What's happening
This bill requires all telecommunications services in New York to prorate charges by the second rather than by the minute.
Why it matters
Consumers could pay only for the exact amount of time they use telecommunications services, potentially reducing overcharges from rounding up to the next minute. This is especially relevant for those who make frequent short calls, as charges would be calculated per second rather than per minute.
Hotels, hospitals, schools, and universities (“aggregators”) that provide phone services to the public would also be required to prorate charges by the second, closing loopholes for institutional overcharging. This includes situations where these entities earn compensation from calls made on their premises.
The change could increase transparency and fairness in billing, making it easier for consumers to verify charges and dispute overbilling. It may also pressure telecommunications providers to update their billing systems and could impact their revenue models, especially for services previously relying on per-minute billing increments.
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Who cares
Headline styles
Charge Phone Calls By Second
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1282
2019-2020 Regular Sessions
IN SENATE
January 14, 2019
Introduced by Sens. GIANARIS, KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public service law, in relation to charges for telephone service on a by the second basis
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 91 of the public service law, as added by chapter 673 of the laws of 1910, is amended to read as follows:
1. Every telegraph corporation and every telephone corporation shall furnish and provide with respect to its business such instrumentalities and facilities as shall be adequate and in all respects just and reasonable. All charges made or demanded by any telegraph corporation or telephone corporation for any service rendered or to be rendered in connection therewith shall be just and reasonable and not more than allowed by law or by order of the commission. Every charge for telecommunications service, whether by means of a telephone line or by means of cellular radio communication, made on the basis of the duration of the communication shall be charged and prorated by the second. Every unjust or unreasonable charge made or demanded for any such service or in connection therewith or in excess of that allowed by law or by order of the commission is prohibited and declared to be unlawful.
§ 2. The section heading of section 92-c of the public service law, as added by chapter 697 of the laws of 1990, is amended, subdivision 1 is amended by adding a new paragraph (c) and a new subdivision 12 is added to read as follows:
Customer service requirements for aggregators, alternate operator service providers and COCOT service providers.
(c) The term "aggregator" means any hotel, motel, innkeeper, school or hospital which is not a telegraph corporation or telephone corporation, which, in the ordinary course of business, makes available for public
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04467-01-9
S. 1282 2
use telephones or telephone equipment. Such term shall also include any hotel, motel, innkeeper, school or hospital which imposes any charge or receives any compensation by contract, tariff or otherwise for calls made from a telephone provided in a guest room, dormitory, hospital room or other premises under the control of such entity to an alternate operator service provider. The term aggregator also includes any university, provided, that inclusion in such definition shall in no way affect the tax-exempt or any other status of any such university under the education law, tax law or not-for-profit corporation law, or any other provision of law, rule or regulation relating thereto.
12. Every charge for telecommunications service by an alternate operator service provider, COCOT service provider or aggregator, whether by means of a telephone line or by means of cellular radio communication, made on the basis of the duration of the communication shall be charged and prorated by the second.
§ 3. This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public service law, in relation to charges for tele- phone service on a by the second basis
Summary of specific provisions
Section 1 amends subdivision 1 of section 91 of the public service law requiring all telephone service providers to charge customers prorated by the second.
Section 2 amends subdivision 1 of section 92-c of the Public Service Law by adding a new paragraph(c) and a new subdivision 12 including "aggre- gators", a hotel motel, innkeeper, school or hospital that provides public telephones, as falling under the same guidelines for phone charg- es as other alternate operator service providers, and COCOT service providers. Additionally it requires that all of those providers under this section charge for phone service by the second.
Justification
In this day of computer automated phone systems, there is no identifi- able reason why phone companies cannot charge their customers by the second instead of by the minute.
Many smaller long-distance companies already provide this service. However, the biggest long-distance companies do not. A phone call for one minute and ten seconds should be charged as that, and not as two minutes. Phone companies reap huge profits from this billing system and are reluctant to change the way they do business. The consequence of this is that New York phone customers are overcharged every time they make a long-distance call. This legislation will force these companies to charge by the second, rather than by the minute, here in New York State.
Prior legislative history
2018: Died in Energy and Telecommunications
2017: Died in Energy and Telecommunications
2016: Died in Energy and Telecommunications
2015: Died in Energy and Telecommunications
2014: Died in Energy and Telecommunications
2012: Died in Energy and Telecommunications
Fiscal implications
None
Effective date
This act shall take effect on the one hundred eightieth day after it shall have become a law; provided that the public service commission is authorized to promulgate any and all rules and regulations and take any other measures necessary to implement this act on its effective date on or before such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.