S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10777
 
                           I N  A S S E M B L Y
 
                               July 9, 2020
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Fahy) --
   read once and referred to the Committee on  Corporations,  Authorities
   and Commissions
 
 AN ACT to amend the public service law, the general business law and the
   state  finance  law,  in  relation  to requiring that internet service
   providers that are compliant with net neutrality and  state  contracts
   only  be made with such compliant providers and establishing a revolv-
   ing fund for the creation of municipal internet service providers; and
   making an appropriation therefor
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "NYS Net Neutrality Protection Act".
   § 2. The public service law is amended by adding a new section 92-i to
 read as follows:
   § 92-I. REPORTS BY INTERNET SERVICE PROVIDERS. 1. ANY TELEPHONE CORPO-
 RATION, AS DEFINED BY SUBDIVISION SEVENTEEN OF SECTION TWO OF THIS CHAP-
 TER, OR CABLE TELEVISION COMPANY,  AS  DEFINED  BY  SUBDIVISION  ONE  OF
 SECTION  TWO  HUNDRED  TWELVE OF THIS CHAPTER, WHICH IS ALSO A BROADBAND
 INTERNET SERVICE PROVIDER, AS DEFINED BY PARAGRAPH  (B)  OF  SUBDIVISION
 ONE  OF  SECTION THREE HUNDRED NINETY-NINE-ZZZZZ OF THE GENERAL BUSINESS
 LAW, SHALL ANNUALLY REPORT TO THE  DEPARTMENT,  AND  PUBLICLY  DISCLOSE,
 ACCURATE  INFORMATION  REGARDING  NETWORK MANAGEMENT PRACTICES, PERFORM-
 ANCE, AND COMMERCIAL TERMS OF SUCH COMPANY'S OR CORPORATION'S  BROADBAND
 INTERNET ACCESS THAT IS SUFFICIENT FOR CONSUMERS TO MAKE INFORMED CHOIC-
 ES  REGARDING  THE  USE  OF SUCH SERVICES, AND FOR CONTENT, APPLICATION,
 SERVICE, AND DEVICE PROVIDERS TO DEVELOP, MARKET, AND MAINTAIN  INTERNET
 OFFERINGS.
   2.  THE PUBLICATION OF DISCLOSURES THAT COMPLY WITH THE FEDERAL COMMU-
 NICATIONS COMMISSION'S TRANSPARENCY RULE (47 C.F.R. 8.1)  SHALL  SATISFY
 THE REQUIREMENTS OF SUBDIVISION ONE OF THIS SECTION.
   3.  THE  COMMISSION  SHALL  ANNUALLY  PREPARE  A REPORT THAT LISTS THE
 CERTIFICATION STATUS FOR EACH BROADBAND INTERNET SERVICE PROVIDER QUALI-
 FIED TO DO BUSINESS IN THE STATE. SUCH REPORT SHALL BE PUBLISHED ON  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15238-02-0

 A. 10777                            2
 
 COMMISSION'S WEBSITE AND UPDATED AT LEAST ANNUALLY. THE COMMISSION SHALL
 NOTIFY  THE  GOVERNOR,  THE  TEMPORARY  PRESIDENT OF THE SENATE, AND THE
 SPEAKER OF THE ASSEMBLY OF THE PUBLICATION OF SUCH  REPORT  AND  OF  ANY
 UPDATES TO SUCH REPORT.
   4.  EXCEPT  TO  THE  EXTENT  NECESSARY  TO SUPERVISE THE REPORTING AND
 NOTICE REQUIREMENTS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION, NOTHING
 IN THIS SECTION SHALL CONFER UPON THE COMMISSION ANY  REGULATORY  JURIS-
 DICTION OVER INTERNET SERVICE PROVIDERS OR INTERNET BROADBAND SERVICES.
   §  3. The general business law is amended by adding a new section 399-
 zzzzz to read as follows:
   § 399-ZZZZZ.  NET NEUTRALITY. 1. DEFINITIONS. FOR THE PURPOSES OF THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "BROADBAND  INTERNET  ACCESS"  SHALL  MEAN  A  MASS-MARKET  RETAIL
 SERVICE  BY  WIRE OR RADIO THAT PROVIDES THE CAPABILITY TO TRANSMIT DATA
 TO AND RECEIVE DATA FROM ALL OR SUBSTANTIALLY  ALL  INTERNET  ENDPOINTS,
 INCLUDING  ANY CAPABILITIES THAT ARE INCIDENTAL TO AND ENABLE THE OPERA-
 TION OF THE COMMUNICATIONS SERVICE, BUT SHALL NOT INCLUDE DIAL-UP INTER-
 NET ACCESS SERVICE.  BROADBAND INTERNET ACCESS SHALL BE CONSIDERED TO BE
 AN INFORMATION SERVICE AS SUCH TERM IS DEFINED  PURSUANT  TO  47  U.S.C.
 153.
   (B) "BROADBAND INTERNET SERVICE PROVIDER" SHALL MEAN ANY PERSON, BUSI-
 NESS  OR  ORGANIZATION QUALIFIED TO DO BUSINESS IN THIS STATE, INCLUDING
 MUNICIPAL BROADBAND PROVIDERS, TO  THE  EXTENT  THAT  SUCH  INDIVIDUALS,
 CORPORATIONS,  OR OTHER ENTITIES PROVIDE OTHER INDIVIDUALS, CORPORATIONS
 OR ENTITIES WITH BROADBAND INTERNET ACCESS.
   (C) "END USER" SHALL MEAN  ANY  INDIVIDUAL  OR  ENTITY  THAT  UTILIZES
 BROADBAND INTERNET ACCESS.
   (D)  "PAID  PRIORITIZATION"  SHALL  MEAN THE MANAGEMENT OF A BROADBAND
 PROVIDER'S NETWORK TO DIRECTLY OR INDIRECTLY  FAVOR  SOME  TRAFFIC  OVER
 OTHER  TRAFFIC  IN  A MANNER THAT MATERIALLY HARMS COMPETITION AND MATE-
 RIALLY HARMS END USERS, INCLUDING THROUGH THE USE  OF  TRAFFIC  SHAPING,
 PRIORITIZATION,  RESOURCE  RESERVATION,  OR  OTHER FORMS OF PREFERENTIAL
 TRAFFIC MANAGEMENT, WHICH IS EITHER:
   (I) IN EXCHANGE FOR CONSIDERATION, MONETARY OR OTHERWISE, FROM A THIRD
 PARTY; OR
   (II) TO BENEFIT AN AFFILIATED ENTITY.
   (E) "REASONABLE NETWORK MANAGEMENT" SHALL MEAN  A  NETWORK  MANAGEMENT
 PRACTICE  THAT  IS  APPROPRIATE  AND  TAILORED TO ACHIEVING A LEGITIMATE
 NETWORK MANAGEMENT PURPOSE, INCLUDING DETERRING OR  PREVENTING  CYBERSE-
 CURITY  THREATS AND SIMILAR THREATS ORIGINATING FROM EQUIPMENT CONNECTED
 DIRECTLY OR INDIRECTLY TO THE NETWORK OR OTHERWISE, TAKING INTO  ACCOUNT
 THE  PARTICULAR  NETWORK  ARCHITECTURE  AND  TECHNOLOGY OF THE BROADBAND
 INTERNET ACCESS SERVICE.
   (F) "SPECIALIZED SERVICES" SHALL MEAN  SERVICE  OTHER  THAN  BROADBAND
 INTERNET  ACCESS  THAT IS PROVIDED BY BROADBAND PROVIDERS OVER LAST-MILE
 CAPACITY SHARED WITH BROADBAND INTERNET ACCESS.
   2. NET NEUTRALITY. (A) ANY BROADBAND INTERNET SERVICE  PROVIDER  SHALL
 NOT:
   (I)  BLOCK  LAWFUL  CONTENT,  APPLICATIONS,  SERVICES,  OR NON-HARMFUL
 DEVICES, SUBJECT TO REASONABLE NETWORK MANAGEMENT.
   (II) IMPAIR OR DEGRADE LAWFUL INTERNET TRAFFIC ON THE BASIS OF  INTER-
 NET  CONTENT,  APPLICATION,  OR SERVICE, OR USE OF A NON-HARMFUL DEVICE,
 SUBJECT TO REASONABLE NETWORK MANAGEMENT.
   (III) ENGAGE IN PAID PRIORITIZATION, INCLUDING, BUT  NOT  LIMITED  TO,
 TRAFFIC SHAPING, PRIORITIZATION, RESOURCE RESERVATION, OR OTHER FORMS OF
 PREFERENTIAL TRAFFIC MANAGEMENT, EITHER:

 A. 10777                            3
 
   (A) IN EXCHANGE FOR ANY FORM OF CONSIDERATION FROM A THIRD PARTY, OR
   (B)  TO  BENEFIT  AN  AFFILIATED ENTITY, UNLESS THE BROADBAND INTERNET
 SERVICE PROVIDER DEMONSTRATES THAT THE PRACTICE WOULD PROVIDE A  SIGNIF-
 ICANT  PUBLIC INTEREST BENEFIT AND WOULD NOT HARM THE OPEN NATURE OF THE
 INTERNET.
   (B) NOTHING IN THIS SECTION SHALL:
   (I) SUPERSEDE ANY OBLIGATION OR AUTHORIZATION A PROVIDER OF  BROADBAND
 INTERNET  ACCESS  MAY  HAVE  TO  ADDRESS THE NEEDS OF EMERGENCY COMMUNI-
 CATIONS OR LAW ENFORCEMENT, PUBLIC SAFETY, OR NATIONAL SECURITY AUTHORI-
 TIES, CONSISTENT WITH OR AS PERMITTED BY APPLICABLE LAW,  OR  LIMIT  THE
 PROVIDER'S ABILITY TO DO SO;
   (II)  PROHIBIT  REASONABLE EFFORTS BY A PROVIDER OF BROADBAND INTERNET
 ACCESS TO ADDRESS COPYRIGHT INFRINGEMENT OR OTHER UNLAWFUL ACTIVITY;
   (III) BE CONSTRUED TO LIMIT THE CHOICE OF SERVICE PLANS  AVAILABLE  TO
 CONSUMERS,  OR  CONSUMERS'  CONTROL OVER THEIR CHOSEN BROADBAND INTERNET
 ACCESS; AND
   (IV) BE CONSTRUED TO LIMIT THE ABILITY OF  BROADBAND  INTERNET  ACCESS
 PROVIDERS  TO  OFFER  OR  PROVIDE  SPECIALIZED  SERVICES, SO LONG AS THE
 BROADBAND INTERNET SERVICE PROVIDER CONTINUES TO OFFER BROADBAND  INTER-
 NET ACCESS IN A MANNER CONSISTENT WITH THE PROVISIONS OF THIS SECTION.
   3.  REPORTING.  ANY  PERSON  OR  ENTITY ENGAGED IN PROVIDING BROADBAND
 INTERNET ACCESS WITHIN THE STATE WHO ARE NOT COVERED BY  EITHER  OF  THE
 DEFINITIONS ESTABLISHED PURSUANT TO SUBDIVISION SEVENTEEN OF SECTION TWO
 OR  SUBDIVISION  ONE OF SECTION TWO HUNDRED TWELVE OF THE PUBLIC SERVICE
 LAW, SHALL REPORT TO THE COMMISSION,  AND  PUBLICLY  DISCLOSE  AT  LEAST
 ANNUALLY,  ACCURATE  INFORMATION  REGARDING THE NETWORK MANAGEMENT PRAC-
 TICES, PERFORMANCE, AND COMMERCIAL TERMS OF  SUCH  COMPANY'S  OR  CORPO-
 RATION'S  BROADBAND  INTERNET ACCESS THAT IS SUFFICIENT FOR CONSUMERS TO
 MAKE INFORMED CHOICES REGARDING  THE  USE  OF  SUCH  SERVICES,  AND  FOR
 CONTENT,  APPLICATION, SERVICE, AND DEVICE PROVIDERS TO DEVELOP, MARKET,
 AND MAINTAIN INTERNET OFFERINGS.
   4. ENFORCEMENT. A VIOLATION OF THE REQUIREMENTS OF THIS SECTION  BY  A
 BROADBAND  INTERNET SERVICE PROVIDER SHALL BE ENFORCEABLE SOLELY THROUGH
 AN ACTION BROUGHT IN A COURT OF COMPETENT JURISDICTION IN THIS STATE  BY
 THE ATTORNEY GENERAL.
   5.  PREEMPTION.  ANY  PROVISION  OF ANY LOCAL LAW OR ORDINANCE, OR ANY
 RULE OR REGULATION PROMULGATED  THERETO,  GOVERNING  BROADBAND  INTERNET
 SERVICE SHALL UPON THE EFFECTIVE DATE OF THIS SECTION, BE PREEMPTED.
   §  4.  The state finance law is amended by adding a new section 148 to
 read as follows:
   § 148. CONTRACTING FOR BROADBAND INTERNET ACCESS. 1. (A) NOTWITHSTAND-
 ING ANY OTHER PROVISION  OF  LAW  TO  THE  CONTRARY,  WHERE  A  CONTRACT
 PERTAINS  TO  BROADBAND  INTERNET  ACCESS,  AS  DEFINED IN SECTION THREE
 HUNDRED NINETY-NINE-ZZZZZ OF THE GENERAL  BUSINESS  LAW,  SUCH  CONTRACT
 SHALL BE AWARDED BY:
   (I)  A  STATE  AGENCY, AS DEFINED IN SECTION ONE HUNDRED SIXTY OF THIS
 CHAPTER, OR ANY STATE OR LOCAL AUTHORITY, AS SUCH TERMS ARE  DEFINED  IN
 SECTION TWO OF THE PUBLIC AUTHORITIES LAW; OR
   (II)  A MUNICIPAL CORPORATION AS DEFINED IN SECTION TWO OF THE GENERAL
 MUNICIPAL LAW, OR ANY PUBLIC BENEFIT CORPORATION OR MUNICIPALITY OF  THE
 STATE; OR
   (III) PUBLIC LIBRARY OR ASSOCIATION LIBRARY, AS SUCH TERMS ARE DEFINED
 IN SECTION TWO HUNDRED FIFTY-THREE OF THE EDUCATION LAW; OR
   (IV) THE LEGISLATURE, JUDICIARY, STATE UNIVERSITY OF NEW YORK, OR CITY
 UNIVERSITY OF NEW YORK.

 A. 10777                            4
 
   (B) IF SUCH CONTRACT IS FORMED PURSUANT TO A COMPETITIVE BIDDING PROC-
 ESS  OR  A  REQUEST  FOR  PROPOSAL  PROCESS, WHENEVER THE RESPONSIVE AND
 RESPONSIBLE OFFERER HAVING THE LOWEST PRICE OR BEST VALUE OFFER HAS  NOT
 AGREED  TO STIPULATE TO THE CONDITIONS SET FORTH IN THIS SUBDIVISION AND
 ANOTHER  RESPONSIVE  AND RESPONSIBLE OFFERER WHO HAS AGREED TO STIPULATE
 TO SUCH CONDITIONS HAS SUBMITTED AN OFFER, THE CONTRACT SHALL BE AWARDED
 TO THE LOWEST PRICE OR BEST VALUE OFFER FOR  INTERNET  SERVICES  FROM  A
 SOURCE  COMPLIANT  WITH  THE  INTERNET  SERVICE  NEUTRALITY REQUIREMENTS
 ESTABLISHED IN SECTION THREE HUNDRED NINETY-NINE-ZZZZZ  OF  THE  GENERAL
 BUSINESS LAW.
   (C)  PROVIDED,  HOWEVER,  THE  ENTITY AWARDING SUCH CONTRACT MAY AWARD
 SUCH CONTRACT TO A NON-COMPLIANT BROADBAND  INTERNET  SERVICE  PROVIDER,
 ONLY IF SUCH ENTITY DETERMINES THAT:
   (I)  THERE ARE NO OTHER BROADBAND INTERNET SERVICE PROVIDERS AVAILABLE
 TO CONTRACT WITH;
   (II) AWARDING SUCH CONTRACT TO A COMPLIANT BROADBAND INTERNET  SERVICE
 PROVIDER  WOULD RESULT IN A SIGNIFICANT FINANCIAL HARDSHIP WHEN COMPARED
 TO AWARDING SUCH CONTRACT TO A NON-COMPLIANT BROADBAND INTERNET  SERVICE
 PROVIDER; OR
   (III)  THERE IS NO NEED FOR THE BROADBAND INTERNET SERVICE PROVIDER TO
 MEET SUCH REQUIREMENTS IN ORDER TO RENDER THE SERVICE REQUIRED  BY  SUCH
 ENTITY.
   2.  (A) IN THE CASE OF CONTRACTS LET BY OTHER THAN A COMPETITIVE PROC-
 ESS WHICH INCLUDE INTERNET  SERVICES  INVOLVING  AN  EXPENDITURE  OF  AN
 AMOUNT  GREATER THAN THE DISCRETIONARY BUYING THRESHOLD, AS SPECIFIED IN
 SECTION ONE HUNDRED SIXTY-THREE OF THIS ARTICLE, THE CONTRACTING  ENTITY
 SHALL NOT AWARD TO A PROPOSED CONTRACTOR WHO HAS NOT AGREED TO STIPULATE
 TO  THE CONDITIONS SET FORTH IN THIS SUBDIVISION UNLESS THE ENTITY SEEK-
 ING TO USE THE INTERNET SERVICES DETERMINES THAT:
   (I) THE INTERNET SERVICES ARE NECESSARY FOR THE ENTITY TO PERFORM  ITS
 FUNCTIONS  AND  THERE IS NO OTHER RESPONSIBLE CONTRACTOR WHO WILL SUPPLY
 INTERNET SERVICES OF COMPARABLE QUALITY AT A COMPARABLE PRICE;
   (II) AWARDING SUCH CONTRACT TO A COMPLIANT BROADBAND INTERNET  SERVICE
 PROVIDER  WOULD RESULT IN A SIGNIFICANT FINANCIAL HARDSHIP WHEN COMPARED
 TO AWARDING SUCH CONTRACT TO A NON-COMPLIANT BROADBAND INTERNET  SERVICE
 PROVIDER; OR
   (III)  THERE IS NO NEED FOR THE BROADBAND INTERNET SERVICE PROVIDER TO
 MEET SUCH REQUIREMENTS IN ORDER TO RENDER THE SERVICE REQUIRED  BY  SUCH
 ENTITY.
   (B)  ANY  DETERMINATIONS UNDER PARAGRAPH (A) OF THIS SUBDIVISION SHALL
 BE MADE IN WRITING AND SHALL BE PUBLIC DOCUMENTS.
   3. NOTHING IS THIS SECTION SHALL:
   (A) SUPERSEDE ANY OBLIGATION OR AUTHORIZATION A PROVIDER OF  BROADBAND
 INTERNET  ACCESS  MAY  HAVE  TO  ADDRESS THE NEEDS OF EMERGENCY COMMUNI-
 CATIONS OR LAW ENFORCEMENT, PUBLIC SAFETY, OR NATIONAL SECURITY AUTHORI-
 TIES, CONSISTENT WITH OR AS PERMITTED BY APPLICABLE LAW,  OR  LIMIT  THE
 PROVIDER'S ABILITY TO DO SO;
   (B)  PROHIBIT  REASONABLE  EFFORTS BY A PROVIDER OF BROADBAND INTERNET
 ACCESS TO ADDRESS COPYRIGHT INFRINGEMENT OR OTHER UNLAWFUL ACTIVITY;
   (C) BE CONSTRUED TO LIMIT THE CHOICE OF  SERVICE  PLANS  AVAILABLE  TO
 CONSUMERS,  OR  CONSUMERS'  CONTROL OVER THEIR CHOSEN BROADBAND INTERNET
 ACCESS; AND
   (D) BE CONSTRUED TO LIMIT THE ABILITY  OF  BROADBAND  INTERNET  ACCESS
 PROVIDERS  TO  OFFER  OR  PROVIDE  SPECIALIZED  SERVICES, SO LONG AS THE
 BROADBAND INTERNET SERVICE PROVIDER CONTINUES TO OFFER BROADBAND  INTER-

 A. 10777                            5
 
 NET  ACCESS  IN  A  MANNER CONSISTENT WITH SECTION THREE HUNDRED NINETY-
 NINE-ZZZZZ OF THE GENERAL BUSINESS LAW.
   §  5. Subdivision 1 of section 165 of the state finance law is amended
 by adding two new paragraphs f and g to read as follows:
   F. "NET NEUTRAL SOURCE OF INTERNET SERVICES" SHALL  MEAN  AN  INTERNET
 SERVICE  PROVIDER  THAT  ADHERES  TO THE PRINCIPLES OF NET NEUTRALITY AS
 DESCRIBED IN SECTION THREE  HUNDRED  NINETY-NINE-ZZZZZ  OF  THE  GENERAL
 BUSINESS LAW.
   G.  "NON-NET NEUTRAL SOURCE OF INTERNET SERVICES" SHALL MEAN AN INTER-
 NET SERVICE PROVIDER THAT VIOLATES ANY OF THE PRINCIPLES OF NET NEUTRAL-
 ITY AS DESCRIBED IN  SECTION  THREE  HUNDRED  NINETY-NINE-ZZZZZ  OF  THE
 GENERAL BUSINESS LAW.
   § 6. The state finance law is amended by adding a new section 99-hh to
 read as follows:
   § 99-HH. MUNICIPAL  INTERNET  SERVICE PROVIDER REVOLVING LOAN FUND. 1.
 THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER  AND
 THE  PUBLIC  SERVICE  COMMISSION  A  FUND  TO BE KNOWN AS THE "MUNICIPAL
 INTERNET SERVICE PROVIDER REVOLVING LOAN FUND". SUCH FUND SHALL  CONSIST
 OF MONEYS MADE AVAILABLE PURSUANT TO APPROPRIATION AND ANY OTHER SOURCES
 IN  ORDER  TO  PROVIDE  SUPPORT  FOR MUNICIPALITIES ATTEMPTING TO CREATE
 THEIR OWN INTERNET SERVICE PROVIDER.
   2. THE ACCOUNT SHALL  CONSIST  OF  ALL  MONEYS  APPROPRIATED  FOR  ITS
 PURPOSE, ALL MONEYS TRANSFERRED TO SUCH ACCOUNT PURSUANT TO LAW, AND ALL
 MONEYS  REQUIRED  BY  THIS  SECTION  OR ANY OTHER LAW TO BE PAID INTO OR
 CREDITED TO THIS ACCOUNT, INCLUDING ALL MONEYS RECEIVED BY  THE  ACCOUNT
 OR  DONATED TO IT, PAYMENTS OF PRINCIPAL AND INTEREST ON LOANS MADE FROM
 THE ACCOUNT, AND ANY INTEREST EARNINGS WHICH MAY ACCRUE FROM THE INVEST-
 MENT OR REINVESTMENT OF MONEYS FROM THE ACCOUNT.
   3. MONEYS OF THE ACCOUNT, WHEN ALLOCATED, SHALL BE  AVAILABLE  TO  THE
 PUBLIC  SERVICE COMMISSION TO MAKE LOANS AS PROVIDED IN THIS SECTION. UP
 TO FIVE PERCENT OF THE MONEYS OF THE ACCOUNT OR TWO HUNDRED FIFTY  THOU-
 SAND  DOLLARS,  WHICHEVER  IS  LESS,  MAY  BE  USED TO PAY THE EXPENSES,
 INCLUDING PERSONAL SERVICE AND MAINTENANCE AND OPERATION, IN  CONNECTION
 WITH THE ADMINISTRATION OF SUCH LOANS.
   4.  (A)  THE PUBLIC SERVICE COMMISSION MAY MAKE, UPON APPLICATION DULY
 MADE, UP TO THE AMOUNTS AVAILABLE BY APPROPRIATION, LOANS  FOR  ANY  AND
 ALL  COSTS ASSOCIATED WITH THE CREATION OF A MUNICIPALLY OWNED BROADBAND
 INTERNET SERVICE PROVIDER.
   (B) THE PUBLIC SERVICE COMMISSION SHALL HAVE THE POWER  TO  MAKE  SUCH
 RULES  AND  REGULATIONS AS MAY BE NECESSARY AND PROPER TO EFFECTUATE THE
 PURPOSES OF THIS SECTION.
   5. (A) APPLICATION FOR LOANS MAY BE MADE BY A TOWN, VILLAGE,  CITY  OR
 COUNTY  PROVIDED  THAT  THE APPLICATION IS OTHERWISE CONSISTENT WITH ITS
 RESPECTIVE POWERS. APPLICATIONS MAY ALSO BE SUBMITTED JOINTLY BY  MULTI-
 PLE  APPLICANTS  PROVIDED  THAT  THE APPLICATION IS OTHERWISE CONSISTENT
 WITH EACH APPLICANT'S RESPECTIVE POWERS.
   (B) EVERY APPLICATION SHALL BE IN A  FORM  ACCEPTABLE  TO  THE  PUBLIC
 SERVICE  COMMISSION.  EVERY  APPLICATION  SHALL  ACCURATELY  REFLECT THE
 CONDITIONS WHICH GIVE RISE TO THE PROPOSED  EXPENDITURE  AND  ACCURATELY
 REFLECT THE ABILITY OF THE APPLICANT TO MAKE SUCH AN EXPENDITURE WITHOUT
 THE PROCEEDS OF A LOAN UNDER THIS SECTION.
   (C)  (I)  THE PUBLIC SERVICE COMMISSION SHALL GIVE PREFERENCE TO THOSE
 APPLICATIONS WHICH:
   (A) DEMONSTRATE THE GREATEST NEED;
   (B) ARE JOINT APPLICATIONS; AND

 A. 10777                            6
 
   (C) APPLY THE PROCEEDS TOWARDS ATTAINING COMPLIANCE WITH  FEDERAL  AND
 STATE LAWS.
   (II)  THE  PUBLIC  SERVICE  COMMISSION  MAY DISAPPROVE ANY APPLICATION
 WHICH CONTAINS NO ADEQUATE DEMONSTRATION OF NEED OR WHICH  WOULD  RESULT
 IN INEQUITABLE OR INEFFICIENT USE OF THE MONEYS IN THE ACCOUNT.
   (III)  IN  MAKING  DETERMINATIONS  ON  LOAN  APPLICATIONS,  THE PUBLIC
 SERVICE COMMISSION SHALL ASSURE THAT  LOAN  FUND  MONEYS  ARE  EQUITABLY
 DISTRIBUTED AMONG ALL GEOGRAPHICAL AREAS OF THE STATE.
   (D)  THE PUBLIC SERVICE COMMISSION SHALL, TO THE MAXIMUM EXTENT FEASI-
 BLE, AND CONSISTENT WITH THE OTHER PROVISIONS OF THIS SECTION,  SEEK  TO
 PROVIDE  THAT  LOANS  AUTHORIZED  BY THIS SECTION REFLECT AN APPROPRIATE
 GEOGRAPHIC  DISTRIBUTION,  ARE  DISTRIBUTED  EQUITABLY   AND   ENCOURAGE
 REGIONAL COOPERATION.
   §  7.  The sum of two hundred fifty million dollars ($250,000,000), or
 so much thereof as may be  necessary,  is  hereby  appropriated  to  the
 municipal  internet service provider revolving loan fund from any moneys
 in the state treasury in the general fund to the  credit  of  the  state
 purposes account not otherwise appropriated for services and expenses of
 the  municipal  internet  service  provider  revolving loan fund for the
 purposes of carrying out the provisions of this act. Such sum  shall  be
 payable  on  the  audit and warrant of the state comptroller on vouchers
 certified or approved by the public service  commission  in  the  manner
 provided  by law.   No expenditure shall be made from this appropriation
 until a certificate of approval of availability shall have  been  issued
 by the director of the budget and filed with the state comptroller and a
 copy  filed  with  the  chairman of the senate finance committee and the
 chairman of the assembly ways and means committee. Such certificate  may
 be amended from time to time by the director of the budget and a copy of
 each  such  amendment  shall  be  filed  with the state comptroller, the
 chairman of the senate finance committee and the chairman of the  assem-
 bly ways and means committee.
   §  8.  Separability.  If  any part or provision of this article or the
 application thereof to any person or circumstance be adjudged invalid by
 any court of competent jurisdiction, such  judgment  shall  not  affect,
 impair or invalidate the remainder thereof, but shall be confined in its
 operation  to part or provision thereof directly involved in the contro-
 versy in which such judgment shall have been rendered.
   § 9. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.