STATE OF NEW YORK ________________________________________________________________________ 376 2023-2024 Regular Sessions IN SENATE (Prefiled) January 4, 2023 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation AN ACT to amend the transportation corporations law and the public service law, in relation to authorizing broadband franchises in cities with a population of one million or more The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 27 of the transportation corporations law, as 2 amended by chapter 840 of the laws of 1977, is amended to read as 3 follows: 4 § 27. Construction of lines. 1. Any such corporation may erect, 5 construct and maintain the necessary fixtures for its lines upon, over 6 or under any of the public roads, streets and highways; and through, 7 across or under any of the waters within the limits of this state, and 8 may erect, construct and maintain its necessary stations, plants, equip- 9 ment or lines upon, through or over any other land, subject to the right 10 of the owners thereof to full compensation for the same. If any such 11 corporation can not agree with such owner or owners upon the compen- 12 sation to be paid therefor, such compensation shall be ascertained in 13 the manner provided in the eminent domain procedure law. Any such corpo- 14 ration is authorized, from time to time, to construct and lay lines of 15 electrical conductors under ground in any city, village or town within 16 the limits of this state, subject to all the provisions of law in refer- 17 ence to such companies not inconsistent with this section; provided that 18 such corporation shall, before laying any such line in any city, village 19 or town of this state, first obtain from the common council of cities, 20 or other body having like jurisdiction therein, the trustees of 21 villages, or the town superintendents of towns, permission to use the 22 streets within such city, village or town for the purposes herein set 23 forth. Nothing in this section shall limit, alter, or affect the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02371-01-3S. 376 2 1 provisions or powers relating or granted to telegraph corporations here- 2 tofore created by special act of the legislature of this state, except 3 in so far as to confer on any such corporation the right to lay elec- 4 trical conductors under ground. 5 2. (a) Notwithstanding anything to the contrary in this section, 6 compensation to cities with a population of one million or more for use 7 and occupancy of public rights-of-way by lines of any such corporation 8 (whether of electrical conductors or telecommunications lines which are 9 not conductors, such as fiber optic lines) heretofore or hereafter 10 located within such cities shall equal the amount set forth in subdivi- 11 sion three of section ninety-nine-a of the public service law, except 12 that with respect to any such city and corporation that enters into a 13 franchise agreement in accordance with the terms of such city's charter 14 regarding franchise agreements such compensation shall be as provided in 15 such franchise agreement during the term of such franchise agreement. 16 (b) To the extent that any entity holds rights preexisting the effec- 17 tive date of paragraph (a) of this subdivision with respect to the occu- 18 pancy of public rights-of-way for certain lines of electrical conduc- 19 tors, and to the extent such preexisting rights would bar the 20 application of paragraph (a) of this subdivision to such lines, then 21 paragraph (a) of this subdivision shall not apply to those lines to 22 which such bar would be applicable. 23 § 2. The public service law is amended by adding a new section 99-a to 24 read as follows: 25 § 99-a. Franchises in cities with a population of one million or more. 26 1. (a) The owner of communications lines located within the public 27 rights-of-way in any city with a population of one million or more that 28 are used for the provision of information services shall pay to such 29 city the compensation amount, except that with respect to any such city 30 and owner that have entered into an unexpired franchise agreement or 31 revocable consent agreement (whichever may be applicable under such 32 city's charter) for the use of public rights-of-way to provide informa- 33 tion services in accordance with the terms of such city's charter 34 regarding such franchise agreements or revocable consent agreements such 35 compensation shall, for the term of such franchise agreement or revoca- 36 ble consent agreement, be as provided in such franchise agreement or 37 revocable consent agreement. 38 (b) Notwithstanding paragraph (a) of this subdivision, to the extent 39 that with respect to a communications line the owner has paid compen- 40 sation to the city in accordance with subdivision two of this section 41 with respect to a particular period, the amount of such payment shall 42 constitute a credit against the payment due with respect to that period 43 under this subdivision. 44 2. (a) The owner of communications lines located within the public 45 rights-of-way in any city with a population of one million or more that 46 are used for the provision of telecommunications services shall pay to 47 such city the compensation amount, except that with respect to any such 48 city and owner that have entered into an unexpired franchise agreement 49 or revocable consent agreement (whichever may be applicable under such 50 city's charter) for the use of public rights-of-way to provide telecom- 51 munications services in accordance with the terms of such city's charter 52 regarding such franchise agreements or revocable consent agreements such 53 compensation shall be as provided in such franchise agreement or revoca- 54 ble consent agreement. 55 (b) Notwithstanding paragraph (a) of this subdivision, to the extent 56 that with respect to a communications line the owner has paid compen-S. 376 3 1 sation to the city in accordance with subdivision one of this section 2 with respect to a particular period, the amount of such payment shall 3 constitute a credit against the payment due with respect to that period 4 under this subdivision. 5 3. (a) The compensation amount applicable to each communication line 6 occupying public rights-of-way for each full calendar year of such occu- 7 pation shall be calculated by multiplying the number of linear feet such 8 line occupies in the public rights-of-way by the per foot fee. The per 9 foot fee with respect to communications lines within any county shall be 10 calculated by dividing the franchise fee paid by the primary cable fran- 11 chisee in such county to the local franchising authority during calendar 12 year two thousand twelve by the number of linear feet which occupied the 13 public rights-of-way within such county during calendar year two thou- 14 sand twelve and which were used by such primary cable franchisee for the 15 provision of cable television service. The primary cable franchisee in a 16 county is the entity holding a franchise from the applicable local fran- 17 chising authority authorizing the provision of cable television service 18 within such county; provided that to the extent that there is more than 19 one such entity in a county then the primary cable franchisee for such 20 county shall be the entity that paid the highest total amount of fran- 21 chise fees applicable to its cable television service within such county 22 during calendar year two thousand twelve. 23 (b) Notwithstanding paragraph (a) of this subdivision, with respect to 24 any entity which holds a cable television franchise, the amount of fran- 25 chise fees paid by such entity with respect to those lines within its 26 applicable franchise area which lines are used for the provision of 27 cable television service shall constitute a credit against the total 28 compensation amount payable with respect to such lines, and further that 29 in no event shall the total compensation amount required to be paid by 30 any entity that holds a cable television franchise agreement exceed the 31 maximum amount, with respect to lines which are used for the provision 32 of cable television service, permitted to be charged under federal law. 33 4. Cities with a population of one million or more are hereby author- 34 ized, to adopt, to the extent not inconsistent with state law, with 35 respect to telecommunications services, requirements necessary to 36 preserve and advance universal service, protect the public safety and 37 welfare, ensure the continued quality of telecommunications services, 38 and safeguard the rights of consumers, as a delegee of the authority 39 described in title 47, section 253(b) of the United States Code or any 40 successor provision thereto. Such requirements may be adopted by local 41 law or rule or pursuant to contracts or agreement, to the extent 42 consistent with the applicable city charter. 43 5. For the purposes of this section, "communications lines" shall mean 44 cable, wire, fiber or other closed path transmission medium that may be 45 used in lieu of cable, wire or fiber for the same purposes, and related 46 equipment and facilities used for the provision of one or more of the 47 following services: telecommunications services, information services 48 and cable television services (each of which is defined for purposes of 49 this section as it is defined in title 47 of the United States Code). 50 6. Any fee or compensation for use or occupancy of communications 51 lines within the public rights-of-way under a franchise agreement with a 52 city pursuant to this section, shall not be passed through in whole or 53 in part as a fee, charge, increased service cost, or by any other means 54 to any consumers residing outside of such city. 55 § 3. Severability clause. If any clause, sentence, paragraph, subdivi- 56 sion, section or part of this act shall be adjudged by any court ofS. 376 4 1 competent jurisdiction to be invalid, such judgment shall not affect, 2 impair, or invalidate the remainder thereof, but shall be confined in 3 its operation to the clause, sentence, paragraph, subdivision, section 4 or part thereof directly involved in the controversy in which such judg- 5 ment shall have been rendered. It is hereby declared to be the intent of 6 the legislature that this act would have been enacted even if such 7 invalid provisions had not been included herein. 8 § 4. This act shall take effect on the ninetieth day after it shall 9 have become a law. Effective immediately, the addition, amendment and/or 10 repeal of any rule or regulation necessary for the implementation of 11 this act on its effective date are authorized to be made and completed 12 on or before such effective date.