NY A04412

Repeals existing section 92-f of Public Service Law and replaces it with comprehensive Article 5-A regulating prepaid telephone calling cards and services.

Requires prepaid providers to obtain a provider certificate ($500 application fee) and maintain a $50,000 minimum surety bond; requires prepaid distributors to register ($300 application fee) with $10,000-$25,000 minimum surety bond depending on sales volume.

Mandates clear disclosure of material terms on prepaid cards and packaging visible before purchase, including per-minute rates, fees, surcharges, expiration dates, minimum charges, and notice of different rates for international calls.

Establishes customer service requirements including 24/7 toll-free support with live operators available 9 A.M. to 9 P.M., and requires refunds for service failures and minimum one-year card validity.

Creates enforcement authority for the Public Service Commission to assess penalties up to $5,000 for first violations and $10,000 for subsequent violations, and provides consumers a private right of action for damages from violations.