BILL NUMBER: S1527

SPONSOR: ORTT
 
TITLE OF BILL:

An act directing the department of transportation to study the cost of
administering utility projects in state highway rights of way; and
providing for the repeal of such provisions upon the expiration thereof

 
PURPOSE:

To determine the cost to the Department of Transportation to administer
utilities in the State highway rights of way, and to reduce the cost of
expanding broadband throughout the State of New York.

 
SUMMARY OF PROVISIONS:

Section 1: Directs the Department of Transportation to conduct a study
on the cost to the Department of administering utility projects in the
state highway rights of way.

Section 2: Requires that the Commissioner of Transportation deliver a
              

copy of the finding of the study to legislative leaders no later than
April 1, 2021.

Section 3: Amends subdivision 24-e of section 10 of the Highway Law to
limit the cost of the fiber optic fee to the cost to the Department of
administering the program.

Section 4: Amends section 7 of the Transportation Corporations Law to
limit the cost of the fiber optic fee to the cost to the Department of
administering the program..

Section 5: Provides an effective date.

 
JUSTIFICATION:

In the FY 2020 Enacted Budget, the Department of Transportation was
authorized to collect a fee on new and existing fiber optic projects in
the rights of way of state highways. Predictably, this fee has led to
planned broadband expansion projects being halted, which reduces the
competitiveness of New York by limiting the number of people in the
State with access to high speed internet access. Additionally, fiber
optic utilities were the only utility where a fee was authorized, so
existing utilities located in the state rights of way still pay nothing
for the Department to administer those utilities.

This bill would direct the Department to study how much it costs them to
administer projects from each utility and to transmit the results of the
study to legislative leaders. Furthermore, it would limit the amount
that can be collected under the fiber optic fee to the cost to the
Department to administer those projects. This would significantly lower
the cost to entities looking to expand broadband in New York State,
which is more important than ever during a time of distance learning and
working from home as a result of the COVID-19 pandemic.

 
PRIOR LEGISLATIVE HISTORY:

2021-2022: S. 3720 Referred to Transportation
2019-2020: Referred to Rules.

 
FISCAL IMPLICATIONS:

Reduction of revenue to the Department of Transportation offset by
increased economic productivity resulting from broadband expansion.

 
EFFECTIVE DATE:
This act shall take effect immediately, provided, however, that the
amendments to subdivision 24-e of section 10 of the highway law made by
section three of this act and the amendments to section 7 of the trans-
portation corporations law made by section four of this act shall not
affect the expiration of such subdivision and such section and shall be
deemed to expire therewith; provided, further, that sections one and two
of this act shall expire and be deemed repealed on the thirtieth day
following the delivery of the report to the governor and the legislature
as provided for in section two of this act.