BILL NUMBER: S1060
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
2023-2024: S723 - 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.

Statutes affected:
S1060: 92-f public service law, 92-f(8) public service law