STATE OF NEW YORK ________________________________________________________________________ 4594 2023-2024 Regular Sessions IN ASSEMBLY February 17, 2023 ___________ Introduced by M. of A. BICHOTTE HERMELYN, COLTON, HYNDMAN, LAVINE, ZEBROWSKI, D. ROSENTHAL, HEVESI, SIMON, BRONSON, GUNTHER, AUBRY, PEOPLES-STOKES, HUNTER -- Multi-Sponsored by -- M. of A. THIELE -- read once and referred to the Committee on Corporations, Authorities and Commissions 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 j to read as follows: 5 j. 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. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07720-01-3A. 4594 2 1 § 4. Subdivision 1 of section 165 of the state finance law is amended 2 by adding three new paragraphs f, g and h to read as follows: 3 f. A "net neutral source of internet services" shall mean an internet 4 service provider who adheres to the principles of net neutrality. 5 g. A "non-net neutral source of internet services" shall mean an 6 internet service provider who violates any of the principles of net 7 neutrality. 8 h. "The principles of net neutrality" shall mean the rules and regu- 9 lations under the open internet report and order on remand, declaratory 10 ruling, and order by the federal communications commission released 11 March twelfth, two thousand fifteen, GN Docket No. 14-28. 12 § 5. Section 165 of the state finance law is amended by adding a new 13 subdivision 9 to read as follows: 14 9. Prohibition on purchase of internet services from a non-net neutral 15 source of internet services. 16 a. (i) With respect to contracts described in subparagraphs (ii) and 17 (iii) of this paragraph, and in accordance with such subparagraphs, the 18 state and any governmental agency or political subdivision or public 19 benefit corporation or municipality of the state shall not contract for 20 the supply of internet services with any contractor who does not agree 21 to stipulate to the following, if there is another contractor who will 22 contract to supply internet services of comparable quality at a compara- 23 ble price or cost, the contractor and any individual or legal entity in 24 which the contractor holds a ten percent or greater ownership interest 25 and any individual or legal entity that holds a ten percent or greater 26 ownership interest in the contractor shall make lawful steps in good 27 faith to conduct any business operations as a net neutral source of 28 internet services. 29 (ii) In the case of contracts let by a competitive process, whenever 30 the responsive and responsible offerer having the lowest price or best 31 value offer has not agreed to stipulate to the conditions set forth in 32 this subdivision and another responsive and responsible offerer who has 33 agreed to stipulate to such conditions has submitted an offer shall 34 determine that the contract be awarded to the lowest price or best value 35 offer for internet services from a net neutral source of internet 36 services. 37 (iii) In the case of contracts let by other than a competitive process 38 internet services involving an expenditure of an amount greater than the 39 discretionary buying threshold as specified in section one hundred 40 sixty-three of this article, the contracting entity shall not award to a 41 proposed contractor who has not agreed to stipulate to the conditions 42 set forth in this subdivision unless the entity seeking to use the 43 internet services determines that the internet services are necessary 44 for the entity to perform its functions and there is no other responsi- 45 ble contractor who will supply internet services of comparable quality 46 at a comparable price. Such determinations shall be made in writing and 47 shall be public documents. 48 b. Upon receiving information that a contractor who has made the stip- 49 ulation required by this subdivision is in violation thereof, the 50 contracting entity shall review such information and offer the contrac- 51 tor an opportunity to respond. If the contracting entity finds that a 52 violation has occurred, it shall take such action as may be appropriate 53 and provided for by law, rule or contract, including, but not limited 54 to, imposing sanctions, seeking compliance, recovering damages or 55 declaring the contractor in default.A. 4594 3 1 c. As used in this subdivision, the term "contract" shall not include 2 contracts with governmental and non-profit organizations, contracts 3 awarded pursuant to emergency procurement procedures or contracts, 4 resolutions, indentures, declarations of trust or other instruments 5 authorizing or relating to the authorization, issuance, award, sale or 6 purchase of bonds, certificates of indebtedness, notes or other fiscal 7 obligations, provided that the policies of this subdivision shall be 8 considered when selecting a contractor to provide financial or legal 9 advice, and when selecting managing underwriters in connection with such 10 activities. 11 d. The provisions of this subdivision shall not apply to contracts for 12 which the state or other contracting entity receives funds administered 13 by the United States, except to the extent congress has directed to not 14 withhold funds from states and localities that choose to implement 15 selective purchasing policies based on an agreement to comply with the 16 principles of net neutrality, or to the extent that such funds are not 17 otherwise withheld by congress. 18 § 6. The state finance law is amended by adding a new section 99-m to 19 read as follows: 20 § 99-m. Municipal internet service provider revolving loan fund. 1. 21 There is hereby established in the joint custody of the comptroller and 22 the public service commission a fund to be known as the "municipal 23 internet service provider revolving loan fund". Such fund shall consist 24 of moneys made available pursuant to appropriation and any other sources 25 in order to provide support for municipalities attempting to create 26 their own internet service provider. 27 2. The account shall consist of all moneys appropriated for its 28 purpose, all moneys transferred to such account pursuant to law, and all 29 moneys required by this section or any other law to be paid into or 30 credited to this account, including all moneys received by the account 31 or donated to it, payments of principal and interest on loans made from 32 the account, and any interest earnings which may accrue from the invest- 33 ment or reinvestment of moneys from the account. 34 3. Moneys of the account, when allocated, shall be available to the 35 public service commission to make loans as provided in this section. Up 36 to five percent of the moneys of the account or two hundred fifty thou- 37 sand dollars, whichever is less, may be used to pay the expenses, 38 including personal service and maintenance and operation, in connection 39 with the administration of such loans. 40 4. (a) The public service commission may make, upon application duly 41 made, up to the amounts available by appropriation, loans for any and 42 all costs associated with the creation of a municipally owned broadband 43 internet service provider. 44 (b) The public service commission shall have the power to make such 45 rules and regulations as may be necessary and proper to effectuate the 46 purposes of this section. 47 5. (a) Application for loans may be made by a town, village, city or 48 county provided that the application is otherwise consistent with its 49 respective powers. Applications may also be submitted jointly by multi- 50 ple applicants provided that the application is otherwise consistent 51 with each applicant's respective powers. 52 (b) Every application shall be in a form acceptable to the public 53 service commission. Every application shall accurately reflect the 54 conditions which give rise to the proposed expenditure and accurately 55 reflect the ability of the applicant to make such an expenditure without 56 the proceeds of a loan under this section.A. 4594 4 1 (c) (i) The public service commission shall give preference to those 2 applications which demonstrate the greatest need, joint applications, 3 and to those applications the proceeds of which will be applied toward 4 attaining compliance with federal and state laws and may disapprove any 5 application which contains no adequate demonstration of need or which 6 would result in inequitable or inefficient use of the moneys in the 7 account. 8 (ii) In making determinations on loan applications, the public service 9 commission shall assure that loan fund moneys are equitably distributed 10 among all geographical areas of the state. 11 (d) The public service commission shall, to the maximum extent feasi- 12 ble, and consistent with the other provisions of this section, seek to 13 provide that loans authorized by this section reflect an appropriate 14 geographic distribution, are distributed equitably and encourage 15 regional cooperation. 16 § 7. The sum of two hundred fifty million dollars ($250,000,000), or 17 so much thereof as may be necessary, is hereby appropriated from any 18 moneys in the state treasury in the general fund to the credit of the 19 state purposes account for the initial capital of the municipal internet 20 service provider revolving loan fund in carrying out the provisions of 21 this act. Such sum shall be payable on the audit and warrant of the 22 state comptroller on vouchers certified or approved in the manner 23 provided by law. No expenditure shall be made from this appropriation 24 until a certificate of approval of availability shall have been issued 25 by the director of the budget and filed with the state comptroller and a 26 copy filed with the chairman of the senate finance committee and the 27 chairman of the assembly ways and means committee. Such certificate may 28 be amended from time to time by the director of the budget and a copy of 29 each such amendment shall be filed with the state comptroller, the 30 chairman of the senate finance committee and the chairman of the assem- 31 bly ways and means committee. 32 § 8. This act shall take effect immediately.