Requires deferred installment payment plan be offered to small businesses for telephone service installation, initiation and nonrecurring maintenance charges

BILL NUMBER:S6497

Title of bill

An act to amend the public service law, in relation to deferred payment of certain charges to residential and small business customers

Purpose or general idea of bill

The primary purpose of this legislation is to amend the public service law to offer to small businesses a plan for deferred payment of charges stemming from the installation or initiation of service of a telephone line, or charges resulting from any nonrecurring maintenance service charge with respect to the telephone line or equipment. The public service law currently requires this offer to be made with respect to residential telephone lines. This amendment would extend the offer of deferred payment to small businesses.

Summary of specific provisions

Section 1 amends subdivision 4 of section 94 of the public service law to include small business telephone lines; adds paragraph (b) to define a small business.

Section 2 sets the effective date.

Justification

Subdivision 4 of section 94 of the Public Service Law currently requires that the Public Service Commission require telephone companies to offer a plan for the deferred payment of installation charges for residential telephone lines of up to one year. The result is that persons who otherwise could not afford to pay the installation charges may pay over the course of a year. This amendment would extend such a payment option to small businesses, thereby easing the burden of start-up and expansion costs with respect to telephone service, which is a necessity for many small businesses.

Article 4-B of the Economic Development Law, states in its legislative findings and objectives that small business has been a major positive factor in the political, economic and social development of the state; the future welfare of the state depends on the continued development of small business; and that the state has a responsibility to assist in small business development in furtherance of the general welfare. This amendment comports with the legislature's firm dedication towards assisting and promoting small business. Easing telephone installation charges would lessen start-up burdens and expansion costs for new small businesses and would therefore serve to encourage and increase small business in New York.

Legislative history

2003-04: S.3334 - Referred to Energy and Telecommunications 2007-08: A.2928 - Passed Assembly 2009-10: S.4841 - Referred to Energy and Telecommunications

Fiscal implications

None.

Effective date

Immediately.