Bill Text: NY S06182 | 2009-2010 | General Assembly | Introduced

New York Senate Bill 6182 (Prior Session Legislation)

Introduced

Bill Title: Requires disclosure of early termination fees.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-01-06 - REFERRED TO CONSUMER PROTECTION [S06182 Detail]

Download: New_York-2009-S06182-Introduced.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6182
                              2009-2010 Regular Sessions
                                   I N  S E N A T E
                                  September 23, 2009
                                      ___________
       Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
         printed to be committed to the Committee on Rules
       AN ACT to amend the general business law, in relation to the  disclosure
         of early termination fees
         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 section
    2  390-d to read as follows:
    3    S 390-D. EARLY TERMINATION FEE DISCLOSURE. 1.  FOR  PURPOSES  OF  THIS
    4  SECTION:
    5    (A)  "EARLY  TERMINATION FEE" MEANS ANY CHARGE OR FEE THAT IS PROVIDED
    6  FOR IN A CONTRACT OR AGREEMENT, INCLUDING ANY CONTRACT RENEWAL OR EXTEN-
    7  SION, THAT INCLUDES THE PROVISION OF VIDEO PROGRAMMING AND  IS  ASSESSED
    8  AGAINST  A  SUBSCRIBER WHEN A SUBSCRIBER TERMINATES FOR ANY REASON VIDEO
    9  PROGRAMMING SERVICE PRIOR TO THE END OF THE CONTRACT OR AGREEMENT.
   10    (B) "CONDITIONAL SALES PRICE" MEANS  ANY  PRICE  FOR  A  SERVICE  THAT
   11  INCLUDES  VIDEO PROGRAMMING AND WHICH IS AVAILABLE PURSUANT TO AN AGREE-
   12  MENT THAT INCLUDES AN EARLY TERMINATION FEE.
   13    (C) "MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR" SHALL HAVE THE  MEAN-
   14  ING AS SET FORTH IN 47 U.S.C. SECTION 522 (13).
   15    (D)  "VIDEO  PROGRAMMING"  SHALL  HAVE  THE MEANING AS SET FORTH IN 47
   16  U.S.C.  SECTION 522 (20).
   17    2. NO MULTICHANNEL  VIDEO  PROGRAMMING  DISTRIBUTOR  THAT  PROMOTES  A
   18  CONDITIONAL  SALES  PRICE  FOR  SERVICES  THAT INCLUDE VIDEO PROGRAMMING
   19  SHALL, IN CONNECTION WITH SUCH  PRICE,  REQUIRE  THAT  A  SUBSCRIBER  BE
   20  SUBJECT  TO AN EARLY TERMINATION FEE UNLESS SUCH FEE AND THE TERMS UNDER
   21  WHICH IT IS TO APPLY ARE DISCLOSED IN A CLEAR AND CONSPICUOUS MANNER  AS
   22  FOLLOWS:
   23    (A) IN ANY MEDIUM USED BY THE MULTICHANNEL VIDEO PROGRAMMING DISTRIBU-
   24  TOR  TO  PROMOTE  A CONDITIONAL SALES PRICE, THE EXISTENCE AND AMOUNT OF
   25  ANY EARLY TERMINATION FEE AND THE TERMS UNDER WHICH IT IS TO APPLY SHALL
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14750-02-9
       S. 6182                             2
    1  BE DISCLOSED WITH THE SAME PROMINENCE AND IN THE SAME  LOCATION  AS  THE
    2  CONDITIONAL SALES PRICE.
    3    (B) IN ANY SOLICITATION THAT MAY RESULT IN AN ORDER FOR VIDEO PROGRAM-
    4  MING  SUBJECT  TO  A  CONDITIONAL SALES PRICE, WHICH FOR THE PURPOSES OF
    5  THIS SUBDIVISION SHALL INCLUDE THE DESCRIPTION OF SERVICES,  THE  MULTI-
    6  CHANNEL  VIDEO  PROGRAMMING DISTRIBUTOR SHALL INFORM POTENTIAL CUSTOMERS
    7  OF ANY EARLY TERMINATION FEE AND ITS AMOUNT AND THE TERMS UNDER WHICH IT
    8  IS TO APPLY PRIOR TO SALE.
    9    3. ANY EARLY TERMINATION FEE THAT IS ASSESSED IN CONNECTION  WITH  THE
   10  TERMINATION OF A SERVICE SUBJECT TO A CONDITIONAL SALES PRICE MAY NOT BE
   11  GREATER  THAN  THE  PRO  RATA  SHARE  OF  SUCH FEE UNDER AN AGREEMENT OR
   12  CONTRACT CALCULATED AS FOLLOWS: THE FRACTIONAL EQUIVALENT TO THE  NUMBER
   13  OF  MONTHS  IN THE AGREEMENT TERM THAT HAVE ELAPSED DIVIDED BY THE TOTAL
   14  NUMBER OF MONTHS IN THE AGREEMENT TERM, MULTIPLIED BY THE AMOUNT OF  THE
   15  EARLY  TERMINATION  FEE  DISCLOSED  PURSUANT  TO SUBDIVISION TWO OF THIS
   16  SECTION.
   17    4. A MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR THAT FAILS TO  PROVIDE
   18  NOTICE AS REQUIRED IN SUBDIVISION TWO OF THIS SECTION OR FAILS TO ASSESS
   19  AN  EARLY  TERMINATION  FEE IN ACCORDANCE WITH SUBDIVISION THREE OF THIS
   20  SECTION SHALL BE PROHIBITED FROM ENFORCING AN EARLY TERMINATION  FEE  IN
   21  CONNECTION  WITH  THE  TERMINATION  OF  SERVICE SUBJECT TO A CONDITIONAL
   22  SALES PRICE.  FOR THE PURPOSES OF THIS SUBDIVISION, "ENFORCEMENT"  SHALL
   23  INCLUDE  ANY  REFERENCE, WHETHER WRITTEN OR VERBAL AND IN ANY MEDIUM, TO
   24  AN EARLY TERMINATION FEE WITH REGARD TO IMPOSING, NEGOTIATING OR WAIVING
   25  AN EARLY TERMINATION FEE, AS AN INDUCEMENT TO  RENEW,  EXTEND  OR  ENTER
   26  INTO  AN  AGREEMENT,  OR  RESOLVE  ANY  DISPUTE BETWEEN A CONSUMER AND A
   27  MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR, ITS AGENTS,  OR  ANY  PERSON
   28  ATTEMPTING  TO  RESOLVE A DEBT BASED UPON AN EARLY TERMINATION FEE UNDER
   29  THIS SUBDIVISION.
   30    5. ANY VIOLATION OF THIS SECTION SHALL BE DEEMED A  DECEPTIVE  ACT  OR
   31  PRACTICE  PURSUANT  TO SECTION THREE HUNDRED FORTY-NINE OF THIS CHAPTER.
   32  NOTHING IN THIS SECTION SHALL IN ANY WAY LIMIT THE  RIGHTS  OR  REMEDIES
   33  THAT  ARE OTHERWISE AVAILABLE TO A CONSUMER OR PURCHASER UNDER ANY OTHER
   34  LAW.
   35    S 2. This act shall take effect immediately.