§ 90. Application of article. 1. The provisions of this article shall apply to communication by telegraph or telephone between one point and another within the state of New York and to every telegraph corporation and telephone corporation. 2. Application of the provisions of this article to telegraphic communication is suspended unless the commission, no sooner than one year after the effective date of this provision, makes a determination, after notice and hearing, that regulation of a telegraph corporation or some of its services should be reinstituted to the extent found necessary to protect the public interest because of a lack of effective competition. 3. (1) Except as otherwise provided in this subdivision or section ninety-two-c of this article, a reseller of telephone service by means of a customer owned or leased currency operated telephone (COCOT) shall be exempt from the requirements of this chapter.

(2) The commission shall have power to establish by rule or regulation service, rate, interconnection and location requirements for COCOTs upon a determination that such requirements are in the public interest.

(3) (a) The commission shall have power to assess a penalty not to exceed one thousand dollars against any reseller of COCOT services who knowingly fails or neglects to comply with any provision of this subdivision or section ninety-two-c of this article or any regulation or order of the commission implementing or enforcing the provisions of this subdivision or the provisions of section ninety-two-c of this article which apply to COCOT service providers. In the case of a continuing violation, each day shall be deemed a separate and distinct offense.

(b) Whenever the commission shall be of the opinion that any reseller of COCOT services is violating or about to violate any provision of this subdivision or any regulation or order of the commission implementing or enforcing the provisions of this subdivision, or has failed to pay any penalty assessed pursuant to the provisions of this subdivision, the commission shall have power to bring an action or enforcement proceeding as provided by section twenty-six of this chapter.