NY State Senate Bill 2019-S8845

Senate Bill S8845

2019-2020 Legislative Session

Relates to authorizing broadband franchises in cities with a population of one million or more

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 29, 2020	referred to rules

2019-S8845 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Transportation Corporations Law
Laws Affected:: Amd §27, Transp Corps L; add §99-a, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S3141
2023-2024: S376

2019-S8845 (ACTIVE) - Summary

Relates to authorizing broadband franchises in cities with a population of one million or more.

2019-S8845 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8845

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the transportation corporations law and the public
service law, in relation to authorizing broadband franchises in cities
with a population of one million or more

 
PURPOSE OR GENERAL IDEA OF BILL:

To increase competition between broadband providers through the develop-
ment of a franchise system.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 27 the transportation corporations law to
provide that compensation for the rights-of-way located within the city
shall equal the amount set forth in subdivision three of section 99 of
the public service law. Section 2 amends the public service law to add a
new section 99-a to require owners of communication lines to pay compen-

sation.

Section 3 sets for the effective date.

 
JUSTIFICATION:

During the COVID-19 pandemic, home broadband has proven to be as essen-
tial as water, gas, or electricity. Remote work and remote learning has
magnified the Digital Divide in New York City. About 3.4 million New
York City residents do not have home and mobile broadband, and over 1.5
million New Yorkers have neither a mobile connection nor a home broad-
band connection. Currently, only three Internet Service Provides (ISPS)
provide broadband to a majority of New Yorkers, and for many, the price
is unaffordable; in some areas, a lack of competition provides residents
with only one choice. The City is currently only authorized to collect
revenue on cable television from rights-of-way that also deliver broad-
band and consumers are increasingly abandoning traditional television
services and are acquiring entertainment content via streaming by broad-
band services. As such, cable franchise revenue is likely to dramat-
ically decrease over the next several years while broadband use will
increase. This bill would authorize broadband franchises in New York
City. This will increase competition, and ultimately provide New Yorkers
with more affordable broadband options.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

Generate approximately $35 million in annual revenue to the City.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.

2019-S8845 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8845
 
                             I N  S E N A T E
 
                               July 29, 2020
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the  transportation  corporations  law  and  the  public
   service law, in relation to authorizing broadband franchises in cities
   with a population of one million or more
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 27  of  the  transportation  corporations  law,  as
 amended  by  chapter  840  of  the  laws  of 1977, is amended to read as
 follows:
   § 27. Construction of  lines.  1.  Any  such  corporation  may  erect,
 construct  and  maintain the necessary fixtures for its lines upon, over
 or under any of the public roads, streets  and  highways;  and  through,
 across  or  under any of the waters within the limits of this state, and
 may erect, construct and maintain its necessary stations, plants, equip-
 ment or lines upon, through or over any other land, subject to the right
 of the owners thereof to full compensation for the  same.  If  any  such
 corporation  can  not  agree  with such owner or owners upon the compen-
 sation to be paid therefor, such compensation shall  be  ascertained  in
 the manner provided in the eminent domain procedure law. Any such corpo-
 ration  is  authorized, from time to time, to construct and lay lines of
 electrical conductors under ground in any city, village or  town  within
 the limits of this state, subject to all the provisions of law in refer-
 ence to such companies not inconsistent with this section; provided that
 such corporation shall, before laying any such line in any city, village
 or  town  of this state, first obtain from the common council of cities,
 or  other  body  having  like  jurisdiction  therein,  the  trustees  of
 villages,  or  the  town superintendents of towns, permission to use the
 streets within such city, village or town for the  purposes  herein  set
 forth.  Nothing  in  this  section  shall  limit,  alter,  or affect the
 provisions or powers relating or granted to telegraph corporations here-
 tofore created by special act of the legislature of this  state,  except
 in  so  far  as to confer on any such corporation the right to lay elec-
 trical conductors under ground.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16882-01-0

 S. 8845                             2
 
   2. (A) NOTWITHSTANDING ANYTHING  TO  THE  CONTRARY  IN  THIS  SECTION,
 COMPENSATION  TO CITIES WITH A POPULATION OF ONE MILLION OR MORE FOR USE
 AND OCCUPANCY OF PUBLIC RIGHTS-OF-WAY BY LINES OF ANY  SUCH  CORPORATION
 (WHETHER  OF ELECTRICAL CONDUCTORS OR TELECOMMUNICATIONS LINES WHICH ARE
 NOT  CONDUCTORS,  SUCH  AS  FIBER  OPTIC  LINES) HERETOFORE OR HEREAFTER
 LOCATED WITHIN SUCH CITIES SHALL EQUAL THE AMOUNT SET FORTH IN  SUBDIVI-
 SION  THREE  OF  SECTION NINETY-NINE-A OF THE PUBLIC SERVICE LAW, EXCEPT
 THAT WITH RESPECT TO ANY SUCH CITY AND CORPORATION THAT  ENTERS  INTO  A
 FRANCHISE  AGREEMENT IN ACCORDANCE WITH THE TERMS OF SUCH CITY'S CHARTER
 REGARDING FRANCHISE AGREEMENTS SUCH COMPENSATION SHALL BE AS PROVIDED IN
 SUCH FRANCHISE AGREEMENT DURING THE TERM OF SUCH FRANCHISE AGREEMENT.
   (B) TO THE EXTENT THAT ANY ENTITY HOLDS RIGHTS PREEXISTING THE  EFFEC-
 TIVE DATE OF PARAGRAPH (A) OF THIS SUBDIVISION WITH RESPECT TO THE OCCU-
 PANCY  OF  PUBLIC  RIGHTS-OF-WAY FOR CERTAIN LINES OF ELECTRICAL CONDUC-
 TORS,  AND  TO  THE  EXTENT  SUCH  PREEXISTING  RIGHTS  WOULD  BAR   THE
 APPLICATION  OF  PARAGRAPH  (A)  OF THIS SUBDIVISION TO SUCH LINES, THEN
 PARAGRAPH (A) OF THIS SUBDIVISION SHALL NOT  APPLY  TO  THOSE  LINES  TO
 WHICH SUCH BAR WOULD BE APPLICABLE.
   § 2. The public service law is amended by adding a new section 99-a to
 read as follows:
   § 99-A. FRANCHISES IN CITIES WITH A POPULATION OF ONE MILLION OR MORE.
 1.  (A)  THE  OWNER  OF  COMMUNICATIONS  LINES LOCATED WITHIN THE PUBLIC
 RIGHTS-OF-WAY IN ANY CITY WITH A POPULATION OF ONE MILLION OR MORE  THAT
 USES  SUCH  LINES FOR THE PROVISION OF INFORMATION SERVICES SHALL PAY TO
 SUCH CITY THE COMPENSATION AMOUNT, EXCEPT THAT WITH RESPECT TO ANY  SUCH
 CITY  AND  OWNER THAT HAVE ENTERED INTO AN UNEXPIRED FRANCHISE AGREEMENT
 OR REVOCABLE CONSENT AGREEMENT (WHICHEVER MAY BE APPLICABLE  UNDER  SUCH
 CITY'S  CHARTER) FOR THE USE OF PUBLIC RIGHTS-OF-WAY TO PROVIDE INFORMA-
 TION SERVICES IN ACCORDANCE  WITH  THE  TERMS  OF  SUCH  CITY'S  CHARTER
 REGARDING SUCH FRANCHISE AGREEMENTS OR REVOCABLE CONSENT AGREEMENTS SUCH
 COMPENSATION  SHALL, FOR THE TERM OF SUCH FRANCHISE AGREEMENT OR REVOCA-
 BLE CONSENT AGREEMENT, BE AS PROVIDED IN  SUCH  FRANCHISE  AGREEMENT  OR
 REVOCABLE CONSENT AGREEMENT.
   (B)  NOTWITHSTANDING  PARAGRAPH (A) OF THIS SUBDIVISION, TO THE EXTENT
 THAT WITH RESPECT TO A COMMUNICATIONS LINE THE OWNER  HAS  PAID  COMPEN-
 SATION  TO  THE  CITY IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION
 WITH RESPECT TO A PARTICULAR PERIOD, THE AMOUNT OF  SUCH  PAYMENT  SHALL
 CONSTITUTE  A CREDIT AGAINST THE PAYMENT DUE WITH RESPECT TO THAT PERIOD
 UNDER THIS SUBDIVISION.
   2. (A) THE OWNER OF COMMUNICATIONS LINES  LOCATED  WITHIN  THE  PUBLIC
 RIGHTS-OF-WAY  IN ANY CITY WITH A POPULATION OF ONE MILLION OR MORE THAT
 USES SUCH LINES FOR THE PROVISION OF TELECOMMUNICATIONS  SERVICES  SHALL
 PAY  TO  SUCH  CITY THE COMPENSATION AMOUNT, EXCEPT THAT WITH RESPECT TO
 ANY SUCH CITY AND OWNER THAT HAVE ENTERED INTO  AN  UNEXPIRED  FRANCHISE
 AGREEMENT  OR  REVOCABLE  CONSENT AGREEMENT (WHICHEVER MAY BE APPLICABLE
 UNDER SUCH CITY'S CHARTER)  FOR  THE  USE  OF  PUBLIC  RIGHTS-OF-WAY  TO
 PROVIDE TELECOMMUNICATIONS SERVICES IN ACCORDANCE WITH THE TERMS OF SUCH
 CITY'S  CHARTER REGARDING SUCH FRANCHISE AGREEMENTS OR REVOCABLE CONSENT
 AGREEMENTS SUCH COMPENSATION SHALL BE  AS  PROVIDED  IN  SUCH  FRANCHISE
 AGREEMENT OR REVOCABLE CONSENT AGREEMENT.
   (B)  NOTWITHSTANDING  PARAGRAPH (A) OF THIS SUBDIVISION, TO THE EXTENT
 THAT WITH RESPECT TO A COMMUNICATIONS LINE THE OWNER  HAS  PAID  COMPEN-
 SATION  TO  THE  CITY IN ACCORDANCE WITH SUBDIVISION ONE OF THIS SECTION
 WITH RESPECT TO A PARTICULAR PERIOD, THE AMOUNT OF  SUCH  PAYMENT  SHALL
 CONSTITUTE  A CREDIT AGAINST THE PAYMENT DUE WITH RESPECT TO THAT PERIOD
 UNDER THIS SUBDIVISION.

 S. 8845                             3
 
   3. (A) THE COMPENSATION AMOUNT APPLICABLE TO EACH  COMMUNICATION  LINE
 OCCUPYING PUBLIC RIGHTS-OF-WAY FOR EACH FULL CALENDAR YEAR OF SUCH OCCU-
 PATION SHALL BE CALCULATED BY MULTIPLYING THE NUMBER OF LINEAR FEET SUCH
 LINE  OCCUPIES  IN THE PUBLIC RIGHTS-OF-WAY BY THE PER FOOT FEE. THE PER
 FOOT FEE WITH RESPECT TO COMMUNICATIONS LINES WITHIN ANY COUNTY SHALL BE
 CALCULATED BY DIVIDING THE FRANCHISE FEE PAID BY THE PRIMARY CABLE FRAN-
 CHISEE IN SUCH COUNTY TO THE LOCAL FRANCHISING AUTHORITY DURING CALENDAR
 YEAR TWO THOUSAND TWELVE BY THE NUMBER OF LINEAR FEET WHICH OCCUPIED THE
 PUBLIC  RIGHTS-OF-WAY  WITHIN SUCH COUNTY DURING CALENDAR YEAR TWO THOU-
 SAND TWELVE AND WHICH WERE USED BY SUCH PRIMARY CABLE FRANCHISEE FOR THE
 PROVISION OF CABLE TELEVISION SERVICE. THE PRIMARY CABLE FRANCHISEE IN A
 COUNTY IS THE ENTITY HOLDING A FRANCHISE FROM THE APPLICABLE LOCAL FRAN-
 CHISING AUTHORITY AUTHORIZING THE PROVISION OF CABLE TELEVISION  SERVICE
 WITHIN  SUCH COUNTY; PROVIDED THAT TO THE EXTENT THAT THERE IS MORE THAN
 ONE SUCH ENTITY IN A COUNTY THEN THE PRIMARY CABLE FRANCHISEE  FOR  SUCH
 COUNTY  SHALL  BE THE ENTITY THAT PAID THE HIGHEST TOTAL AMOUNT OF FRAN-
 CHISE FEES APPLICABLE TO ITS CABLE TELEVISION SERVICE WITHIN SUCH COUNTY
 DURING CALENDAR YEAR TWO THOUSAND TWELVE.
   (B) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, WITH RESPECT TO
 ANY ENTITY WHICH HOLDS A CABLE TELEVISION FRANCHISE, THE AMOUNT OF FRAN-
 CHISE FEES PAID BY SUCH ENTITY WITH RESPECT TO THOSE  LINES  WITHIN  ITS
 APPLICABLE  FRANCHISE  AREA  WHICH  LINES  ARE USED FOR THE PROVISION OF
 CABLE TELEVISION SERVICE SHALL CONSTITUTE A  CREDIT  AGAINST  THE  TOTAL
 COMPENSATION AMOUNT PAYABLE WITH RESPECT TO SUCH LINES, AND FURTHER THAT
 IN  NO  EVENT SHALL THE TOTAL COMPENSATION AMOUNT REQUIRED TO BE PAID BY
 ANY ENTITY THAT HOLDS A CABLE TELEVISION FRANCHISE AGREEMENT EXCEED  THE
 MAXIMUM  AMOUNT,  WITH RESPECT TO LINES WHICH ARE USED FOR THE PROVISION
 OF CABLE TELEVISION SERVICE, PERMITTED TO BE CHARGED UNDER FEDERAL LAW.
   4. CITIES WITH A POPULATION OF ONE MILLION OR MORE ARE HEREBY  AUTHOR-
 IZED,  TO  ADOPT,  TO  THE  EXTENT NOT INCONSISTENT WITH STATE LAW, WITH
 RESPECT  TO  TELECOMMUNICATIONS  SERVICES,  REQUIREMENTS  NECESSARY   TO
 PRESERVE  AND  ADVANCE  UNIVERSAL SERVICE, PROTECT THE PUBLIC SAFETY AND
 WELFARE, ENSURE THE CONTINUED QUALITY  OF  TELECOMMUNICATIONS  SERVICES,
 AND  SAFEGUARD  THE  RIGHTS  OF CONSUMERS, AS A DELEGEE OF THE AUTHORITY
 DESCRIBED IN TITLE 47, SECTION 253(B) OF THE UNITED STATES CODE  OR  ANY
 SUCCESSOR  PROVISION  THERETO. SUCH REQUIREMENTS MAY BE ADOPTED BY LOCAL
 LAW OR RULE OR  PURSUANT  TO  CONTRACTS  OR  AGREEMENT,  TO  THE  EXTENT
 CONSISTENT WITH THE APPLICABLE CITY CHARTER.
   5. FOR THE PURPOSES OF THIS SECTION, "COMMUNICATIONS LINES" SHALL MEAN
 CABLE,  WIRE, FIBER OR OTHER CLOSED PATH TRANSMISSION MEDIUM THAT MAY BE
 USED IN LIEU OF CABLE, WIRE OR FIBER FOR THE SAME PURPOSES, AND  RELATED
 EQUIPMENT  AND  FACILITIES  USED FOR THE PROVISION OF ONE OR MORE OF THE
 FOLLOWING SERVICES:  TELECOMMUNICATIONS SERVICES,  INFORMATION  SERVICES
 AND  CABLE TELEVISION SERVICES (EACH OF WHICH IS DEFINED FOR PURPOSES OF
 THIS SECTION AS IT IS DEFINED IN TITLE 47 OF THE UNITED STATES CODE).
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.

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