Prohibits providers from imposing a fee for termination or early cancellation of certain service contracts in the event a customer has deceased before the end of such contract.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8630A
SPONSOR: Gunther TITLE OF BILL:
An act to amend the general business law, in relation to prohibiting
providers from imposing a fee for termination or early cancellation of
certain service contracts in the event a customer has deceased before
the end of such contract
PURPOSE:
This bill would prohibit companies from charging early cancellation fees
if a customer has deceased before the end of his or her contract.
SUMMARY OF PROVISIONS:
Section 1 adds a new section 399-zzzz to the general business law to
prohibit providers of telephone, cellular telephone, television, inter-
net, energy or water services from imposing a termination or early
cancellation fee if a customer has deceased before the end of such
contract.
Section 2 is the effective date.
JUSTIFICATION:
Many companies use early termination fees to ensure a customer continues
use of a service through the contract length. There have been instances
where these companies have charged early termination fees to accounts
cancelled prior to the expiration of the contract due to the customer's
death. This legislation would prohibit this unseemly demonstration of
corporate greed.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None to state.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8630--A
2015-2016 Regular Sessions
IN ASSEMBLY
December 23, 2015
___________
Introduced by M. of A. GUNTHER, SEAWRIGHT, BARRETT -- read once and
referred to the Committee on Consumer Affairs and Protection -- recom-
mitted to the Committee on Consumer Affairs and Protection in accord-
ance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the general business law, in relation to prohibiting
providers from imposing a fee for termination or early cancellation of
certain service contracts in the event a customer has deceased before
the end of such contract
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new section
2 399-zzzz to read as follows:
3 § 399-zzzz. Prohibition of certain fee charges for termination or
4 early cancellation. 1. Subject to federal law and regulation, no provid-
5 er of telephone, cellular telephone, television, internet, energy, or
6 water services shall impose a fee for termination or early cancellation
7 of a service contract in the event the customer has deceased before the
8 end of such contract.
9 2. Every violation of this section shall be punishable by a civil
10 penalty not to exceed one thousand dollars.
11 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11877-06-6
