NJ Assembly Committee OKs Consumer Broadband Bill Protecting Customers in Long-Term Care

The New Jersey Assembly Committee on Consumer Affairs unanimously approved a bill Thursday requiring cable and broadband providers to let consumers admitted to a long-term care facility to pause or cancel service contracts. Moreover, under the bill, customers who pause or cancel contracts would not incur additional fees.

Approved with several amendments, the bill (A-2334) would prohibit providers from continuing to charge customers who pause a contract for a minimum of 90 days. If the consumer remains in long-term care beyond 90 days, a provider may cancel the contract without levying additional fees. The bill would become effective one year after enactment. The measure now moves to the full Assembly. The state Senate previously passed an identical bill (S-684).

This comes after the New Jersey Supreme Court decided in 2023 that the state's prorating rules were allowed under the federal Cable Act and reinstated the state Board of Public Utilities' (BPU) 2019 order against Altice for not prorating canceled bills (see 2304030053). The case was remanded to the appellate court for further deliberation, with BPU approving a settlement to resolve its Altice probe.

One amendment would remove a current requirement that consumers send their provider a physician's note attesting to their admission to a long-term care facility, as well as at least a 45-day advance notice that they intend to cancel or pause their service contract. Another amendment added that providers must offer a standard form for consumers requesting to pause or cancel their service contract instead of having to complete a contract termination request form. One member suggested that providers allow customers to complete an online form, but no amendment was offered on that.

Division of Rate Counsel Director Brian Lipman a day earlier urged the committee to approve the proposed bill. Lipman, in a Wednesday letter, said the measure will "protect consumers" and "ensure" they "and their loved ones have one less financial and practical concern when making the often-difficult choice to relocate to a long-term care facility." The office participated in oral argument in the 2019 Altice case.