Limits certain charging practices by companies that provide prepaid telephone calling cards and increases fines for violations of limitation requirements.
Summary
S01060 would amend the Public Service Law to regulate how companies that sell prepaid telephone calling cards charge customers for calls. The bill prohibits three specific practices: rounding usage charges beyond the next minute, charging for calls that are not connected (including dropped calls, unanswered calls, and busy signals), and advertising that there is no connection fee when a disconnection fee is actually imposed. In effect, it is a consumer-protection measure aimed at making prepaid calling card billing more transparent and preventing customers from being charged for time or services they did not receive.
The bill also increases civil penalties for violations. Under the amended enforcement provision, the Public Service Commission could assess up to $5,000 for a first violation and $10,000 for a second or subsequent violation against companies that knowingly fail to comply with the statute or related commission rules. The measure would take effect 120 days after becoming law, and any penalties collected would be deposited into the state general fund.
Impact
This bill would modify section 92-f of the Public Service Law by adding new restrictions on prepaid calling card billing practices and by strengthening the enforcement penalties available to the Public Service Commission. It would directly affect companies that provide prepaid telephone calling cards or prepaid calling services, requiring them to change billing systems, advertising, and fee disclosures to comply with the new standards. Consumers using prepaid calling cards would gain protections against minute-rounding and charges for unconnected calls, while the state would gain higher penalty authority for enforcement.
Sentiment
The available voting history suggests broad support for the bill. It passed the Senate Energy and Telecommunications Committee unanimously, 9-0, and later passed the Senate floor by a wide margin, 52-1. That voting pattern indicates the measure was generally viewed favorably as a consumer-protection and billing-fairness bill, with little recorded opposition in the available materials.
Contention
The main points of contention, to the extent they are visible from the text and votes, would likely center on the cost and operational burden for prepaid calling card companies, which would need to alter billing practices and advertising to comply. Another possible issue is the increase in penalties, especially the jump to $10,000 for repeat violations, which could be viewed as a stronger enforcement tool by supporters but as a heavier regulatory burden by industry. However, the near-unanimous committee and floor votes suggest these concerns did not generate significant opposition in the recorded proceedings.
Limits certain charging practices by companies that provide prepaid telephone calling cards and increases fines for violations of limitation requirements
Limits certain charging practices by companies that provide prepaid telephone calling cards and increases fines for violations of limitation requirements.
Requires disclosure terms relating to prepaid calling cards to be provided in languages other than English and increases fines for violations of disclosure requirements
Relating to limitations on certain hiring practices relating to certain nonpermanent residents by certain companies that receive governmental contracts or financial benefits; authorizing civil penalties.
Establishing limitations on billing practices of Internet or telecommunications providers that fail to provide subscribed customers service for five or more days
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.
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.