Brief⁽¹⁾

The bill would enact a new law that prohibits imposition of delinquent fees on cable television customers except under certain conditions. A maximum $7.50 delinquent payment fee could be imposed:

1. if the consumer is provided with written notice of any late fee policy at or before the consumer enters into an initial agreement for services under any contract entered into on or after July 1, 1998;



2. if the consumer is warned in writing at least ten days prior to imposition of a late fee of the potential for a late fee if the delinquency is not paid and the date on which such a late fee will be imposed;



3. if the consumer's invoice specifies a due date no more than ten days prior to the service period for which the invoice is issued; and



4. if the late fee is assessed no earlier than 27 days after the due date stated in the invoice.

A higher delinquency fee could only be charged if the Federal Communications Commission (FCC) expressly requires late fees to be fully included when setting benchmark rates applicable to cable television operators. If that action is taken by the FCC, the maximum delinquency fee could go to 1.5 percent of the delinquent amount.

Delinquency fees could not be increased over the amount such fee was at on April 1, 1998 unless the governing body of the city where the cable service is franchised and all customers of the service are notified 30 days prior to the effective date of the increase.

Background

The bill was requested for introduction by a cable television company in Wichita. The House Committee amendment was requested by a representative of that company.

The House Committee on Federal and State Affairs amended the bill to delete a provision that would have established a maximum $20 fee that could have been imposed if a cable company had to send someone to collect a late fee or disconnect service. The provisions above regarding the delinquent payment fee would have applied to this fee.

The House amended the bill to require advance notification of delinquency fee increases.

The Budget Division's fiscal note states that the impact of the bill cannot be determined.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext-bill.html.