NY State Senate Bill 2023-S7987

Senate Bill S7987

2023-2024 Legislative Session

Relates 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; appropriation

download bill text pdf

Current Bill Status - In Senate Committee Finance 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
Jan 04, 2024	referred to finance

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2023-S7987 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Appropriations
Laws Affected:: Add §92-j, Pub Serv L; add §399-z-2, Gen Bus L; add §§149 & 99-rr, amd §165, St Fin L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8020
2021-2022: S3308

2023-S7987 (ACTIVE) - Summary

Requires that state contracts only be with internet service providers compliant with net neutrality and establishes a revolving fund for the establishment of municipal internet service providers; appropriates $250 million therefor.

2023-S7987 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7987

SPONSOR: PARKER
 
TITLE OF BILL:

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 revolving
fund for the creation of municipal internet service providers; and
making an appropriation therefor

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to retain the policy of net neutrality at a
State level and to add an appropriation, which would provide a revolving
loan fund for any municipality that has a noncomplying ISP in its envi-
rons to be able to borrow the capital to build a competing network.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 titles the bill the "NYS Net NeutraIity.Protection Act".

Section 2 amends the public service law adding a new section 92-j.

Section 3 amends the general business law by adding a new section
399-z-2.

Section 4 amends the state finance law by adding a new section 149.

Section 5 amends subdivision 1 of section 165 of state finance law.

Section 6 amends the state finance law by adding a new section 99-qq.

Section 7: the sum of two hundred fifty million dollars or so much ther-
eof as may 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 interest 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 comp- troller on
vouchers certified or approved in the manner provided by law. No expend-
iture 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 assem-
bly 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 assembly ways and means
committee.

Section 8: adds a separability provision.

Section 9: sets forth the effective date.

 
JUSTIFICATION:

Neutrality has been a core democratizing principle of the Internet since
its inception. Net Neutrality is the cornerstone idea of the worldwide
web that all internet data should be equal. Internet Service Providers
(ISP) should not be allowed to charge different companies more or less
for their data or to slow down, or block access to web sites and
services they do not like. Internet service is a telecommunications
service, no different from phone service.  Phone companies, which are
often the same companies that are ISPs, cannot make the connection worse
if they do not approve of the caller on the other end of a call.

Both Freedom of Speech issues and fair competition issues arise with the
FCC decision to do away with the 2010 provisions of the law. The FCC's
recent vote will make it easier for ISPs to change the nature of the
internet, making some websites and services cheaper and more easily
accessible, and others harder or more expensive to access. If major
corporations could pay to get special treatment-faster speeds, more
bandwidth- start-ups would be at a disadvantage. Hence, net neutrality
protects innovation as well because without it, small business entrepre-
neurs will not survive. These small businesses constitute the majority
of the businesses in every region of the State - comprising at least 90
percent of total businesses in each region.

The deregulation of the internet will lead to a multitude of issues.  We
have seen this before with the deregulation of airlines and banks.
Unleashing the airlines to set their own fares and routes created over-
crowded planes, cramped seats, overstuffed luggage bins and absorbent
fares. Deregulation of banking allowed widespread abuses that triggered
the meltdown in the financial markets in 2008 and crashed the American
economy with reverberating effect.

 
PRIOR LEGISLATIVE HISTORY:

2021-22: S3308 - Referred to Finance

2019-20: S8020 - Referred to Finance

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2023-S7987 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7987
 
                             I N  S E N A T E
 
                              January 4, 2024
                                ___________
 
 Introduced  by  Sens. PARKER, JACKSON -- read twice and ordered printed,
   and when printed to be committed to the Committee on Finance
 
 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-j to
 read as follows:
   § 92-J. 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-Z-TWO 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
 COMMISSION'S WEBSITE AND UPDATED AT LEAST ANNUALLY. THE COMMISSION SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06285-02-4
 S. 7987                             2
 
 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-
 z-2 to read as follows:
   § 399-Z-2.  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) IN EXCHANGE FOR ANY FORM OF CONSIDERATION FROM A THIRD PARTY, OR
 S. 7987                             3
 
   (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  149  to
 read as follows:
   § 149. 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-Z-TWO  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.
   (B) IF SUCH CONTRACT IS FORMED PURSUANT TO A COMPETITIVE BIDDING PROC-
 ESS OR A REQUEST FOR  PROPOSAL  PROCESS,  WHENEVER  THE  RESPONSIVE  AND
 S. 7987                             4
 
 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-Z-TWO 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 CHAPTER, 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-
 NET ACCESS IN A MANNER CONSISTENT WITH  SECTION  THREE  HUNDRED  NINETY-
 NINE-Z-TWO OF THE GENERAL BUSINESS LAW.
 S. 7987                             5
 
   §  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-Z-TWO 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-Z-TWO OF THE
 GENERAL BUSINESS LAW.
   § 6. The state finance law is amended by adding a new section 99-rr to
 read as follows:
   § 99-RR. 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
   (C)  APPLY  THE PROCEEDS TOWARDS ATTAINING COMPLIANCE WITH FEDERAL AND
 STATE LAWS.
 S. 7987                             6
 
   (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.

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Senate Bill S7987

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Sponsored By

Kevin S. Parker