Bill Text: NY S04368 | 2019-2020 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO FINANCE [S04368 Detail]
Download: New_York-2019-S04368-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4368 2019-2020 Regular Sessions IN SENATE March 11, 2019 ___________ Introduced by Sens. PARKER, BAILEY, BROOKS, KAMINSKY, KRUEGER, MONTGOM- ERY, PERSAUD, SEPULVEDA, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Finance 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. LBD03122-01-9S. 4368 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. 4368 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-ff to 16 read as follows: 17 § 99-ff. 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 towardS. 4368 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.
