Senate Bill S7455

                                 
BILL NUMBER: S7455

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the public service law, in relation to directing the
public service commission to formulate a process, rules and regulations
for the regulation of the charges and fees of internet and cable provid-
ers

 
PURPOSE OR GENERAL IDEA OF BILL:

To direct the Public Service Commission to formulate a process rules and
regulations for the regulation of the charges and fees of internet and
cable providers, including requests for increases in changes in the
amount of fees and charges

 
SUMMARY OF PROVISIONS:

Section 1 renumbers subdivisions 11, 12 and 13 of section 215 of the
Public Service Law to 12, 13 and 14 and adds a new subdivision 11 is
added to direct the Public Service Commission to formulate a process,
              

rules and regulations for the regulation of the charges and fees of
internet and cable providers. This would include the regulation of tele-
vision rates and other services that the internet and cable providers
deliver and the requests for increases in changes in the amount of fees
and charges for such services.

Section 2 is the effective date which shall be 120 days after the bill
becomes a law.

 
JUSTIFICATION:

Currently, internet and cable service providers in New York State are
unregulated with respect to subscriber fees and charges. This means that
cable and internet providers may increase charges at will which means
charges are unpredictable. This also means internet and cable subscrib-
ers may be subject to hidden fees they aren't aware of when signing up
for service.

In most small cities, suburban and rural parts of New York State,
consumers have only one choice for internet and cable service, making
these providers in these areas a monopoly. Even where there is more than
one provider, there is no regulation by any governmental agency to
control and determine proper rate increases. Increases in rate charges
are subject to the whims of the provider.

Today, the internet is as essential as electrical service. It is clear
that these internet and cable providers should be regulated like other
essential monopolistic service providers such as electric and gas utili-
ties and telephone companies.

This bill would do just that by directing the Public Service Commission
to formulate a process, rules and regulations to regulate, the fees and
charges that cable and internet service providers bill to their custom-
ers. New York residents should not be held hostage to sudden and uncon-
trolled price increases and costly hidden fees for services which have
become necessities in almost every area of modem life.

 
PRIOR LEGISLATIVE HISTORY:

None. New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.