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

---

S3729-2013 Actions

• Feb 13, 2013: REFERRED TO ENERGY AND TELECOMMUNICATIONS

S3729-2013 Memo

BILL NUMBER:S3729

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 limita-
tion 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:

-Calculate usage charges by rounding up beyond the next minute.

-Charge for unconnected calls.

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

-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. Unfortu-
nately, due to unscrupulous 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.

This bill seeks to put an end to these problems by establishing fair
standards and enhancing the disclosure requirements so consumers have a
clear understanding of what they're getting when purchasing calling
cards.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None to the State.

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

S3729-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    3729

                         2013-2014 Regular Sessions

                              I N  SENATE

                              February 13, 2013
                                 ___________

  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.
    S 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.
    S  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.
                                                             LBD00471-01-3