIO SERVICE, AS
SUCH TERM IS DEFINED BY 47 C.F.R. SECTION 20.3; PROVIDED, HOWEVER, FOR
THE PURPOSES OF THIS SECTION, THE TERM WIRELESS TELEPHONE SERVICE SHALL
NOT INCLUDE A PREPAID CALLING SERVICE AS THAT TERM IS DEFINED IN SECTION
NINETY-TWO-F OF THE PUBLIC SERVICE LAW.
(H) "WIRELESS TELEPHONE SERVICE CARRIER" MEANS A COMMERCIAL MOBILE
RADIO SERVICE PROVIDER OF WIRELESS TELEPHONE SERVICE AS SUCH TERM IS
DEFINED IN THE UNITED STATES CODE OF FEDERAL REGULATIONS 47 C.F.R. 20.3
OR A RESELLER OF WIRELESS TELEPHONE SERVICE PROVIDED BY A COMMERCIAL
MOBILE RADIO SERVICE AS DEFINED BY SUCH 47 C.F.R 20.3.
2. DISCLOSURE REQUIREMENTS. (A) EVERY WIRELESS TELEPHONE SERVICE
PROVIDER AND AUTHORIZED RETAILER SHALL MAKE AVAILABLE CLEAR, CONSPICU-
OUS, PLAIN LANGUAGE DISCLOSURES TO EACH CUSTOMER OR POTENTIAL CUSTOMER
AT RETAIL SALES LOCATIONS OF SUCH WIRELESS TELEPHONE CARRIER OR AUTHOR-
IZED RETAILER AND ON ANY INTERNET WEBSITE WHERE A WIRELESS TELEPHONE
SERVICE PLAN CAN BE ENTERED INTO, OF THE FOLLOWING INFORMATION CONCERN-
ING ANY PLAN OR PROPOSED PLAN OFFERED FOR THE PROVISION OF RESIDENTIAL
WIRELESS TELEPHONE SERVICE TO SUCH CUSTOMER:
I. THE CALLING AREA FOR THE PLAN;
II. THE MONTHLY ACCESS FEE OR BASE CHARGE;
III. THE NUMBER OF AIRTIME MINUTES INCLUDED IN THE PLAN;
IV. ANY NIGHT AND WEEKEND MINUTES INCLUDED IN THE PLAN OR OTHER
DIFFERING CHARGES FOR DIFFERENT TIME PERIODS AND THE TIME PERIODS WHEN
NIGHT AND WEEKEND MINUTES OR OTHER CHARGES APPLY;
V. THE CHARGES FOR EXCESS OR ADDITIONAL MINUTES;
VI. WHETHER OR NOT, AND THE EXTENT TO WHICH, PER-MINUTE DOMESTIC OR
INTERNATIONAL LONG DISTANCE CHARGES ARE INCLUDED IN OTHER RATES, AND, TO
THE EXTENT NOT INCLUDED, THE APPLICABLE PER-MINUTE LONG DISTANCE RATES;
VII. PER-MINUTE ROAMING OR OFF-NETWORK CHARGES;
VIII. THE AMOUNT OF ANY ADDITIONAL TAXES, FEES, OR SURCHARGES THAT
WILL BE COLLECTED OR RETAINED BY THE WIRELESS TELEPHONE SERVICE PROVID-
ER;
IX. IF THE PLAN REQUIRES A FIXED-TERM CONTRACT, THE DURATION OF SUCH
CONTRACT;
X. THE AMOUNT OF ANY EARLY TERMINATION FEE AND THE CONDITIONS UNDER
WHICH ANY SUCH EARLY TERMINATION FEE WOULD APPLY, INCLUDING THE LENGTH
OF ANY TRIAL PERIOD DURING WHICH NO EARLY TERMINATION FEE WOULD APPLY;
S. 1838 3
XI. A STATEMENT NOTIFYING THE CUSTOMER THAT THE SERVICE INCLUDES BASIC
WIRELESS 911 SERVICE;
XII. THE INFORMATION WHICH IS INCLUDED IN THE EDUCATIONAL PLAN FOR
INFORMING THE PUBLIC ABOUT THE ENHANCED WIRELESS 911 SERVICE IN NEW YORK
STATE REQUIRED BY SUBDIVISION EIGHT OF SECTION THREE HUNDRED
TWENTY-EIGHT OF THE COUNTY LAW AND WHICH IS AN EXPLANATION OF THE
ENHANCED WIRELESS 911 SYSTEM AND A PROGRESS REPORT ON THE
COUNTY-BY-COUNTY IMPLEMENTATION OF THE STATEWIDE SYSTEM AND THE
TOLL-FREE HOTLINE AND WEBSITE INFORMATION TO PERMIT THE CONSUMER TO
ACCESS SUCH INFORMATION VIA THE INTERNET IN ACCORDANCE WITH SUBDIVISION
EIGHT OF SECTION THREE HUNDRED TWENTY-EIGHT OF THE COUNTY LAW;
XIII. A COVERAGE MAP PREPARED BY THE PROVIDER USING GENERALLY ACCEPTED
INDUSTRY METHODOLOGIES AND STANDARDS; AND
XIV. BASED UPON CUSTOMER SUPPLIED INFORMATION REGARDING ANTICIPATED
USAGE PATTERNS, A GOOD FAITH ESTIMATE OF THE MONTHLY FIXED AND USAGE
CHARGES AND ADDITIONAL TAXES, FEES, OR SURCHARGES AND OF THE ANTICIPATED
TOTAL MONTHLY BILL FOR SUCH CUSTOMER UNDER SUCH PLAN, EXCEPT THAT THIS
PROVISION SHALL NOT APPLY TO WIRELESS SERVICE THAT IS PRE-PAID PRIOR TO
ACTIVATION OF SERVICE AND THAT IS NOT SUBJECT TO MONTHLY BILLING AFTER
ACTIVATION OF SERVICE.
(B) AT THE TIME A CUSTOMER INITIATES A WIRELESS SERVICE PLAN, THE
CARRIER SHALL, OR IF THE CUSTOMER INITIATES A WIRELESS SERVICE PLAN
THROUGH AN AUTHORIZED RETAILER, THE AUTHORIZED RETAILER SHALL, PROVIDE
OR CONFIRM IN WRITING ALL OF THE INFORMATION REQUIRED IN PARAGRAPH (A)
OF THIS SUBDIVISION AS IT APPLIES TO THE SPECIFIC CONTRACT ENTERED INTO
BY THE NEW CUSTOMER PRIOR TO THE FINALIZATION OF THE TRANSACTION,
PROVIDED, HOWEVER WHEN AN EXISTING CUSTOMER OF A WIRELESS SERVICE CARRI-
ER AGREES TO A CHANGE IN SERVICE WHICH RESULTS IN AN EXTENSION OF A
CONTRACT BETWEEN THE CUSTOMER AND SUCH CARRIER, THE CARRIER SHALL
PROVIDE OR CONFIRM SUCH CHANGE IN SERVICE.
3. BILLING. EXCEPT FOR WIRELESS SERVICE THAT IS PRE-PAID PRIOR TO
ACTIVATION OF SERVICE AND THAT IS NOT SUBJECT TO MONTHLY BILLING AFTER
ACTIVATION OF SERVICE, WIRELESS TELEPHONE SERVICE CARRIERS' BILLING
STATEMENTS SHALL:
(A) BE CLEARLY ORGANIZED AND DESCRIBE IN PLAIN LANGUAGE THE PRODUCTS
AND SERVICES FOR WHICH CHARGES ARE IMPOSED;
(B) DISTINGUISH CHARGES THAT ARE DIRECTLY RELATED TO SERVICE AND
FEATURES RETAINED BY THE CARRIER FROM TAXES, FEES AND OTHER CHARGES THAT
ARE COLLECTED AND REMITTED BY THE CARRIER TO ANY FEDERAL, STATE OR LOCAL
GOVERNMENT ENTITY;
(C) NOT INCLUDE ANY CHARGES OR FEES FOR PRODUCTS AND SERVICES UNLESS
AUTHORIZED BY THE CUSTOMER;
(D) ITEMIZE ROAMING CHARGES WITHIN SIXTY DAYS OF THE CALL BEING PLACED
AND IDENTIFY THE DATE AND ORIGINATING LOCATION OF THE CALL;
(E) INCLUDE THE TOLL-FREE NUMBER MAINTAINED BY THE DIVISION WHICH
RECEIVES COMPLAINTS FROM WIRELESS TELEPHONE SERVICE CUSTOMERS RELATING
TO THEIR WIRELESS SERVICE; AND
(F) FOR THE PURPOSES OF THIS SUBDIVISION, WIRELESS TELEPHONE SERVICE
CARRIERS MAY NOT LABEL COST RECOVERY FEES OR CHARGES AS TAXES.
4. TRIAL PERIOD. THE TERMS ON WHICH WIRELESS TELEPHONE SERVICES ARE
PROVIDED TO ANY CUSTOMER SHALL INCLUDE A TRIAL PERIOD WHICH SHALL END NO
EARLIER THAN FIFTEEN DAYS AFTER THE FIRST BILL IS RENDERED TO SUCH
CUSTOMER FOLLOWING SERVICE ACTIVATION AND DURING WHICH PERIOD SUCH
CUSTOMER MAY, AFTER PAYMENT FOR SERVICES USED, TERMINATE SUCH SERVICE
WITHOUT INCURRING ANY TERMINATION FEES OR CHARGES OR ANY OTHER PENALTY
OF ANY KIND, AND MAY, UPON RETURN OF ANY HANDSET BOUGHT OR LEASED IN
S. 1838 4
CONNECTION WITH SUCH SERVICE, RECEIVE A PRO RATED REFUND OF ANY AMOUNTS
PAID FOR SUCH A HANDSET.
5. CONSUMER COMPLAINTS; IMPLEMENTING REGULATIONS; PENALTIES FOR
VIOLATIONS. (A) WIRELESS TELEPHONE SERVICE CUSTOMERS MAY FILE COMPLAINTS
RELATED TO THEIR WIRELESS SERVICE WITH THE SECRETARY OF THE DIVISION,
WHO IS AUTHORIZED TO RESOLVE SUCH COMPLAINTS. THE SECRETARY OR HIS OR
HER DESIGNEE IS AUTHORIZED TO CONDUCT SUCH INVESTIGATIONS AS MAY BE
NECESSARY TO RESOLVE SUCH COMPLAINTS, TO ADMINISTER OATHS AND TAKE AFFI-
DAVITS IN RELATION TO ANY MATTER OR PROCEEDING IN THE EXERCISE OF POWERS
AND DUTIES UNDER THIS SECTION, AND TO SUBPOENA AND REQUIRE THE ATTEND-
ANCE OF WITNESSES AND THE PRODUCTION OF BOOKS, PAPERS, CONTRACTS AND ANY
OTHER DOCUMENTS PERTAINING TO ANY INVESTIGATION CONDUCTED PURSUANT TO
THIS SECTION. IF ANY PERSON REFUSES TO COMPLY WITH A SUBPOENA ISSUED
UNDER THIS PARAGRAPH, THE SECRETARY MAY PETITION A COURT OF COMPETENT
JURISDICTION TO ENFORCE THE SUBPOENA AND FOR SUCH SANCTIONS AS THE COURT
MAY ORDER.
(B) THE SECRETARY SHALL PROMULGATE ANY RULES AND REGULATIONS NECESSARY
TO IMPLEMENT THIS SECTION AND IS FURTHER AUTHORIZED TO ISSUE ANY ORDERS
NECESSARY TO ENFORCE THIS SECTION AND SUCH RULES AND REGULATIONS. EXCEPT
AS SHALL BE PRE-EMPTED BY FEDERAL LAW REGULATING WIRELESS TELEPHONE
SERVICE PROVIDERS, SUCH RULES AND REGULATIONS SHALL BE CONSISTENT WITH
FEDERAL LAW REGULATING WIRELESS TELEPHONE SERVICE OR PROVIDERS OF WIRE-
LESS TELEPHONE SERVICE.
(C) THE SECRETARY MAY ASSESS A CIVIL PENALTY NOT TO EXCEED TWO THOU-
SAND DOLLARS PER VIOLATION AGAINST ANY WIRELESS TELEPHONE SERVICE
PROVIDER OR AUTHORIZED RETAILER THAT NEGLECTS OR KNOWINGLY FAILS TO
COMPLY WITH ANY REQUIREMENT OF THIS SECTION, OF REGULATIONS PROMULGATED
UNDER THIS SECTION, OR OF ANY ORDER OF THE SECRETARY IMPLEMENTING OR
ENFORCING THIS SECTION OR REGULATIONS PROMULGATED THEREUNDER. ALL MONEYS
RECOVERED FROM ANY SUCH PENALTY SHALL BE PAID INTO THE STATE TREASURY TO
THE CREDIT OF THE GENERAL FUND.
6. REPORTING. AT LEAST ANNUALLY THE DIVISION SHALL REPORT CUSTOMER
COMPLAINTS BY CARRIER REGARDING WIRELESS TELEPHONE SERVICE IN THE STATE.
SUCH REPORT SHALL INCLUDE INFORMATION ON CARRIER CUSTOMER COMPLAINTS
FILED WITH AND RESOLVED BY THE SECRETARY. THE REPORT MAY INCLUDE AN
ANALYSIS OF SUCH COMPLAINTS AND RECOMMENDATIONS, IF ANY, TO ADDRESS ANY
ISSUES THAT ARE IDENTIFIED BY THE DIVISION.
7. APPLICABILITY. FOR PURPOSES OF THIS SECTION, THE WIRELESS TELEPHONE
SERVICE TO WHICH THE PROVISIONS OF THIS SECTION APPLY, IS BEING PROVIDED
OR BEING PROPOSED TO BE PROVIDED TO A RESIDENTIAL CUSTOMER WHERE THE
PLACE OF PRIMARY USE, AS THAT TERM IS USED IN SECTION ONE HUNDRED EIGHT-
Y-SIX-E OF THE TAX LAW, IS LOCATED IN THIS STATE.
8. SEVERABILITY. THE PROVISIONS OF THIS SECTION ARE SEVERABLE, AND IF
ANY PART OR PROVISION HEREOF, OR THE APPLICATION THEREOF TO ANY PERSON
OR CIRCUMSTANCE, SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURISDIC-
TION TO BE INVALID OR UNENFORCEABLE, SUCH JUDGMENT SHALL NOT AFFECT,
IMPAIR OR INVALIDATE THE REMAINING PROVISIONS OF THIS SECTION OR THE
APPLICATION OF ANY SUCH REMAINING PROVISIONS TO ANY PERSON OR CIRCUM-
STANCE, BUT SHALL BE CONFINED IN ITS OPERATION TO THE PROVISION, PERSON
OR CIRCUMSTANCE DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDG-
MENT SHALL HAVE BEEN RENDERED.
S 4. Paragraph a of subdivision 6 of section 5 of the public service
law, as added by chapter 684 of the laws of 1997, is amended to read as
follows:
a. Application of the provisions of this chapter to cellular telephone
services is suspended unless the commission, no sooner than one year
S. 1838 5
after the effective date of this subdivision, makes a determination,
after notice and hearing, that suspension of the application of the
provisions of this chapter shall cease to the extent found necessary to
protect the public interest; PROVIDED, HOWEVER, THAT NOTHING IN THIS
PARAGRAPH SHALL SUSPEND OR LIMIT THE AUTHORITY PROVIDED TO THE CONSUMER
PROTECTION DIVISION IN SECTION NINETY-FOUR-A OF THE EXECUTIVE LAW TO
IMPLEMENT THE PROVISIONS OF LAW CONTAINED THEREIN OR TO PROMULGATE AND
ENFORCE REGULATIONS TO AFFORD CONSUMER PROTECTIONS TO RESIDENTIAL
CUSTOMERS OF CELLULAR OR WIRELESS TELEPHONE SERVICE PROVIDERS.
S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided that the secretary of the consumer
protection division is authorized, on or before such date, to promulgate
any and all rules and regulations and to take any other measures neces-
sary to implement this act on such effective date.