Bill Text: NY S00824 | 2017-2018 | General Assembly | Introduced

---

Bill Title: Relates to establishing a cap that limits the amount a consumer may be charged for leasing a modem from a cable or internet provider.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO CONSUMER PROTECTION [S00824 Detail]

Download: New_York-2017-S00824-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                           824
                               2017-2018 Regular Sessions
                    IN SENATE
                                     January 5, 2017
                                       ___________
        Introduced  by  Sen.  FUNKE  -- 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, in relation to establishing  a
          cap  that  limits  the  amount a consumer may be charged for leasing a
          modem from a cable or internet provider
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The general business law is amended by adding a new article
     2  28-F to read as follows:
     3                                ARTICLE 28-F
     4             LEASING OF MODEMS FROM CABLE OR INTERNET PROVIDERS
     5  Section 495-a. Purpose.
     6          495-b. Definitions.
     7          495-c. Prohibited acts.
     8          495-d. Enforcement by the attorney general.
     9          495-e. Civil penalty.
    10    § 495-a. Purpose. The purpose of this article is to limit the amount a
    11  cable  or  internet  provider  may  charge  consumers for the lease of a
    12  modem.
    13    § 495-b. Definitions. For the purposes of  this  article:  1.  "Modem"
    14  means  an electronic device that makes possible the transmission of data
    15  to or from a computer via telephone or other communication lines.
    16    2. "Lease" means a contract or instrument conveying property to anoth-
    17  er for a specified period or for a period determinable at  the  will  of
    18  either lessor or lessee in consideration of compensation.
    19    3.  "Internet  or  cable provider" means an organization that provides
    20  services for accessing, using,  or  participating  on  the  internet  or
    21  cable.
    22    §  495-c.  Prohibited  acts.  1.  No  cable or internet provider shall
    23  charge any consumer an amount which is more than  sixteen  percent  over
    24  the actual cost of the modem device paid by the provider.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03772-01-7
        S. 824                              2
     1    2.  A  cable or internet provider shall disclose in an initial billing
     2  correspondence: (a) the amount the modem costs  the  provider,  (b)  how
     3  many  payments  the  consumer  must  make on the modem in total, and (c)
     4  information regarding how or where a consumer may purchase  a  modem  at
     5  retail.
     6    3.  No  cable or internet provider shall charge any consumer a monthly
     7  fee for the lease or use of a new modem beyond twelve months  after  the
     8  modem has been provided by such cable or internet provider. If an inter-
     9  net  or cable provider replaces the customer's existing modem with a new
    10  modem during or after such twelve  month  period  an  additional  twelve
    11  month period shall commence.
    12    4. No cable or internet provider shall charge an additional or monthly
    13  fee for the maintenance of a provided modem.
    14    §  495-d.  Enforcement  by attorney general. Whenever there shall be a
    15  violation of this article, application  may  be  made  by  the  attorney
    16  general in the name of the people of the state of New York to a court or
    17  justice  having jurisdiction by a special proceeding to issue an injunc-
    18  tion, and upon notice to the defendant of not less than  five  days,  to
    19  enjoin  and restrain the continuance of such violations; and if it shall
    20  appear to the satisfaction of the court or justice  that  the  defendant
    21  has, in fact, violated this article, an injunction may be issued by such
    22  court or justice, enjoining and restraining any further violation, with-
    23  out  requiring  proof  that  any  person  has,  in fact, been injured or
    24  damaged thereby. In any such proceeding, the court may  make  allowances
    25  to  the attorney general as provided in paragraph six of subdivision (a)
    26  of section eighty-three hundred three of  the  civil  practice  law  and
    27  rules.
    28    §  495-e.  Civil  penalty.  Whenever  the court shall determine that a
    29  violation of this article has occurred, the court  may  impose  a  civil
    30  penalty  of  not  more  than five hundred dollars for each violation. In
    31  connection with any such proposed application, the attorney  general  is
    32  authorized  to take proof and make a determination of the relevant facts
    33  and to issue subpoenas in accordance with the  civil  practice  law  and
    34  rules.
    35    § 2. This act shall take effect immediately.