NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5008A
SPONSOR: Gallahan TITLE OF BILL:
An act to amend the New York state urban development corporation act, in
relation to the provision of grant funding for broadband services in
non-competitive locations
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to improve access to high-speed broadband
service in areas of the state where there is a lack of competition.
SUMMARY OF PROVISIONS:
Section 1 amends the New York state urban development corporation act to
add a definition of the term "non-competitive location" in the Connec-
tAll deployment program.
Section 2 amends the New York state urban development corporation act to
address the availability cf ConnectAll program grants for non-competi-
tive locations to the extent appropriations are available.
Section 3 is the effective date.
JUSTIFICATION:
According to the NYS Public Service Commission (PSC), there are almost
140,000 locations in NYS that do not have access to high-speed broadband
internet service. Last year, New York established the $1+ Billion
ConnectAll program to address this problem and to also pursue other
state broadband policy goals (e.g. competition, reliability, affordabil-
ity).
Lack of broadband competition is a genuine concern in NYS and it has a
direct impact on affordability. The recent PSC Broadband Assessment
Program Report indicates that in two-thirds of New York counties (all
but cne located in Upstate NY), a majority of locations have access to
only one high-speed broadband service provider. And, in most of those
counties, over 70% of locations have access to only one high-speed
broadband provider. Further, the PSC Report indicates that, on average,
the counties with fewer internet service providers have higher broadband
prices (and these counties also happen to be the counties with the
lowest median income).
While maintaining the focus on reaching unserved and underserved
locations, New York can also simultaneously pursue measures to achieve
other important broadband policy goals such as improved access, more
competition, and more affordable pricing. To that end, this legislation
would authorize ConnectAll broadband grants, to the extent that appro-
priations are available after unserved and underserved areas receive
grants, to serve locations where there is only one provider of high-
speed broadband internet. This is a meaningful consumer benefit since
the addition of a second high-speed broadband service provider in these
locations will enhance competition and result in greater consumer choice
and more affordable pricing.
This legislation takes a practical approach to lack of competition in
the broadband marketplace while simultaneously maintaining an emphasis
on reaching unserved and underserved locations. By doing so, this bill
will allow more New Yorkers to enjoy the benefits of high-speed broad-
band as quickly as possible.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
