S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7491

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 13, 2015
                               ___________

Introduced  by M. of A. DINOWITZ, GOTTFRIED, ROSENTHAL, SEAWRIGHT, COOK,
  COLTON, ARROYO, SKOUFIS, STECK, WALKER -- Multi-Sponsored by -- M.  of
  A.  CRESPO,  TITONE  --  read  once  and  referred to the Committee on
  Consumer Affairs and 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:

  Section 1. The general business law is amended by adding a new article
28-F to read as follows:
                              ARTICLE 28-F
           LEASING OF MODEMS FROM CABLE OR INTERNET PROVIDERS
SECTION 495-A. PURPOSE.
        495-B. DEFINITIONS.
        495-C. PROHIBITED ACTS.
        495-D. ENFORCEMENT BY ATTORNEY GENERAL.
        495-E. CIVIL PENALTY.
        495-F. PRIVATE RIGHT OF ACTION.
  S 495-A. PURPOSE. THE PURPOSE OF THIS ARTICLE IS TO LIMIT THE AMOUNT A
CABLE  OR  INTERNET  PROVIDER  MAY  CHARGE  CONSUMERS FOR THE LEASE OF A
MODEM.
  S 495-B. DEFINITIONS. FOR THE PURPOSES OF  THIS  ARTICLE:  1.  "MODEM"
MEANS  AN ELECTRONIC DEVICE THAT MAKES POSSIBLE THE TRANSMISSION OF DATA
TO OR FROM A COMPUTER VIA TELEPHONE OR OTHER COMMUNICATION LINES.
  2. "LEASE" MEANS A CONTRACT OR INSTRUMENT CONVEYING PROPERTY TO ANOTH-
ER FOR A SPECIFIED PERIOD OR FOR A PERIOD DETERMINABLE AT  THE  WILL  OF
EITHER LESSOR OR LESSEE IN CONSIDERATION OF COMPENSATION.
  3.  "INTERNET  OR  CABLE PROVIDER" MEANS AN ORGANIZATION THAT PROVIDES
SERVICES FOR ACCESSING, USING,  OR  PARTICIPATING  ON  THE  INTERNET  OR
CABLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10328-04-5
              

A. 7491                             2

  S  495-C.  PROHIBITED  ACTS.  1.  NO  CABLE OR INTERNET PROVIDER SHALL
CHARGE ANY CONSUMER AN AMOUNT WHICH IS MORE THAN  SIXTEEN  PERCENT  OVER
THE ACTUAL COST OF THE MODEM DEVICE PAID BY THE PROVIDER.
  2.  A  CABLE OR INTERNET PROVIDER SHALL DISCLOSE IN AN INITIAL BILLING
CORRESPONDENCE: (A) THE AMOUNT THE MODEM COSTS  THE  PROVIDER,  (B)  HOW
MANY  PAYMENTS  THE  CONSUMER  MUST  MAKE ON THE MODEM IN TOTAL, AND (C)
INFORMATION REGARDING HOW OR WHERE A CONSUMER MAY PURCHASE  A  MODEM  AT
RETAIL.
  3.  NO  CABLE OR INTERNET PROVIDER SHALL CHARGE ANY CONSUMER A MONTHLY
FEE FOR THE LEASE OR USE OF A NEW MODEM BEYOND TWELVE MONTHS  AFTER  THE
MODEM HAS BEEN PROVIDED BY SUCH CABLE OR INTERNET PROVIDER. IF AN INTER-
NET  OR CABLE PROVIDER REPLACES THE CUSTOMER'S EXISTING MODEM WITH A NEW
MODEM DURING OR AFTER SUCH TWELVE  MONTH  PERIOD  AN  ADDITIONAL  TWELVE
MONTH PERIOD SHALL COMMENCE.
  4. NO CABLE OR INTERNET PROVIDER SHALL CHARGE AN ADDITIONAL OR MONTHLY
FEE FOR THE MAINTENANCE OF A PROVIDED MODEM.
  S  495-D.  ENFORCEMENT  BY ATTORNEY GENERAL. WHENEVER THERE SHALL BE A
VIOLATION OF THIS ARTICLE, APPLICATION  MAY  BE  MADE  BY  THE  ATTORNEY
GENERAL IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO A COURT OR
JUSTICE  HAVING JURISDICTION BY A SPECIAL PROCEEDING TO ISSUE AN INJUNC-
TION, AND UPON NOTICE TO THE DEFENDANT OF NOT LESS THAN  FIVE  DAYS,  TO
ENJOIN  AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS; AND IF IT SHALL
APPEAR TO THE SATISFACTION OF THE COURT OR JUSTICE  THAT  THE  DEFENDANT
HAS, IN FACT, VIOLATED THIS ARTICLE, AN INJUNCTION MAY BE ISSUED BY SUCH
COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY FURTHER VIOLATION, WITH-
OUT  REQUIRING  PROOF  THAT  ANY  PERSON  HAS,  IN FACT, BEEN INJURED OR
DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT MAY  MAKE  ALLOWANCES
TO  THE ATTORNEY GENERAL AS PROVIDED IN PARAGRAPH SIX OF SUBDIVISION (A)
OF SECTION EIGHTY-THREE HUNDRED THREE OF  THE  CIVIL  PRACTICE  LAW  AND
RULES.
  S  495-E.  CIVIL  PENALTY.  WHENEVER  THE COURT SHALL DETERMINE THAT A
VIOLATION OF THIS ARTICLE HAS OCCURRED, THE COURT  MAY  IMPOSE  A  CIVIL
PENALTY  OF  NOT  MORE  THAN FIVE HUNDRED DOLLARS FOR EACH VIOLATION. IN
CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTORNEY  GENERAL  IS
AUTHORIZED  TO TAKE PROOF AND MAKE A DETERMINATION OF THE RELEVANT FACTS
AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE  CIVIL  PRACTICE  LAW  AND
RULES.
  S  495-F. PRIVATE RIGHT OF ACTION. NOTWITHSTANDING ANY RIGHT OF ACTION
GRANTED TO ANY GOVERNMENTAL BODY PURSUANT TO THIS  ARTICLE,  ANY  PERSON
WHO HAS BEEN INJURED BY REASON OF VIOLATION OF THIS ARTICLE MAY BRING AN
ACTION  AGAINST  ANY PERSON OR PERSONS, TO ENJOIN SUCH UNLAWFUL ACT, AND
TO RECOVER AN AMOUNT EQUAL TO (A) ANY ACTUAL DAMAGE  SUSTAINED  BY  SUCH
PERSON  AS  A RESULT OF SUCH FAILURE, AND (B) SUCH ADDITIONAL DAMAGES AS
THE COURT MAY ALLOW BUT NOT EXCEEDING TWO THOUSAND FIVE HUNDRED DOLLARS,
AND REASONABLE ATTORNEY'S FEES.
  S 2. This act shall take effect immediately.