S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4594
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 17, 2023
                                ___________
 
 Introduced  by  M.  of  A.  BICHOTTE HERMELYN,  COLTON, HYNDMAN, LAVINE,
   ZEBROWSKI,  D. ROSENTHAL,  HEVESI,  SIMON,  BRONSON,  GUNTHER,  AUBRY,
   PEOPLES-STOKES,  HUNTER  --  Multi-Sponsored  by -- M. of A. THIELE --
   read once and referred to the Committee on  Corporations,  Authorities
   and Commissions

 AN  ACT  to  amend  the public service law and the state finance law, in
   relation to state contracts being only with internet service providers
   compliant with net neutrality and establishes a revolving fund for the
   establishment 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. This act shall be known and may be cited as  the  "NYS  Net
 Neutrality Protection Act".
   §  2.  Subdivision 1 of section 5 of the public service law is amended
 by adding a new paragraph j to read as follows:
   J. TO EVERY BROADBAND INTERNET LINE WHICH LIES WHOLLY WITHIN THE STATE
 AND THAT PART WITHIN THE STATE OF NEW YORK OF EVERY  BROADBAND  INTERNET
 LINE  WHICH  LIES  PARTLY WITHIN AND PARTLY WITHOUT THE STATE AND TO THE
 PERSONS OR CORPORATIONS OWNING, LEASING OR OPERATING ANY SUCH  BROADBAND
 INTERNET LINE.
   §  3.  Section  5 of the public service law is amended by adding a new
 subdivision 7 to read as follows:
   7. THE COMMISSION SHALL REQUIRE ANY PERSON ENGAGED IN THE PROVISION OF
 BROADBAND INTERNET ACCESS SERVICE IN NEW YORK STATE  TO  REPORT  TO  THE
 COMMISSION, AND PUBLICLY DISCLOSE ANNUALLY, ACCURATE INFORMATION REGARD-
 ING  THE NETWORK MANAGEMENT PRACTICES, PERFORMANCE, AND COMMERCIAL TERMS
 OF ITS BROADBAND INTERNET ACCESS SERVICES SUFFICIENT  FOR  CONSUMERS  TO
 MAKE  INFORMED  CHOICES  REGARDING USE OF SUCH SERVICES AND FOR CONTENT,
 APPLICATION, SERVICE, AND DEVICE PROVIDERS TO DEVELOP, MARKET, AND MAIN-
 TAIN INTERNET OFFERINGS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07720-01-3
              

 A. 4594                             2
 
   § 4. Subdivision 1 of section 165 of the state finance law is  amended
 by adding three new paragraphs f, g and h to read as follows:
   F.  A "NET NEUTRAL SOURCE OF INTERNET SERVICES" SHALL MEAN AN INTERNET
 SERVICE PROVIDER WHO ADHERES TO THE PRINCIPLES OF NET NEUTRALITY.
   G. A "NON-NET NEUTRAL SOURCE  OF  INTERNET  SERVICES"  SHALL  MEAN  AN
 INTERNET  SERVICE  PROVIDER  WHO  VIOLATES  ANY OF THE PRINCIPLES OF NET
 NEUTRALITY.
   H. "THE PRINCIPLES OF NET NEUTRALITY" SHALL MEAN THE RULES  AND  REGU-
 LATIONS  UNDER THE OPEN INTERNET REPORT AND ORDER ON REMAND, DECLARATORY
 RULING, AND ORDER BY  THE  FEDERAL  COMMUNICATIONS  COMMISSION  RELEASED
 MARCH TWELFTH, TWO THOUSAND FIFTEEN, GN DOCKET NO. 14-28.
   §  5.  Section 165 of the state finance law is amended by adding a new
 subdivision 9 to read as follows:
   9. PROHIBITION ON PURCHASE OF INTERNET SERVICES FROM A NON-NET NEUTRAL
 SOURCE OF INTERNET SERVICES.
   A. (I) WITH RESPECT TO CONTRACTS DESCRIBED IN SUBPARAGRAPHS  (II)  AND
 (III)  OF THIS PARAGRAPH, AND IN ACCORDANCE WITH SUCH SUBPARAGRAPHS, THE
 STATE AND ANY GOVERNMENTAL AGENCY OR  POLITICAL  SUBDIVISION  OR  PUBLIC
 BENEFIT  CORPORATION OR MUNICIPALITY OF THE STATE SHALL NOT CONTRACT FOR
 THE SUPPLY OF INTERNET SERVICES WITH ANY CONTRACTOR WHO DOES  NOT  AGREE
 TO  STIPULATE  TO THE FOLLOWING, IF THERE IS ANOTHER CONTRACTOR WHO WILL
 CONTRACT TO SUPPLY INTERNET SERVICES OF COMPARABLE QUALITY AT A COMPARA-
 BLE PRICE OR COST, THE CONTRACTOR AND ANY INDIVIDUAL OR LEGAL ENTITY  IN
 WHICH  THE  CONTRACTOR HOLDS A TEN PERCENT OR GREATER OWNERSHIP INTEREST
 AND ANY INDIVIDUAL OR LEGAL ENTITY THAT HOLDS A TEN PERCENT  OR  GREATER
 OWNERSHIP  INTEREST  IN  THE  CONTRACTOR SHALL MAKE LAWFUL STEPS IN GOOD
 FAITH TO CONDUCT ANY BUSINESS OPERATIONS AS  A  NET  NEUTRAL  SOURCE  OF
 INTERNET SERVICES.
   (II)  IN  THE CASE OF CONTRACTS LET BY A COMPETITIVE 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 SHALL
 DETERMINE THAT THE CONTRACT BE AWARDED TO THE LOWEST PRICE OR BEST VALUE
 OFFER FOR INTERNET SERVICES  FROM  A  NET  NEUTRAL  SOURCE  OF  INTERNET
 SERVICES.
   (III) IN THE CASE OF CONTRACTS LET BY OTHER THAN A COMPETITIVE PROCESS
 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 SEEKING TO USE THE
 INTERNET SERVICES DETERMINES THAT THE INTERNET  SERVICES  ARE  NECESSARY
 FOR  THE ENTITY TO PERFORM ITS FUNCTIONS AND THERE IS NO OTHER RESPONSI-
 BLE CONTRACTOR WHO WILL SUPPLY INTERNET SERVICES OF  COMPARABLE  QUALITY
 AT  A COMPARABLE PRICE. SUCH DETERMINATIONS SHALL BE MADE IN WRITING AND
 SHALL BE PUBLIC DOCUMENTS.
   B. UPON RECEIVING INFORMATION THAT A CONTRACTOR WHO HAS MADE THE STIP-
 ULATION REQUIRED BY  THIS  SUBDIVISION  IS  IN  VIOLATION  THEREOF,  THE
 CONTRACTING  ENTITY SHALL REVIEW SUCH INFORMATION AND OFFER THE CONTRAC-
 TOR AN OPPORTUNITY TO RESPOND. IF THE CONTRACTING ENTITY  FINDS  THAT  A
 VIOLATION  HAS OCCURRED, IT SHALL TAKE SUCH ACTION AS MAY BE APPROPRIATE
 AND PROVIDED FOR BY LAW, RULE OR CONTRACT, INCLUDING,  BUT  NOT  LIMITED
 TO,  IMPOSING  SANCTIONS,  SEEKING  COMPLIANCE,  RECOVERING  DAMAGES  OR
 DECLARING THE CONTRACTOR IN DEFAULT.
 A. 4594                             3
 
   C. AS USED IN THIS SUBDIVISION, THE TERM "CONTRACT" SHALL NOT  INCLUDE
 CONTRACTS  WITH  GOVERNMENTAL  AND  NON-PROFIT  ORGANIZATIONS, CONTRACTS
 AWARDED PURSUANT  TO  EMERGENCY  PROCUREMENT  PROCEDURES  OR  CONTRACTS,
 RESOLUTIONS,  INDENTURES,  DECLARATIONS  OF  TRUST  OR OTHER INSTRUMENTS
 AUTHORIZING  OR  RELATING TO THE AUTHORIZATION, ISSUANCE, AWARD, SALE OR
 PURCHASE OF BONDS, CERTIFICATES OF INDEBTEDNESS, NOTES OR  OTHER  FISCAL
 OBLIGATIONS,  PROVIDED  THAT  THE  POLICIES OF THIS SUBDIVISION SHALL BE
 CONSIDERED WHEN SELECTING A CONTRACTOR TO  PROVIDE  FINANCIAL  OR  LEGAL
 ADVICE, AND WHEN SELECTING MANAGING UNDERWRITERS IN CONNECTION WITH SUCH
 ACTIVITIES.
   D. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO CONTRACTS FOR
 WHICH  THE STATE OR OTHER CONTRACTING ENTITY RECEIVES FUNDS ADMINISTERED
 BY THE UNITED STATES, EXCEPT TO THE EXTENT CONGRESS HAS DIRECTED TO  NOT
 WITHHOLD  FUNDS  FROM  STATES  AND  LOCALITIES  THAT CHOOSE TO IMPLEMENT
 SELECTIVE PURCHASING POLICIES BASED ON AN AGREEMENT TO COMPLY  WITH  THE
 PRINCIPLES  OF  NET NEUTRALITY, OR TO THE EXTENT THAT SUCH FUNDS ARE NOT
 OTHERWISE WITHHELD BY CONGRESS.
   § 6. The state finance law is amended by adding a new section 99-m  to
 read as follows:
   §  99-M.  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.
 A. 4594                             4
 
   (C) (I) THE PUBLIC SERVICE COMMISSION SHALL GIVE PREFERENCE  TO  THOSE
 APPLICATIONS  WHICH  DEMONSTRATE  THE GREATEST NEED, JOINT APPLICATIONS,
 AND TO THOSE APPLICATIONS THE PROCEEDS OF WHICH WILL BE  APPLIED  TOWARD
 ATTAINING  COMPLIANCE WITH FEDERAL AND STATE LAWS AND 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.
   (II) 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 from any
 moneys in the state treasury in the general fund to the  credit  of  the
 state purposes account for the initial capital of the municipal internet
 service  provider  revolving loan fund in 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  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. This act shall take effect immediately.