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Legislative Memo

BILL:

A. 9330 (Ortiz)

Support

SUBJECT:

An Act to Amend the Public Service Law in Relation to Telephone Rates for not-for- profit Corporation

 

DATE:

June 16, 2004

 

The Business Council of New York State, Inc., a broad-based statewide membership organization
of over 3,600 companies, chambers of commerce and trade organizations, has reviewed the
aforementioned legislation and opposes its enactment.

This bill would amend section 92-g of the Public Service Law to allow for a fifty percent discount
on telecommunications rates for not-for-profit organizations. Why should telecommunications
carriers be singled out in regards to not-for-profits? Not-for-profit organizations deal with a
variety of businesses who are not required to discount their goods or services and the
telecommunications carriers should be treated no differently. Currently, not-for-profits groups
benefit from a variety of tax-exempt statuses. They should not be given an added benefit at the
expense of other telecommunications customers.

Under a current program, not-for-profit organizations are included in a group, which receive the
benefits of cost-reduced, day-to-day expenses. This plan was started by the New York State
Office of General Services, in conjunction with the State Office for Technology. This program is
available through the State Expense Reduction and Aggregated Telecommunications contracts. It
essentially gives the group, including not-for-profits, significant savings on expenses like office
supplies, fuel purchase, telecommunications, and a variety of other beneficial products and
services. Therefore, this piece of legislation is not necessary or appropriate because the
opportunity already exists.

For the reasons articulated above, The Business Council opposes this legislation and strongly
urges its defeat.