S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5218
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 7, 2017
                                ___________
 
 Introduced  by M. of A. DINOWITZ, GOTTFRIED, ROSENTHAL, SEAWRIGHT, COOK,
   COLTON, ARROYO, SKOUFIS,  STECK,  ZEBROWSKI,  PEOPLES-STOKES,  HOOPER,
   WALTER -- Multi-Sponsored by -- M. of A. CRESPO, SIMON, 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 THE ATTORNEY GENERAL.
         495-E. CIVIL PENALTY.
   § 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.
   §  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.
                                                            LBD03772-01-7
              

 A. 5218                             2
 
   § 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.
   §  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.
   §  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.
   § 2. This act shall take effect immediately.