S07175 Summary:

Amd §5, Pub Serv L; amd §165, add §99-bb, St Fin L
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; appropriates $250 million therefor.
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S07175 Actions:

01/04/2018PRINT NUMBER 7175A
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S07175 Committee Votes:

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S07175 Floor Votes:

There are no votes for this bill in this legislative session.
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S07175 Text:

                STATE OF NEW YORK
                    IN SENATE
                                     January 3, 2018
        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed to  the  Committee  on  Finance  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
        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:
     1    Section 1. This act shall be known and may be cited as  the  "NYS  Net
     2  Neutrality Protection Act".
     3    §  2.  Subdivision 1 of section 5 of the public service law is amended
     4  by adding a new paragraph i to read as follows:
     5    i. To every broadband internet line which lies wholly within the state
     6  and that part within the state of New York of every  broadband  internet
     7  line  which  lies  partly within and partly without the state and to the
     8  persons or corporations owning, leasing or operating any such  broadband
     9  internet line.
    10    §  3.  Section  5 of the public service law is amended by adding a new
    11  subdivision 7 to read as follows:
    12    7. The commission shall require any person engaged in the provision of
    13  broadband internet access service in New York state  to  report  to  the
    14  commission, and publicly disclose annually, accurate information regard-
    15  ing  the network management practices, performance, and commercial terms
    16  of its broadband internet access services sufficient  for  consumers  to
    17  make  informed  choices  regarding use of such services and for content,
    18  application, service, and device providers to develop, market, and main-
    19  tain internet offerings.
    20    § 4. Subdivision 1 of section 165 of the state finance law is  amended
    21  by adding three new paragraphs f, g and h to read as follows:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 7175--A                          2
     1    f.  A "net neutral source of internet services" shall mean an internet
     2  service provider who adheres to the principles of net neutrality.
     3    g.  A  "non-net  neutral  source  of  internet services" shall mean an
     4  internet service provider who violates any  of  the  principles  of  net
     5  neutrality.
     6    h.  "The  principles of net neutrality" shall mean the rules and regu-
     7  lations under the open internet report and order on remand,  declaratory
     8  ruling,  and  order  by  the  federal communications commission released
     9  March twelfth, two thousand fifteen, GN Docket No. 14-28.
    10    § 5. Section 165 of the state finance law is amended by adding  a  new
    11  subdivision 9 to read as follows:
    12    9. Prohibition on purchase of internet services from a non-net neutral
    13  source of internet services.
    14    a.  (i)  With respect to contracts described in subparagraphs (ii) and
    15  (iii) of this paragraph, and in accordance with such subparagraphs,  the
    16  state  and  any  governmental  agency or political subdivision or public
    17  benefit corporation or municipality of the state shall not contract  for
    18  the  supply  of internet services with any contractor who does not agree
    19  to stipulate to the following, if there is another contractor  who  will
    20  contract to supply internet services of comparable quality at a compara-
    21  ble  price or cost, the contractor and any individual or legal entity in
    22  which the contractor holds a ten percent or greater  ownership  interest
    23  and  any  individual or legal entity that holds a ten percent or greater
    24  ownership interest in the contractor shall make  lawful  steps  in  good
    25  faith  to  conduct  any  business  operations as a net neutral source of
    26  internet services.
    27    (ii) In the case of contracts let by a competitive  process,  whenever
    28  the  responsive  and responsible offerer having the lowest price or best
    29  value offer has not agreed to stipulate to the conditions set  forth  in
    30  this  subdivision and another responsive and responsible offerer who has
    31  agreed to stipulate to such conditions  has  submitted  an  offer  shall
    32  determine that the contract be awarded to the lowest price or best value
    33  offer  for  internet  services  from  a  net  neutral source of internet
    34  services.
    35    (iii) In the case of contracts let by other than a competitive process
    36  internet services involving an expenditure of an amount greater than the
    37  discretionary buying threshold  as  specified  in  section  one  hundred
    38  sixty-three of this article, the contracting entity shall not award to a
    39  proposed  contractor  who  has not agreed to stipulate to the conditions
    40  set forth in this subdivision unless  the  entity  seeking  to  use  the
    41  internet  services  determines  that the internet services are necessary
    42  for the entity to perform its functions and there is no other  responsi-
    43  ble  contractor  who will supply internet services of comparable quality
    44  at a comparable price. Such determinations shall be made in writing  and
    45  shall be public documents.
    46    b. Upon receiving information that a contractor who has made the stip-
    47  ulation  required  by  this  subdivision  is  in  violation thereof, the
    48  contracting entity shall review such information and offer the  contrac-
    49  tor  an  opportunity  to respond. If the contracting entity finds that a
    50  violation has occurred, it shall take such action as may be  appropriate
    51  and  provided  for  by law, rule or contract, including, but not limited
    52  to,  imposing  sanctions,  seeking  compliance,  recovering  damages  or
    53  declaring the contractor in default.
    54    c.  As used in this subdivision, the term "contract" shall not include
    55  contracts with  governmental  and  non-profit  organizations,  contracts
    56  awarded  pursuant  to  emergency  procurement  procedures  or contracts,

        S. 7175--A                          3
     1  resolutions, indentures, declarations  of  trust  or  other  instruments
     2  authorizing  or  relating to the authorization, issuance, award, sale or
     3  purchase of bonds, certificates of indebtedness, notes or  other  fiscal
     4  obligations,  provided  that  the  policies of this subdivision shall be
     5  considered when selecting a contractor to  provide  financial  or  legal
     6  advice, and when selecting managing underwriters in connection with such
     7  activities.
     8    d. The provisions of this subdivision shall not apply to contracts for
     9  which  the state or other contracting entity receives funds administered
    10  by the United States, except to the extent congress has directed to  not
    11  withhold  funds  from  states  and  localities  that choose to implement
    12  selective purchasing policies based on an agreement to comply  with  the
    13  principles  of  net neutrality, or to the extent that such funds are not
    14  otherwise withheld by congress.
    15    § 6. The state finance law is amended by adding a new section 99-bb to
    16  read as follows:
    17    § 99-bb. Municipal internet service provider revolving loan fund.   1.
    18  There  is hereby established in the joint custody of the comptroller and
    19  the public service commission a fund  to  be  known  as  the  "municipal
    20  internet  service provider revolving loan fund". Such fund shall consist
    21  of moneys made available pursuant to appropriation and any other sources
    22  in order to provide support  for  municipalities  attempting  to  create
    23  their own internet service provider.
    24    2.  The  account  shall  consist  of  all  moneys appropriated for its
    25  purpose, all moneys transferred to such account pursuant to law, and all
    26  moneys required by this section or any other law  to  be  paid  into  or
    27  credited  to  this account, including all moneys received by the account
    28  or donated to it, payments of principal and interest on loans made  from
    29  the account, and any interest earnings which may accrue from the invest-
    30  ment or reinvestment of moneys from the account.
    31    3.  Moneys  of  the account, when allocated, shall be available to the
    32  public service commission to make loans as provided in this section.  Up
    33  to  five percent of the moneys of the account or two hundred fifty thou-
    34  sand dollars, whichever is less,  may  be  used  to  pay  the  expenses,
    35  including  personal service and maintenance and operation, in connection
    36  with the administration of such loans.
    37    4. (a) The public service commission may make, upon  application  duly
    38  made,  up  to  the amounts available by appropriation, loans for any and
    39  all costs associated with the creation of a municipally owned  broadband
    40  internet service provider.
    41    (b)  The  public  service commission shall have the power to make such
    42  rules and regulations as may be necessary and proper to  effectuate  the
    43  purposes of this section.
    44    5.  (a)  Application for loans may be made by a town, village, city or
    45  county provided that the application is otherwise  consistent  with  its
    46  respective powers.  Applications may also be submitted jointly by multi-
    47  ple  applicants  provided  that  the application is otherwise consistent
    48  with each applicant's respective powers.
    49    (b) Every application shall be in a  form  acceptable  to  the  public
    50  service  commission.  Every  application  shall  accurately  reflect the
    51  conditions which give rise to the proposed  expenditure  and  accurately
    52  reflect the ability of the applicant to make such an expenditure without
    53  the proceeds of a loan under this section.
    54    (c)  (i)  The public service commission shall give preference to those
    55  applications which demonstrate the greatest  need,  joint  applications,
    56  and  to  those applications the proceeds of which will be applied toward

        S. 7175--A                          4
     1  attaining compliance with federal and state laws and may disapprove  any
     2  application  which  contains  no adequate demonstration of need or which
     3  would result in inequitable or inefficient use  of  the  moneys  in  the
     4  account.
     5    (ii) In making determinations on loan applications, the public service
     6  commission  shall assure that loan fund moneys are equitably distributed
     7  among all geographical areas of the state.
     8    (d) The public service commission shall, to the maximum extent  feasi-
     9  ble,  and  consistent with the other provisions of this section, seek to
    10  provide that loans authorized by this  section  reflect  an  appropriate
    11  geographic   distribution,   are  distributed  equitably  and  encourage
    12  regional cooperation.
    13    § 7. The sum of two hundred fifty million dollars  ($250,000,000),  or
    14  so  much  thereof  as  may be necessary, is hereby appropriated from any
    15  moneys in the state treasury in the general fund to the  credit  of  the
    16  state purposes account for the initial capital of the municipal internet
    17  service  provider  revolving loan fund in carrying out the provisions of
    18  this act. Such sum shall be payable on the  audit  and  warrant  of  the
    19  state  comptroller  on  vouchers  certified  or  approved  in the manner
    20  provided by law. No expenditure shall be made  from  this  appropriation
    21  until  a  certificate of approval of availability shall have been issued
    22  by the director of the budget and filed with the state comptroller and a
    23  copy filed with the chairman of the senate  finance  committee  and  the
    24  chairman  of the assembly ways and means committee. Such certificate may
    25  be amended from time to time by the director of the budget and a copy of
    26  each such amendment shall be  filed  with  the  state  comptroller,  the
    27  chairman  of the senate finance committee and the chairman of the assem-
    28  bly ways and means committee.
    29    § 8. This act shall take effect immediately.
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