S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2118--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2015
                               ___________

Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
  tee on Corporations, Authorities and Commissions -- recommitted to the
  Committee on Corporations, Authorities and Commissions  in  accordance
  with  Assembly  Rule  3, sec. 2 -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the public authorities law, the public service law,  and
  the  executive  law,  in  relation to reforming the telecommunications
  sector of the New York economy, by  creating  a  broadband  authority,
  authorizing statewide cable franchises for the purposes of competitive
  cable  service, promoting the wide-spread development of high-capacity
  broadband internet access, and increasing the availability and quality
  of services in this key economic development  area  and  ensuring  the
  safety, reliability and affordability of telecommunications services

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Short title. This act shall be known and may  be  cited  as
the "omnibus telecommunications reform act of 2016".
  S  2. Legislative findings. 1. a. It is and has been the long-standing
policy of the state of New York that every resident and business in  the
state  of  New York has a right to have equal physical and social access
to adequate telecommunications services at just  and  reasonable  rates,
because  universal access to the benefits of telephony is fundamental to
effective communication, quality of life, economic  development,  public
safety  and  security, and democratic participation. Telecommunications,
however, is undergoing dramatic changes with  new  technologies  driving
the  ways  people  communicate with one another. No matter the source or
vehicle by which people communicate with each other, the people of  this
state  have  the right to adequate service at just and reasonable rates.
Therefore, all telecommunications services must meet the highest  stand-
ards  of  quality,  reliability,  and  safety--including  protecting and
expanding the system of emergency 911 service--which requires sufficient

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05431-03-6
              

A. 2118--A                          2

investment in telecommunications infrastructure and, as  many  years  of
experience  have  shown,  adequate  staffing provided by trained, career
employees operating under the applicable safety codes and regulations.
  b.  While  the  state's  long-standing  mission  has  been  to provide
universal, affordable and reliable service to all New Yorkers, all citi-
zens of the state do not have equal access to  communications  technolo-
gies  that  are  becoming  the standard bearers for the 21st century. In
fact, the state lags behind in deploying communication networks that are
the foundation of modern telecommunications. The lack of  deployment  of
high-capacity  telecommunications  infrastructure services ("broadband")
in rural, underserved, unserved, economically distressed and other areas
of the state is affected with a public interest; the rates, services and
operations of cable television companies  are  affected  with  a  public
interest and it is imperative that the state fairly regulate cable tele-
vision  services in the interest of the public, and; the public interest
is furthered by comprehensive action in the area of  telecommunications,
and by the state's continued promotion of universally available telecom-
munications  services  of  adequate  service  quality  and at affordable
rates, particularly in rural, high-cost and low income  areas,  and  the
state's entry into promoting the universal availability and physical and
social  access  to  high-quality  broadband  and advanced communications
services at affordable rates.
  c.  The  deployment  of  high-capacity  broadband   telecommunications
networks  and  advanced communications networks throughout New York will
promote improvements in healthcare, public safety,  education,  consumer
choice, and the economy.
  d.  State  action  and  public-private  partnerships will be needed to
deepen investment in, promote demand for,  stimulate  adoption  of,  and
remove  barriers  to the development of universally deployed world-class
high-capacity broadband networks, providing  services  to  business  and
residential  consumers  in  all areas of the state at competitive prices
with adequate service quality.
  e. Reasonably unfettered access of  the  citizenry  to  the  maximally
diverse  Internet is in the public interest, consistent however with the
need or company choice of telecommunications providers to  block,  limit
or  otherwise  restrict the passage of electronic mail messages or other
content that transmit, portray, describe, represent or otherwise contain
matters such as child pornography or similar obscenity,  other  unlawful
material,  threats  of serious bodily harm, threats to the public safety
and homeland security, threats of death  to  individuals  or  groups  of
individuals,  viruses  or  similar  computer generated programs or codes
that have the potential to harm computer hardware and/or software and/or
networks, excessive unsolicited commercial email that degrades or inter-
feres with or harms the normal  operation  of  broadband  networks,  and
other  similar  types  or  forms  of material or software (the foregoing
examples are illustrative, not  exhaustive  of  such  threats  to  users
and/or the network).
  2.  a.  New  cable television services regulation is necessary to: (i)
promote adequate, affordable and efficient cable television  service  to
the  citizens  and  residents  of  the state; (ii) encourage the optimum
development of the educational, government and community-service  poten-
tials  of the cable television medium; (iii) provide just and reasonable
rates for cable television service  without  geographic  discrimination;
(iv)  protect  the  interests  of  the  municipalities  of this state in
relation to the issuance of municipal consents  for  the  operations  of
cable  television  companies  in those jurisdictions; (v) to protect the

A. 2118--A                          3

right of consumers to  access  the  lawful  internet  content  of  their
choice, to run applications and use services of their choice, subject to
the  requirements  of  law  enforcement,  and to connect their choice of
legal  devices  that  do  not  harm the network; and (vi) cooperate with
other states and with the federal government in promoting and coordinat-
ing efforts to regulate  cable  television  effectively  in  the  public
interest.
  b.  Competition  in the provisioning of cable service is emerging with
the convergence of preexisting and new technologies for providing voice,
video and data services, which results in increased  investment  in  the
state, lower prices and improved service offerings for consumers.
  c. Increased investment and the potential for competition in the cable
service  market  through the provisioning of new communications services
and  deployment  of  advanced  communications   infrastructure   further
enhances  economic  opportunities, public safety, and the overall health
and well-being of the residents of the state.
  d. State-issued franchises for the provision  of  cable  service  will
promote  and  facilitate the deployment of advanced technologies and new
services to all classes of communities and protect New York's ability to
compete in the national and international marketplace for  industry  and
jobs.
  e.  Modifying  existing cable service regulation through the enactment
of new standards and procedures that provide consumers with access to  a
competitive  facilities-based  cable  market  and also preserves munici-
palities historic authority to manage public  rights-of-way,  collect  a
franchise  fee  up  to  five percent of gross revenue, administer public
educational and government access channels, enforce consumer protections
and ensure competitive cable services are delivered in a  nondiscrimina-
tory manner is warranted in this state.
  f. Nothing in this act shall be seen to limit or reduce the protection
afforded  to  cable  television  customers,  broadband internet services
customers, telephone customers, and customers of advanced communications
services generally, and it is in the  public  interest  to  ensure  that
customers  continue  to  be provided a high level of customer protection
and customer service in a more competitive market.
  3. Therefore, the legislature declares that the state needs to  funda-
mentally  reform  the  three  key pillars of its vast telecommunications
system--telephone, broadband internet access  and  cable  television--to
provide  21st  Century technology to all New Yorkers that is safe, reli-
able and affordable.
  S 3.   Article 11 and sections 4000,  4001  and  4002  of  the  public
authorities  law, article 11 as renumbered by chapter 168 of the laws of
1975 and sections 4000, 4001 and 4002 as renumbered by  chapter  182  of
the  laws of 2005, are renumbered article 12 and sections 4200, 4201 and
4202 and a new article 11 is added to read as follows:
                               ARTICLE 11
                     BROADBAND DEVELOPMENT AUTHORITY
SECTION 4100. SHORT TITLE.
        4101. BROADBAND DEVELOPMENT AUTHORITY.
        4102. DEFINITIONS.
        4103. POWERS OF THE AUTHORITY.
        4104. BOARD OF DIRECTORS.
        4105. BROADBAND DEVELOPMENT AND DEPLOYMENT COUNCIL.
        4106. APPLICATIONS FOR BROADBAND DEPLOYMENT FINANCING; RESPONSI-
                BILITIES OF THE APPLICANT TO PROVIDE SAFE, RELIABLE  AND
                AFFORDABLE SERVICE.

A. 2118--A                          4

        4107. BONDS AND NOTES OF THE AUTHORITY.
        4108. BONDS AND NOTES; PERSONAL LIABILITY.
        4109. RIGHTS  OF  AUTHORITY  TO  FULFILL  TERMS OF AGREEMENT NOT
                LIMITED, ALTERED, OR IMPAIRED.
        4110. REMEDIES OF BONDHOLDERS AND NOTEHOLDERS.
        4111. GRANTS OR LOANS OF PUBLIC  OR  PRIVATE  FUNDS  OR  IN-KIND
                 MATERIAL.
        4112. EXEMPTION FROM TAXES AND ASSESSMENTS.
        4113. BROADBAND AND ADVANCED COMMUNICATIONS DEVELOPMENT FUND.
        4114. APPROPRIATIONS BY ANY GOVERNMENT OR MUNICIPAL CORPORATION.
        4115. CONVEYANCE,  LEASE  OR  TRANSFER  OF PROPERTY BY A CITY OR
                COUNTY TO THE AUTHORITY.
        4116. ACTIONS AGAINST THE AUTHORITY.
        4117. AUDIT POWER AND CONTRACT APPROVAL BY THE COMPTROLLER.
        4118. ANNUAL REPORT.
        4119. EFFECT OF INCONSISTENT PROVISIONS.
        4120. SEVERABILITY.
  S 4100. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "BROADBAND DEVELOPMENT AUTHORITY ACT".
  S 4101. BROADBAND DEVELOPMENT AUTHORITY.  1. THE NEW YORK STATE BROAD-
BAND  DEVELOPMENT  AUTHORITY  IS  ESTABLISHED  IN ORDER TO ENCOURAGE THE
PROVISION OF AFFORDABLE AND RELIABLE  BROADBAND  SERVICES  AND  NETWORKS
THAT WILL:
  (A) ENSURE THE LONG TERM GROWTH OF AND THE ENHANCEMENT AND DELIVERY OF
SERVICES  BY  BUSINESS, EDUCATIONAL, MEDICAL, COMMERCIAL, NONPROFIT, AND
GOVERNMENTAL ENTITIES IN UNSERVED, UNDERSERVED AND DISTRESSED  AREAS  IN
NEW YORK;
  (B) BENEFIT RESIDENTIAL, COMMERCIAL, PUBLIC, GOVERNMENTAL, AND NONPRO-
FIT  ENTITIES IN UNSERVED, UNDERSERVED AND DISTRESSED AREAS IN NEW YORK;
AND
  (C) TO ADVANCE THE AVAILABILITY  OF,  AND  PROMOTE  THE  PHYSICAL  AND
SOCIAL  ACCESS  TO, BROADBAND AND OTHER ADVANCED COMMUNICATIONS SERVICES
TO ALL CONSUMERS, INCLUDING THOSE IN LOW  INCOME,  RURAL,  INSULAR,  AND
HIGH COST AREAS AT RATES THAT ARE REASONABLY COMPARABLE TO THOSE CHARGED
IN  HIGH-DENSITY  URBAN AREAS AND/OR IN THE AREA OF THE STATE WHERE SUCH
SERVICES ARE MOST COMPETITIVELY PRICED; AND TO INCREASE ACCESS  TO,  AND
THE  UBIQUITY  OF, ADVANCED TELECOMMUNICATIONS SERVICES AVAILABLE TO THE
PUBLIC IN AN EQUITABLE AND NONDISCRIMINATORY MANNER.
  2. THE AUTHORITY SHALL ADMINISTER THE BROADBAND  DEVELOPMENT  PROGRAM,
AND  SHALL,  THROUGH  THE  BROADBAND  DEVELOPMENT AND DEPLOYMENT COUNCIL
CREATED IN SECTION FORTY-ONE HUNDRED FIVE OF THIS ARTICLE, WORK TO BUILD
AND FACILITATE LOCAL TECHNOLOGY AND SOCIAL ACCESS PLANNING ENTITIES, AND
PARTNERSHIPS WITH BROADBAND INTERNET SERVICES PROVIDERS  AND  TECHNOLOGY
COMPANIES,  AND  THE  PRIVATE  AND NONPROFIT SECTORS GENERALLY, AND SUCH
OTHER PROGRAMS AS ARE REASONABLY CALCULATED TO FACILITATE  THE  AUTHORI-
TY'S ACHIEVEMENT OF ITS STATUTORY DUTIES.
  S 4102. DEFINITIONS. 1. "AUTHORITY" MEANS THE NEW YORK STATE BROADBAND
DEVELOPMENT  AUTHORITY  CREATED  UNDER  SECTION FORTY-ONE HUNDRED ONE OF
THIS ARTICLE.
  2. "UNSERVED AREA" MEANS ANY PART OF A  MUNICIPALITY  WITHOUT  READILY
AND  GENERALLY AVAILABLE RETAIL CONSUMER ACCESS TO A FACILITIES-BASED OR
FIXED WIRELESS BROADBAND SERVICES PROVIDER. FOR  THE  PURPOSES  OF  THIS
SECTION,  THE  DEFINITION OF WIRELESS BROADBAND SERVICES PROVIDERS SHALL
NOT INCLUDE SUBSCRIPTION SATELLITE SERVICE.
  3. "UNDERSERVED AREA" MEANS ANY PART OF A MUNICIPALITY WITHOUT READILY
AND GENERALLY AVAILABLE RETAIL CONSUMER ACCESS TO AT LEAST TWO  OR  MORE

A. 2118--A                          5

NONAFFILIATED  FACILITIES-BASED OR FIXED WIRELESS BROADBAND TELECOMMUNI-
CATIONS SERVICES PROVIDERS.  WIRELESS  SHALL  NOT  INCLUDE  SUBSCRIPTION
SATELLITE SERVICE.
  4. "BROADBAND" MEANS THE TRANSMISSION OF INFORMATION, BETWEEN OR AMONG
POINTS  SPECIFIED  BY  THE  USER,  WITH OR WITHOUT CHANGE IN THE FORM OR
CONTENT OF THE INFORMATION AS SENT AND RECEIVED,  AT  MINIMUM  RATES  OF
TRANSMISSION  OF  TWO MEGABITS PER SECOND DOWNSTREAM AND ONE MEGABIT PER
SECOND UPSTREAM, OR ONE HUNDRED  FIFTY  PERCENT  OF  THOSE  TRANSMISSION
RATES  DEFINED  BY THE FEDERAL COMMUNICATIONS COMMISSION AS "BROADBAND,"
OR AT THOSE SYNCHRONOUS UPSTREAM AND DOWNSTREAM  TRANSMISSION  RATES  AS
MAY BE RECOMMENDED BY THE BROADBAND COUNCIL FROM TIME TO TIME, WHICHEVER
IS FASTEST IN SPEED.
  5.  "BROADBAND  CARRIER"  MEANS  ANY  PROVIDER  OF BROADBAND SERVICES,
EXCEPT AGGREGATORS OF BROADBAND SERVICES,  AS  DEFINED  IN  SECTION  TWO
HUNDRED TWENTY-SIX OF THE NINETEEN HUNDRED NINETY-SIX TELECOMMUNICATIONS
ACT.
  6.  "BROADBAND  INFRASTRUCTURE"  MEANS  ALL  EQUIPMENT AND FACILITIES,
INCLUDING ALL CHANGES, MODIFICATIONS, AND EXPANSIONS TO EXISTING FACILI-
TIES, AS WELL AS THE CUSTOMER PREMISES EQUIPMENT USED TO PROVIDE  BROAD-
BAND,  AND  ANY  SOFTWARE  INTEGRAL  TO  OR  RELATED  TO THE OPERATIONS,
SUPPORT, FACILITATION, OR INTERCONNECTION OF SUCH  EQUIPMENT,  INCLUDING
UPGRADES, AND ANY INSTALLATION, OPERATIONS AND SUPPORT, MAINTENANCE, AND
OTHER FUNCTIONS REQUIRED TO SUPPORT THE DELIVERY OF BROADBAND.
  7.  "BROADBAND  SERVICE"  MEANS  THE  OFFERING  OF BROADBAND FOR A FEE
DIRECTLY TO THE PUBLIC, OR TO SUCH CLASSES OF USERS  AS  TO  BE  READILY
AVAILABLE DIRECTLY TO THE PUBLIC, REGARDLESS OF THE FACILITIES USED.
  8.  "OPEN NETWORK" MEANS ANY BROADBAND INFRASTRUCTURE WHICH IS OPEN TO
ANY THIRD PARTY USERS IN A NONDISCRIMINATORY MANNER ON A FAIR AND  EQUI-
TABLE BASIS USING PUBLICLY AVAILABLE ACCESS TARIFFS FOR SERVICES.
  9.  "OPEN  NETWORK  INTERFACES"  MEANS  THE  TECHNICAL AND OPERATIONAL
MEANS, MANNERS, AND METHODS FOR ANY THIRD PARTY ACCESS TO THE  BROADBAND
INFRASTRUCTURE,  WHICH  SHALL  BE  PROVIDED  ON  THE  BASIS OF GENERALLY
ACCEPTABLE INDUSTRY STANDARDS AVAILABLE AT THE TIME OF ACCESS.
  10. "DISTRESSED AREA" MEANS:
  (A) A CENSUS TRACT OR TRACTS OR BLOCK NUMBERING AREA OR AREAS OR  SUCH
CENSUS TRACT OR BLOCK NUMBERING AREA CONTIGUOUS THERETO WHICH, ACCORDING
TO THE MOST RECENT CENSUS DATA AVAILABLE, HAS:
  (I)  A  POVERTY  RATE OF AT LEAST TWENTY PERCENT FOR THE YEAR TO WHICH
THE DATA RELATES OR AT LEAST  TWENTY  PERCENT  OF  HOUSEHOLDS  RECEIVING
PUBLIC ASSISTANCE; AND
  (II)  AN  UNEMPLOYMENT  RATE  OF  AT LEAST ONE AND A QUARTER TIMES THE
STATEWIDE UNEMPLOYMENT RATE FOR THE YEAR TO WHICH THE DATA RELATES; OR
  (B) A CITY, TOWN, VILLAGE OR COUNTY WITHIN A CITY WITH A POPULATION OF
ONE MILLION OR MORE FOR WHICH:
  (I) THE RATIO OF THE FULL VALUE PROPERTY WEALTH, AS DETERMINED BY  THE
COMPTROLLER  FOR  THE  YEAR NINETEEN HUNDRED NINETY, PER RESIDENT TO THE
STATEWIDE AVERAGE FULL VALUE PROPERTY WEALTH PER RESIDENT; AND
  (II) THE RATIO OF THE INCOME PER RESIDENT; AS SHOWN  IN  THE  NINETEEN
HUNDRED  NINETY CENSUS TO THE STATEWIDE AVERAGE INCOME PER RESIDENT; ARE
EACH FIFTY-FIVE PERCENT OR LESS OF THE STATEWIDE AVERAGE; OR
  (C) AN AREA WHICH WAS DESIGNATED AN EMPIRE ZONE  PURSUANT  TO  ARTICLE
EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW.
  11. "DARK FIBER" MEANS FIBER OPTIC CABLE THAT IS NOT LIGHTED BY LASERS
OR OTHER ELECTRONIC EQUIPMENT.
  12. "COMPTROLLER" MEANS THE COMPTROLLER OF THE STATE OF NEW YORK.

A. 2118--A                          6

  13.  "BOARD" MEANS THE BOARD OF DIRECTORS CREATED UNDER SECTION FORTY-
ONE HUNDRED FOUR OF THIS ARTICLE.
  14. "FUND" MEANS THE BROADBAND AND ADVANCED COMMUNICATIONS DEVELOPMENT
FUND CREATED UNDER SECTION FORTY-ONE HUNDRED THIRTEEN OF THIS ARTICLE.
  15. "BROADBAND COUNCIL" MEANS THE BROADBAND DEVELOPMENT AND DEPLOYMENT
COUNCIL AS CREATED UNDER SECTION FORTY-ONE HUNDRED FIVE OF THIS ARTICLE.
  16.  "CURRENT  GENERATION BROADBAND SERVICE" MEANS THE TRANSMISSION OF
SIGNALS AT A RATE OF AT LEAST ONE MILLION FIVE HUNDRED THOUSAND BITS PER
SECOND TO THE SUBSCRIBER AND AT LEAST  TWO  HUNDRED  THOUSAND  BITS  PER
SECOND FROM THE SUBSCRIBER.
  17.  "NEXT  GENERATION  BROADBAND  SERVICE"  MEANS THE TRANSMISSION OF
SIGNALS AT A RATE OF AT LEAST TWENTY-TWO MILLION BITS PER SECOND TO  THE
SUBSCRIBER AND AT LEAST TEN MILLION BITS PER SECOND FROM THE SUBSCRIBER.
  18. "QUALIFIED EQUIPMENT" MEANS EQUIPMENT CAPABLE OF PROVIDING CURRENT
GENERATION  BROADBAND  SERVICES OR NEXT GENERATION BROADBAND SERVICES AT
ANY TIME TO EACH SUBSCRIBER WHO IS UTILIZING SUCH SERVICES.
  19. "QUALIFIED EXPENDITURE" MEANS ANY AMOUNT CHARGEABLE TO THE CAPITAL
ACCOUNT WITH RESPECT TO  THE  PURCHASE  AND  INSTALLATION  OF  QUALIFIED
EQUIPMENT,  INCLUDING  ANY  UPGRADES  THERETO, FOR WHICH DEPRECIATION IS
ALLOWABLE UNDER SECTION 168 OF THE INTERNAL REVENUE CODE.
  20. "UNDERSERVED SUBSCRIBER" MEANS A RETAIL  CONSUMER  RESIDING  IN  A
DWELLING LOCATED IN AN UNSERVED OR UNDERSERVED AREA.
  21.  "UNDERSERVED  STRUCTURE"  MEANS  A MULTI-FAMILY HOUSING UNIT OR A
MULTIPLE-DWELLING HOUSING UNIT LOCATED IN  AN  UNSERVED  OR  UNDERSERVED
AREA.
  S 4103. POWERS OF THE AUTHORITY. 1. THE GENERAL POWERS OF THE AUTHORI-
TY  UNDER  THIS  ARTICLE  INCLUDE  ALL  THOSE NECESSARY TO CARRY OUT AND
EFFECTUATE THE PURPOSES OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED  TO,
THE FOLLOWING:
  (A)   TO  INVEST  ANY  MONEY  OF  THE  AUTHORITY  AT  THE  AUTHORITY'S
DISCRETION, IN ANY OBLIGATIONS DETERMINED PROPER BY THE  AUTHORITY,  AND
TO NAME AND USE DEPOSITORIES FOR THE AUTHORITY'S MONEY;
  (B) TO RECEIVE AND DISTRIBUTE FEDERAL, STATE OR LOCAL FUNDING, INCLUD-
ING GRANTS, LOANS, AND APPROPRIATIONS;
  (C) TO MAKE EXPENDITURES NECESSARY TO CARRY OUT THE AUTHORITY'S DUTIES
UNDER THIS ARTICLE, INCLUDING PAYING THE AUTHORITY'S OPERATING EXPENSES;
  (D)  TO SUE AND BE SUED, IMPLEAD AND BE IMPLEADED, COMPLAIN AND DEFEND
IN ALL COURTS;
  (E) TO ADOPT, USE AND ALTER AT WILL A CORPORATE SEAL;
  (F) TO ACQUIRE, PURCHASE, HOLD, USE, LEASE OR OTHERWISE DISPOSE OF ANY
PROJECT AND PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE  OR  INTANGIBLE,
OR  ANY  INTEREST  THEREIN  NECESSARY  OR DESIRABLE FOR CARRYING OUT THE
PURPOSES OF THE AUTHORITY, AND, WITHOUT LIMITATION OF THE FOREGOING,  TO
LEASE  AS LESSEE, ANY PROJECT AND ANY PROPERTY, REAL, PERSONAL OR MIXED,
OR ANY INTEREST THEREIN, AT SUCH ANNUAL RENTAL AND  ON  SUCH  TERMS  AND
CONDITIONS  AS  MAY BE DETERMINED BY THE BOARD AND TO LEASE AS LESSOR TO
ANY PERSON, ANY PROJECT AND  ANY  PROPERTY,  REAL,  PERSONAL  OR  MIXED,
TANGIBLE OR INTANGIBLE, OR ANY INTEREST THEREIN, AT ANY TIME ACQUIRED BY
THE  AUTHORITY,  WHETHER  WHOLLY  OR PARTIALLY COMPLETED, AT SUCH ANNUAL
RENTAL AND ON SUCH TERMS AND CONDITIONS AS  MAY  BE  DETERMINED  BY  THE
BOARD,  AND  TO SELL, TRANSFER OR CONVEY ANY PROPERTY, REAL, PERSONAL OR
MIXED, TANGIBLE OR INTANGIBLE OR  ANY  INTEREST  THEREIN,  AT  ANY  TIME
ACQUIRED OR HELD BY THE AUTHORITY ON SUCH TERMS AND CONDITIONS AS MAY BE
DETERMINED BY THE BOARD OF THE AUTHORITY;
  (G)  TO PLAN, DEVELOP, UNDERTAKE, CARRY OUT, CONSTRUCT, IMPROVE, REHA-
BILITATE, REPAIR, FURNISH, MAINTAIN, AND OPERATE PROJECTS;

A. 2118--A                          7

  (H) TO ADOPT BYLAWS FOR THE MANAGEMENT AND REGULATION OF  ITS  AFFAIRS
CONSISTENT WITH THIS CHAPTER;
  (I) TO ESTABLISH AND MAINTAIN SATELLITE OFFICES WITHIN NEW YORK;
  (J)  TO  FIX,  ALTER,  CHARGE,  AND  COLLECT RATES, RENTALS, AND OTHER
CHARGES FOR THE USE OF PROJECTS OF, OR FOR THE SALE OF  PRODUCTS  OF  OR
FOR  THE  SERVICES RENDERED BY, THE AUTHORITY, AT RATES TO BE DETERMINED
BY IT FOR THE PURPOSE OF PROVIDING FOR THE PAYMENT OF  THE  EXPENSES  OF
THE  AUTHORITY,  THE  PLANNING,  DEVELOPMENT, CONSTRUCTION, IMPROVEMENT,
REHABILITATION, REPAIR, FURNISHING, MAINTENANCE, AND  OPERATION  OF  ITS
PROJECTS  AND  PROPERTIES,  THE  PAYMENT  OF THE COSTS ACCOMPLISHING ITS
TASKS;
  (K) THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON  ITS  OBLIGATIONS,
AND  TO FULFILL THE TERMS AND PROVISIONS OF ANY AGREEMENTS MADE WITH THE
PURCHASERS OR HOLDERS OF ANY SUCH OBLIGATIONS;
  (L) TO BORROW MONEY, MAKE AND ISSUE BONDS, AND TO SECURE  THE  PAYMENT
OF  ALL BONDS, OR ANY PART THEREOF, BY PLEDGE OR DEED OF TRUST OF ALL OR
ANY OF ITS REVENUES, RENTALS, AND RECEIPTS OR OF ANY PROJECT OR  PROPER-
TY,  REAL,  PERSONAL  OR  MIXED, TANGIBLE OR INTANGIBLE, OR ANY INTEREST
THEREIN, AND TO MAKE AGREEMENTS WITH THE PURCHASERS OR HOLDERS  OF  SUCH
BONDS  OR  WITH OTHERS IN CONNECTION WITH ANY SUCH BONDS, WHETHER ISSUED
OR TO BE ISSUED, AS THE AUTHORITY DEEMS ADVISABLE,  AND  IN  GENERAL  TO
PROVIDE  FOR THE SECURITY FOR THE BONDS AND THE RIGHTS OF HOLDERS THERE-
OF;
  (M) TO MAKE AND ENTER INTO ALL CONTRACTS AND AGREEMENTS  NECESSARY  OR
INCIDENTAL  TO  THE  PERFORMANCE  OF  ITS DUTIES, THE FURTHERANCE OF ITS
PURPOSES AND THE EXECUTION TO ITS POWERS UNDER THIS  ARTICLE,  INCLUDING
AGREEMENTS WITH ANY PERSON OR FEDERAL AGENCY;
  (N)  TO EMPLOY, IN ITS DISCRETION, CONSULTANTS, ATTORNEYS, ARCHITECTS,
ENGINEERS, ACCOUNTANTS, FINANCIAL EXPERTS,  INVESTMENT  BANKERS,  SUPER-
INTENDENTS,  MANAGERS  AND  SUCH  OTHER  EMPLOYEES  AND AGENTS AS MAY BE
NECESSARY, AND TO FIX THEIR COMPENSATION TO BE PAYABLE FROM  FUNDS  MADE
AVAILABLE TO THE AUTHORITY;
  (O)  TO  PLEDGE  OR  OTHERWISE  ENCUMBER ALL OR ANY OF THE REVENUES OR
RECEIPTS OF THE AUTHORITY AS SECURITY FOR ALL OR ANY OF THE  OBLIGATIONS
OF THE AUTHORITY; AND
  (P) TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT TO CARRY OUT THE
POWERS GRANTED TO IT BY LAW.
  2.  THE  PHYSICAL  ACCESS  POWERS  OF THE AUTHORITY UNDER THIS ARTICLE
INCLUDE ALL THOSE NECESSARY TO CARRY OUT AND EFFECTUATE THE PURPOSES  OF
THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING:
  (A)  TO  MAKE  LOANS  OR  GRANTS TO BROADBAND DEVELOPERS AND BROADBAND
OPERATORS, AND DEVELOPERS AND OPERATORS OF ADVANCED COMMUNICATIONS, THAT
WILL ACQUIRE, CONSTRUCT, MAINTAIN, AND OPERATE ALL OR PART OF THE BROAD-
BAND INFRASTRUCTURE SERVING UNSERVED, UNDERSERVED AND DISTRESSED AREAS;
  (B) TO SET CONSTRUCTION, OPERATION, AND FINANCING  STANDARDS  FOR  THE
BROADBAND  INFRASTRUCTURE  IN CONNECTION WITH AUTHORITY FINANCING AND TO
PROVIDE FOR INSPECTIONS TO DETERMINE COMPLIANCE WITH THOSE STANDARDS;
  (C) TO INVESTIGATE, EVALUATE, AND ACCESS THE CURRENT BROADBAND INFRAS-
TRUCTURE AND THE FUTURE BROADBAND INFRASTRUCTURE NEEDS OF THE STATE;
  (D) TO TAKE ACTIONS REASONABLY CALCULATED TO RESULT IN  INFRASTRUCTURE
CONSTRUCTION, ENHANCEMENT, EXCHANGES, EXPANSION, LEASES, SWAPS AND OTHER
AGREEMENTS OR ARRANGEMENTS GIVING RISE TO SERVICE OR COMPETITIVE SERVICE
TO UNDERSERVED STRUCTURES AND UNDERSERVED SUBSCRIBERS; AND
  (E) TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT TO CARRY OUT THE
POWERS GRANTED TO IT BY LAW.

A. 2118--A                          8

  3.  THE  SOCIAL  ACCESS  POWERS  OF  THE  AUTHORITY UNDER THIS ARTICLE
INCLUDE ALL THOSE NECESSARY TO CARRY OUT AND EFFECTUATE THE PURPOSES  OF
THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING:
  (A)  TO  PROVIDE  OPERATING ASSISTANCE TO MAKE BROADBAND SERVICES MORE
AFFORDABLE TO BROADBAND DEVELOPERS, BROADBAND OPERATORS,  AND  BROADBAND
CUSTOMERS  IN UNSERVED, UNDERSERVED AND DISTRESSED AREAS, IN CONJUNCTION
WITH BROADBAND INFRASTRUCTURE FINANCED BY THE AUTHORITY;
  (B) TO ENCOURAGE AND PARTICIPATE IN  AGGREGATION  STRATEGIES  FOR  THE
BROADBAND  SERVICES OF ALL PUBLIC ENTITIES AND NONPROFIT CORPORATIONS IN
THE STATE TO MAXIMIZE THE  INTERCONNECTIVITY  AND  EFFICIENCIES  OF  THE
BROADBAND INFRASTRUCTURE;
  (C)  TO RECEIVE AND ACCEPT FROM ANY FEDERAL OR PRIVATE AGENCY, FOUNDA-
TION, CORPORATION, ASSOCIATION OR PERSON GRANTS TO BE EXPENDED IN ACCOM-
PLISHING THE OBJECTIVES OF THE AUTHORITY, AND TO RECEIVE AND ACCEPT FROM
NEW YORK OR ANY STATE, AND ANY MUNICIPALITY, COUNTY OR  OTHER  POLITICAL
SUBDIVISION  THEREOF  AND FROM ANY OTHER SOURCE, AID OR CONTRIBUTIONS OF
EITHER MONEY, PROPERTY, OR OTHER THINGS OF VALUE, TO BE HELD,  USED  AND
APPLIED  ONLY  FOR  THE PURPOSES FOR WHICH SUCH GRANTS AND CONTRIBUTIONS
MAY BE MADE;
  (D) TO RENDER ADVICE AND  ASSISTANCE,  AND  TO  PROVIDE  SERVICES,  TO
INSTITUTIONS OF HIGHER EDUCATION AND TO OTHER PERSONS PROVIDING SERVICES
OR  FACILITIES  FOR  SCIENTIFIC  AND  TECHNOLOGICAL RESEARCH OR GRADUATE
EDUCATION, FOCUSED UPON DEVELOPMENT OF ADVANCED COMMUNICATIONS TECHNOLO-
GIES, PROVIDED THAT CREDIT TOWARDS  A  DEGREE,  CERTIFICATE  OR  DIPLOMA
SHALL  BE GRANTED ONLY IF SUCH EDUCATION IS PROVIDED IN CONJUNCTION WITH
AN INSTITUTION OF HIGHER EDUCATION AUTHORIZED TO OPERATE IN NEW YORK;
  (E) TO TAKE SUCH OTHER ACTIONS IT DEEMS NECESSARY OR CONVENIENT,  THAT
ARE  REASONABLY CALCULATED TO RESULT IN ENHANCED, INITIAL OR COMPETITIVE
SOCIAL ACCESS  TO  GENERALLY  AVAILABLE  RETAIL  BROADBAND  SERVICES  OF
ADEQUATE  QUALITY,  AT AFFORDABLE PRICES, FOR UNDERSERVED STRUCTURES AND
UNDERSERVED SUBSCRIBERS; AND
  (F) TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT TO CARRY OUT THE
POWERS GRANTED TO IT BY LAW.
  S 4104. BOARD OF DIRECTORS. 1. THE AUTHORITY SHALL BE  GOVERNED  BY  A
BOARD  OF  DIRECTORS  CONSISTING  OF  SEVENTEEN  MEMBERS, INCLUDING: THE
COMMISSIONERS OF THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT,  THE  EMPIRE
STATE  DEVELOPMENT  CORPORATION,  THE  PUBLIC SERVICE COMMISSION AND THE
STATE OFFICE FOR TECHNOLOGY, OR THEIR DESIGNEES,  THE  GOVERNOR,  SENATE
MAJORITY  LEADER,  SPEAKER OF THE ASSEMBLY, AND THE COMPTROLLER OR THEIR
DESIGNEES. TWO MEMBERS OF THE BOARD SHALL BE PROPOSED BY THE  RESPECTIVE
UNIONS OF THE WIRELINE AND WIRELESS TELECOMMUNICATIONS INDUSTRIES OF NEW
YORK.  THE  REMAINING  MEMBERS  OF  THE  BOARD SHALL BE APPOINTED BY THE
GOVERNOR WITH THE ADVICE AND CONSENT OF THE SENATE, FROM A LIST OF INDI-
VIDUALS NOMINATED BY THE PRINCIPAL ESTABLISHED INDUSTRY GROUPS,  TECHNI-
CAL  COUNSELS, OR ACADEMIC PROFESSIONAL GROUPS OF NEW YORK. THE APPOINT-
EES SHALL BE THE FOLLOWING:  ONE  MEMBER  FROM  EACH  TELECOMMUNICATIONS
INDUSTRY  GROUPING, TO BE NOMINATED BY THE NEW YORK-BASED WIRELINE TELE-
PHONE INDUSTRY, THE NEW YORK-BASED WIRELESS CELLULAR TELEPHONE INDUSTRY,
AND THE NEW YORK-BASED CABLE TELEVISION/BROADBAND INDUSTRY AND  WIRELESS
INTERNET PROVIDER INDUSTRY; THE PRESIDENT OF THE STATE UNIVERSITY SYSTEM
OF NEW YORK, TWO PRESIDENTS OF MAJOR NEW YORK RESEARCH UNIVERSITIES, ONE
OF  WHOM  SHALL  REPRESENT PRIVATE RESEARCH UNIVERSITIES AND ONE OF WHOM
SHALL REPRESENT PUBLIC RESEARCH UNIVERSITIES; AND ONE MEMBER  WHO  SHALL
BE NOMINATED BY NEW YORK'S FINANCIAL SERVICES COMMUNITY.
  2.  THE  GOVERNMENT MEMBERS SHALL SERVE ON THE BOARD FOR TERMS COINCI-
DENT WITH THEIR TERMS OF OFFICE. THE INITIAL TERM OF THE  NON-GOVERNMEN-

A. 2118--A                          9

TAL  MEMBERS  SHALL  EXPIRE ON DECEMBER THIRTY-FIRST, TWO THOUSAND EIGH-
TEEN,  AND  ALL  SUBSEQUENT  NONGOVERNMENTAL  MEMBER  TERMS   SHALL   BE
COINCIDENT  WITH  THE  TERM  OF THE GOVERNOR WHO APPOINTED SUCH MEMBERS.
VACANCIES  IN THE MEMBERSHIP OF THE BOARD SHALL BE FILLED BY APPOINTMENT
BY THE GOVERNOR FOR THE UNEXPIRED PORTION OF  THE  TERM.  NO  NONGOVERN-
MENTAL  MEMBER OF THE BOARD SHALL BE ELIGIBLE TO SERVE FOR MORE THAN TWO
SUCCESSIVE TERMS, PROVIDED HOWEVER THAT AFTER THE EXPIRATION OF  A  FOUR
YEAR  TERM,  SUCH  MEMBERS MAY BE APPOINTED TO AND SERVE UP TO TWO ADDI-
TIONAL TERMS. MEMBERS OF THE BOARD SHALL BE SUBJECT TO THE PUBLIC  OFFI-
CERS  LAW, AND SHALL SERVE AT THE PLEASURE OF THE GOVERNOR.  IMMEDIATELY
AFTER APPOINTMENT, THE  MEMBERS  OF  THE  BOARD  SHALL  ENTER  UPON  THE
PERFORMANCE OF THEIR DUTIES.
  3. THE BOARD SHALL ELECT ANNUALLY FROM AMONG ITS MEMBERS A CHAIRPERSON
AND  VICE-CHAIRPERSON.  THE BOARD SHALL ALSO ANNUALLY ELECT A SECRETARY,
WHO NEED NOT BE A BOARD MEMBER, AND MAY ALSO ELECT SUCH  OTHER  SUBORDI-
NATE OFFICERS WHO NEED NOT BE MEMBERS OF THE BOARD AS IT DEEMS NECESSARY
AND  PROPER.  THE CHAIRPERSON, OR IN HIS OR HER ABSENCE, THE VICE-CHAIR-
PERSON, SHALL PRESIDE OVER ALL MEETINGS OF THE BOARD. IN THE ABSENCE  OF
BOTH  THE  CHAIRPERSON  AND  VICE-CHAIRPERSON, THE BOARD SHALL APPOINT A
CHAIRPERSON PRO TEMPORE, WHO SHALL PRESIDE AT SUCH MEETINGS.
  4. THE BOARD SHALL EMPLOY A PRESIDENT  OF  THE  AUTHORITY,  WHO  SHALL
SERVE  AT THE PLEASURE OF THE BOARD, TO DIRECT THE DAY-TO-DAY OPERATIONS
AND ACTIVITIES OF THE AUTHORITY AND CARRY OUT SUCH DUTIES AND POWERS  AS
MAY  BE  CONFERRED  UPON  HIM OR HER BY THE BOARD. THE PRESIDENT AND ALL
EMPLOYEES OF THE AUTHORITY SHALL BE COMPENSATED IN THE  MANNER  PROVIDED
BY  THE  BOARD, PROVIDED HOWEVER THAT SUCH COMPENSATION SHALL NOT EXCEED
THE MEDIAN SALARIES OF EMPLOYEES IN EQUIVALENT TITLES OF NEW YORK "STATE
AUTHORITIES" AS DEFINED IN THIS CHAPTER.
  S 4105. BROADBAND DEVELOPMENT AND DEPLOYMENT  COUNCIL.  1.  THE  BOARD
SHALL  ESTABLISH,  WITHIN  THIRTY  DAYS  OF  THE  EFFECTIVE DATE OF THIS
SECTION, A SEVENTEEN MEMBER TECHNICAL ADVISORY COMMITTEE FROM  REPRESEN-
TATIVES  RECOMMENDED BY TECHNOLOGY COUNCILS, INDUSTRY AND BUSINESS ASSO-
CIATIONS, AND COLLEGE AND UNIVERSITY PRESIDENTS,  TO  BE  KNOWN  AS  THE
BROADBAND  DEVELOPMENT  AND  DEPLOYMENT COUNCIL. FIVE MEMBERS SHALL HAVE
KNOWLEDGE, SKILLS AND EXPERTISE IN THE NEEDS  OF  INDUSTRY,  FIVE  SHALL
HAVE  KNOWLEDGE,  SKILLS  AND  EXPERTISE  IN SPECIFIC TELECOMMUNICATIONS
TECHNOLOGY AREAS,  AND  TWO  SHALL  BE  COMMUNITY  REPRESENTATIVES  FROM
UNSERVED  AND/OR UNDERSERVED AREAS. THE CHIEF TECHNICAL OFFICERS FOR THE
PUBLIC SERVICE COMMISSION, THE STATE OFFICE FOR  TECHNOLOGY,  THE  STATE
OFFICE  FOR  EMERGENCY MANAGEMENT AND THE STATE OFFICE OF SCIENCE, TECH-
NOLOGY AND ACADEMIC RESEARCH, AND THE CHIEF INFORMATION OFFICER FOR  THE
STATE OF NEW YORK, SHALL ALSO SERVE ON THIS COMMITTEE.
  2.  (A)  WITHIN  SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE
BROADBAND COUNCIL SHALL CREATE, COORDINATE,  OR  LIAISE  WITH  EXISTING,
MUNICIPAL  AND/OR  COUNTY-LEVEL  SOCIAL  ACCESS  COUNCILS  TO STUDY, AND
SUBSEQUENTLY REPORT TO THE AUTHORITY UPON: (I) THE  LOCATION,  SIZE  AND
POPULATION  OF  UNSERVED,  UNDERSERVED  AND  DISTRESSED AREAS WITHIN THE
RESPECTIVE MUNICIPALITIES AND COUNTIES; (II) A PROPOSED LIST  OF  SOCIAL
ACCESS  PROJECTS FOR THE MUNICIPALITIES AND COUNTIES; (III) THE PRESENCE
OF NON-GOVERNMENTAL ORGANIZATIONS AND FEDERAL 501C3  ORGANIZATIONS  THAT
COULD  WORK  COOPERATIVELY WITH THE AUTHORITY ON SOCIAL ACCESS PROJECTS;
(IV) SUCH OTHER MATTERS AS THE BROADBAND  COUNCIL  AND  LOCAL  BROADBAND
DEVELOPMENT  COUNCILS  BELIEVE  NECESSARY TO EFFECTUATING THE MISSION OF
THE AUTHORITY.
  (B) WITHIN NINETY DAYS OF THE EFFECTIVE  DATE  OF  THIS  SECTION,  THE
BROADBAND COUNCIL SHALL STUDY AND REPORT TO THE AUTHORITY UPON:

A. 2118--A                         10

  (I)  THE  AVAILABILITY  OF ANY EXISTING FEDERAL, STATE AND LOCAL FUNDS
THAT CAN BE USED  OR  RE-PURPOSED  TO  FUND  BROADBAND  DEVELOPMENT  AND
PROMOTE  UNIVERSAL  ACCESS  TO  BROADBAND  AND  ADVANCED  COMMUNICATIONS
SERVICES IN UNSERVED, UNDERSERVED AND DISTRESSED AREAS;
  (II)  COMMERCIALLY  REASONABLE  INVESTMENT BENCHMARKS THAT IT BELIEVES
ARE NECESSARY TO  DETERMINE  BETWEEN  REASONABLY  EQUALLY  VALUABLE  AND
IMPERATIVE BROADBAND DEVELOPMENT PROJECTS;
  (III)  AN APPROPRIATE SET OF METRICS BY WHICH TO DETERMINE THE QUALITY
OF A BROADBAND BUILDOUT PROJECT, AND WHETHER  SUCH  BUILDOUT  WAS  BEING
COMPLETED  WITHIN THE TIME SPAN UPON WHICH THE AUTHORITY CONDITIONED THE
GRANT OF ANY FUNDS TOWARD SUCH BUILDOUT;
  (IV) THE AVAILABILITY, DESIRABILITY AND UTILITY OF A SET OF  STANDARD-
IZED  METRICS  FOR SERVICE QUALITY, SPEED, AND RELIABILITY THAT SHALL BE
APPLIED TO THE NETWORKS BUILT WITH FUNDS FROM THE AUTHORITY; AND
  (V) THE AVAILABILITY OF SURPLUS COMPUTERS AND OTHER BROADBAND TELECOM-
MUNICATIONS EQUIPMENT IN THE INVENTORIES OF STATE AND LOCAL  AUTHORITIES
THAT MIGHT BE DONATED TO THE AUTHORITY FOR USE IN ENHANCING PHYSICAL AND
SOCIAL ACCESS TO BROADBAND IN THE STATE.
  3.    THE  COUNCIL  SHALL  ACT  AS  LIAISON, AND BINDING MEDIATOR WHEN
REQUESTED, BETWEEN ANY DEPLOYMENT PROJECTS AND OWNERS OF  RIGHTS-OF-WAY,
EASEMENTS  OR INFRASTRUCTURE NECESSARY TO PROMOTE OR ESTABLISH BROADBAND
SERVICE IN UNSERVED, UNDERSERVED AND DISTRESSED AREAS.
  4. THE COUNCIL SHALL DETERMINE AND RECOMMEND TO THE BOARD PROJECTS FOR
THE EXPENDITURE OF FUNDS  FROM  THE  FUND,  WITH  SPECIAL  ATTENTION  TO
PROJECTS USING MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES AS CONTRAC-
TORS OR SUB-CONTRACTORS, AND TO PROJECTS PROVIDING PRIVATE SECTOR MATCH-
ING  FUNDING  AT  RATIOS  OF  THREE  TO ONE PRIVATE TO PUBLIC FUNDING OR
GREATER.
  5. THE COUNCIL SHALL RECOMMEND TO  THE  BOARD,  ON  AN  ANNUAL  BASIS,
LEGISLATION  THAT IT DETERMINES WOULD BE REASONABLY NECESSARY TO FURTHER
PROMOTE BROADBAND DEVELOPMENT, ENHANCE ECONOMIC DEVELOPMENT ARISING FROM
SUCH BROADBAND DEVELOPMENT, AND PROTECT AND ENHANCE ACCESS OF  CONSUMERS
TO  E911  AND  OTHER  PUBLIC  SAFETY  SERVICES AND ENTITIES BY METHOD OF
BROADBAND AND ADVANCED COMMUNICATIONS SERVICES.
  6. (A) A MEMBER OF THE BOARD OR OFFICER, EMPLOYEE,  OR  AGENT  OF  THE
AUTHORITY SHALL DISCHARGE THE DUTIES OF HIS OR HER POSITION IN A NONPAR-
TISAN  MANNER,  WITH GOOD FAITH, AND WITH THAT DEGREE OF DILIGENCE, CARE
AND SKILL THAT AN ORDINARY PRUDENT PERSON WOULD EXERCISE  UNDER  SIMILAR
CIRCUMSTANCES  IN  A  LIKE POSITION. IN DISCHARGING THE DUTIES OF HIS OR
HER POSITION, A MEMBER OF THE BOARD OR AN OFFICER, EMPLOYEE, OR AGENT OF
THE AUTHORITY, WHEN ACTING IN GOOD FAITH, MAY RELY UPON THE  OPINION  OF
COUNSEL  FOR  THE AUTHORITY, UPON THE REPORT OF AN INDEPENDENT APPRAISER
SELECTED WITH REASONABLE CARE BY THE BOARD, OR UPON FINANCIAL STATEMENTS
OF THE AUTHORITY REPRESENTED TO THE MEMBER  OF  THE  BOARD  OR  OFFICER,
EMPLOYEE,  OR  AGENT  OF THE AUTHORITY TO BE CORRECT BY THE PRESIDENT OR
THE OFFICER OF THE AUTHORITY HAVING CHARGE OF ITS BOOKS OR  ACCOUNT,  OR
STATED  IN  A WRITTEN REPORT BY A CERTIFIED PUBLIC ACCOUNTANT OR FIRM OF
CERTIFIED PUBLIC ACCOUNTANTS TO FAIRLY REFLECT THE  FINANCIAL  CONDITION
OF THE AUTHORITY.
  (B)  A MEMBER OF THE BROADBAND DEVELOPMENT COUNCIL SHALL DISCHARGE THE
DUTIES OF HIS OR HER POSITION IN A NONPARTISAN MANNER, WITH GOOD  FAITH,
AND  WITH  THAT  DEGREE  OF  DILIGENCE,  CARE AND SKILL THAT AN ORDINARY
PRUDENT PERSON WOULD EXERCISE UNDER  SIMILAR  CIRCUMSTANCES  IN  A  LIKE
POSITION.
  (C)  A MEMBER OF A SOCIAL ACCESS COUNCIL SHALL DISCHARGE THE DUTIES OF
HIS OR HER POSITION IN A NONPARTISAN MANNER, WITH GOOD FAITH,  AND  WITH

A. 2118--A                         11

THAT DEGREE OF DILIGENCE, CARE AND SKILL THAT AN ORDINARY PRUDENT PERSON
WOULD EXERCISE UNDER SIMILAR CIRCUMSTANCES IN A LIKE POSITION.
  S  4106. APPLICATIONS FOR BROADBAND DEPLOYMENT FINANCING; RESPONSIBIL-
ITIES OF THE APPLICANT TO PROVIDE SAFE, RELIABLE AND AFFORDABLE SERVICE.
IN ADDITION TO RULES PROMULGATED BY THE AUTHORITY AS WELL AS  THE  OTHER
REQUIREMENTS  ESTABLISHED IN THIS ARTICLE, AS PART OF AN APPLICATION FOR
FINANCING UNDER THIS CHAPTER, A BROADBAND DEVELOPER OR BROADBAND  OPERA-
TOR MUST FILE WITH THE AUTHORITY:
  1. A PARTICIPATION PLAN FOR MINORITY AND WOMAN-OWNED BUSINESSES;
  2.  A  COMMUNITY WIDE OUTREACH PLAN TO EDUCATE THE PUBLIC WITH RESPECT
TO THE AVAILABILITY OF BROADBAND SERVICES;
  3. A CONSTRUCTION AND MAINTENANCE PLAN THAT SHALL DETAIL THE  CAPACITY
OF ANY BROADBAND NETWORK OR NETWORKS BUILT WITH FUNDING FROM THE AUTHOR-
ITY,  AND  WHETHER SUCH NETWORKS SHALL MAINTAIN FULL UPLOAD AND DOWNLOAD
SPEEDS WHEN SUBSCRIBED TO ONE HUNDRED PERCENT OF CAPACITY;
  4. A DETAILED PLAN SHOWING HOW SUCH BUILDOUT FUNDED BY  THE  AUTHORITY
SHALL  ADDRESS  OR  EXCEED  THE  CURRENT  AGGREGATE DEMAND FOR BROADBAND
SERVICES IN THE AREA OF PROPOSED BUILDOUT AS DETERMINED BY THE  AUTHORI-
TY,  COUNCIL,  CYBER  SECURITY  AND CRITICAL INFRASTRUCTURE COORDINATION
OFFICE ("CSCIC") AND PUBLIC  SERVICE  COMMISSION'S  MAPPING  AND  DEMAND
ASSESSMENT ANALYSES AND REPORTS;
  5.  SUCH  OTHER REQUIREMENTS AS MAY BE RECOMMENDED TO THE AUTHORITY BY
THE COUNCIL AND THE PUBLIC SERVICE COMMISSION;
  6. A PLAN FOR FOLLOWING THE PRINCIPLES OF NEUTRAL NETWORKS AS REQUIRED
IN SECTION FORTY-ONE HUNDRED THIRTEEN OF THIS ARTICLE; AND
  7. A PLAN CONTAINING DETAILED METRICS SETTING FORTH TIME TO COMPLETION
FOR EACH STAGE OF ITS PROPOSED BUILDOUT, THE SPEEDS TO BE OFFERED ON AND
ACROSS ITS NETWORK, AND SUCH OTHER METRICS AS THE BROADBAND  COUNCIL  OR
BOARD MAY PROPOSE. THE AUTHORITY MAY NOT APPROVE AN APPLICATION UNLESS A
PLAN IS SUBMITTED UNDER THIS SECTION AND UNLESS THE REQUIREMENTS OF THIS
SECTION ARE MET.
  S 4107. BONDS AND NOTES OF THE AUTHORITY.  1. THE AUTHORITY SHALL HAVE
THE POWER AND IS HEREBY AUTHORIZED FROM TIME TO TIME TO ISSUE NEGOTIABLE
BONDS  OR  NOTES FOR ANY OF ITS CORPORATE PURPOSES FOR UP TO ONE HUNDRED
FIFTY MILLION DOLLARS ANNUALLY FOR FIVE YEARS TO DO ALL OF  THE  FOLLOW-
ING:
  (A)  PAY  THE  DEVELOPMENT  COSTS  ASSOCIATED WITH ACQUIRING, LEASING,
CONSTRUCTING, MAINTAINING, AND OPERATING THE  BROADBAND  INFRASTRUCTURE,
IN UNSERVED, UNDERSERVED, AND DISTRESSED AREAS;
  (B) MAKE LOANS TO PERSONS FOR DEVELOPMENT COSTS;
  (C)  MAKE  LOANS TO PERSONS TO MAKE PURCHASES RELATED TO THE BROADBAND
INFRASTRUCTURE;
  (D) PAY THE INTEREST ON BONDS AND NOTES OF THE AUTHORITY;
  (E) ESTABLISH RESERVES TO SECURE THE BONDS AND NOTES OF THE AUTHORITY;
AND
  (F) MAKE OTHER EXPENDITURES NECESSARY TO  CARRY  OUT  THE  AUTHORITY'S
DUTIES  UNDER  THIS  ARTICLE,  INCLUDING  THE PAYMENT OF THE AUTHORITY'S
OPERATING EXPENSES.
  THE BONDS AND NOTES SHALL BE IN A FORM, BEAR INTEREST  AT  A  RATE  OR
RATES,  BE IN THE DENOMINATIONS, CARRY REGISTRATION PRIVILEGES, BE PAYA-
BLE, AND BE SUBJECT TO THE TERMS OF REDEMPTION AS PROVIDED IN THE RESOL-
UTION DESCRIBED IN SUBDIVISION TWO OF THIS SECTION. THE BONDS AND  NOTES
OF THE AUTHORITY MAY BE SOLD BY THE AUTHORITY AT PUBLIC OR PRIVATE SALES
AT PRICES AS THE AUTHORITY DETERMINES.

A. 2118--A                         12

  2. A RESOLUTION RELATING TO AUTHORIZING NOTES OR BONDS MAY CONTAIN ANY
OF  THE FOLLOWING PROVISIONS, WHICH SHALL BE A PART OF THE CONTRACT WITH
THE HOLDERS OF THE NOTES OR BONDS:
  (A) PLEDGING ALL OR ANY PART OF THE REVENUES OF THE AUTHORITY, AND ALL
OR  ANY  PART  OF THE MONEY RECEIVED IN PAYMENT OF LOANS AND INTEREST ON
LOANS, AND OTHER MONEY RECEIVED OR TO BE RECEIVED TO SECURE THE  PAYMENT
OF THE NOTES OR BONDS;
  (B) PLEDGING ALL OR ANY PART OF THE ASSETS OF THE AUTHORITY, INCLUDING
MORTGAGES  AND  OBLIGATIONS OBTAINED BY THE AUTHORITY IN CONNECTION WITH
ITS PROGRAMS, TO SECURE THE PAYMENT OF THE NOTES OR BONDS;
  (C) PLEDGING ANY LOAN, GRANT, OR CONTRIBUTION FROM A GOVERNMENT  ENTI-
TY;
  (D)  THE  USE  AND  DISPOSITION OF THE GROSS INCOME FROM CONTRACTS AND
LEASES OF THE AUTHORITY;
  (E) LIMITATIONS ON THE PURPOSE TO WHICH THE PROCEEDS OF SALE OF  NOTES
OR  BONDS  MAY BE APPLIED AND PLEDGING PROCEEDS TO SECURE THE PAYMENT OF
THE NOTES OR BONDS;
  (F) LIMITATIONS ON THE ISSUANCE OF  ADDITIONAL  NOTES  OR  BONDS,  THE
TERMS  UPON  WHICH  ADDITIONAL NOTES OR BONDS MAY BE ISSUED AND SECURED,
AND THE REFUNDING OF OUTSTANDING OR OTHER NOTES OR BONDS;
  (G) THE PROCEDURE, IF ANY, BY WHICH THE TERMS  OF  ANY  CONTRACT  WITH
NOTEHOLDERS  OR  BONDHOLDERS  MAY BE AMENDED OR ABROGATED, THE AMOUNT OF
NOTES OR BONDS THE HOLDERS OF WHICH SHALL CONSENT TO  THE  AMENDMENT  OR
ABROGATION, AND THE MANNER IN WHICH THE CONSENT IS TO BE GIVEN;
  (H)  VESTING  IN  A  TRUSTEE OR TRUSTEES PROPERTY, RIGHTS, POWERS, AND
DUTIES IN TRUST AS THE AUTHORITY MAY DETERMINE, WHICH MAY INCLUDE ANY OF
THE RIGHTS, POWERS, AND DUTIES OF THE TRUSTEE APPOINTED BY THE BONDHOLD-
ERS UNDER THIS ARTICLE AND LIMITING OR ABROGATING THE RIGHT OF THE BOND-
HOLDERS TO APPOINT A TRUSTEE UNDER THIS SECTION OR LIMITING THE  RIGHTS,
POWERS, AND DUTIES OF THE TRUSTEE.
  3. NO MORE THAN FIFTY PERCENT OF ANY PAYMENTS TO THE AUTHORITY FOR USE
OF RIGHTS-OF-WAY UNDER ITS CONTROL OR SUPERVISION SHALL BE DEEMED REVEN-
UES  OF THE AUTHORITY. UP TO SEVENTY-FIVE PERCENT OF MONIES ARISING FROM
RIGHT-OF-WAY USE PAYMENTS MAY BE USED TO FUND SOCIAL ACCESS PROJECTS  OF
THE  AUTHORITY,  OR  MAY  BE  CONTRIBUTED TO A STATE FUND ESTABLISHED TO
GUARANTEE UNIVERSAL AND AFFORDABLE BROADBAND SERVICE TO, WITHOUT LIMITA-
TION, UNDERSERVED SUBSCRIBERS AND STRUCTURES. ANY  REMAINING  UNEXPENDED
MONIES  ARISING  FROM  RIGHT-OF-WAY  USE  PAYMENTS MAY BE PLEDGED BY THE
AUTHORITY TO SECURE THE PAYMENT OF NOTES AND BONDS.
  S 4108. BONDS AND NOTES; PERSONAL LIABILITY. THE MEMBERS OF THE  BOARD
OR  ANY  PERSON  EXECUTING THE NOTES OR BONDS UNDER THIS ARTICLE ARE NOT
LIABLE PERSONALLY ON THE NOTES OR  BONDS  OR  SUBJECT  TO  ANY  PERSONAL
LIABILITY OR ACCOUNTABILITY BY REASON OF THE ISSUANCE.
  S 4109. RIGHTS OF AUTHORITY TO FULFILL TERMS OF AGREEMENT NOT LIMITED,
ALTERED,  OR IMPAIRED. THIS STATE PLEDGES AND AGREES WITH THE HOLDERS OF
ANY NOTES OR BONDS ISSUED UNDER THIS ARTICLE, THAT THE  STATE  WILL  NOT
LIMIT  OR  ALTER THE RIGHTS VESTED IN THE AUTHORITY TO FULFILL THE TERMS
OF ANY AGREEMENTS MADE WITH THE HOLDERS, OR IN ANY WAY IMPAIR THE RIGHTS
AND REMEDIES OF THE HOLDERS UNTIL THE  NOTES  OR  BONDS,  TOGETHER  WITH
EARNED  INTEREST,  WITH INTEREST ON ANY UNPAID INSTALLMENTS OF INTEREST,
AND ALL COSTS AND EXPENSES IN CONNECTION WITH ANY ACTION  OR  PROCEEDING
BY  OR  ON  BEHALF  OF  THE  HOLDERS,  ARE FULLY MET AND DISCHARGED. THE
AUTHORITY IS AUTHORIZED TO INCLUDE THIS  PLEDGE  AND  AGREEMENT  OF  THE
STATE  IN  ANY  AGREEMENT  WITH THE HOLDERS OF NOTES OR BONDS UNDER THIS
ARTICLE.

A. 2118--A                         13

  S 4110. REMEDIES OF BONDHOLDERS AND NOTEHOLDERS. 1. IF  THE  AUTHORITY
DEFAULTS  IN  THE PAYMENT OF PRINCIPAL OR INTEREST OF ANY NOTES OR BONDS
WHEN DUE, WHETHER AT MATURITY OR  UPON  CALL  FOR  REDEMPTION,  AND  THE
DEFAULT CONTINUES FOR A PERIOD OF THIRTY DAYS, OR IF THE AUTHORITY FAILS
OR  REFUSES  TO  COMPLY  WITH THIS ARTICLE, OR DEFAULTS IN ANY AGREEMENT
MADE WITH THE HOLDERS OF ANY NOTES OR BONDS, THE HOLDERS OF  TWENTY-FIVE
PERCENT  IN  AGGREGATE  PRINCIPAL  AMOUNT  OF  THE  NOTES  OR BONDS THEN
OUTSTANDING MAY APPLY TO THE COURT OF CLAIMS FOR THE  APPOINTMENT  OF  A
TRUSTEE TO REPRESENT THE HOLDERS OF THE NOTES OR BONDS.
  2.  A  TRUSTEE  APPOINTED UNDER THIS ARTICLE MAY, AND UPON THE WRITTEN
REQUEST OF THE HOLDERS OF TWENTY-FIVE  PERCENT  IN  AGGREGATE  PRINCIPAL
AMOUNT OF THE NOTES OR BONDS SHALL, DO ANY OF THE FOLLOWING:
  (A)  ENFORCE  ALL  RIGHTS OF THE NOTEHOLDERS OR BONDHOLDERS, INCLUDING
THE RIGHT TO REQUIRE THE AUTHORITY TO  PERFORM  ITS  DUTIES  UNDER  THIS
ARTICLE;
  (B) BRING SUIT UPON THE NOTES OR BONDS;
  (C)  REQUIRE  THE AUTHORITY TO ACCOUNT AS IF IT WERE THE TRUSTEE OF AN
EXPRESS TRUST FOR THE HOLDERS OF THE NOTES OR BONDS;
  (D) ENJOIN ANY ACTS OR THINGS THAT MAY BE UNLAWFUL OR IN VIOLATION  OF
THE RIGHTS OF THE HOLDERS OF THE NOTES OR BONDS; AND
  (E) DECLARE ALL THE NOTES OR BONDS DUE AND PAYABLE.
  3.  BEFORE  DECLARING THE PRINCIPAL OF NOTES OR BONDS DUE AND PAYABLE,
THE TRUSTEE SHALL FIRST GIVE THIRTY  DAYS'  NOTICE  IN  WRITING  TO  THE
GOVERNOR,  TO  THE  AUTHORITY,  TO  THE  COMPTROLLER AND TO THE ATTORNEY
GENERAL.
  4. THE TRUSTEE HAS ALL OF THE POWERS NECESSARY OR APPROPRIATE FOR  THE
GENERAL  REPRESENTATION OF BONDHOLDERS OR NOTEHOLDERS IN THE ENFORCEMENT
AND PROTECTION OF THEIR RIGHTS.
  5. AN ACTION UNDER THIS SECTION SHALL  BE  BROUGHT  IN  THE  COURT  OF
CLAIMS.
  S  4111. GRANTS OR LOANS OF PUBLIC OR PRIVATE FUNDS OR IN-KIND MATERI-
AL. 1. THE AUTHORITY MAY ACCEPT, RECEIVE,  RECEIPT  FOR,  DISBURSE,  AND
EXPEND  FEDERAL  AND  STATE  MONEYS AND OTHER MONEYS, PUBLIC OR PRIVATE,
MADE AVAILABLE BY GRANT OR LOAN OR BOTH OR OTHERWISE, TO ACCOMPLISH,  IN
WHOLE OR IN PART ANY OF THE PURPOSES OF THIS ARTICLE. ALL FEDERAL MONEYS
ACCEPTED  UNDER  THIS  SECTION  SHALL  BE  ACCEPTED  AND EXPENDED BY THE
AUTHORITY UPON SUCH TERMS AND CONDITIONS AS ARE PRESCRIBED BY THE UNITED
STATES AND AS ARE CONSISTENT  WITH  STATE  LAW;  AND  ALL  STATE  MONEYS
ACCEPTED  UNDER  THIS  SECTION  SHALL  BE  ACCEPTED  AND EXPENDED BY THE
AUTHORITY UPON SUCH TERMS AND CONDITIONS AS ARE PRESCRIBED BY  NEW  YORK
STATE LAW.
  2.  THE  AUTHORITY  MAY  ACCEPT,  RECEIVE,  RECEIPT FOR, GRANT OR LOAN
COMPUTERS AND OTHER TELECOMMUNICATIONS EQUIPMENT  OR  BROADBAND  INFRAS-
TRUCTURE  EQUIPMENT  MADE  AVAILABLE TO IT BY IN-KIND DONATION, GRANT OR
LOAN, TO ACCOMPLISH, IN WHOLE OR IN PART, ANY OF THE  PURPOSES  OF  THIS
ARTICLE.  ALL  SUCH  IN-KIND  MATERIAL  SHALL  BE ACCEPTED AND LOANED OR
GRANTED  BY  THE  AUTHORITY  UPON  SUCH  TERMS  AND  CONDITIONS  AS  ARE
PRESCRIBED IN APPLICABLE SECTIONS OF THE LAW OF THE UNITED STATES AND AS
ARE CONSISTENT WITH STATE LAW.
  S  4112.  EXEMPTION  FROM  TAXES  AND ASSESSMENTS. THE EXERCISE OF THE
POWERS GRANTED BY THIS ARTICLE SHALL BE IN ALL RESPECTS FOR THE  BENEFIT
OF  THE  PEOPLE  OF  THIS  STATE, FOR THE INCREASE OF THEIR COMMERCE AND
PROSPERITY, FOR THE IMPROVEMENT OF THEIR HEALTH AND  LIVING  CONDITIONS,
AND  AS  THE  OPERATION AND MAINTENANCE OF PROJECTS BY THE AUTHORITY AND
THE UNDERTAKING OF ACTIVITIES IN  FURTHERANCE  OF  THE  PURPOSE  OF  THE
AUTHORITY  CONSTITUTE  THE  PERFORMANCE  OF ESSENTIAL GOVERNMENTAL FUNC-

A. 2118--A                         14

TIONS, THE AUTHORITY SHALL NOT BE REQUIRED TO PAY ANY TAXES  OR  ASSESS-
MENTS UPON ANY PROJECT OR ANY PROPERTY ACQUIRED OR USED BY THE AUTHORITY
UNDER  THE  PROVISIONS  OF  THIS  ARTICLE  OR UPON THE INCOME THEREFROM,
INCLUDING  SALES AND USE TAXES ON TANGIBLE PERSONAL PROPERTY USED IN THE
OPERATIONS OF THE AUTHORITY, AND ANY BONDS ISSUED UNDER  THE  PROVISIONS
OF  THIS ARTICLE, THEIR TRANSFER AND THE INCOME THEREFROM (INCLUDING ANY
PROFIT MADE ON THE SALE THEREOF) SHALL AT ALL TIMES BE FREE  FROM  STATE
AND  LOCAL  TAXATION. THE EXEMPTION GRANTED IN THIS SECTION SHALL NOT BE
CONSTRUED TO EXTEND TO PERSONS CONDUCTING ON THE PREMISES OF A  FACILITY
BUSINESSES FOR WHICH LOCAL OR STATE TAXES WOULD OTHERWISE BE REQUIRED.
  S  4113.  BROADBAND  AND ADVANCED COMMUNICATIONS DEVELOPMENT FUND.  1.
THERE IS CREATED IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMIS-
SIONER OF THE DEPARTMENT OF TAXATION AND FINANCE A SPECIAL NONREVERTING,
PERMANENT ACCOUNT IN THE SPECIAL REVENUE FUND, TO BE CALLED THE ADVANCED
COMMUNICATIONS ASSISTANCE FUND, TO BE  ADMINISTERED  BY  THE  AUTHORITY.
MONEYS  IN  THE  FUND  SHALL  BE  USED SOLELY FOR THE PURPOSE OF HELPING
UNSERVED, UNDERSERVED AND DISTRESSED MUNICIPAL CORPORATIONS IN NEW  YORK
STATE  TAKE  FULL  ADVANTAGE  OF  BROADBAND  AND ADVANCED COMMUNICATIONS
SERVICES.  LOANS OR GRANTS FROM THE FUND SHALL  BE  USED  TO  EFFECTUATE
PHYSICAL  AND  SOCIAL  ACCESS  TO BROADBAND IN UNSERVED, UNDERSERVED AND
DISTRESSED LOCALITIES FOR:
  (A) THE INTERNAL COMMUNICATION NEEDS OF  SUCH  LOCALITIES,  WHICH  MAY
INCLUDE  BUT  ARE NOT LIMITED TO FIBER-OPTIC AND WIRELESS COMMUNICATIONS
NETWORKS;
  (B) HELP IN FINANCING THE COSTS OF  PLANNING,  DESIGNING,  PURCHASING,
LEASING,  INSTALLING, OR MAINTAINING DARK FIBER TO THE EXTENT PERMITTED,
SUBJECT HOWEVER TO ALL DUTIES AND RESTRICTIONS THAT  EXIST  WITHIN  THIS
SECTION; OR
  (C)  TO  ADVANCE THE PHYSICAL AND SOCIAL AVAILABILITY OF BROADBAND AND
OTHER ADVANCED COMMUNICATIONS SERVICES TO ALL CONSUMERS, INCLUDING THOSE
IN LOW INCOME, RURAL, INSULAR, AND HIGH COST AREAS  AT  RATES  THAT  ARE
REASONABLY  COMPARABLE  TO  THOSE  CHARGED  IN  HIGH-DENSITY URBAN AREAS
AND/OR IN THE AREA OF THE STATE WHERE SUCH SERVICES  ARE  MOST  COMPETI-
TIVELY  PRICED;  AND  TO INCREASE PHYSICAL AND SOCIAL ACCESS TO, AND THE
UBIQUITY OF,  ADVANCED  TELECOMMUNICATIONS  SERVICES  AVAILABLE  TO  THE
PUBLIC IN AN EQUITABLE AND NONDISCRIMINATORY MANNER.
  2.  ALL MONEYS OF THE AUTHORITY FROM WHATEVER SOURCE DERIVED INCLUDING
SUCH FUNDS AS MAY BE APPROPRIATED AND ANY GIFTS, GRANTS, DONATIONS  FROM
PUBLIC  OR  PRIVATE SOURCES, OR MONEYS RAISED FROM BONDS OR NOTES, SHALL
BE DEPOSITED IN THE FUND.
  3. INTEREST EARNED ON MONEYS IN THE FUND SHALL REMAIN IN THE FUND  AND
BE  CREDITED  TO IT. ANY MONEYS REMAINING IN THE FUND AT THE END OF EACH
FISCAL YEAR, INCLUDING INTEREST THEREON, SHALL NOT REVERT TO THE GENERAL
FUND BUT SHALL REMAIN IN THE FUND  AND  EXPENDITURES  AND  DISBURSEMENTS
FROM  THE  FUND,  WHICH MAY CONSIST OF GRANTS OR LOANS, SHALL BE MADE BY
THE COMPTROLLER UPON WRITTEN REQUEST BEARING THE SIGNATURE OF THE  CHAIR
OR THE VICE-CHAIR OF THE AUTHORITY, OR, IF SO AUTHORIZED BY THE AUTHORI-
TY, BEARING HIS OR HER FACSIMILE SIGNATURE, AND THE OFFICIAL SEAL OF THE
AUTHORITY.
  4.  THE  RECEIPT OF MONIES FROM THE FUND SHALL BE CONDITIONED UPON THE
ACCEPTANCE BY PUBLIC AND PRIVATE  TELECOMMUNICATIONS  SERVICES  PROVIDER
RECIPIENTS  OF THE IMPORTANT STATE POLICY THAT THE REASONABLY UNFETTERED
ACCESS OF THE CITIZENRY TO THE MAXIMALLY  DIVERSE  INTERNET  IS  IN  THE
PUBLIC  INTEREST, WITH THE EXPRESS UNDERSTANDING THAT TELECOMMUNICATIONS
PROVIDERS MAY CHOOSE TO BLOCK, LIMIT OR OTHERWISE RESTRICT  THE  PASSAGE
OF  ELECTRONIC  MAIL  MESSAGE  OR  OTHER CONTENT THAT TRANSMIT, PORTRAY,

A. 2118--A                         15

DESCRIBE, REPRESENT OR OTHERWISE CONTAIN MATTERS SUCH AS CHILD PORNOGRA-
PHY OR SIMILAR OBSCENITY, OTHER UNLAWFUL MATERIAL,  THREATS  OF  SERIOUS
BODILY HARM, THREATS TO THE PUBLIC SAFETY AND HOMELAND SECURITY, THREATS
OF  DEATH  TO  INDIVIDUALS  OR GROUPS OF INDIVIDUALS, VIRUSES OR SIMILAR
COMPUTER GENERATED PROGRAMS OR CODE THAT  HAVE  THE  POTENTIAL  TO  HARM
COMPUTER HARDWARE AND/OR SOFTWARE AND/OR NETWORKS, EXCESSIVE UNSOLICITED
COMMERCIAL  EMAIL  THAT  DEGRADES OR INTERFERES WITH OR HARMS THE NORMAL
OPERATION OF BROADBAND NETWORKS, AND OTHER SIMILAR  TYPES  OR  FORMS  OF
MATERIAL  OR  SOFTWARE  (THE  FOREGOING  EXAMPLES  ARE ILLUSTRATIVE, NOT
EXHAUSTIVE OF SUCH THREATS TO USERS AND/OR THE NETWORK). EACH  RECIPIENT
OF  MONIES  FROM  THE  FUND  SHALL PROVIDE TO THE AUTHORITY ON AN ANNUAL
BASIS A WRITTEN REPORT DESCRIBING EVERY INSTANCE IN WHICH SUCH RECIPIENT
BLOCKS, LIMITS OR OTHERWISE RESTRICTS SUBSCRIBERS OR OTHER PURCHASERS OF
BROADBAND SERVICES FROM THE  RECIPIENT  FROM  ACCESSING  ANY  PARTICULAR
INTERNET SITE OR CATEGORY OR TYPE OF INTERNET SITE OR ANY SPECIFIC ELEC-
TRONIC  MAIL MESSAGE OR CATEGORY OR TYPE OF ELECTRONIC MAIL ("NEUTRALITY
REPORT"). SUCH NEUTRALITY REPORT SHALL CONTAIN DETAIL OF  A  SPECIFICITY
LEVEL  TO  BE  DETERMINED BY THE AUTHORITY, AND SHALL CONTAIN SUFFICIENT
DETAIL TO ALLOW THE AUTHORITY TO ASCERTAIN THE NATURE OF  ANY  BLOCKING,
LIMITATION  OR  OTHER  RESTRICTIONS,  AND  THE  REASON FOR THE RECIPIENT
TAKING SUCH ACTION, BUT SHALL BE PROVIDED IN A MANNER REASONABLY  CALCU-
LATED  TO  PROTECT  SUBSCRIBER  AND  PURCHASER PRIVACY OR THE LEGITIMATE
NEEDS OF LAW ENFORCEMENT. NO RECIPIENT OF FUNDS SHALL BE RESPONSIBLE  OR
LIABLE  FOR  ANY  EFFORTS  BY OR POLICIES, PRACTICES OR PROCEDURES OF AN
UNAFFILIATED TELECOMMUNICATIONS SERVICES PROVIDER OR  INTERNET  SERVICES
PROVIDER  OR INTERNET PROTOCOL TRAFFIC ROUTING ENTITY TO BLOCK SUBSCRIB-
ERS FROM ACCESSING ANY INTERNET SITE OR ANY CATEGORY OR TYPE OF INTERNET
SITE OR ANY SPECIFIC ELECTRONIC MAIL MESSAGE OR ANY CATEGORY OR TYPE  OF
ELECTRONIC MAIL.
  5. ANY PLEDGE MADE BY THE AUTHORITY IS VALID AND BINDING FROM THE DATE
THAT  THE  PLEDGE IS MADE. THE MONEY OR PROPERTY PLEDGED AND RECEIVED BY
THE AUTHORITY SHALL IMMEDIATELY BE SUBJECT TO THE  LIEN  OF  THE  PLEDGE
WITHOUT  ANY PHYSICAL DELIVERY OR FURTHER ACT AND THE LIEN OF THE PLEDGE
IS VALID  AND  BINDING  AGAINST  ALL  PARTIES  HAVING  CLAIMS  IN  TORT,
CONTRACT,  OR  OTHERWISE  AGAINST THE AUTHORITY, IRRESPECTIVE OF WHETHER
THE PARTIES HAVE NOTICE OF THE LIEN. THE RESOLUTION OR ANY OTHER INSTRU-
MENT BY WHICH A PLEDGE IS CREATED NEED NOT BE RECORDED.
  S 4114. APPROPRIATIONS BY ANY GOVERNMENT OR MUNICIPAL CORPORATION. ANY
GOVERNMENT OR MUNICIPAL CORPORATION  MAY  MAKE  APPROPRIATIONS  FOR  THE
ACQUISITION,  CONSTRUCTION, IMPROVEMENT, MAINTENANCE OR OPERATION OF ANY
PROJECT ACQUIRED, CONSTRUCTED, IMPROVED, MAINTAINED OR OPERATED  BY  THE
AUTHORITY.
  S  4115. CONVEYANCE, LEASE OR TRANSFER OF PROPERTY BY A CITY OR COUNTY
TO THE AUTHORITY. ANY CITY OR COUNTY WITHIN NEW YORK STATE IN  ORDER  TO
PROVIDE  FOR  THE  CONSTRUCTION,  RECONSTRUCTION, IMPROVEMENT, REPAIR OR
MANAGEMENT OF ANY PROJECT, OR IN ORDER TO ACCOMPLISH ANY OF THE PURPOSES
OF THIS ARTICLE MAY, WITH OR WITHOUT  CONSIDERATION  OR  FOR  A  NOMINAL
CONSIDERATION, LEASE, SELL, CONVEY OR OTHERWISE TRANSFER TO THE AUTHORI-
TY  ANY  REAL,  PERSONAL  OR  MIXED PROPERTY LOCATED WITHIN SUCH CITY OR
COUNTY.
  S 4116. ACTIONS AGAINST THE AUTHORITY. 1. IN EVERY ACTION AGAINST  THE
AUTHORITY FOR DAMAGES, FOR INJURIES TO REAL OR PERSONAL PROPERTY, OR FOR
THE  DESTRUCTION  THEREOF, OR FOR PERSONAL INJURIES, THE COMPLAINT SHALL
CONTAIN AN ALLEGATION THAT AT LEAST THIRTY DAYS HAVE ELAPSED  SINCE  THE
DEMAND, CLAIM OR CLAIMS UPON WHICH SUCH ACTION IS FOUNDED WERE PRESENTED
TO A MEMBER OF THE AUTHORITY, OR TO ITS SECRETARY, OR TO ITS CHIEF EXEC-

A. 2118--A                         16

UTIVE OFFICER AND THAT THE AUTHORITY HAS NEGLECTED OR REFUSED TO MAKE AN
ADJUSTMENT OR PAYMENT THEREOF FOR THIRTY DAYS AFTER SUCH PRESENTMENT.
  2. AN ACTION AGAINST THE AUTHORITY FOR DAMAGES FOR INJURIES TO REAL OR
PERSONAL PROPERTY, OR FOR THE DESTRUCTION THEREOF, OR FOR PERSONAL INJU-
RIES,  ALLEGED  TO  HAVE BEEN SUSTAINED SHALL NOT BE COMMENCED MORE THAN
ONE YEAR AND NINETY DAYS AFTER THE CAUSE OF ACTION THEREFOR  SHALL  HAVE
ACCRUED, NOR UNLESS A NOTICE OF INTENTION TO COMMENCE SUCH ACTION AND OF
THE  TIME  WHEN  AND PLACE WHERE THE DAMAGES WERE INCURRED OR SUSTAINED,
TOGETHER WITH A  VERIFIED  STATEMENT  SHOWING  IN  DETAIL  THE  PROPERTY
ALLEGED  TO HAVE BEEN DAMAGED OR DESTROYED AND THE VALUE THEREOF, OR THE
PERSONAL INJURIES ALLEGED TO HAVE BEEN SUSTAINED AND BY WHOM, SHALL HAVE
BEEN FILED IN THE PRINCIPAL OFFICE OF THE AUTHORITY WITHIN  NINETY  DAYS
AFTER SUCH CAUSE OF ACTION SHALL HAVE ACCRUED.
  3.  AN  ACTION  AGAINST  THE  AUTHORITY  FOR  WRONGFUL  DEATH SHALL BE
COMMENCED IN ACCORDANCE WITH THE NOTICE OF  CLAIM  AND  TIME  LIMITATION
PROVISIONS OF TITLE ELEVEN OF ARTICLE NINE OF THIS CHAPTER.
  S  4117.  AUDIT POWER AND CONTRACT APPROVAL BY THE COMPTROLLER. 1. THE
COMPTROLLER, OR HIS OR HER  LEGALLY  AUTHORIZED  REPRESENTATIVES,  SHALL
HAVE THE AUTHORITY TO EXAMINE THE ACCOUNTS AND FINANCES OF THE AUTHORITY
AND  TO CONDUCT MANAGEMENT AUDITS OF THE STAFF AND BOARD OF THE AUTHORI-
TY.
  2. THE PROCUREMENT, PUBLIC WORK, CONSTRUCTION, AND  REVENUE  CONTRACTS
OF  THE  AUTHORITY  SHALL BE SUBJECT TO PRIOR REVIEW AND APPROVAL BY THE
COMPTROLLER, IF THE COMPTROLLER, IN HIS OR  HER  DISCRETION,  DETERMINES
THAT  SUCH  REVIEW  AND  APPROVAL  SHALL BE REQUIRED. IF THE COMPTROLLER
DETERMINES THAT ANY CONTRACT OR CATEGORY OF CONTRACTS OF A STATE AUTHOR-
ITY  REQUIRES  DIRECT  SUPERVISION  IN  THE  FORM  OF  PRE-APPROVAL   OF
CONTRACTS,  AND THE COMPTROLLER SO NOTIFIES SUCH STATE AUTHORITY OF SUCH
DETERMINATION, THEN SUBJECT TO SUBDIVISION THREE  OF  THIS  SECTION,  NO
SUCH  CONTRACT  OR AGREEMENT BY SUCH STATE AUTHORITY SELECTED FOR REVIEW
BY THE COMPTROLLER SHALL BE A VALID  ENFORCEABLE  CONTRACT  UNLESS  SUCH
CONTRACT  SHALL  FIRST BE APPROVED BY THE COMPTROLLER. IN THE EVENT THAT
THE COMPTROLLER NOTIFIES THE AUTHORITY THAT APPROVAL SHALL  BE  REQUIRED
AS  PROVIDED  IN  THIS  SECTION,  THEN  THE  AUTHORITY  SHALL  INCLUDE A
PROVISION IN ALL SUCH CONTRACTS SELECTED FOR REVIEW  AS  STATED  IN  ANY
SUCH  NOTICE INFORMING THE OTHER PARTIES TO SUCH CONTRACTS THAT THE SAME
ARE NOT VALID AND ENFORCEABLE WITHOUT THE COMPTROLLER'S APPROVAL.
  3. ANY CONTRACT SELECTED BY THE COMPTROLLER FOR  REVIEW  AND  APPROVAL
PURSUANT TO SUBDIVISION TWO OF THIS SECTION SHALL BE A VALID ENFORCEABLE
CONTRACT  ONLY  IF THE COMPTROLLER (A) APPROVES THE CONTRACT, OR (B) HAS
NOT DISAPPROVED THE CONTRACT WITHIN FORTY-FIVE DAYS OF THE SUBMISSION OF
SUCH CONTRACT TO HIS OR HER OFFICE, UNLESS  THE  STATE  AUTHORITY  SHALL
AGREE  WITH  THE  COMPTROLLER ON AN EXTENSION FOR A REASONABLE PERIOD OF
TIME.
  S 4118. ANNUAL REPORT. THE AUTHORITY SHALL SUBMIT AN ANNUAL REPORT  NO
LATER  THAN MARCH FIRST OF EACH YEAR, INCLUDING THE RECOMMENDATIONS MADE
BY THE  BROADBAND  DEVELOPMENT  AND  DEPLOYMENT  COUNCIL  UNDER  SECTION
FORTY-ONE  HUNDRED  FIVE OF THIS ARTICLE, RELATING TO ITS ACTIVITIES FOR
THE PRECEDING CALENDAR YEAR TO THE GOVERNOR, THE SPEAKER OF  THE  ASSEM-
BLY,  THE  TEMPORARY PRESIDENT OF THE SENATE, THE MINORITY LEADER OF THE
ASSEMBLY, THE MINORITY LEADER OF THE SENATE, THE CHAIR OF  THE  ASSEMBLY
STANDING COMMITTEE ON CORPORATIONS, AUTHORITIES AND COMMISSIONS, AND THE
CHAIR OF THE SENATE STANDING COMMITTEE ON ENERGY AND TELECOMMUNICATIONS.
  S  4119.  EFFECT OF INCONSISTENT PROVISIONS. INSOFAR AS THE PROVISIONS
OF THIS ARTICLE ARE INCONSISTENT WITH THE PROVISIONS OF ANY  OTHER  ACT,
GENERAL OR SPECIAL, THE PROVISIONS OF THIS TITLE SHALL BE CONTROLLING.

A. 2118--A                         17

  S  4120. SEVERABILITY. IF ANY PROVISION OF ANY SECTION OF THIS ARTICLE
OR THE APPLICATION THEREOF  TO  ANY  PERSON  OR  CIRCUMSTANCE  SHALL  BE
ADJUDGED  INVALID  BY  A  COURT OF COMPETENT JURISDICTION, SUCH ORDER OR
JUDGMENT SHALL BE CONFINED IN ITS OPERATION TO THE CONTROVERSY IN  WHICH
IT WAS RENDERED, AND SHALL NOT AFFECT OR INVALIDATE THE REMAINDER OF ANY
PROVISION  OF ANY SECTION OF THIS ARTICLE OR THE APPLICATION OF ANY PART
THEREOF TO ANY  OTHER  PERSON  OR  CIRCUMSTANCE  AND  TO  THIS  END  THE
PROVISIONS  OF  EACH  SECTION  OF THIS ARTICLE ARE HEREBY DECLARED TO BE
SEVERABLE.
  S 4. The public service law is amended by adding a new section 92-h to
read as follows:
  S 92-H. UNIVERSAL, AFFORDABLE AND SECURE  TELECOMMUNICATIONS  SERVICES
FUND.   1. THE COMMISSION SHALL ESTABLISH A MECHANISM FOR THE SUPPORT OF
UNIVERSAL SERVICE, ALSO REFERRED TO IN THIS SECTION AS  THE  "HIGH  COST
SUPPORT MECHANISM", WHICH SHALL OPERATE IN ACCORDANCE WITH RULES ADOPTED
BY  THE COMMISSION. THE PURPOSE OF THE HIGH COST SUPPORT MECHANISM IS TO
PROVIDE FINANCIAL ASSISTANCE TO TELECOMMUNICATIONS SERVICES PROVIDERS TO
HELP MAKE BASIC LOCAL EXCHANGE AND BROADBAND SERVICES UNIVERSALLY AVAIL-
ABLE, AT JUST AND REASONABLE RATES AND ALLOW SUCH PROVIDERS TO BE  FULLY
REIMBURSED  FOR  THE DIFFERENCE BETWEEN THE REASONABLE COSTS INCURRED IN
MAKING BASIC SERVICE AVAILABLE TO THEIR CUSTOMERS WITHIN A  RURAL,  HIGH
COST  GEOGRAPHIC  SUPPORT  AREA  AND THE PRICE CHARGED FOR SUCH SERVICE,
AFTER TAKING INTO ACCOUNT ANY AMOUNTS RECEIVED BY SUCH  PROVIDERS  UNDER
PRICE  SUPPORT  MECHANISMS  ESTABLISHED BY THE FEDERAL GOVERNMENT AND BY
THIS STATE. THE  COMMISSION  SHALL  ENSURE  THAT  NO  TELECOMMUNICATIONS
SERVICES PROVIDER IS RECEIVING FUNDS FROM THIS OR ANY OTHER SOURCE THAT,
TOGETHER  WITH  LOCAL  EXCHANGE  SERVICE  REVENUES,  EXCEEDS THE COST OF
PROVIDING LOCAL EXCHANGE SERVICE TO CUSTOMERS OF SUCH PROVIDER. THE HIGH
COST SUPPORT MECHANISM SHALL BE SUPPORTED AND DISTRIBUTED EQUITABLY  AND
ON  A  NONDISCRIMINATORY,  COMPETITIVELY  NEUTRAL  BASIS  THROUGH A RATE
ELEMENT ASSESSED ON ALL  TELECOMMUNICATIONS  SERVICE  PROVIDERS  IN  NEW
YORK.  A  PROVIDER THAT OFFERS BASIC LOCAL EXCHANGE SERVICE OR BROADBAND
SERVICE THROUGHOUT AN ENTIRE SUPPORT AREA THROUGH USE OF ITS OWN FACILI-
TIES OR ON A RESALE BASIS MAY BE QUALIFIED AS A PROVIDER OF LAST  RESORT
OR  MAY  BE ELIGIBLE TO RECEIVE UNIVERSAL SERVICE SUPPORT, AS DETERMINED
BY THE COMMISSION. A PROVIDER THAT FAILS TO PAY AN  ASSESSMENT  DUE  AND
PAYABLE UNDER THIS SECTION SHALL BE SUBJECT TO THE REVOCATION OF CERTIF-
ICATE AFTER NOTICE AND THE OPPORTUNITY FOR A HEARING AS PROVIDED IN THIS
CHAPTER.  IN  ALL  RELEVANT GEOGRAPHIC AREAS OF THE STATE, AS DEFINED BY
THE COMMISSION, THE COMMISSION SHALL DESIGNATE AT LEAST ONE PROVIDER  AS
THE  PROVIDER OF LAST RESORT AND ADOPT PROCEDURES FOR CHANGING OR TERMI-
NATING SUCH DESIGNATIONS. A PROVIDER OF LAST RESORT DESIGNATION  CARRIES
THE  RESPONSIBILITY  TO OFFER BASIC LOCAL EXCHANGE SERVICE AND BROADBAND
SERVICE TO ALL CONSUMERS WHO REQUEST IT. A PERSON HOLDING A  CERTIFICATE
OF  PUBLIC  CONVENIENCE  AND NECESSITY TO PROVIDE BASIC SERVICE SHALL BE
SUBJECT TO THE EVOLVING DEFINITION OF BASIC  SERVICE  DEVELOPED  BY  THE
COMMISSION  UNDER  THIS  CHAPTER AND THE SYSTEM OF FINANCIAL SUPPORT FOR
UNIVERSAL SERVICE ESTABLISHED BY THE COMMISSION UNDER THIS  SECTION.  IF
AND  WHEN  ADDITIONAL  ELEMENTS  ARE INCLUDED IN THE DEFINITION OF BASIC
SERVICE AS A RESULT OF REVIEW BY THE COMMISSION, PRICES MAY INCREASE  AS
IS  DETERMINED BY THE COMMISSION TO BE REASONABLY NECESSARY TO COVER THE
COST AND ACCOUNT FOR THE INCLUSION OF SUCH ADDITIONAL ELEMENTS.
  2. ON OR BEFORE DECEMBER FIRST OF  EACH  YEAR,  THE  COMMISSION  SHALL
SUBMIT  A  WRITTEN  REPORT  TO  THE GOVERNOR, TEMPORARY PRESIDENT OF THE
SENATE, SPEAKER OF THE ASSEMBLY, MINORITY  LEADERS  OF  THE  SENATE  AND
ASSEMBLY,  CHAIRPERSON  AND RANKING MINORITY MEMBER OF THE SENATE ENERGY

A. 2118--A                         18

AND TELECOMMUNICATIONS COMMITTEE, AND THE CHAIRPERSON AND RANKING MINOR-
ITY MEMBER OF THE ASSEMBLY  CORPORATIONS,  AUTHORITIES  AND  COMMISSIONS
COMMITTEE,  ACCOUNTING  FOR THE OPERATION OF THE HIGH COST SUPPORT MECH-
ANISM  DURING  THE  PRECEDING CALENDAR YEAR AND CONTAINING THE FOLLOWING
INFORMATION, AT A MINIMUM:
  (A) THE TOTAL AMOUNT OF MONEY THAT THE  COMMISSION  DETERMINED  SHOULD
CONSTITUTE  THE  HIGH  COST  SUPPORT  MECHANISM FROM WHICH DISTRIBUTIONS
WOULD BE MADE;
  (B) THE TOTAL AMOUNT OF MONEY ORDERED TO BE CONTRIBUTED THROUGH A RATE
ELEMENT ASSESSMENT COLLECTED BY EACH TELECOMMUNICATIONS SERVICE  PROVID-
ER;
  (C)  THE  BASIS  ON  WHICH THE CONTRIBUTION OF EACH TELECOMMUNICATIONS
SERVICE PROVIDER WAS CALCULATED;
  (D) THE BENCHMARKS USED AND THE BASIS ON  WHICH  THE  BENCHMARKS  WERE
DETERMINED;
  (E) THE TOTAL AMOUNT OF MONEY THAT THE COMMISSION DETERMINED SHOULD BE
DISTRIBUTED FROM THE HIGH COST SUPPORT MECHANISM;
  (F)  THE  TOTAL AMOUNT OF MONEY DISTRIBUTED TO EACH TELECOMMUNICATIONS
SERVICE PROVIDER FROM THE HIGH COST SUPPORT MECHANISM;
  (G) THE BASIS ON WHICH THE DISTRIBUTION TO TELECOMMUNICATIONS  SERVICE
PROVIDERS WAS CALCULATED;
  (H)  AS  TO  EACH  TELECOMMUNICATIONS  SERVICE  PROVIDER  RECEIVING  A
DISTRIBUTION, THE AMOUNT RECEIVED BY GEOGRAPHIC SUPPORT AREA AND TYPE OF
CUSTOMER, THE WAY IN WHICH THE BENEFIT OF THE DISTRIBUTION  WAS  APPLIED
OR ACCOUNTED FOR;
  (I)   THE  PROPOSED  BENCHMARKS,  THE  PROPOSED  CONTRIBUTIONS  TO  BE
COLLECTED THROUGH A RATE ELEMENT ASSESSMENT BY  EACH  TELECOMMUNICATIONS
SERVICE PROVIDER, AND THE PROPOSED TOTAL AMOUNT OF THE HIGH COST SUPPORT
MECHANISM  FROM  WHICH  DISTRIBUTIONS  ARE  TO BE MADE FOR THE FOLLOWING
CALENDAR YEAR; AND
  (J) THE TOTAL AMOUNT OF DISTRIBUTIONS MADE FROM THE  HIGH  COST  FUND,
DIRECTLY  OR INDIRECTLY, AND HOW THEY ARE BALANCED BY RATE REDUCTIONS BY
ALL PROVIDERS FOR THE SAME PERIOD AND A FULL ACCOUNTING  OF  AND  JUSTI-
FICATION  FOR  ANY  DIFFERENCE. IF THE REPORT SUBMITTED PURSUANT TO THIS
SUBDIVISION CONTAINS A PROPOSAL FOR AN INCREASE IN ANY  OF  THE  AMOUNTS
LISTED  IN  PARAGRAPH  (B)  OF  THIS SUBDIVISION, SUCH INCREASE SHALL BE
SUSPENDED UNTIL MARCH THIRTY-FIRST OF THE FOLLOWING YEAR.
  SUCH REPORT MUST ALSO DETERMINE WHAT AMOUNT OF  UNEXPENDED  FUNDS,  IF
ANY, AT THE END OF EACH FISCAL YEAR, COULD BE REFUNDED TO THE CONTRIBUT-
ING  TELECOMMUNICATIONS  SERVICES  PROVIDERS  ON A BASIS THAT IS PROPOR-
TIONAL TO THE AMOUNTS CONTRIBUTED BY  SUCH  TELECOMMUNICATIONS  SERVICES
PROVIDERS.
  3.  THERE  IS HEREBY CREATED, IN THE STATE TREASURY, THE NEW YORK HIGH
COST ADMINISTRATION FUND, REFERRED TO IN THIS  SECTION  AS  THE  "FUND",
WHICH  SHALL BE USED TO REIMBURSE THE COMMISSION AND, IF APPLICABLE, ITS
CONTRACTORS, FOR REASONABLE EXPENSES INCURRED IN THE  ADMINISTRATION  OF
THE  HIGH  COST  SUPPORT MECHANISM AS DETERMINED BY RULES OF THE COMMIS-
SION, AND SHALL BE AUDITED IN A MANNER AND FREQUENCY TO BE DETERMINED BY
THE COMPTROLLER. THE MONEYS IN THE FUND THAT ARE  TO  BE  USED  FOR  THE
DIRECT  AND INDIRECT ADMINISTRATIVE COSTS INCURRED BY THE COMMISSION AND
ITS CONTRACTORS SHALL BE APPROPRIATED ANNUALLY BY  THE  LEGISLATURE.  AT
THE  END  OF  ANY FISCAL YEAR, ALL UNEXPENDED AND UNENCUMBERED MONEYS IN
THE FUND SHALL REMAIN THEREIN AND SHALL NOT BE CREDITED  OR  TRANSFERRED
TO  THE GENERAL FUND OR ANY OTHER FUND. BASED UPON THE BALANCE REMAINING
IN THE FUND AND THE AMOUNT APPROPRIATED ANNUALLY BY THE LEGISLATURE  FOR
USE  BY  THE  COMMISSION,  EACH  YEAR THE COMMISSION SHALL DETERMINE THE

A. 2118--A                         19

NONDISCRIMINATORY, COMPETITIVELY NEUTRAL ASSESSMENT ON ALL  TELECOMMUNI-
CATIONS  SERVICE  PROVIDERS  IN NEW YORK THAT WILL BE NECESSARY TO COVER
THE COST OF IMPLEMENTING THE HIGH COST  SUPPORT  MECHANISM.    ONLY  THE
MONEYS FROM SUCH ASSESSMENT SHALL BE TRANSMITTED TO THE STATE TREASURER,
WHO  SHALL  CREDIT  THE  SAME TO THE FUND. ALL INTEREST DERIVED FROM THE
DEPOSIT AND INVESTMENT OF THIS FUND SHALL REMAIN IN THE FUND  AND  SHALL
NOT REVERT TO THE GENERAL FUND.
  S 5. The public service law is amended by adding a new article 11-A to
read as follows:
                              ARTICLE 11-A
               STATEWIDE CABLE FRANCHISING AND REGULATION
SECTION 231. DEFINITIONS.
        232. AUTHORIZATION TO PROVIDE CABLE SERVICE.
        233. PUBLIC SERVICE COMMISSION RESPONSIBILITIES.
        234. APPLICATION FOR STATEWIDE CABLE FRANCHISE.
        235. LENGTH OF STATEWIDE FRANCHISE.
        236. TERMINATION OF A STATEWIDE FRANCHISE.
        237. ABANDONMENT OF SERVICE.
        238. MUNICIPAL POWER AND REGULATION OVER FRANCHISE HOLDERS.
        239. PAYMENT AND REMITTANCE OF FRANCHISE FEE.
        240. PUBLIC, EDUCATIONAL AND GOVERNMENT CHANNELS.
        241. CABLE OPERATOR'S COMMUNITY COMMITMENT.
        242. CONSUMER PROTECTION RULES.
        243. NEUTRAL INTERNET AND BROADBAND NETWORKS.
        244. DEPLOYMENT REQUIREMENTS FOR STATEWIDE CABLE FRANCHISE.
        245. DISCRIMINATION IN THE PROVISIONING OF SERVICE PROHIBITED.
        246. ENFORCEMENT.
  S  231.  DEFINITIONS. THE WORDS AND PHRASES USED IN THIS ARTICLE SHALL
HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING  CLEARLY  APPEARS
IN THE CONTEXT.
  1.  "CABLE SERVICE" SHALL MEAN THE ONE-WAY TRANSMISSION TO SUBSCRIBERS
OF VIDEO PROGRAMMING;  OR  OTHER  PROGRAMMING  SERVICE,  AND  SUBSCRIBER
INTERACTION,  IF ANY, WHICH IS REQUIRED FOR THE SELECTION OR USE OF SUCH
VIDEO PROGRAMMING OR OTHER PROGRAMMING SERVICE, REGARDLESS OF THE  TECH-
NOLOGY  UTILIZED  BY A CABLE TELEVISION COMPANY TO ENABLE SUCH SELECTION
OR USE.
  2. "CABLE OPERATOR" SHALL MEAN ANY PERSON OR GROUP OF PERSONS (A)  WHO
PROVIDES  CABLE  SERVICE OVER A CABLE SYSTEM AND DIRECTLY OR THROUGH ONE
OR MORE AFFILIATES OWNS A SIGNIFICANT INTEREST IN SUCH CABLE SYSTEM,  OR
(B)  WHO  OTHERWISE CONTROLS OR IS RESPONSIBLE FOR, THROUGH ANY ARRANGE-
MENT, THE MANAGEMENT AND OPERATION OF SUCH A CABLE SYSTEM, AS SET  FORTH
IN 47 U.S.C. S 522(5).
  3.  "CABLE  SYSTEM"  SHALL  MEAN  ANY FACILITY, CONSISTING OF A SET OF
CLOSED TRANSMISSION PATHS AND ASSOCIATED  SIGNAL  GENERATION,  RECEPTION
AND  CONTROL  EQUIPMENT  THAT IS DESIGNED TO PROVIDE CABLE SERVICE WHICH
INCLUDES VIDEO PROGRAMMING, WITHOUT REGARD TO  THE  TECHNOLOGY  USED  TO
DELIVER  SUCH  VIDEO PROGRAMMING, INCLUDING INTERNET PROTOCOL TECHNOLOGY
OR ANY SUCCESSOR TECHNOLOGY AND WHICH IS PROVIDED TO MULTIPLE  SUBSCRIB-
ERS  WITHIN  A  COMMUNITY, AS SET FORTH IN 47 U.S.C.  S 522(7), BUT SUCH
TERM DOES NOT INCLUDE:
  (A) A FACILITY THAT SERVES ONLY TO RETRANSMIT THE  TELEVISION  SIGNALS
OF ONE OR MORE TELEVISION BROADCAST STATIONS;
  (B)  A  FACILITY  THAT  SERVES  SUBSCRIBERS  WITHOUT  USING ANY PUBLIC
RIGHT-OF-WAY;
  (C) A FACILITY OF A COMMON CARRIER WHICH IS SUBJECT, IN  WHOLE  OR  IN
PART,  TO  THE PROVISIONS OF TITLE II OF THE COMMUNICATIONS ACT OF 1934,

A. 2118--A                         20

47 U.S.C. S 201 ET SEQ., EXCEPT THAT SUCH FACILITY SHALL BE CONSIDERED A
CABLE SYSTEM (OTHER THAN FOR PURPOSES OF 47  U.S.C.  S  541(C))  TO  THE
EXTENT  SUCH  FACILITY  IS USED IN THE TRANSMISSION OF VIDEO PROGRAMMING
DIRECTLY  TO  SUBSCRIBERS,  UNLESS  THE  EXTENT OF SUCH USE IS SOLELY TO
PROVIDE INTERACTIVE ON-DEMAND SERVICES;
  (D) AN OPEN VIDEO SYSTEM THAT COMPLIES WITH 47 U.S.C. S 573; OR
  (E) ANY FACILITIES OF ANY ELECTRIC UTILITY USED SOLELY  FOR  OPERATING
ITS ELECTRIC UTILITY SYSTEM.
  4.  "CATV  COMPANY"  SHALL MEAN ANY PERSON OR GROUP OF PERSONS (A) WHO
PROVIDES CABLE SERVICE OVER A CABLE SYSTEM AND DIRECTLY OR  THROUGH  ONE
OR  MORE AFFILIATES OWNS A SIGNIFICANT INTEREST IN SUCH CABLE SYSTEM, OR
(B) WHO OTHERWISE CONTROLS OR IS RESPONSIBLE FOR, THROUGH  ANY  ARRANGE-
MENT, THE MANAGEMENT AND OPERATION OF SUCH A CABLE SYSTEM.
  5.  "CATV SYSTEM" SHALL MEAN ANY FACILITY WHICH RECEIVES AND AMPLIFIES
THE SIGNALS BROADCAST BY ONE OR MORE TELEVISION STATIONS AND  REDISTRIB-
UTES  SUCH  SIGNALS  BY WIRE, CABLE OR OTHER MEANS, OR WHICH DISTRIBUTES
SIGNALS IT ORIGINATES OR WHICH ARE ORIGINATED BY ANOTHER FOR VIEWING  BY
SUBSCRIBERS,  WHETHER  THE  WIRE, CABLE OR OTHER FACILITIES ARE OWNED OR
LEASED. A "CATV SYSTEM" SHALL NOT INCLUDE:
  (A) THE POLES OR OTHER FACILITIES OF ANY TELEPHONE CORPORATION USED TO
PROVIDE CHANNEL SERVICE AS A COMMON CARRIER,
  (B) A SYSTEM SERVING NOT MORE THAN TWO HUNDRED FIFTY SUBSCRIBERS, OR
  (C) A MASTER ANTENNA SYSTEM SERVICING SUBSCRIBERS SITUATED ON PROPERTY
UNDER COMMON OWNERSHIP.
  6. "COMMISSION" SHALL  MEAN  THE  PUBLIC  SERVICE  COMMISSION  OR  ANY
SUCCESSOR AGENCY.
  7.  "FRANCHISE"  SHALL MEAN AN INITIAL AUTHORIZATION, OR RENEWAL OF AN
AUTHORIZATION, ISSUED BY A FRANCHISING AUTHORITY, REGARDLESS OF  WHETHER
THE  AUTHORIZATION IS DESIGNATED AS A FRANCHISE, PERMIT, LICENSE, RESOL-
UTION, CONTRACT, CERTIFICATE, AGREEMENT, OR OTHERWISE,  THAT  AUTHORIZES
THE  CONSTRUCTION  AND  OPERATION  OF  A  CABLE  SYSTEM  IN  THE  PUBLIC
RIGHTS-OF-WAY.
  8. "FRANCHISE HOLDER" OR "HOLDER" SHALL MEAN A PERSON WHO HAS RECEIVED
A STATE-WIDE FRANCHISE, BUT HAS NOT TRANSFERRED OR TERMINATED SUCH FRAN-
CHISE AUTHORIZATION, IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE.
  9. "FRANCHISING AUTHORITY" SHALL MEAN THE  PUBLIC  SERVICE  COMMISSION
AND  MUNICIPALITIES  WHICH ARE ENTITLED TO REQUIRE FRANCHISES AND IMPOSE
FEES IN ACCORDANCE WITH 47 U.S.C. SS 522(10) AND 542, RESPECTIVELY.
  10. "GROSS REVENUES" SHALL MEAN ANY AND ALL REVENUES, INCLUDING  CASH,
CREDITS,  PROPERTY  OR OTHER CONSIDERATION OF ANY KIND OR NATURE ARISING
FROM, ATTRIBUTABLE TO, OR IN ANY WAY DERIVED DIRECTLY OR INDIRECTLY FROM
THE OPERATION OF THE FRANCHISEE'S CABLE SYSTEM  (INCLUDING  THE  STUDIOS
AND  OTHER  FACILITIES  ASSOCIATED THEREWITH) TO PROVIDE CABLE SERVICES.
GROSS REVENUES INCLUDE, BY  WAY  OF  ILLUSTRATION  AND  NOT  LIMITATION,
MONTHLY  FEES CHARGED SUBSCRIBERS FOR ANY BASIC, OPTIONAL, PREMIUM, PER-
CHANNEL, PER-PROGRAM SERVICE, OR CABLE  PROGRAMMING  SERVICE;  INSTALLA-
TION,  DISCONNECTION,  RECONNECTION,  AND CHANGE-IN-SERVICE FEES; LEASED
CHANNEL FEES; LATE FEES AND  ADMINISTRATIVE  FEES,  PAYMENTS,  OR  OTHER
CONSIDERATION  RECEIVED  FROM PROGRAMMERS FOR CARRIAGE OF PROGRAMMING ON
THE SYSTEM; REVENUES FROM RENTALS OR SALES OF CONVERTERS OR OTHER EQUIP-
MENT; ANY STUDIO  RENTAL,  PRODUCTION  EQUIPMENT,  AND  PERSONNEL  FEES;
ADVERTISING  REVENUES;  BARTER;  REVENUES  FROM PROGRAM GUIDES; REVENUES
FROM THE SALE OR CARRIAGE OF OTHER CABLE  SERVICES;  AND  REVENUES  FROM
HOME  SHOPPING  CHANNELS  AND  OTHER REVENUE SHARING ARRANGEMENTS. GROSS
REVENUES SHALL INCLUDE REVENUES RECEIVED BY ANY ENTITY  OTHER  THAN  THE
FRANCHISEE,  AN  AFFILIATE,  OR  ANOTHER ENTITY THAT OPERATES THE SYSTEM

A. 2118--A                         21

WHERE NECESSARY TO PREVENT EVASION OR AVOIDANCE OF THE OBLIGATION  UNDER
THIS STATUTE TO PAY THE FRANCHISE FEE. GROSS REVENUES SHALL NOT INCLUDE:
  (A)  AMOUNTS  NOT ACTUALLY RECEIVED, EVEN IF BILLED, SUCH AS BAD DEBT;
REFUNDS, REBATES OR DISCOUNTS TO SUBSCRIBERS OR THIRD PARTIES; OR REVEN-
UE IMPUTED FROM THE PROVISION OF CABLE SERVICES FOR FREE OR  AT  REDUCED
RATES  TO  ANY  PERSON AS REQUIRED OR ALLOWED BY LAW, INCLUDING, WITHOUT
LIMITATION, THE PROVISION  OF  SUCH  SERVICES  TO  PUBLIC  INSTITUTIONS,
PUBLIC  SCHOOLS, GOVERNMENTAL ENTITIES, OR EMPLOYEES, OTHER THAN FORGONE
REVENUE CHOSEN NOT TO BE  RECEIVED  IN  EXCHANGE  FOR  TRADES,  BARTERS,
SERVICES, OR OTHER ITEMS OF VALUE; OR
  (B) ANY REVENUE FROM ANY CHARGES OR FEES DERIVED FROM SERVICES CLASSI-
FIED AS NON-CABLE SERVICES AND INFORMATION SERVICES AND ANY OTHER REVEN-
UES  ATTRIBUTED BY THE HOLDER OF A CERTIFICATE OF APPROVAL OR SYSTEMWIDE
FRANCHISE TO NON-CABLE SERVICES  IN  ACCORDANCE  WITH  FEDERAL  COMMUNI-
CATIONS COMMISSIONS RULES, REGULATIONS, STANDARDS, OR ORDERS.
  IN  THE  CASE OF CABLE SERVICE THAT MAY BE BUNDLED OR INTEGRATED FUNC-
TIONALLY WITH OTHER SERVICES, CAPABILITIES OR  APPLICATIONS,  THE  GROSS
REVENUES  SHALL  ONLY  INCLUDE  THOSE  CHARGES  OR  FEES DERIVED FROM OR
ATTRIBUTABLE TO THE PROVISION OF CABLE  SERVICE,  AS  REFLECTED  ON  THE
BOOKS  AND  RECORDS  OF  THE  HOLDER  OF  A CERTIFICATE OF APPROVAL OR A
SYSTEMWIDE FRANCHISE, AS THE CASE MAY BE, IN ACCORDANCE WITH THE  RULES,
REGULATIONS,  STANDARDS AND ORDERS OF THE FEDERAL COMMUNICATIONS COMMIS-
SION.
  11. "INCUMBENT CABLE OPERATOR" SHALL MEAN THE CABLE  OPERATOR  SERVING
THE  LARGEST NUMBER OF CABLE SUBSCRIBERS IN A PARTICULAR MUNICIPAL FRAN-
CHISE AREA ON THE EFFECTIVE DATE OF THIS ARTICLE.
  12. "MUNICIPALITY" SHALL MEAN A CITY OR TOWN WITHIN THE STATE.
  13. "PERSON" SHALL MEAN AN INDIVIDUAL, PARTNERSHIP, ASSOCIATION, JOINT
STOCK COMPANY, TRUST, CORPORATION, GOVERNMENT ENTITY, LIMITED  LIABILITY
COMPANY OR ANY OTHER ENTITY.
  14.  "PUBLIC  RIGHT-OF-WAY"  SHALL  MEAN THE AREA ON, BELOW OR ABOVE A
PUBLIC ROADWAY, HIGHWAY, STREET, PUBLIC SIDEWALK,  ALLEY,  WATERWAY,  OR
UTILITY EASEMENT IN WHICH A MUNICIPALITY HAS AN INTEREST.
  15.  "VIDEO PROGRAMMING" SHALL MEAN PROGRAMMING PROVIDED BY, OR GENER-
ALLY CONSIDERED COMPARABLE TO,  PROGRAMMING  PROVIDED  BY  A  TELEVISION
BROADCAST STATION, AS SET FORTH IN 47 U.S.C. S 522(20).
  S  232. AUTHORIZATION TO PROVIDE CABLE SERVICE. 1. NOTWITHSTANDING ANY
OTHER LAW TO THE CONTRARY AND SUBJECT TO THE PROVISIONS OF THIS ARTICLE,
A PERSON SEEKING TO PROVIDE CABLE SERVICE IN THE STATE AFTER THE  EFFEC-
TIVE  DATE OF THIS ARTICLE MAY FILE AN APPLICATION FOR A STATEWIDE FRAN-
CHISE WITH THE COMMISSION AS REQUIRED BY THIS SECTION. THIS ARTICLE DOES
NOT PRECLUDE CABLE OPERATORS FROM FILING INDIVIDUAL  APPLICATIONS  UNDER
ARTICLE ELEVEN OF THIS CHAPTER, PROVIDED HOWEVER THAT A PERSON FILING AN
APPLICATION  FOR  A  STATEWIDE  FRANCHISE  WITH  THE COMMISSION SHALL BE
REQUIRED UPON RECEIPT OF SUCH FRANCHISE  TO  COMPLY  WITH  SECTIONS  TWO
HUNDRED  FORTY-TWO  AND  TWO  HUNDRED  FORTY-THREE  OF THIS ARTICLE WITH
REGARD TO ALL IN-STATE BROADBAND AND  BROADBAND-CAPABLE  FACILITIES  AND
LINES BUILT DURING THE INITIAL BUILD-OUT PERIOD PURSUANT TO THE AUTHORI-
ZATION  PROVIDED  BY  SUCH  FRANCHISE, AND FOR THE PERIOD OF THE INITIAL
BUILD-OUT PERIOD WITH REGARD TO SUCH  PERSON'S  IN-STATE  BROADBAND  AND
BROADBAND-CAPABLE  FACILITIES AND LINES IN EXISTENCE WHEN SUCH FRANCHISE
BECOMES EFFECTIVE.
  2. A PERSON, INCLUDING AN INCUMBENT CABLE  OPERATOR,  PROVIDING  CABLE
SERVICE  UNDER  A FRANCHISE AGREEMENT WITH A FRANCHISING AUTHORITY WHICH
EXISTED PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE IS  NOT  SUBJECT  TO
THIS  SECTION  UNTIL  THE  FRANCHISE AGREEMENT EXPIRES AT THE END OF ITS

A. 2118--A                         22

ORIGINAL OR ANY MUTUALLY AGREEABLE RENEWAL TERM, OR UNLESS AND UNTIL THE
FRANCHISING AUTHORITY AND ENTITY PROVIDING CABLE SERVICE MUTUALLY  AGREE
TO TERMINATE THE EXISTING FRANCHISE AGREEMENT.
  3. NOTHING IN THIS SECTION SHALL RESTRICT A CABLE OPERATOR FROM APPLY-
ING  TO  THE  COMMISSION  FOR  A  STATEWIDE FRANCHISE TO PROVISION CABLE
SERVICES IN TERRITORIES OF THE STATE FOR  WHICH  IT  DOES  NOT  HAVE  AN
EXISTING  FRANCHISE AGREEMENT WITH A FRANCHISING AUTHORITY. FOR PURPOSES
OF THIS SECTION, A CABLE OPERATOR WILL BE DEEMED TO HAVE A FRANCHISE  TO
PROVIDE  CABLE  SERVICE  IN  THE  JURISDICTION OF A SPECIFIC FRANCHISING
AUTHORITY IF ANY AFFILIATE, PREDECESSOR OR SUCCESSOR ENTITY OF THE CABLE
OPERATOR MAINTAINS A FRANCHISE GRANTED BY  THAT  FRANCHISING  AUTHORITY.
THE  TERMS  "AFFILIATE, PREDECESSOR OR SUCCESSOR ENTITY" IN THIS SECTION
SHALL INCLUDE BUT NOT BE LIMITED TO ANY ENTITY RECEIVING,  OBTAINING  OR
OPERATING  UNDER A FRANCHISE FROM A FRANCHISING ENTITY FOR CABLE SERVICE
THROUGH THE GRANT OF A FRANCHISE, MERGER, SALE, ASSIGNMENT,  RESTRUCTUR-
ING, OR ANY OTHER TYPE OF TRANSACTION.
  4. THE COMMISSION SHALL HAVE THE FRANCHISING AUTHORITY TO ISSUE STATE-
WIDE  FRANCHISES  FOR THE PROVISIONING OF CABLE SERVICE UNDER THIS ARTI-
CLE.   NEITHER THE COMMISSION NOR ANY  MUNICIPALITY  IN  THE  STATE  MAY
REQUIRE  THE FRANCHISE HOLDER TO OBTAIN ANY SEPARATE OR ADDITIONAL FRAN-
CHISE OR OTHERWISE IMPOSE ANY FEE OR OTHER  REQUIREMENT,  INCLUDING  BUT
NOT  LIMITED  TO THE REGULATION OF CABLE SERVICE RATES, ON ANY FRANCHISE
HOLDER AS A CONDITION OF PROVIDING CABLE SERVICE, EXCEPT AS PROVIDED  IN
THIS ARTICLE.
  5.  16 NYCRR S 895.3, AS AMENDED FROM TIME TO TIME, SHALL NOT APPLY TO
THIS ARTICLE.
  S 233. PUBLIC SERVICE COMMISSION RESPONSIBILITIES. 1.  THE  COMMISSION
SHALL ASSIGN EXISTING PERMANENT STAFF OF SUCH LEGAL, TECHNICAL AND OTHER
EMPLOYEES OF THE COMMISSION AS MAY BE REQUIRED FOR THE PROPER CONDUCT OF
ITS  CABLE  FRANCHISING  RESPONSIBILITIES UNDER THIS ARTICLE. THE POWERS
AND DUTIES OF THE PUBLIC SERVICE COMMISSION WITH  RESPECT  TO  STATEWIDE
FRANCHISES SHALL NOT EXCEED THOSE PRESCRIBED IN THIS ARTICLE.
  2.  THE  COMMISSION  SHALL  BE RESPONSIBLE FOR ESTABLISHING ADDITIONAL
ADMINISTRATIVE PROCEDURES AND REGULATIONS NOT EXPLICITLY GRANTED IN THIS
ARTICLE FOR THE ISSUANCE OF STATEWIDE FRANCHISES IN ACCORDANCE WITH  THE
PROVISIONS  OF  THIS ARTICLE. THE COMMISSION'S ADMINISTRATIVE POWERS AND
DUTIES SHALL BE LIMITED TO THE PROVISION FOUND IN  SECTION  TWO  HUNDRED
THIRTY-FOUR OF THIS ARTICLE AND ADDITIONAL POWERS INCLUDING THE:
  (A)  DEVELOPMENT OF PROCEDURES TO SUBMIT, REVIEW AND DOCUMENT APPLICA-
TIONS FILED WITH THE COMMISSION;
  (B) REVIEW OF THE INITIAL SUBMISSION AND ANY UPDATES  OF  THE  GENERAL
DESCRIPTION  OF  THE  SERVICE  AREA  FOOTPRINT TO BE SERVED OR EXPANDED,
INCLUDING, IF APPLICABLE, ANY AREA WITHIN A MUNICIPALITY TO BE SERVED BY
AN APPLICANT;
  (C) DETERMINATION AND NOTICE OF INCOMPLETE APPLICATIONS;
  (D) APPROVAL OF APPLICATIONS AND AMENDED APPLICATIONS,  OR  DENIAL  OF
SUCH APPLICATIONS, WITHIN THE PERIODS DESIGNATED UNDER THE PROVISIONS OF
THIS ARTICLE;
  (E)  ISSUANCE TO APPLICANTS WHOSE APPLICATIONS ARE APPROVED FOR STATE-
WIDE FRANCHISES TO PROVIDE CABLE SERVICE IN THE SERVICE  AREA  FOOTPRINT
DESCRIBED IN THE APPLICATION; TO CONSTRUCT, UPGRADE, OPERATE OR MAINTAIN
A  NETWORK  CAPABLE OF PROVIDING SUCH SERVICE, AND TO USE AND OCCUPY THE
PUBLIC RIGHTS-OF-WAY IN THE DELIVERY OF THAT SERVICE;
  (F) DEVELOPMENT OF PROCEDURES TO REVIEW AND DOCUMENT THE  TRANSFER  OR
TERMINATION OF A STATEWIDE FRANCHISE;

A. 2118--A                         23

  (G)  ESTABLISH  GUIDELINES  IN  ADDITION TO THOSE DEVELOPED BY MUNICI-
PALITIES UNDER SECTION TWO HUNDRED THIRTY-EIGHT OF THIS ARTICLE, TO DEAL
WITH ANY CONSUMER COMPLAINTS OR COMPLAINTS ALLEGING  VIOLATIONS  OF  ANY
PROVISIONS  OF  THIS ARTICLE. SUCH GUIDELINES SHALL BE EASILY ACCESSIBLE
TO  RESIDENTS  OF  THE  STATE  AND  SHALL BE POSTED ON THE INTERNET. THE
COMMISSION SHALL ALSO PROVIDE CONSUMER COMPLAINT FORMS ON  THE  INTERNET
EVEN  IF  MUNICIPALITIES  ESTABLISH  THEIR  OWN COMPLAINT FORMS. IN SUCH
CASES, MUNICIPALITIES AND THE  COMMISSION  WILL  WORK  COOPERATIVELY  TO
ADDRESS CONSUMER COMPLAINTS.
  S  234. APPLICATION FOR STATEWIDE CABLE FRANCHISE. 1. ANY PERSON WISH-
ING TO PROVIDE CABLE SERVICE IN THE STATE AFTER THE  EFFECTIVE  DATE  OF
THIS  ARTICLE MAY FILE AN APPLICATION FOR A STATEWIDE FRANCHISE WITH THE
COMMISSION AS REQUIRED BY THIS SECTION. A STATEWIDE  FRANCHISE  APPLICA-
TION  SHALL BE ACCOMPANIED BY AN APPLICATION FEE OF TEN THOUSAND DOLLARS
THAT SHALL BE USED BY THE COMMISSION TO CARRY OUT THE PURPOSES  OF  THIS
ARTICLE. NOTHING IN THIS SECTION REQUIRES THAT ANY PERSON OR ENTITY FILE
AN APPLICATION FOR A STATEWIDE FRANCHISE.
  2.  APPLICATIONS  FOR  A  STATEWIDE FRANCHISE SHALL CONTAIN BUT NOT BE
LIMITED TO:
  (A) A STATEMENT THAT THE APPLICANT HAS FILED OR WILL TIMELY FILE  WITH
THE  FEDERAL COMMUNICATIONS COMMISSION ALL FORMS REQUIRED BY THAT AGENCY
IN ADVANCE OF OFFERING CABLE SERVICE IN THIS STATE;
  (B) A STATEMENT THAT THE APPLICANT AGREES TO  COMPLY  WITH  ALL  OTHER
APPLICABLE  FEDERAL,  STATE  STATUTES  AND REGULATIONS AND ALL GENERALLY
APPLICABLE MUNICIPAL ORDINANCES AND REGULATIONS, INCLUDING WITHOUT LIMI-
TATION MUNICIPAL ORDINANCES AND REGULATIONS REGARDING  THE  TIME,  PLACE
AND  MANNER  OF  USING  AND  OCCUPYING  PUBLIC  RIGHTS-OF-WAY ADOPTED IN
ACCORDANCE WITH STATE AND FEDERAL LAW;
  (C) A GENERAL DESCRIPTION OF THE SERVICE AREA FOOTPRINT TO BE  SERVED,
INCLUDING, IF APPLICABLE, ANY AREA WITHIN A MUNICIPALITY TO BE SERVED BY
THE APPLICANT. SUCH DESCRIPTION MAY BE SET FORTH ON ONE OR MORE MAPS. IF
THE  APPLICANT IS A TELEPHONE CORPORATION OR AN AFFILIATE OF A TELEPHONE
CORPORATION, THE SERVICE AREA WILL INCLUDE A DESCRIPTION OF THE TERRITO-
RY IN WHICH THE COMPANY PROVIDES TELEPHONE  SERVICE.    DESCRIPTIONS  OF
SERVICE  AREA  FOOTPRINTS SHALL BE UPDATED BY THE APPLICANT PRIOR TO THE
EXPANSION OF CABLE SERVICE TO A  PREVIOUSLY  UNDESIGNATED  SERVICE  AREA
AND,  UPON  SUCH EXPANSION, WRITTEN NOTICE SHALL BE GIVEN TO THE COMMIS-
SION OF THE NEW  SERVICE  AREA  TO  BE  SERVED  BY  THE  APPLICANT.  THE
STATE-ISSUED  FRANCHISE  AREA  AND ANY SERVICE AREA WITHIN THE FRANCHISE
AREA MAY EXTEND BEYOND THE AREA OR AREAS WHERE THE APPLICANT HAS PRE-EX-
ISTING AUTHORITY TO OCCUPY THE PUBLIC RIGHTS-OF-WAY;
  (D) THE LOCATION OF THE APPLICANT'S PRINCIPAL PLACE OF  BUSINESS,  THE
NAMES  OF  THE  APPLICANT'S  PRINCIPAL EXECUTIVE OFFICERS, AND THE NAME,
ADDRESS AND TELEPHONE NUMBER OF AN OFFICER,  GENERAL  PARTNER  OR  OTHER
EMPLOYEE  OF  THE APPLICANT WHO WILL BE RESPONSIBLE FOR ONGOING COMMUNI-
CATIONS WITH THE COMMISSION;
  (E) THE NAME AND LOCATION OF THE PRINCIPAL PLACE OF  BUSINESS  OF  THE
APPLICANT'S PARENT COMPANY, IF ANY;
  (F)  THE  SIGNATURE  OF AN OFFICER OR GENERAL PARTNER OF THE APPLICANT
VERIFYING THE INFORMATION SET FORTH IN THE APPLICATION;
  (G) DEMONSTRATE THE FINANCIAL, TECHNICAL, MANAGERIAL AND LEGAL CHARAC-
TER AND OTHER QUALIFICATIONS NEEDED TO CONSTRUCT, OPERATE, AND  MAINTAIN
THE NECESSARY PLANT AND TO PROVIDE SERVICE IN A SAFE, ADEQUATE AND PROP-
ER MANNER;
  (H) PROVIDE A RECORD OF COMPLIANCE WITH LOCAL, STATE AND FEDERAL LAWS;
AND

A. 2118--A                         24

  (I) PROVIDE ADDITIONAL INFORMATION AS NEEDED BY THE COMMISSION.
  3.  UPON  FILING  AN  APPLICATION WITH THE COMMISSION FOR A SYSTEMWIDE
FRANCHISE AGREEMENT PURSUANT TO SUBDIVISION TWO  OF  THIS  SECTION,  THE
APPLICANT  SHALL  INCLUDE A LIST OF THE SPECIFIC MUNICIPALITIES TO WHICH
CATV SERVICE WILL BE PROVIDED OR EXTENDED, THE ANTICIPATED  CONSTRUCTION
AND  DEPLOYMENT DATES, AND THE ANTICIPATED DATE ON WHICH SERVICE WILL BE
OFFERED AND A CERTIFIED STATEMENT THAT SUCH  DEPLOYMENT  WILL  MEET  THE
REQUIREMENTS  OF  SECTION  TWO  HUNDRED  FORTY-FOUR OF THIS ARTICLE. THE
APPLICANT WILL CONCURRENTLY PROVIDE A COPY OF THE  APPLICATION  TO  EACH
AFFECTED MUNICIPALITY.
  4. WITHIN FIFTEEN BUSINESS DAYS AFTER IT RECEIVES THE APPLICATION, THE
COMMISSION SHALL:
  (A) DETERMINE WHETHER AN APPLICATION SUBMITTED IS INCOMPLETE; AND
  (B) IF SO, THE COMMISSION SHALL NOTIFY THE APPLICANT THAT THE APPLICA-
TION IS INCOMPLETE AND IDENTIFY THE INFORMATION THAT THE COMMISSION MUST
RECEIVE FROM THE APPLICANT TO MAKE THE APPLICATION COMPLETE.
  5. WITHIN SIXTY BUSINESS DAYS AFTER IT RECEIVES THE COMPLETED APPLICA-
TION, THE COMMISSION SHALL APPROVE THE APPLICATION AND ISSUE A STATEWIDE
FRANCHISE  TO  THE APPLICANT, OR DENY THE APPLICATION. WITHIN SIXTY DAYS
OF THE RECEIPT THEREOF, THE COMMISSION SHALL SCHEDULE THREE PUBLIC HEAR-
INGS TO BE HELD IN DIFFERENT GEOGRAPHICAL AREAS OF  THE  STATE  TO  GAIN
PUBLIC  COMMENT  IN  CONSIDERATION  OF THE APPLICATION. ON OR BEFORE THE
EXPIRATION OF THE SIXTY-DAY PERIOD, THE COMMISSION SHALL ISSUE AN  ORDER
IN  WRITING APPROVING THE APPLICATION IF THE APPLICANT HAS COMPLIED WITH
THE REQUIREMENTS FOR A STATEWIDE  FRANCHISE,  OR  THE  COMMISSION  SHALL
DISAPPROVE THE APPLICATION IN WRITING CITING THE REASONS FOR DISAPPROVAL
IF  THE  BOARD DETERMINES THAT THE APPLICATION FOR A STATEWIDE FRANCHISE
DOES NOT COMPLY WITH THE REQUIREMENTS FOR  A  STATEWIDE  FRANCHISE.  THE
COMMISSION MAY DENY THE APPLICATION IF THE APPLICANT HAS FAILED TO STATE
IN  THE  APPLICATION  THE  INFORMATION  AND  REPRESENTATIONS REQUIRED BY
SUBDIVISION TWO OF THIS SECTION. IF THE COMMISSION DENIES  THE  APPLICA-
TION,  IT  MUST SPECIFY WITH PARTICULARITY THE REASON OR REASONS FOR THE
DENIAL, AND THE APPLICANT MAY AMEND ITS APPLICATION TO  CURE  ANY  DEFI-
CIENCY.  THE COMMISSION SHALL DECIDE SUCH AMENDED APPLICATION WITHIN TEN
BUSINESS DAYS OF ITS SUBMISSION TO THE COMMISSION BY THE APPLICANT.   IF
THE  COMMISSION  DENIES THE APPLICATION, THE COMMISSION SHALL SCHEDULE A
PUBLIC MEETING WITH THE  APPLICANT  TO  EXPLAIN  TO  THE  APPLICANT  THE
REASONS  FOR  THE COMMISSION'S DISAPPROVAL. SUCH MEETING SHALL BE SCHED-
ULED NO LATER THAN THIRTY DAYS FOLLOWING THE EXPIRATION OF THE SIXTY-DAY
REVIEW PERIOD AS REQUIRED BY THIS  SECTION.  THE  APPLICANT  SHALL  HAVE
THIRTY  DAYS  FOLLOWING  THE  DATE OF THE MEETING WITH THE COMMISSION TO
FILE AN APPEAL OF THE BOARD'S DECISION. THE COMMISSION SHALL  THEREAFTER
SCHEDULE  AN  ADMINISTRATIVE  HEARING  NOT  LATER THAN THE THIRTIETH DAY
FOLLOWING THE DATE OF THE FILING OF THE APPLICANT'S APPEAL IN  ORDER  TO
CONSIDER  THE  APPLICANT'S  APPEAL.  THE  COMMISSION SHALL ISSUE A FINAL
DECISION IN WRITTEN FORM ON THE APPLICANT'S APPEAL NOT  LATER  THAN  THE
SIXTIETH  DAY  FOLLOWING  THE  ADMINISTRATIVE  HEARING, REQUIRED BY THIS
SUBDIVISION, ON THE APPLICANT'S APPEAL. AFTER AN  ADMINISTRATIVE  PERIOD
AN APPLICANT MAY CHALLENGE A DENIAL OF ITS APPLICATION OR AMENDED APPLI-
CATION IN ANY COURT OF COMPETENT JURISDICTION.
  6.  A STATEWIDE FRANCHISE AUTHORIZATION ISSUED BY THE COMMISSION SHALL
CONTAIN:
  (A) A GRANT OF A FRANCHISE TO PROVIDE CABLE  SERVICE  IN  THE  SERVICE
AREA  FOOTPRINT  DESCRIBED  IN  THE  APPLICATION; TO CONSTRUCT, UPGRADE,
OPERATE OR MAINTAIN A NETWORK CAPABLE OF PROVIDING SUCH SERVICE,  EXCEPT

A. 2118--A                         25

WHERE  THIS  GRANT  IS  NOT  REQUIRED  AND  TO USE AND OCCUPY THE PUBLIC
RIGHTS-OF-WAY IN THE DELIVERY OF THAT SERVICE; AND
  (B)  A  STATEMENT  THAT THE FRANCHISE GRANT IN SUBDIVISION ONE OF THIS
SECTION IS SUBJECT TO LAWFUL OPERATION  OF  THE  CABLE  SERVICE  BY  THE
APPLICANT OR ITS SUCCESSOR IN INTEREST.
  7.  AN  APPLICANT  HAVING PRE-EXISTING AUTHORITY TO UTILIZE THE PUBLIC
RIGHTS-OF-WAY IS REQUIRED TO OBTAIN A STATEWIDE FRANCHISE PRIOR  TO  THE
ACTUAL  PROVISION  OF  CABLE  SERVICE  ON A COMMERCIAL BASIS DIRECTLY TO
SUBSCRIBERS. HOWEVER, SUCH AN APPLICANT IS  NOT  REQUIRED  TO  OBTAIN  A
STATEWIDE  FRANCHISE OR ANY MUNICIPALITY AUTHORIZATION, EXCEPT FOR BEING
SUBJECT  TO  MUNICIPALITY  RIGHT-OF-WAY  REQUIREMENTS,   IN   ORDER   TO
CONSTRUCT,  UPGRADE,  OPERATE  OR  MAINTAIN A NETWORK THAT IS CAPABLE OF
PROVIDING CABLE SERVICE.
  8. A SYSTEM-WIDE FRANCHISE ISSUED BY THE BOARD SHALL BE  NONTRANSFERA-
BLE, EXCEPT BY WRITTEN CONSENT OF THE BOARD.
  S  235. LENGTH OF STATEWIDE FRANCHISE. A STATEWIDE FRANCHISE ISSUED BY
THE COMMISSION SHALL BE VALID FOR TEN YEARS FROM THE DATE  OF  ISSUANCE.
RENEWAL OF A SYSTEMWIDE FRANCHISE SHALL BE VALID FOR A PERIOD OF FIFTEEN
YEARS  FROM  THE  DATE OF THE RENEWAL ISSUANCE, AND THE COMMISSION SHALL
ESTABLISH RULES GOVERNING THE RENEWAL OF A SYSTEMWIDE FRANCHISE.
  S 236. TERMINATION OF A STATEWIDE  FRANCHISE.  1.  A  FRANCHISE  SHALL
TERMINATE  AT THE EXPIRATION OF ITS TERM OR OTHERWISE IN ACCORDANCE WITH
THE PROVISIONS THEREOF, UNLESS, PRIOR THERETO, THE COMMISSION  OTHERWISE
ORDERS.  THE  COMMISSION  MAY  SO  ORDER  ONLY IF IT FINDS, AFTER PUBLIC
NOTICE AND OPPORTUNITY FOR A HEARING, THAT THE FRANCHISEE:
  (A) HAS COMMITTED A MATERIAL BREACH OF ITS FRANCHISE OR ANY APPLICABLE
PROVISION OF THIS ARTICLE OR OF THE  REGULATIONS  PROMULGATED  HEREUNDER
AND  HAS  FAILED,  WITHOUT REASONABLE JUSTIFICATION, TO CURE SAID BREACH
WITHIN SIXTY DAYS AFTER HAVING RECEIVED WRITTEN NOTICE THEREOF FROM  THE
COMMISSION; OR
  (B)  HAS  NOT MET THE REQUIREMENTS OF SECTIONS TWO HUNDRED FORTY-THREE
AND TWO HUNDRED FORTY-FOUR OF THIS ARTICLE;
  (C) HAS ENGAGED IN BLOCKING OF LAWFUL CONTENT ON WEB SITES OR SERVICES
OF COMPETITORS, OR REFUSED  TO  INTERCONNECT  ITS  FACILITIES  WITH  THE
FACILITIES  OF ANOTHER PROVIDER OF BROADBAND NETWORK SERVICES ON REASON-
ABLE AND NONDISCRIMINATORY TERMS OR CONDITIONS; OR
  (D) HAS BEEN ADJUDICATED A BANKRUPT OR HAS FILED A VOLUNTARY  PETITION
FOR  BANKRUPTCY  OR REORGANIZATION OR FOR AN ORDER PROTECTING ITS ASSETS
FROM THE CLAIMS OF CREDITORS AND THE COMMISSION FINDS  THAT  TERMINATION
OF THE FRANCHISE OR CERTIFICATE OF CONFIRMATION UNDER SUCH CONDITIONS IS
IN THE BEST INTEREST OF THE PUBLIC.
  2. UPON TERMINATION OF A FRANCHISE OR CERTIFICATE OF CONFIRMATION, THE
CABLE  OPERATOR  SHALL  DISPOSE OF ITS FACILITIES IN ACCORDANCE WITH THE
PROVISIONS OF THE FRANCHISE OR CERTIFICATE. HOWEVER, ON  MOTION  OF  ANY
INTERESTED  PARTY  OR  UPON  ITS OWN MOTION, AND AFTER PUBLIC NOTICE AND
OPPORTUNITY FOR HEARING, IF THE  COMMISSION  FINDS  THAT  THE  CONTINUED
PRESENCE  OF  THE  FACILITIES  IN  ANY  PUBLIC THOROUGHFARE WOULD POSE A
NUISANCE TO THE MUNICIPALITY OR ITS RESIDENTS, THE OPERATOR SHALL REMOVE
ITS FACILITIES WITHIN SUCH PERIOD AS THE COMMISSION SHALL ORDER. IN  THE
ABSENCE OF ANY APPLICABLE FRANCHISE OR CERTIFICATE PROVISION OR ORDER BY
THE COMMISSION TO THE CONTRARY, THE CABLE TELEVISION COMPANY MAY ABANDON
ITS FACILITIES.
  S  237.  ABANDONMENT  OF SERVICE. 1. NO CABLE OPERATOR MAY ABANDON ANY
SERVICE OR PORTION THEREOF WITHOUT  GIVING  SIX  MONTHS'  PRIOR  WRITTEN
NOTICE TO THE COMMISSION AND TO THE FRANCHISOR, IF ANY, AND TO THE MUNI-
CIPALITIES IT SERVES.

A. 2118--A                         26

  2.  WHEN  ABANDONMENT  OF ANY SERVICE IS PROHIBITED BY A FRANCHISE, NO
CABLE OPERATOR MAY ABANDON SUCH SERVICE WITHOUT WRITTEN CONSENT  OF  THE
COMMISSION.  IN  GRANTING  SUCH  CONSENT, THE COMMISSION MAY IMPOSE SUCH
TERMS, CONDITIONS OR REQUIREMENTS AS IN ITS JUDGMENT  ARE  NECESSARY  TO
PROTECT THE PUBLIC INTEREST.
  S  238. MUNICIPAL POWER AND REGULATION OVER FRANCHISE HOLDERS. A MUNI-
CIPALITY MAY:
  1. EXERCISE ITS PUBLIC RIGHTS-OF-WAY AUTHORITY OVER FRANCHISE HOLDERS,
INCLUDING REQUIRING FRANCHISE HOLDERS TO FOLLOW MUNICIPAL ORDINANCES  AS
WELL AS ALL APPLICABLE LOCAL, STATE AND FEDERAL LAWS;
  2. RECEIVE, MEDIATE, AND RESOLVE CABLE SERVICE QUALITY COMPLAINTS FROM
A FRANCHISE HOLDER'S CUSTOMERS WITHIN THE MUNICIPALITY;
  3.  REQUIRE  A  FRANCHISE HOLDER WHO IS PROVIDING CABLE SERVICE WITHIN
THE MUNICIPALITY TO REGISTER WITH THE MUNICIPALITY, MAINTAIN A POINT  OF
CONTACT,  AND  PROVIDE NOTICE OF ANY FRANCHISE AUTHORIZATION TRANSFER TO
THE MUNICIPALITY WITHIN FOURTEEN BUSINESS DAYS AFTER THE  COMPLETION  OF
THE TRANSFER;
  4. ESTABLISH REASONABLE GUIDELINES REGARDING THE USE OF PUBLIC, EDUCA-
TIONAL,  AND  GOVERNMENTAL  ACCESS  CHANNELS  WITHIN THE MUNICIPALITY IN
ADDITION TO THOSE ESTABLISHED IN SECTION TWO HUNDRED FORTY-ONE  OF  THIS
ARTICLE.
  S 239. PAYMENT AND REMITTANCE OF FRANCHISE FEE. 1. THE FRANCHISE HOLD-
ER  WHO  OFFERS  CABLE SERVICE WITHIN THE JURISDICTION OF A MUNICIPALITY
SHALL CALCULATE AND REMIT TO THE MUNICIPALITY AT THE END OF EACH  CALEN-
DAR YEAR QUARTER A FRANCHISE FEE, AS PROVIDED IN THIS SECTION. THE OBLI-
GATION TO CALCULATE AND REMIT THE FRANCHISE FEE TO A MUNICIPALITY BEGINS
IMMEDIATELY  UPON  PROVISION OF CABLE SERVICE WITHIN THAT MUNICIPALITY'S
JURISDICTION, BUT THE FIRST REMITTANCE SHALL NOT BE DUE UNTIL THE END OF
THE FIRST CALENDAR YEAR QUARTER THAT IS LATER THAN  ONE  HUNDRED  EIGHTY
DAYS AFTER THE PROVISION OF CABLE SERVICE BEGAN.
  2.  THE FRANCHISE FEE SHALL BE CALCULATED AS A PERCENTAGE OF THE HOLD-
ER'S GROSS REVENUES, AS DEFINED IN SECTION  TWO  HUNDRED  THIRTY-ONE  OF
THIS  ARTICLE  AND  SHALL BE FIVE PERCENT.  A MUNICIPALITY MAY, BY ORDI-
NANCE, CHANGE THE PERCENTAGE APPLIED TO THE GROSS REVENUES OF THE  HOLD-
ER.
  3.  NO  FEE  UNDER THIS SECTION WILL BECOME DUE UNTIL THE MUNICIPALITY
CERTIFIES AND PROVIDES DOCUMENTATION TO THE FRANCHISE HOLDER  SUPPORTING
THE  PERCENTAGE  PAID  BY  ANY INCUMBENT CABLE OPERATOR SERVING THE AREA
WITHIN THE MUNICIPALITY'S JURISDICTION.
  4. NO MUNICIPALITY OR ANY OTHER POLITICAL SUBDIVISION  OF  THIS  STATE
MAY  ASSESS ANY ADDITIONAL FEES OR CHARGES OR REQUIRE OTHER REMUNERATION
OF ANY KIND FROM THE FRANCHISE HOLDER OTHER THAN AS SET  FORTH  IN  THIS
SECTION,  PROVIDED,  HOWEVER,  THAT THE PROVISION OF IN-KIND SERVICES OR
SUPPORT, PERSONNEL AND FUNDING  DEDICATED  TO  PUBLIC,  EDUCATIONAL  AND
GOVERNMENT  FACILITIES  AND  SERVICES SHALL NOT BE CONSIDERED ADDITIONAL
FEES, CHARGES OR REMUNERATION.
  5. FOR PURPOSES OF THIS SECTION, IN THE CASE OF A CABLE  SERVICE  THAT
MAY BE BUNDLED OR INTEGRATED FUNCTIONALLY WITH OTHER SERVICES, CAPABILI-
TIES  OR  APPLICATIONS,  THE  FRANCHISE FEE SHALL BE APPLIED ONLY TO THE
GROSS REVENUES, AS  DEFINED  IN  THIS  ARTICLE,  ATTRIBUTABLE  TO  CABLE
SERVICE  OR  THE USE OF THE CABLE SYSTEM AND FACILITIES, AS REFLECTED ON
THE BOOKS AND  RECORDS  OF  THE  HOLDER  IN  ACCORDANCE  WITH  GENERALLY
ACCEPTED  ACCOUNTING  PRINCIPLES  AND  FEDERAL COMMUNICATIONS COMMISSION
RULES, REGULATIONS, STANDARDS OR ORDERS, AS APPLICABLE.
  6. THE FRANCHISE FEE SHALL BE REMITTED TO THE APPLICABLE  MUNICIPALITY
QUARTERLY,  WITHIN  FORTY-FIVE DAYS AFTER THE END OF THE QUARTER FOR THE

A. 2118--A                         27

PRECEDING CALENDAR QUARTER. EACH  PAYMENT  SHALL  BE  ACCOMPANIED  BY  A
SUMMARY  EXPLAINING  THE BASIS FOR THE CALCULATION OF THE FRANCHISE FEE.
NOT MORE THAN ONCE ANNUALLY, A MUNICIPALITY MAY  EXAMINE  THE  FRANCHISE
HOLDER'S  BUSINESS  RECORDS TO THE EXTENT REASONABLY NECESSARY TO ENSURE
COMPENSATION IN ACCORDANCE WITH THIS SECTION. EACH PARTY SHALL BEAR  THE
PARTY'S  OWN COSTS OF THE EXAMINATION. ANY CLAIMS BY A MUNICIPALITY THAT
COMPENSATION IS NOT IN ACCORDANCE WITH THIS SECTION, AND ANY CLAIMS  FOR
REFUNDS  OR OTHER CORRECTIONS TO THE REMITTANCE OF THE FRANCHISE HOLDER,
MUST BE MADE WITHIN THREE YEARS AND FORTY-FIVE DAYS OF THE  END  OF  THE
QUARTER FOR WHICH COMPENSATION IS REMITTED, OR THREE YEARS FROM THE DATE
OF  REMITTANCE,  WHICHEVER  IS LATER. EITHER A MUNICIPALITY OR THE FRAN-
CHISE HOLDER MAY, IN THE EVENT  OF  A  DISPUTE  CONCERNING  COMPENSATION
UNDER  THIS  SECTION,  BRING AN ACTION IN A COURT OF COMPETENT JURISDIC-
TION.
  S 240. PUBLIC, EDUCATIONAL AND GOVERNMENT CHANNELS. 1. IN ADDITION  TO
THE  REQUIREMENTS  SET  FORTH  IN 16 NYCRR SEC. 894.4 (AS MAY BE AMENDED
FROM TIME TO TIME), THE FRANCHISE HOLDER SHALL PROVIDE THE  MUNICIPALITY
WITH  CAPACITY  IN  ITS  CABLE  SYSTEM TO ALLOW PUBLIC, EDUCATIONAL, AND
GOVERNMENTAL (PEG) ACCESS CHANNELS FOR  NONCOMMERCIAL  PROGRAMMING.  FOR
THE  PURPOSES  OF  THIS SECTION, PEG CHANNELS SHALL BE DEFINED AS ANALOG
CHANNELS OF SIX MEGAHERTZ BANDWIDTH OR THE SAME AS ANY OTHER CHANNEL  ON
THE  BASIC  TIER,  WHICHEVER IS GREATER. IN ADDITION TO THE REQUIREMENTS
SET FORTH IN THIS SECTION, THE COMMISSION MAY ISSUE ADDITIONAL RULES  OR
GUIDELINES  REGARDING  PEG ACCESS CHANNELS. THE HOLDER SHALL PROVIDE THE
SAME ANCILLARY SERVICES TO THE PEG CHANNELS AND ENTITIES AS  THE  INCUM-
BENT PROVIDER.
  2. THE FRANCHISE HOLDER SHALL DESIGNATE A SUFFICIENT AMOUNT OF CAPACI-
TY  ON ITS CABLE SYSTEM TO ALLOW THE PROVISION OF A COMPARABLE NUMBER OF
PEG CHANNELS OR HOURS OF PROGRAMMING THAT THE INCUMBENT  CABLE  OPERATOR
HAS  ACTIVATED  AND  PROVIDED WITHIN THE MUNICIPALITY UNDER THE TERMS OF
ITS FRANCHISE AGREEMENT AS OF THE EFFECTIVE DATE OF THIS ARTICLE.  IF  A
MUNICIPALITY DID NOT HAVE PEG ACCESS CHANNELS AS OF THAT DATE, THE CABLE
OPERATOR  SHALL FURNISH TO THE MUNICIPALITY UPON REQUEST UP TO THREE PEG
CHANNELS FOR A MUNICIPALITY WITH A POPULATION OF AT LEAST FIFTY THOUSAND
AND UP TO TWO PEG CHANNELS FOR A MUNICIPALITY WITH A POPULATION OF  LESS
THAN  FIFTY THOUSAND. FOR THE PURPOSES OF THIS SECTION, A PEG CHANNEL IS
DEEMED ACTIVATED IF IT IS BEING UTILIZED FOR PEG PROGRAMMING WITHIN  THE
MUNICIPALITY FOR AT LEAST EIGHT HOURS PER DAY AND IF SUCH PROGRAMMING IS
NOT BROADCAST MORE THAN ONCE IN EVERY EIGHT HOURS. THE HOLDER SHALL HAVE
TWELVE  MONTHS FROM THE DATE THE MUNICIPALITY REQUESTS SUCH PEG CHANNELS
TO DESIGNATE THE CAPACITY;  PROVIDED,  HOWEVER,  THAT  THE  TWELVE-MONTH
PERIOD  SHALL  BE  TOLLED  BY ANY PERIOD DURING WHICH THE DESIGNATION OR
PROVISION OF PEG CHANNEL CAPACITY IS TECHNICALLY  INFEASIBLE,  INCLUDING
ANY  FAILURE  OR  DELAY OF THE INCUMBENT CABLE OPERATOR TO MAKE ADEQUATE
INTERCONNECTION AVAILABLE, AS REQUIRED BY THIS SECTION. IN CITIES WITH A
POPULATION OF ONE MILLION OR MORE PERSONS, IF A SYSTEM HAS  TOTAL  ACTI-
VATED  BANDWIDTH  IN EXCESS OF EIGHT HUNDRED SIXTY-TWO MEGAHERTZ THEN AT
LEAST TWO ADDITIONAL PEG CHANNELS SHALL BE  SET  ASIDE  BY  THE  HOLDER,
INCLUDING ONE FOR PUBLIC ACCESS.
  3. THE FRANCHISE HOLDER MAY SUBMIT TO THE COMMISSION AN APPLICATION TO
CEASE  PROVIDING  ANY PEG CHANNEL PROVIDED PURSUANT TO THIS SECTION THAT
IS NOT UTILIZED BY THE MUNICIPALITY FOR AT LEAST EIGHT  HOURS  PER  DAY,
AND  EXCEPT AS PROVIDED HEREIN, THE CHANNEL MAY THEREAFTER BE PROGRAMMED
AT THE FRANCHISE HOLDER'S DISCRETION. THE COMMISSION MAY HOLD A  HEARING
IN  THE  MUNICIPALITY  TO  AID  IN  MAKING  ITS DETERMINATION WHETHER TO
APPROVE THE APPLICATION. THE COMMISSION SHALL ISSUE  A  DECISION  WITHIN

A. 2118--A                         28

THIRTY  BUSINESS  DAYS  OF  THE FRANCHISEE'S APPLICATION. IF THE MUNICI-
PALITY SUBSEQUENTLY CERTIFIES TO THE COMMISSION AND  HOLDER  A  SCHEDULE
FOR AT LEAST EIGHT HOURS OF DAILY NON-REPEAT PEG CHANNEL PROGRAMMING PER
CHANNEL,  THE  HOLDER  SHALL RESTORE THE PEG CHANNEL OR CHANNELS FOR THE
USE OF THE MUNICIPALITY FOR AS LONG AS THE MUNICIPALITY USES THE CHANNEL
OR CHANNELS FOR AT LEAST EIGHT HOURS A DAY.
  4. THE CONTENT AND OPERATION OF ANY PEG ACCESS CHANNEL PROVIDED PURSU-
ANT TO THIS SECTION SHALL BE THE  RESPONSIBILITY  OF  THE  MUNICIPALITY,
RECEIVING  THE  BENEFIT  OF SUCH CHANNEL, AND THE FRANCHISE HOLDER BEARS
ONLY THE RESPONSIBILITY FOR THE TRANSMISSION OF SUCH CHANNEL, SUBJECT TO
REASONABLE TECHNOLOGICAL CONSTRAINTS.  THE  FRANCHISE  HOLDER  SHALL  BE
RESPONSIBLE  FOR  PROVIDING THE CONNECTIVITY, AS WELL AS OTHER EQUIPMENT
NECESSARY, TO EACH PEG ACCESS CHANNEL PROGRAMMING DISTRIBUTION  LOCATION
AND  FOR DOING SO WITHOUT CHARGE FOR UP TO THE FIRST TWO HUNDRED FEET OF
THE HOLDER'S CONNECTING FACILITIES.
  5. THE MUNICIPALITY, OR ITS DESIGNEES, MUST  ENSURE  THAT  ALL  TRANS-
MISSIONS,  CONTENT,  OR  PROGRAMMING TO BE TRANSMITTED OVER A PEG ACCESS
CHANNEL OR FACILITY BY A FRANCHISE HOLDER ARE PROVIDED OR  SUBMITTED  TO
THE CABLE OPERATOR IN A MANNER OR FORM THAT IS CAPABLE OF BEING ACCEPTED
AND  TRANSMITTED  BY  THE  CABLE OPERATOR, WITHOUT REQUIREMENT FOR ADDI-
TIONAL ALTERATION OR CHANGE IN THE CONTENT BY THE CABLE  OPERATOR,  OVER
THE  CABLE  SYSTEM  OF  THE  CABLE  OPERATOR. THE MUNICIPALITY'S, OR ITS
DESIGNEES' PROVISION OF PEG  CONTENT  TO  THE  HOLDER  SHALL  CONSTITUTE
AUTHORIZATION  FOR  THE  HOLDER  TO CARRY SUCH CONTENT INCLUDING, AT THE
HOLDER'S OPTION, BEYOND THE JURISDICTIONAL  BOUNDARIES  OF  THE  MUNICI-
PALITY.
  6.  THE  FRANCHISE  HOLDER  AND  AN INCUMBENT CABLE OPERATOR SHALL USE
REASONABLE EFFORTS TO INTERCONNECT THEIR CABLE SYSTEMS FOR  THE  PURPOSE
OF  PROVIDING  PEG  PROGRAMMING.  INTERCONNECTION MAY BE ACCOMPLISHED BY
DIRECT CABLE, MICROWAVE LINK, SATELLITE, OR OTHER REASONABLE  METHOD  OF
CONNECTION.  FRANCHISE HOLDERS AND INCUMBENT CABLE OPERATORS SHALL NEGO-
TIATE IN GOOD FAITH AND  INCUMBENT  CABLE  OPERATORS  MAY  NOT  WITHHOLD
INTERCONNECTION  OF PEG CHANNELS. IN THE EVENT A FRANCHISE HOLDER AND AN
INCUMBENT CABLE OPERATOR CANNOT REACH A  MUTUALLY  ACCEPTABLE  INTERCON-
NECTION  AGREEMENT,  THEN  THE DUTY OF THE HOLDER SHALL BE DISCHARGED IF
THE HOLDER MAKES INTERCONNECTION AVAILABLE TO THE CHANNEL ORIGINATOR  AT
A POINT ON THE HOLDER'S NETWORK DETERMINED BY THE HOLDER.
  7. THE PEG CHANNELS SHALL BE FOR THE EXCLUSIVE USE OF THE LOCAL ENTITY
OR  ITS  DESIGNEE TO PROVIDE PUBLIC, EDUCATIONAL, AND GOVERNMENTAL CHAN-
NELS.  THE PEG CHANNELS SHALL BE USED ONLY FOR  NONCOMMERCIAL  PURPOSES.
HOWEVER,  ADVERTISING,  UNDERWRITING,  OR SPONSORSHIP RECOGNITION MAY BE
CARRIED ON THE CHANNELS FOR THE PURPOSE OF  FUNDING  PEG-RELATED  ACTIV-
ITIES.  THE PEG CHANNELS SHALL ALL BE CARRIED ON THE BASIC SERVICE TIER.
TO THE EXTENT FEASIBLE, THE PEG CHANNELS SHALL NOT BE  SEPARATED  NUMER-
ICALLY  FROM  OTHER  CHANNELS  CARRIED ON THE BASIC SERVICE TIER AND THE
CHANNEL NUMBERS FOR THE PEG CHANNELS SHALL BE THE SAME  CHANNEL  NUMBERS
USED  BY  THE INCUMBENT CABLE OPERATOR UNLESS PROHIBITED BY FEDERAL LAW.
AFTER THE INITIAL  DESIGNATION  OF  PEG  CHANNEL  NUMBERS,  THE  CHANNEL
NUMBERS  SHALL  NOT BE CHANGED WITHOUT THE AGREEMENT OF THE LOCAL ENTITY
UNLESS THE CHANGE IS REQUIRED BY FEDERAL  LAW.  EACH  CHANNEL  SHALL  BE
CAPABLE  OF CARRYING A NATIONAL TELEVISION SYSTEM COMMITTEE (NTSC) TELE-
VISION SIGNAL.
  8. THE CONTENT TO BE PROVIDED OVER THE PEG CHANNEL  CAPACITY  PROVIDED
PURSUANT TO THIS SECTION SHALL BE THE RESPONSIBILITY OF THE LOCAL ENTITY
OR  ITS  DESIGNEE RECEIVING THE BENEFIT OF THAT CAPACITY, AND THE HOLDER

A. 2118--A                         29

OF A STATE FRANCHISE BEARS ONLY THE RESPONSIBILITY FOR THE  TRANSMISSION
OF THAT CONTENT, SUBJECT TO TECHNOLOGICAL RESTRAINTS.
  9. THE PEG SIGNAL SHALL BE RECEIVABLE BY ALL SUBSCRIBERS, WHETHER THEY
RECEIVE DIGITAL OR ANALOG SERVICE, OR A COMBINATION THEREOF, WITHOUT THE
NEED FOR ANY EQUIPMENT OTHER THAN THE EQUIPMENT NECESSARY TO RECEIVE THE
LOWEST  COST  TIER OF SERVICE. THE PEG ACCESS CAPACITY PROVIDED SHALL BE
OF SIMILAR QUALITY AND FUNCTIONALITY TO THAT OFFERED BY COMMERCIAL CHAN-
NELS ON THE LOWEST COST TIER OF SERVICE UNLESS THE SIGNAL IS PROVIDED TO
THE HOLDER AT A LOWER QUALITY OR WITH LESS FUNCTIONALITY.
  10. AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, AND UNTIL THE EXPIRA-
TION OF THE INCUMBENT CABLE OPERATOR'S FRANCHISE, IF THE INCUMBENT CABLE
OPERATOR HAS EXISTING UNSATISFIED OBLIGATIONS  UNDER  THE  FRANCHISE  TO
REMIT  TO  THE  LOCAL  ENTITY  OR ITS DESIGNEE ANY CASH PAYMENTS FOR THE
ONGOING COSTS OF PUBLIC,  EDUCATIONAL,  AND  GOVERNMENT  ACCESS  CHANNEL
FACILITIES,  THE  LOCAL  ENTITY,  OR  ITS DESIGNEE FOR THE PUBLIC ACCESS
CHANNELS, SHALL DIVIDE THOSE CASH PAYMENTS  AMONG  ALL  CABLE  OR  VIDEO
PROVIDERS AS PROVIDED IN THIS SECTION. THE FEE SHALL BE THE HOLDER'S PRO
RATA PER SUBSCRIBER SHARE OF THE CASH PAYMENT REQUIRED TO BE PAID BY THE
INCUMBENT  CABLE  OPERATOR TO THE LOCAL ENTITY OR ITS DESIGNEE COMMUNITY
ACCESS ORGANIZATION FOR THE COSTS OF PEG CHANNEL FACILITIES.  ALL  VIDEO
SERVICE  PROVIDERS  AND THE INCUMBENT CABLE OPERATOR SHALL BE SUBJECT TO
THE SAME REQUIREMENTS FOR RECURRING PAYMENTS  FOR  THE  SUPPORT  OF  PEG
CHANNEL  FACILITIES,  WHETHER EXPRESSED AS A PERCENTAGE OF GROSS REVENUE
OR AS AN AMOUNT PER SUBSCRIBER, PER MONTH, OR OTHERWISE.
  11. A LOCAL ENTITY SHALL ESTABLISH A PAYMENT FOR THE  ONGOING  SUPPORT
OF  THE  COST OF PEG FACILITIES AND SERVICES THAT WOULD BECOME EFFECTIVE
SUBSEQUENT TO THE  EXPIRATION  OF  ANY  FEE  IMPOSED  BY  THIS  ARTICLE,
PROVIDED,  HOWEVER,  THAT  NO  SUCH FEE SHALL BE ALLOCATED SUCH THAT ANY
COMMUNITY ACCESS ORGANIZATION IS RECEIVING ANYTHING LESS THAN WHAT IT IS
RECEIVING FROM THE CABLE OPERATOR ON THE EFFECTIVE DATE OF  THIS  LEGIS-
LATION, AND PROVIDED, HOWEVER, THAT EVERY LOCAL ENTITY SHALL BE ENTITLED
TO  A  PAYMENT  OF  NOT LESS THAN TWO PERCENT FROM THE HOLDER OF A STATE
FRANCHISE FOR THE ONGOING SUPPORT OF THE  COST  OF  PEG  FACILITIES  AND
SERVICES.  IF,  ON  DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN, A LOCAL
ENTITY OR ITS DESIGNEE WAS IMPOSING A SEPARATE FEE TO SUPPORT PEG  CHAN-
NEL  FACILITIES  THAT  IS  IN  EXCESS OF TWO PERCENT, THAT ENTITY OR ITS
DESIGNEE MAY ESTABLISH A FEE NO GREATER THAN THAT SEPARATE FEE,  AND  IN
NO  EVENT  GREATER THAN THREE PERCENT, TO SUPPORT PEG ACTIVITIES. IF THE
PEG SUPPORT FEE IMPOSED BY A LOCAL ENTITY OR ITS DESIGNEE  IS  EXPRESSED
IN  A  MANNER  OTHER  THAN  AS A PERCENTAGE OF GROSS REVENUES, THE LOCAL
ENTITY OR ITS DESIGNEE COMMUNITY ACCESS ORGANIZATION  MAY  CONVERT  THAT
FEE  TO A CURRENTLY EQUIVALENT PERCENTAGE OF GROSS REVENUES AT ANY TIME.
THE LOCAL  ENTITY  OR  ITS  DESIGNEE  MAY  ADOPT  REQUIREMENTS  FOR  THE
PROVISION  OF  PEG-RELATED  IN-KIND  RESOURCES  BY  ALL  CABLE AND VIDEO
SERVICE PROVIDERS.
  12. RULES AND REGULATIONS ADOPTED BY THE COMMUNITY ACCESS ORGANIZATION
SHALL GOVERN THE USE OF ANY CHANNEL TIME ON THE PUBLIC CHANNELS AS  WELL
AS  THE  EQUIPMENT,  FACILITIES AND SERVICES RELATED TO THE PUBLIC CHAN-
NELS.
  13. THE COMMISSION, THROUGH AN ADMINISTRATIVE  PROCEEDING  SHALL  HAVE
THE ORIGINAL JURISDICTION TO ENFORCE ANY REQUIREMENTS UNDER THIS SECTION
TO  RESOLVE  ANY  DISPUTE  REGARDING  THE REQUIREMENTS SET FORTH IN THIS
SECTION. AFTER THE ADMINISTRATIVE  PROCESS  IS  EXHAUSTED,  A  COURT  OF
COMPETENT  JURISDICTION  SHALL HAVE JURISDICTION TO ENFORCE ANY REQUIRE-
MENT UNDER THIS SECTION OR RESOLVE ANY DISPUTE  REGARDING  THE  REQUIRE-
MENTS  SET  FORTH  IN  THIS SECTION, AND NO CABLE OPERATOR MAY BE BARRED

A. 2118--A                         30

FROM THE PROVISION OF CABLE SERVICE OR BE REQUIRED  TO  TERMINATE  CABLE
SERVICE AS A RESULT OF SUCH DISPUTE OR ENFORCEMENT ACTION.
  S  241.    CABLE  OPERATOR'S  COMMUNITY COMMITMENT. 1. CABLE OPERATORS
SHALL INSTALL AND RETAIN OR PROVIDE, WITHOUT CHARGE, ONE SERVICE  OUTLET
ACTIVATED  FOR  BASIC  SERVICE  TO  ANY  AND  ALL  FIRE STATIONS, PUBLIC
SCHOOLS, POLICE STATIONS, PUBLIC LIBRARIES AND OTHER SUCH BUILDINGS USED
FOR MUNICIPAL PURPOSES.
  2. CABLE OPERATORS SHALL PROVIDE  INTERNET  SERVICE,  WITHOUT  CHARGE,
THROUGH  ONE  SERVICE  OUTLET ACTIVATED FOR BASIC SERVICE TO ANY AND ALL
FIRE STATIONS, PUBLIC SCHOOLS, POLICE STATIONS,  PUBLIC  LIBRARIES,  AND
OTHER SUCH BUILDING USED FOR MUNICIPAL PURPOSES.
  S  242.  CONSUMER  PROTECTION  RULES.  1.  EVERY  CABLE OPERATOR SHALL
PROVIDE SAFE, ADEQUATE AND RELIABLE SERVICE IN ACCORDANCE WITH  APPLICA-
BLE  LAWS, REGULATIONS, AND FRANCHISE REQUIREMENTS. CABLE OPERATORS WITH
A STATEWIDE FRANCHISE ARE SUBJECT TO THE REQUIREMENTS UNDER SECTIONS TWO
HUNDRED TWENTY-FOUR AND TWO HUNDRED TWENTY-FOUR-A OF  THIS  CHAPTER  AND
ANY  OTHER  CUSTOMER  SERVICE  STANDARDS  PERTAINING TO THE PROVISION OF
VIDEO SERVICE ESTABLISHED BY FEDERAL LAW OR  REGULATION  OR  ADOPTED  BY
SUBSEQUENT  ENACTMENT  OF  THE  LEGISLATURE.  ALL  CUSTOMER  SERVICE AND
CONSUMER PROTECTION STANDARDS UNDER THIS SECTION  SHALL  BE  INTERPRETED
AND APPLIED TO ACCOMMODATE NEWER OR DIFFERENT TECHNOLOGIES WHILE MEETING
OR EXCEEDING THE GOALS OF THESE STANDARDS.
  2. IN ADDITION, CABLE OPERATORS:
  (A)  SHALL  CLEARLY  AND  CONSPICUOUSLY  DISCLOSE  TO  USERS, IN PLAIN
LANGUAGE, ACCURATE INFORMATION  CONCERNING  ANY  TERMS,  CONDITIONS,  OR
LIMITATIONS  ON  THE BROADBAND NETWORK SERVICE THEY OFFER, THE SPEEDS OF
THE DOWNLOAD AND UPLOADING SPEEDS OF THE PROVIDER'S INTERNET SERVICE;
  (B) PROVIDE THEIR BROADBAND NETWORK SERVICES ON REASONABLE AND NONDIS-
CRIMINATORY TERMS AND CONDITIONS SUCH  THAT  ANY  PERSON  CAN  OFFER  OR
PROVIDE  CONTENT,  APPLICATIONS, OR SERVICES TO OR OVER THE NETWORK IN A
MANNER THAT IS AT LEAST EQUAL TO THE MANNER IN WHICH THE PROVIDER OR ITS
AFFILIATES OFFER  CONTENT,  APPLICATIONS,  AND  SERVICES,  FREE  OF  ANY
SURCHARGE ON THE BASIS OF THE CONTENT, APPLICATION, OR SERVICE;
  (C) INTERCONNECT THEIR FACILITIES WITH THE FACILITIES OF OTHER PROVID-
ERS  OF  BROADBAND  NETWORK SERVICES ON REASONABLE AND NONDISCRIMINATORY
TERMS OR CONDITIONS.
  S 243. NEUTRAL INTERNET AND BROADBAND NETWORKS. 1.    CABLE  OPERATORS
SHALL NOT:
  (A) BLOCK, IMPAIR, DISCRIMINATE AGAINST, OR INTERFERE WITH THE ABILITY
OF  ANY PERSON TO USE INTERNET BASED TRAFFIC BASED ON THE SOURCE, DESTI-
NATION, OR OWNERSHIP OF THE INTERNET TRAFFIC THAT CARRIES VIDEO SERVICE,
IN A MANNER THAT DEGRADES OR OTHERWISE NEGATIVELY IMPACTS THE ACCESS TO,
OR THE QUALITY OF SERVICES RECEIVED BY AN END USER;
  (B) ENGAGE IN ANY EXCLUSIVE OR  PREFERENTIAL  DEALINGS  REGARDING  THE
CARRIAGE  AND  TREATMENT OF INTERNET TRAFFIC, INCLUDING, BUT NOT LIMITED
TO, TRAFFIC THAT CARRIES VIDEO PROGRAMMING OR  VIDEO  SERVICE,  WITH  AN
AFFILIATE  OR  THIRD  PARTY PROVIDER OF INTERNET APPLICATIONS, SERVICES,
CONTENT, OR VIDEO SERVICES;
  (C) IMPOSE AN ADDITIONAL CHARGE TO AVOID ANY CONDUCT THAT IS PROHIBIT-
ED BY THIS SECTION;
  (D) PROHIBIT A USER FROM ATTACHING OR USING A DEVICE ON THE PROVIDER'S
INTERNET OR BROADBAND NETWORK THAT DOES NOT PHYSICALLY DAMAGE  OR  MATE-
RIALLY DEGRADE OTHER USERS' UTILIZATION OF THE NETWORK.
  2.  NOTHING  IN THIS SECTION SHALL BE CONSTRUED TO PREVENT A BROADBAND
OR INTERNET NETWORK PROVIDER FROM TAKING REASONABLE AND NONDISCRIMINATO-
RY MEASURES:

A. 2118--A                         31

  (A) TO MANAGE THE FUNCTIONING OF ITS NETWORK TO PROTECT  THE  SECURITY
AND TO OFFER PARENTAL CONTROLS AND OTHER CONSUMER PROTECTION MEASURES OF
SUCH  NETWORK AND BROADBAND OR INTERNET NETWORK SERVICES IF SUCH MANAGE-
MENT DOES NOT RESULT IN DISCRIMINATION AMONG THE CONTENT,  APPLICATIONS,
OR SERVICES ON THE NETWORK;
  (B) TO GIVE PRIORITY TO EMERGENCY COMMUNICATIONS; OR
  (C)  TO  PREVENT  A  VIOLATION OF A FEDERAL OR STATE LAW, OR TO COMPLY
WITH AN ORDER OF A COURT TO ENFORCE  SUCH  LAW,  OR  SUCH  OTHER  ACTION
AGAINST  NETWORK  THREATS  AS  MAY  BE AUTHORIZED IN SECTION TWO HUNDRED
FIFTEEN OF THIS CHAPTER.
  S 244. DEPLOYMENT REQUIREMENTS FOR STATEWIDE CABLE FRANCHISE. 1.    AS
PART  OF ANY FRANCHISE ISSUED BY THE COMMISSION IN THIS ARTICLE, A CABLE
OPERATOR SHALL BE REQUIRED TO:
  (A) BEGIN PROVIDING CABLE SERVICE ON A COMMERCIAL BASIS, WITHIN  THREE
YEARS OF ISSUANCE OF THE SYSTEM-WIDE FRANCHISE, IN:
  (I)  EACH  COUNTY SEAT THAT IS WITHIN THE CATV COMPANY'S SERVICE AREA;
AND
  (II) EACH MUNICIPALITY WITHIN THE CATV COMPANY'S SERVICE AREA THAT HAS
A POPULATION DENSITY GREATER THAN SEVENTY-ONE HUNDRED ELEVEN PERSONS PER
SQUARE MILE OF LAND AREA, AS  DETERMINED  BY  THE  MOST  RECENT  FEDERAL
DECENNIAL  CENSUS,  PROVIDED, HOWEVER, THAT IF SUCH COUNTY SEATS ARE NOT
LOCATED WITHIN OR CONTIGUOUS TO SUCH MUNICIPALITIES,  EACH  SUCH  COUNTY
SEAT  SHALL  BE  INTERCONNECTED TO THE NEAREST MUNICIPALITY WITH A POPU-
LATION DENSITY GREATER THAN PERSONS PER SQUARE MILE OF LAND AREA BY  THE
CABLE OPERATOR; AND
  (B) MAKE CABLE TELEVISION SERVICE AVAILABLE THROUGHOUT THE RESIDENTIAL
AREAS  ON  A  COMMERCIAL  BASIS,  BEFORE THE BEGINNING OF THE SIXTH YEAR
AFTER THE ISSUANCE OF THE SYSTEM-WIDE FRANCHISE, IN:
  (I) EACH MUNICIPALITY WITHIN THE STATE THAT HAS A  POPULATION  DENSITY
GREATER  THAN  FIVE HUNDRED ONE PERSONS PER SQUARE MILE OF LAND AREA, AS
DETERMINED BY THE MOST RECENT FEDERAL DECENNIAL CENSUS; AND
  (II) THROUGHOUT THE RESIDENTIAL AREAS OF ANY MUNICIPALITIES SERVED  BY
CENTRAL  OFFICES  LOCATED  WITHIN  A COUNTY SEAT WITHIN THE FRANCHISEE'S
SERVICE AREA, SUBJECT TO THE CABLE  OPERATOR'S  LINE  EXTENSION  POLICY;
PROVIDED,  HOWEVER,  A  CATV  COMPANY MAY APPLY TO THE COMMISSION FOR AN
EXEMPTION FROM THIS REQUIREMENT IF THE BOARD FINDS, AFTER  CONDUCTING  A
HEARING  WITH FULL NOTICE AND OPPORTUNITY TO BE HEARD, THAT THE AREAS IN
QUESTION ARE AREAS IN WHICH THE CATV COMPANY IS  UNABLE  TO  ACCESS  THE
PUBLIC RIGHTS-OF-WAY UNDER REASONABLE TERMS AND CONDITIONS.
  2.  THE  REQUIREMENTS  OF  SUBDIVISION  ONE OF THIS SECTION SHALL ONLY
APPLY TO CABLE OPERATORS THAT  ON  THE  DATE  OF  THE  ISSUANCE  OF  THE
SYSTEM-WIDE  FRANCHISE  PROVIDE  MORE  THAN  FORTY  PERCENT OF THE LOCAL
EXCHANGE TELEPHONE SERVICE MARKET IN THIS STATE; AND TO CABLE  OPERATORS
THAT  ON  THE  DATE OF THE ISSUANCE OF THE SYSTEM-WIDE FRANCHISE PROVIDE
TWO HUNDRED FIFTY THOUSAND OR MORE LOCAL  EXCHANGE  TELEPHONE  LINES  IN
THIS STATE;
  3.  INCUMBENT  CABLE COMPANIES THAT BECOME STATEWIDE FRANCHISE HOLDERS
SHALL NOT REDUCE THE NUMBER OR PERCENTAGE  OF  HOUSEHOLDS  SERVED;  WILL
BUILD  OUT  TO ALL RESIDENTIAL HOUSEHOLDS SUBJECT TO THE OPERATOR'S LINE
EXTENSION POLICY WITHIN THREE YEARS; AND WILL UPGRADE  THEIR  FACILITIES
TO  THE  ENTIRE  SERVICE  AREA  WITHIN THREE YEARS OF THE DATE THE CABLE
OPERATOR UPGRADES ANY PART OF ITS FACILITIES.
  4. WITHIN THREE YEARS OF THE ISSUANCE OF THE SYSTEM-WIDE FRANCHISE ALL
OTHER STATEWIDE FRANCHISE HOLDERS SHALL FULLY COMPLETE A SYSTEM  CAPABLE
OF PROVIDING CABLE SERVICE TO ALL HOUSEHOLDS WITHIN THE CABLE OPERATOR'S
SERVICE AREA, SUBJECT TO THE CABLE OPERATOR'S LINE EXTENSION POLICY.

A. 2118--A                         32

  S  245.   DISCRIMINATION IN THE PROVISIONING OF SERVICE PROHIBITED. 1.
THE FRANCHISE HOLDER SHALL BECOME CAPABLE OF PROVIDING CABLE SERVICE  TO
ALL  HOUSEHOLDS  WITHIN  THE  DESIGNATED SERVICE AREA FOOTPRINT. A CABLE
OPERATOR THAT HAS BEEN GRANTED A STATEWIDE FRANCHISE UNDER THIS  ARTICLE
SHALL  NOT  DENY ACCESS TO CABLE SERVICE TO ANY GROUP OF POTENTIAL RESI-
DENTIAL SUBSCRIBERS BECAUSE OF THE INCOME OR RACE OF  THE  RESIDENTS  IN
THE  LOCAL AREA IN WHICH SUCH GROUP RESIDES. A FRANCHISEE MUST SUBMIT TO
THE COMMISSION A DEPLOYMENT SCHEDULE, SETTING FORTH  THE  MUNICIPALITIES
TO  BE  SERVED,  THE  DATE  SERVICE SHALL BEGIN IN EACH PROPOSED MUNICI-
PALITY, AND A DATE CERTAIN BY WHICH  EACH  COMMUNITY  WILL  BE  ABLE  TO
RECEIVE  CABLE  SERVICE.  THE  COMMISSION WILL ENSURE THAT THE BUILD-OUT
PROCESS IS NOT DISCRIMINATORY BASED ON  AN  AREA'S  CLASS  OR  RACE.  IF
DEPLOYMENT  OF  CABLE  SERVICES UNDER A STATEWIDE FRANCHISE IS SCHEDULED
FOR DEPLOYMENT IN A GIVEN AREA, THE CABLE OPERATOR MUST OFFER SERVICE TO
ALL RESIDENTS WITHIN THE GEOGRAPHIC AREA OR THE COMMISSION MAY TERMINATE
THE FRANCHISE PURSUANT TO SECTION TWO HUNDRED THIRTY-SIX OF  THIS  ARTI-
CLE.
  2.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW, THE FRANCHISE HOLDER
SHALL COMPLY WITH CUSTOMER SERVICE REQUIREMENTS  SET  FORTH  IN  ARTICLE
ELEVEN OF THIS CHAPTER, AT 47 C.F.R.  S 76.309(C) AND ANY OTHER CUSTOMER
SERVICE  STANDARDS  PERTAINING  TO THE PROVISION OF VIDEO SERVICE ESTAB-
LISHED BY FEDERAL LAW OR REGULATION OR BY SUBSEQUENT  ENACTMENT  OF  THE
LEGISLATURE.  ALL  CUSTOMER  SERVICE  AND  CONSUMER PROTECTION STANDARDS
UNDER THIS SECTION SHALL BE INTERPRETED AND APPLIED TO ACCOMMODATE NEWER
OR DIFFERENT TECHNOLOGIES WHILE MEETING OR EXCEEDING THE GOALS OF  THESE
STANDARDS.
  3.  IF  THE  COMMISSION  DETERMINES  THAT  A CABLE OPERATOR HAS DENIED
ACCESS OF CABLE SERVICE TO A GROUP OF POTENTIAL RESIDENTIAL  SUBSCRIBERS
BECAUSE OF THE INCOME LEVELS OF THE RESIDENTS OF THE LOCAL AREA IN WHICH
SUCH  GROUP  RESIDES  OR  HAS  FAILED  TO  MEET  THE REQUIREMENTS OF THE
SECTION, THE COMMISSION IS AUTHORIZED TO,  AFTER  CONDUCTING  A  HEARING
WITH  FULL NOTICE AND OPPORTUNITY TO BE HEARD, IMPOSE MONETARY PENALTIES
OF NOT LESS THAN FIFTY THOUSAND DOLLARS, NOR MORE THAN ONE HUNDRED THOU-
SAND DOLLARS PER MUNICIPALITY, NOT TO EXCEED A TOTAL  OF  THREE  MILLION
SIX  HUNDRED FIFTY THOUSAND DOLLARS PER YEAR FOR ALL VIOLATIONS. A MUNI-
CIPALITY IN WHICH THE PROVIDER OFFERS CABLE SERVICE SHALL BE  AN  APPRO-
PRIATE PARTY IN ANY SUCH PROCEEDING.
  S  246. ENFORCEMENT. THE EXCLUSIVE REMEDY FOR ENFORCING THE PROVISIONS
OF THIS ARTICLE, NOTWITHSTANDING  SPECIFIC  SECTIONS  OF  THIS  ARTICLE,
SHALL  BE  AN  ACTION  IN  A  COURT OF COMPETENT JURISDICTION BROUGHT BY
EITHER THE MUNICIPALITY, THE ATTORNEY GENERAL ON BEHALF OF  THE  COMMIS-
SION OR OTHER INJURED PARTY. AT LEAST SIXTY DAYS BEFORE BRINGING SUCH AN
ACTION,  THE  MUNICIPALITY OR ATTORNEY GENERAL SHALL SERVE THE FRANCHISE
HOLDER WITH A NOTICE SETTING OUT THE ALLEGED VIOLATION AND STATING  THAT
AN  ACTION  MAY  BE  BROUGHT  UNLESS  THE  HOLDER  CORRECTS  THE ALLEGED
VIOLATION OR ENTERS INTO A BINDING AGREEMENT TO  CORRECT  THE  VIOLATION
WITHIN  THE  SIXTY-DAY  NOTICE PERIOD. THE NOTICE SHALL CONTAIN A SUFFI-
CIENTLY DETAILED DESCRIPTION OF THE  ALLEGED  VIOLATION  TO  ENABLE  THE
FRANCHISE HOLDER TO MAKE A SPECIFIC RESPONSE.
  S  6. Section 215 of the public service law is amended by adding a new
subdivision 14 to read as follows:
  14.  REQUIRE THAT CABLE TELEVISION FRANCHISES CONTAIN, UPON SUBMISSION
FOR CERTIFICATES OF CONFIRMATION, PROVISIONS REQUIRING  THAT  THE  CABLE
TELEVISION SERVICES FRANCHISEE DELIVER TO THE FRANCHISOR AND THE COMMIS-
SION,  ON AN ANNUAL BASIS, A WRITTEN REPORT DESCRIBING EVERY INSTANCE IN
WHICH SUCH FRANCHISEE BLOCKS, LIMITS OR OTHERWISE RESTRICTS  SUBSCRIBERS

A. 2118--A                         33

OR  OTHER  PURCHASERS  OF  BROADBAND  SERVICES  FROM THE FRANCHISEE FROM
ACCESSING ANY PARTICULAR INTERNET SITE OR CATEGORY OR TYPE  OF  INTERNET
SITE  OR  ANY  SPECIFIC  ELECTRONIC  MAIL MESSAGE OR CATEGORY OR TYPE OF
ELECTRONIC  MAIL  ("NEUTRALITY  REPORT").  SUCH  NEUTRALITY REPORT SHALL
CONTAIN DETAIL OF A SPECIFICITY LEVEL TO BE DETERMINED  BY  THE  COMMIS-
SION, AND SHALL CONTAIN SUFFICIENT DETAIL TO ALLOW THE COMMISSION OR THE
FRANCHISOR  TO ASCERTAIN THE NATURE OF ANY BLOCKING, LIMITATION OR OTHER
RESTRICTIONS, AND THE REASON FOR THE FRANCHISEE FOR TAKING SUCH  ACTION,
BUT  SHALL  BE  PROVIDED  IN  A  MANNER REASONABLY CALCULATED TO PROTECT
SUBSCRIBER PRIVACY OR THE LEGITIMATE NEEDS OF LAW  ENFORCEMENT.  NOTHING
IN THIS SUBDIVISION SHALL BE INTERPRETED TO RESTRICT THE RIGHTS OF FRAN-
CHISEES,  IF  THEY  SO CHOOSE, TO BLOCK, LIMIT OR OTHERWISE RESTRICT THE
PASSAGE OF ELECTRONIC MAIL MESSAGES  OR  OTHER  CONTENT  THAT  TRANSMIT,
PORTRAY,  DESCRIBE, REPRESENT OR OTHERWISE CONTAIN MATTERS SUCH AS CHILD
PORNOGRAPHY OR SIMILAR OBSCENITY, OTHER UNLAWFUL  MATERIAL,  THREATS  OF
SERIOUS BODILY HARM, THREATS TO THE PUBLIC SAFETY AND HOMELAND SECURITY,
THREATS  OF  DEATH  TO  INDIVIDUALS OR GROUPS OF INDIVIDUALS, VIRUSES OR
SIMILAR COMPUTER GENERATED PROGRAMS OR CODE THAT HAVE THE  POTENTIAL  TO
HARM  COMPUTER HARDWARE AND/OR SOFTWARE AND/OR NETWORKS, EXCESSIVE UNSO-
LICITED COMMERCIAL EMAIL THAT DEGRADES OR INTERFERES WITH OR  HARMS  THE
NORMAL OPERATION OF BROADBAND NETWORKS, AND OTHER SIMILAR TYPES OR FORMS
OF  MATERIAL  OR  SOFTWARE (THE FOREGOING EXAMPLES ARE ILLUSTRATIVE, NOT
EXHAUSTIVE OF SUCH THREATS TO USERS  AND/OR  THE  NETWORK,  COLLECTIVELY
HEREAFTER  "NETWORK  THREATS").  BLOCKING  OR  LIMITATION  OF SUBSCRIBER
ACCESS TO THE MAXIMALLY DIVERSE INTERNET, IF  NOT  PREDICATED  UPON  THE
FRANCHISEE'S  RIGHT  TO  DEFEND  ITS  NETWORK  AND  SUBSCRIBERS  AGAINST
"NETWORK THREATS", SHALL PRESUMPTIVELY BE A BREACH OF THE FRANCHISE.  NO
FRANCHISEE  SHALL  BE  RESPONSIBLE OR LIABLE FOR ANY EFFORTS BY OR POLI-
CIES, PRACTICES OR  PROCEDURES  OF  AN  UNAFFILIATED  TELECOMMUNICATIONS
SERVICES  PROVIDER  OR  INTERNET  SERVICES PROVIDER OR INTERNET PROTOCOL
TRAFFIC ROUTING ENTITY TO BLOCK SUBSCRIBERS FROM ACCESSING ANY  INTERNET
SITE OR ANY CATEGORY OR TYPE OF INTERNET SITE OR ANY SPECIFIC ELECTRONIC
MAIL MESSAGE OR ANY CATEGORY OR TYPE OF ELECTRONIC MAIL.
  S  7.  Section 99 of the public service law is amended by adding a new
subdivision 4 to read as follows:
  4.  NO BUILDING OWNER MAY DISCRIMINATE AGAINST  A  TELEPHONE  COMPANY,
BROADBAND  SERVICES  OR ADVANCED COMMUNICATIONS COMPANY OR THEIR ABILITY
TO PROVIDE SERVICES TO ONE OR MORE TENANTS OF  A  MULTI-TENANT  PROPERTY
THAT IS OWNED OR CONTROLLED BY THE BUILDING OWNER, INCLUDING DISCRIMINA-
TORY  TERMS  AND  CONDITIONS  BY  WHICH THE TELEPHONE COMPANY, BROADBAND
SERVICES OR ADVANCED COMMUNICATIONS COMPANY GAIN PHYSICAL ACCESS TO  THE
PROPERTY TO PLACE ITS FACILITIES AND PROVIDE TELECOMMUNICATIONS SERVICES
TO  THE  PROPERTY'S  TENANTS.  THE COMMISSION SHALL HAVE JURISDICTION TO
IMPLEMENT THE PROVISIONS OF THIS SUBDIVISION BY  APPROPRIATE  RULES  AND
REGULATIONS  AND  TO  ADMINISTRATIVELY ADJUDICATE DISPUTES ARISING UNDER
THIS SUBDIVISION. IN NO EVENT MAY THE LACK OF AGREEMENT OVER  TERMS  AND
CONDITIONS  OF  ACCESS  DELAY  THE  ABILITY OF A REQUESTING TELECOMMUNI-
CATIONS COMPANY TO OBTAIN ACCESS FOR MORE THAN THIRTY DAYS FOLLOWING  AN
INITIAL REQUEST THEREFOR.
  S 8. Subdivision 2 of section 99 of the public service law, as amended
by chapter 383 of the laws of 1996, is amended to read as follows:
  2.  (A) No franchise nor any right to or under any franchise to own or
operate a telegraph line or telephone line  shall  be  assigned,  trans-
ferred,  or  leased,  nor shall any contract or agreement hereafter made
with reference to or affecting any such franchise or right be  valid  or
of  any  force  or effect whatsoever[,] unless the assignment, transfer,

A. 2118--A                         34

lease, contract, or agreement shall have been approved  by  the  commis-
sion.
  (B)  No  telephone  corporation  shall  transfer or lease its works or
system or any part of such works or system to any other person or corpo-
ration or contract for the operation of its works or  system[,]  without
the  written  consent of the commission. [Notwithstanding the foregoing,
any such transfer or  lease  between  affiliated  corporations  with  an
original  cost of (a) less than one hundred thousand dollars proposed by
a telephone corporation having annual gross revenues in  excess  of  two
hundred  million  dollars,  (b)  less  than twenty-five thousand dollars
proposed by a telephone corporation having annual gross revenues of less
than two hundred million but more than ten million dollars or  (c)  less
than  ten  thousand  dollars  proposed by a telephone corporation having
annual gross revenues of less than ten million  dollars  and  any  other
transfer  or  lease  between  non-affiliates regardless of cost shall be
effective without the commission's written consent  within  ninety  days
after such corporation notifies the commission that it plans to complete
such  transfer  or  lease  and  submits a description of the transfer or
lease, unless the commission, or its designee,  determines  within  such
ninety  days  that  the public interest requires the commission's review
and written consent.]
  (C) (1) NO CONSENT SHALL BE GIVEN BY THE COMMISSION TO THE ASSIGNMENT,
TRANSFER, OR LEASE OF ANY RIGHT OR FRANCHISE TO OPERATE A TELEGRAPH LINE
OR TELEPHONE LINE UNLESS IT SHALL HAVE BEEN SHOWN THAT SUCH  ASSIGNMENT,
TRANSFER, OR LEASE IS IN THE PUBLIC INTEREST.
  (2)  NO  CONSENT  SHALL  BE GIVEN BY THE COMMISSION TO THE ASSIGNMENT,
TRANSFER, OR LEASE OF ANY RIGHT OR FRANCHISE TO OPERATE ANY  PART  OF  A
TELEPHONE CORPORATION'S WORKS OR SYSTEM, OR TO A CONTRACT FOR THE OPERA-
TION  OF  SUCH ENTITY'S WORKS OR SYSTEM, UNLESS IT SHALL HAVE BEEN SHOWN
THAT SUCH ASSIGNMENT, TRANSFER, OR LEASE OR CONTRACT IS  IN  THE  PUBLIC
INTEREST.
  (D)  BEFORE AUTHORIZING THE MERGER, ACQUISITION, ASSIGNMENT, LEASE, OR
TRANSFER OF CONTROL OF ANY TELEPHONE  CORPORATION  ORGANIZED  AND  DOING
BUSINESS  IN  THIS  STATE, WHERE ANY OF THE ENTITIES THAT ARE PARTIES TO
THE PROPOSED TRANSACTION HAS GROSS ANNUAL NEW  YORK  REVENUES  EXCEEDING
TWO HUNDRED MILLION DOLLARS, THE COMMISSION SHALL FIND THAT THE PROPOSAL
DOES ALL OF THE FOLLOWING:
  (1) PROVIDES SHORT-TERM AND LONG-TERM ECONOMIC BENEFITS TO RATEPAYERS.
  (2)  EQUITABLY ALLOCATES, WHERE THE COMMISSION HAS RATEMAKING AUTHORI-
TY, THE TOTAL SHORT-TERM AND LONG-TERM FORECASTED ECONOMIC BENEFITS,  AS
DETERMINED  BY  THE  COMMISSION, OF THE PROPOSED MERGER, ACQUISITION, OR
CONTROL BETWEEN SHAREHOLDERS AND RATEPAYERS.  RATEPAYERS  SHALL  RECEIVE
NOT LESS THAN FORTY PERCENT OF SUCH BENEFITS.
  (3)  MAINTAINS  OR  IMPROVES  THE FINANCIAL CONDITION OF THE RESULTING
TELEPHONE CORPORATIONS DOING BUSINESS IN THE STATE AND DOES  NOT  UNREA-
SONABLY  ALLOCATE A TELEPHONE CORPORATION'S DEBT TO A DIVESTITURE ENTITY
CREATED FROM AN EXISTING TELEPHONE CORPORATION. FOR THE PURPOSE OF  THIS
SECTION,  A  DIVESTITURE  ENTITY  IS  A  BUSINESS  ENTITY CREATED BY THE
ASSIGNMENT, EXCHANGE, SALE, OR OTHER TRANSFER  OF  SOME  OR  ALL  OF  AN
EXISTING  TELEPHONE CORPORATION'S LINES, SYSTEM, OR WORKS TO A NEW TELE-
PHONE CORPORATION.
  (4) MAINTAINS OR IMPROVES THE QUALITY OF SERVICE TO  TELEPHONE  CORPO-
RATION RATEPAYERS IN THE STATE.
  (5)  MAINTAINS  OR IMPROVES THE QUALITY OF MANAGEMENT OF THE RESULTING
TELEPHONE CORPORATION DOING BUSINESS IN THE STATE.

A. 2118--A                         35

  (6) IS FAIR AND REASONABLE TO AFFECTED TELEPHONE  CORPORATION  EMPLOY-
EES, INCLUDING BOTH UNION AND NONUNION EMPLOYEES.
  (7)  IS  FAIR AND REASONABLE TO THE MAJORITY OF ALL AFFECTED TELEPHONE
CORPORATIONS.
  (8) IS BENEFICIAL ON AN OVERALL BASIS TO STATE AND LOCAL ECONOMIES AND
TO THE COMMUNITIES IN THE AREA SERVED BY THE RESULTING ENTITY  AND  DOES
NOT  ALLOCATE  SUBSTANTIALLY UNFUNDED PENSION OR HEALTH CARE OBLIGATIONS
OR OTHER EMPLOYEE BENEFITS TO A RESULTING TELEPHONE CORPORATION.
  (9) PRESERVES THE JURISDICTION OF THE COMMISSION AND THE  CAPACITY  OF
THE  COMMISSION  TO EFFECTIVELY REGULATE AND AUDIT TELEPHONE CORPORATION
OPERATIONS IN THE STATE.
  (10) PROVIDES  MITIGATION  MEASURES  TO  PREVENT  SIGNIFICANT  ADVERSE
CONSEQUENCES WHICH MAY RESULT.
  (11)  DOES  NOT  ADVERSELY AFFECT COMPETITION. IN MAKING THIS FINDING,
THE COMMISSION SHALL REQUEST  AN  ADVISORY  OPINION  FROM  THE  ATTORNEY
GENERAL  REGARDING WHETHER OR NOT COMPETITION WILL BE ADVERSELY AFFECTED
AND WHAT MITIGATORY MEASURES COULD BE ADOPTED TO AVOID ANY SUCH  ADVERSE
EFFECT.
  (E)  WHEN  REVIEWING  A  MERGER,  ACQUISITION,  OR TRANSFER OF CONTROL
PROPOSAL, THE  COMMISSION  SHALL  CONSIDER  REASONABLE  ALTERNATIVES  OR
MODIFICATIONS TO THE PROPOSAL RECOMMENDED BY OTHER PARTIES, INCLUDING NO
MERGER,  ACQUISITION, OR CONTROL, TO DETERMINE WHETHER OR NOT COMPARABLE
SHORT-TERM AND LONG-TERM ECONOMIC SAVINGS CAN BE ACHIEVED THROUGH  OTHER
MEANS WHILE AVOIDING THE POSSIBLE ADVERSE CONSEQUENCES OF THE PROPOSAL.
  (F)  THE  PERSON  OR  CORPORATION  SEEKING ACQUISITION OR CONTROL OF A
TELEPHONE CORPORATION ORGANIZED AND DOING BUSINESS IN THIS  STATE  SHALL
HAVE  BEFORE  THE COMMISSION THE BURDEN OF PROVING BY A PREPONDERANCE OF
THE EVIDENCE THAT THE REQUIREMENTS OF PARAGRAPH (D) OF THIS  SUBDIVISION
ARE MET.
  (G)  IN  DETERMINING WHETHER OR NOT AN ACQUIRING TELEPHONE CORPORATION
HAS GROSS ANNUAL REVENUES EXCEEDING THE AMOUNT  SPECIFIED  IN  PARAGRAPH
(D)  OF  THIS  SUBDIVISION, THE REVENUES OF THAT TELEPHONE CORPORATION'S
AFFILIATES SHALL NOT BE  CONSIDERED,  UNLESS  THE  AFFILIATE  IS  TO  BE
UTILIZED  FOR  THE  PURPOSE  OF  EFFECTING  SUCH MERGER, ACQUISITION, OR
CONTROL.
  (H) SUBPARAGRAPHS ONE AND TWO OF PARAGRAPH  (D)  OF  THIS  SUBDIVISION
SHALL NOT APPLY TO THE FORMATION OF A HOLDING COMPANY.
 (I)  SUBPARAGRAPHS  ONE  AND  TWO  OF PARAGRAPH (D) OF THIS SUBDIVISION
SHALL NOT APPLY TO ACQUISITIONS OR CHANGES IN CONTROL THAT ARE  MANDATED
BY EITHER THE COMMISSION OR THE LEGISLATURE.
  S  9. Section 100 of the public service law, as amended by chapter 226
of the laws of 2009, is amended to read as follows:
  S 100. Transfer and ownership of stock. 1. No telegraph corporation or
telephone corporation, domestic or  foreign,  shall  hereafter  purchase
[or],  acquire, take, or hold any part of the capital stock of any tele-
graph corporation or telephone corporation organized or  existing  under
the laws of this state unless authorized so to do by the commission.
  2.  Save  where  stock shall be transferred or held for the purpose of
collateral security, no stock corporation, domestic or foreign, company,
including, but not limited to, a limited liability company, association,
including a joint stock association, partnership,  including  a  limited
liability  partnership, or person, other than a telegraph corporation or
telephone corporation, shall, without the  consent  of  the  commission,
purchase [or], acquire, take, or hold more than ten [per centum] PERCENT
of the voting capital stock issued by any telegraph corporation or tele-
phone  corporation  organized or existing under or by virtue of the laws

A. 2118--A                         36

of this state. Any corporation now lawfully holding a  majority  of  the
voting  capital  stock  of any telegraph corporation or telephone corpo-
ration may, without the consent of the commission, acquire and hold  the
remainder  of  the voting capital stock of such telegraph corporation or
telephone corporation[,] or any portion thereof.
  3. (A) No consent shall be given by the commission to the  acquisition
of  any  stock in accordance with this section unless it shall have been
shown that such acquisition is in the public interest[; provided, howev-
er, that any], WHICH THE COMMISSION SHALL DETERMINE BY FINDING THAT  THE
PROPOSAL  DOES  ALL  OF  THE  FOLLOWING,  TO THE EXTENT DETERMINED TO BE
APPLICABLE:
  (I) PROVIDES SHORT-TERM AND LONG-TERM ECONOMIC BENEFITS TO RATEPAYERS.
  (II) EQUITABLY ALLOCATES, WHERE APPLICABLE AND  WHERE  THE  COMMISSION
HAS  RATEMAKING AUTHORITY, THE TOTAL SHORT-TERM AND LONG-TERM FORECASTED
ECONOMIC BENEFITS, AS DETERMINED BY  THE  COMMISSION,  OF  THE  PROPOSED
ACQUISITION, PURCHASE, SALE, TRANSFER, OR RETENTION BETWEEN SHAREHOLDERS
AND  RATEPAYERS. RATEPAYERS SHALL RECEIVE NOT LESS THAN FORTY PERCENT OF
THOSE BENEFITS.
  (III) MAINTAINS OR IMPROVES THE FINANCIAL CONDITION OF  THE  RESULTING
TELEPHONE  CORPORATIONS  DOING BUSINESS IN THE STATE AND DOES NOT UNREA-
SONABLY ALLOCATE A TELEPHONE CORPORATION'S DEBT TO A DIVESTITURE  ENTITY
CREATED  FROM AN EXISTING TELEPHONE CORPORATION. FOR THE PURPOSE OF THIS
SECTION, A DIVESTITURE ENTITY  IS  A  BUSINESS  ENTITY  CREATED  BY  THE
ASSIGNMENT,  EXCHANGE,  SALE,  OR  OTHER  TRANSFER  OF SOME OR ALL OF AN
EXISTING TELEPHONE CORPORATION'S LINES, SYSTEM, OR WORKS TO A NEW  TELE-
PHONE CORPORATION.
  (IV)  MAINTAINS OR IMPROVES THE QUALITY OF SERVICE TO TELEPHONE CORPO-
RATION RATEPAYERS IN THE STATE.
  (V) MAINTAINS OR IMPROVES THE QUALITY OF MANAGEMENT OF  THE  RESULTING
TELEPHONE CORPORATION DOING BUSINESS IN THE STATE.
  (VI)  IS FAIR AND REASONABLE TO AFFECTED TELEPHONE CORPORATION EMPLOY-
EES, INCLUDING BOTH UNION AND NON-UNION EMPLOYEES.
  (VII) IS FAIR AND REASONABLE TO THE MAJORITY OF ALL AFFECTED TELEPHONE
CORPORATIONS.
  (VIII) IS BENEFICIAL, ON AN OVERALL BASIS, TO STATE AND  LOCAL  ECONO-
MIES,  AND TO THE COMMUNITIES IN THE AREA SERVED BY THE RESULTING ENTITY
AND DOES NOT ALLOCATE SUBSTANTIALLY  UNFUNDED  PENSION  OR  HEALTH  CARE
OBLIGATIONS  OR  OTHER EMPLOYEE BENEFITS TO A RESULTING TELEPHONE CORPO-
RATION.
  (IX) PRESERVES THE JURISDICTION OF THE COMMISSION AND THE CAPACITY  OF
THE  COMMISSION  TO EFFECTIVELY REGULATE AND AUDIT TELEPHONE CORPORATION
OPERATIONS IN THE STATE.
  (X) PROVIDES MITIGATION  MEASURES  TO  PREVENT  SIGNIFICANTLY  ADVERSE
CONSEQUENCES WHICH MAY RESULT FROM SUCH ACQUISITION.
  (XI)  DOES  NOT  ADVERSELY AFFECT COMPETITION. IN MAKING THIS FINDING,
THE COMMISSION SHALL REQUEST  AN  ADVISORY  OPINION  FROM  THE  ATTORNEY
GENERAL  REGARDING WHETHER OR NOT COMPETITION WILL BE ADVERSELY AFFECTED
AND WHAT MITIGATORY MEASURES COULD BE ADOPTED TO AVOID ANY SUCH  ADVERSE
EFFECT.
  (B)  ANY  such  consent, HOWEVER, shall be deemed to be granted by the
commission ninety days after such corporation applies to the  commission
for  its consent, unless the commission, or its designee, determines and
informs the applicant in writing within such ninety day period that  the
public  interest  requires  the  commission's  review  and  its  written
consent.  Nothing [herein] IN THIS SECTION contained shall be  construed
to prevent the holding of any stock heretofore lawfully acquired, nor to

A. 2118--A                         37

prevent,  upon  the  surrender  or  exchange of such stock pursuant to a
reorganization plan, the purchase, acquisition, taking or holding  of  a
proportionate  amount  of stock of any new corporation organized to take
over, at foreclosure or other sale the property of any corporation whose
stock  has  been thus surrendered or exchanged[;], but the proportion of
the voting capital stock of the new corporation held by a  stock  corpo-
ration,  company,  association, partnership or person and acquired by it
by any such surrender or exchange of stock shall not without the consent
of the commission exceed the proportion of the voting capital stock held
by it in the former corporation.
  4. Every contract, assignment, transfer, or agreement for transfer  of
any  stock  by  or through any person or corporation to any corporation,
company,  association,  partnership  or  person,  in  violation  of  any
provision  of  this  chapter shall be void and of no effect, and no such
transfer or assignment shall be made upon the books of  any  such  tele-
graph  corporation or telephone corporation[,] or shall be recognized as
effective for any purpose.
  S 10. The executive law is amended by adding a  new  section  32-a  to
read as follows:
  S 32-A. STATE AGENCY TELECOMMUNICATIONS RESOURCE MANAGEMENT. 1. WITHIN
NINETY  DAYS  OF THE EFFECTIVE DATE OF THIS SECTION, ALL STATE AGENCIES,
AS SUCH ARE DEFINED IN SUBDIVISION ONE OF  SECTION  THIRTY-TWO  OF  THIS
ARTICLE,  SHALL  STUDY  AND  REPORT  UPON  THE  PHYSICAL LOCATION AND/OR
FREQUENCY, AND AMOUNT OF ALL EXCESS CAPACITY,  WITHIN  THE  TELECOMMUNI-
CATIONS  INFRASTRUCTURE AND RADIO FREQUENCY BANDWIDTH OWNED, LICENSED OR
OTHERWISE CONTROLLED BY SUCH AGENCIES. TELECOMMUNICATIONS INFRASTRUCTURE
IS HEREIN DEFINED FOR THE PURPOSES OF THIS ARTICLE TO INCLUDE  CONDUITS,
DUCTS,  POLES,  WIRES,  FIBER  OPTIC  CABLE AND/OR LINES, COAXIAL CABLE,
COPPER TWISTED PAIR TELEPHONE LINES, RECEIVERS, TRANSMITTERS,  BROADCAST
RADIO   FREQUENCY  BANDWIDTH,  LASERS  AND  MULTIPLEXERS,  TRANSMITTERS,
INSTRUMENTS, MACHINES, APPLIANCES AND ALL DEVICES,  REAL  ESTATE,  EASE-
MENTS,  APPARATUS,  PROPERTY  AND  ROUTES  USED AND/OR OPERATED BY STATE
AGENCIES.
  2. ALL STATE AGENCIES SHALL, WITHIN ONE  HUNDRED  FIFTY  DAYS  OF  THE
EFFECTIVE  DATE  OF THIS SECTION, IDENTIFY THE EXCESS CAPACITY AND BAND-
WIDTH REPORTED UPON WHICH MAY BE  LEASED  ON  A  NON-DISCRIMINATORY  AND
COMMERCIALLY REASONABLE BASIS TO PUBLIC ENTITIES OR CERTIFIED TELECOMMU-
NICATIONS CARRIERS THAT NEED SUCH CAPACITY TO PROVIDE BROADBAND SERVICES
TO  UNSERVED, UNDERSERVED AND DISTRESSED AREAS. SUCH EXCESS CAPACITY AND
BANDWIDTH SO IDENTIFIED SHALL BE REPORTED UPON.
  3. ALL STATE AGENCIES SHALL, WITHIN ONE HUNDRED  EIGHTY  DAYS  OF  THE
EFFECTIVE  DATE OF THIS SECTION, IDENTIFY AND REPORT UPON ALL TELECOMMU-
NICATIONS SERVICES PURCHASED, LEASED OR OTHERWISE USED BY  THE  AGENCIES
THAT  MAY  BE  USED  IN  A TELECOMMUNICATIONS DEMAND AGGREGATION PROGRAM
ADMINISTERED BY THE STATE BROADBAND DEVELOPMENT AND  DEPLOYMENT  COUNCIL
PURSUANT TO SECTION FOUR THOUSAND ONE HUNDRED FIVE OF THE PUBLIC AUTHOR-
ITIES LAW.
  4.  (A)  ALL STATE AGENCIES SHALL, WITHIN NINETY DAYS OF THE EFFECTIVE
DATE OF  THIS  SECTION,  INSTALL  TELECOMMUNICATIONS-GRADE  CONDUIT  AND
ANTENNA ATTACHMENT POINTS IN AND/OR ON ALL INFRASTRUCTURE PROJECTS NEWLY
CONSTRUCTED OR UPGRADED BY SUCH AGENCIES, FOR LEASE ON A NON-DISCRIMINA-
TORY  AND  COMMERCIALLY REASONABLE BASIS TO PUBLIC ENTITIES OR CERTIFIED
TELECOMMUNICATIONS CARRIERS THAT NEED SUCH CAPACITY TO PROVIDE BROADBAND
SERVICES TO UNSERVED, UNDERSERVED AND DISTRESSED AREAS.  STATE  AGENCIES
MAY,  HOWEVER,  EXEMPT  FROM  THIS REQUIREMENT INFRASTRUCTURE WHERE SUCH
INSTALLATIONS COULD POSE A THREAT  TO  PUBLIC  SAFETY  OR  OTHERWISE  BE

A. 2118--A                         38

UNREASONABLE.  SUCH  CONDUIT  AND ANTENNA ATTACHMENT POINT INSTALLATIONS
SHALL BE REPORTED ON A SEMI-ANNUAL BASIS.
  (B)  THE STATE OFFICE OF GENERAL SERVICES SHALL, WITHIN NINETY DAYS OF
THE EFFECTIVE DATE OF THIS SECTION, MAKE WIRELESS INTERNET ACCESS AVAIL-
ABLE TO THE PUBLIC IN PUBLICLY ACCESSIBLE AND HIGHLY-TRAFFICKED AREAS OF
THE STATE CAPITOL AND THE LEGISLATIVE OFFICE BUILDING,  AND  SUCH  OTHER
PUBLICLY  ACCESSIBLE  AND  HIGHLY-TRAFFICKED  OFFICE OF GENERAL SERVICES
MANAGED STATE BUILDINGS AS IS REASONABLE AND PRUDENT.
  5. ALL REPORTS  PROVIDED  FOR  IN  THIS  SECTION  SHALL  BE  DELIVERED
INITIALLY, AND THEREAFTER ON AN ANNUAL BASIS, TO THE GOVERNOR, TEMPORARY
PRESIDENT  OF  THE  SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF
THE SENATE AND ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF THE SENATE
ENERGY AND TELECOMMUNICATIONS  COMMITTEE,  AND  THE  CHAIR  AND  RANKING
MINORITY  MEMBER  OF  THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMIS-
SIONS COMMITTEE, CHAIR OF THE PUBLIC SERVICE COMMISSION, COMMISSIONER OF
THE DEPARTMENT OF ECONOMIC DEVELOPMENT, COMMISSIONER OF THE EMPIRE STATE
DEVELOPMENT CORPORATION AND THE CHAIRPERSONS OF THE  BROADBAND  DEVELOP-
MENT AND DEPLOYMENT COUNCIL AND BROADBAND DEVELOPMENT AUTHORITY.
  S  11.  The  public authorities law is amended by adding a new section
2807 to read as follows:
  S 2807. ANNUAL TELECOMMUNICATIONS RESOURCES REPORTS BY AUTHORITIES. 1.
STATE AUTHORITIES. (A) FOR THE PURPOSE  OF  FURNISHING  THE  STATE  WITH
SYSTEMATIC  INFORMATION  REGARDING  THE  EXISTING, NEWLY CONSTRUCTED AND
PLANNED TELECOMMUNICATIONS INFRASTRUCTURE RESOURCES OF  PUBLIC  AUTHORI-
TIES,  EVERY STATE AUTHORITY CONTINUED OR CREATED BY THIS CHAPTER OR ANY
OTHER CHAPTER OF THE LAWS OF THE STATE OF NEW YORK SHALL:
  (I) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS  SECTION,  SUBMIT
TO  THE  GOVERNOR,  TEMPORARY  PRESIDENT  OF  THE SENATE, SPEAKER OF THE
ASSEMBLY, MINORITY LEADERS OF THE SENATE AND ASSEMBLY, CHAIR AND RANKING
MINORITY MEMBER OF THE SENATE ENERGY AND  TELECOMMUNICATIONS  COMMITTEE,
AND  THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY CORPORATIONS,
AUTHORITIES AND COMMISSIONS  COMMITTEE,  CHAIR  OF  THE  PUBLIC  SERVICE
COMMISSION,  COMMISSIONER  OF  THE  DEPARTMENT  OF ECONOMIC DEVELOPMENT,
COMMISSIONER OF THE EMPIRE STATE DEVELOPMENT CORPORATION AND THE  CHAIRS
OF THE BROADBAND DEVELOPMENT AND DEPLOYMENT COUNCIL AND BROADBAND DEVEL-
OPMENT  AUTHORITY,  A  COMPLETE  AND DETAILED REPORT OR REPORTS UPON THE
PHYSICAL LOCATION AND/OR FREQUENCY, AND AMOUNT OF ALL  EXCESS  CAPACITY,
WITHIN  THE  TELECOMMUNICATIONS INFRASTRUCTURE AND RADIO FREQUENCY BAND-
WIDTH OWNED, LICENSED OR OTHERWISE CONTROLLED BY STATE AUTHORITIES;
  (II) WITHIN ONE HUNDRED FIFTY DAYS  OF  THE  EFFECTIVE  DATE  OF  THIS
SECTION,  SUBMIT  TO  THE  GOVERNOR,  TEMPORARY PRESIDENT OF THE SENATE,
SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE  SENATE  AND  ASSEMBLY,
CHAIR  AND RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNI-
CATIONS COMMITTEE, AND THE CHAIR AND  RANKING  MINORITY  MEMBER  OF  THE
ASSEMBLY  CORPORATIONS,  AUTHORITIES  AND  COMMISSIONS COMMITTEE, CHAIR-
PERSON OF THE PUBLIC SERVICE COMMISSION, COMMISSIONER OF THE  DEPARTMENT
OF  ECONOMIC  DEVELOPMENT,  COMMISSIONER OF THE EMPIRE STATE DEVELOPMENT
CORPORATION AND  THE  CHAIRPERSONS  OF  THE  BROADBAND  DEVELOPMENT  AND
DEPLOYMENT  COUNCIL  AND BROADBAND DEVELOPMENT AUTHORITY, A COMPLETE AND
DETAILED REPORT OR REPORTS IDENTIFYING THE EXCESS CAPACITY AND BANDWIDTH
POSSESSED OR CONTROLLED BY STATE AUTHORITIES WHICH MAY BE  LEASED  ON  A
NON-DISCRIMINATORY  AND COMMERCIALLY REASONABLE BASIS TO PUBLIC ENTITIES
OR CERTIFIED TELECOMMUNICATIONS CARRIERS  THAT  NEED  SUCH  CAPACITY  TO
PROVIDE  BROADBAND  SERVICES  TO  UNSERVED,  UNDERSERVED  AND DISTRESSED
AREAS;

A. 2118--A                         39

  (III) WITHIN ONE HUNDRED EIGHTY DAYS OF THE  EFFECTIVE  DATE  OF  THIS
SECTION,  IDENTIFY  AND  REPORT  UPON  ALL  TELECOMMUNICATIONS  SERVICES
PURCHASED, LEASED OR OTHERWISE USED BY THE AUTHORITIES THAT MAY BE  USED
IN  A  TELECOMMUNICATIONS DEMAND AGGREGATION PROGRAM ADMINISTERED BY THE
STATE BROADBAND DEVELOPMENT AND DEPLOYMENT COUNCIL.
  (B)  ALL  STATE  AUTHORITIES  SHALL,  FROM  THE EFFECTIVE DATE OF THIS
SECTION, INSTALL TELECOMMUNICATIONS-GRADE CONDUIT AND ANTENNA ATTACHMENT
POINTS IN AND/OR ON ALL INFRASTRUCTURE  PROJECTS  NEWLY  CONSTRUCTED  OR
UPGRADED BY SUCH AGENCIES, FOR LEASE ON A NON-DISCRIMINATORY AND COMMER-
CIALLY  REASONABLE  BASIS  TO  PUBLIC ENTITIES OR CERTIFIED TELECOMMUNI-
CATIONS CARRIERS THAT NEED SUCH CAPACITY TO PROVIDE  BROADBAND  SERVICES
TO  UNSERVED,  UNDERSERVED  AND DISTRESSED AREAS. STATE AUTHORITIES MAY,
HOWEVER, EXEMPT FROM THIS REQUIREMENT INFRASTRUCTURE WHERE SUCH  INSTAL-
LATIONS  COULD  POSE A THREAT TO PUBLIC SAFETY OR OTHERWISE BE UNREASON-
ABLE. SUCH CONDUIT AND ANTENNA ATTACHMENT POINT INSTALLATIONS  SHALL  BE
REPORTED ON A SEMI-ANNUAL BASIS.
  (C)  ALL STATE AUTHORITY REPORTS PROVIDED FOR IN THIS SECTION SHALL BE
DELIVERED INITIALLY, AND THEREAFTER ON AN ANNUAL BASIS UNLESS  OTHERWISE
SPECIFIED,  TO  THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER
OF THE ASSEMBLY, MINORITY LEADERS OF THE SENATE AND ASSEMBLY, CHAIR  AND
RANKING  MINORITY  MEMBER  OF  THE  SENATE ENERGY AND TELECOMMUNICATIONS
COMMITTEE, AND THE CHAIR AND RANKING MINORITY  MEMBER  OF  THE  ASSEMBLY
CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEE, CHAIR OF THE PUBLIC
SERVICE  COMMISSION, COMMISSIONER OF THE EMPIRE STATE DEVELOPMENT CORPO-
RATION AND THE CHAIRPERSONS OF THE BROADBAND DEVELOPMENT AND  DEPLOYMENT
COUNCIL AND BROADBAND DEVELOPMENT AUTHORITY.
  (D)  TELECOMMUNICATIONS  INFRASTRUCTURE IS DEFINED FOR THE PURPOSES OF
THIS ARTICLE TO INCLUDE CONDUITS, DUCTS, POLES, WIRES, FIBER OPTIC CABLE
AND/OR LINES,  COAXIAL  CABLE,  COPPER  TWISTED  PAIR  TELEPHONE  LINES,
RECEIVERS, TRANSMITTERS, BROADCAST RADIO FREQUENCY BANDWIDTH, LASERS AND
MULTIPLEXERS,  TRANSMITTERS,  INSTRUMENTS,  MACHINES, APPLIANCES AND ALL
DEVICES, REAL ESTATE, EASEMENTS, APPARATUS,  PROPERTY  AND  ROUTES  USED
AND/OR OPERATED BY STATE AUTHORITIES AND LOCAL AUTHORITIES.
  2. LOCAL AUTHORITIES. (A) FOR THE PURPOSE OF FURNISHING THE STATE WITH
SYSTEMATIC  INFORMATION  REGARDING  THE  EXISTING, NEWLY CONSTRUCTED AND
PLANNED TELECOMMUNICATIONS INFRASTRUCTURE RESOURCES OF  PUBLIC  AUTHORI-
TIES,  EVERY LOCAL AUTHORITY CONTINUED OR CREATED BY THIS CHAPTER OR ANY
OTHER CHAPTER OF THE LAWS OF THE STATE OF NEW YORK SHALL:
  (I) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS  SECTION,  SUBMIT
TO  THE  GOVERNOR,  TEMPORARY  PRESIDENT  OF  THE SENATE, SPEAKER OF THE
ASSEMBLY, MINORITY LEADERS OF THE SENATE AND ASSEMBLY, CHAIR AND RANKING
MINORITY MEMBER OF THE SENATE ENERGY AND  TELECOMMUNICATIONS  COMMITTEE,
AND  THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY CORPORATIONS,
AUTHORITIES AND COMMISSIONS  COMMITTEE,  CHAIR  OF  THE  PUBLIC  SERVICE
COMMISSION, COMMISSIONER OF THE EMPIRE STATE DEVELOPMENT CORPORATION AND
THE  CHAIRS  OF  THE  BROADBAND  DEVELOPMENT  AND DEPLOYMENT COUNCIL AND
BROADBAND DEVELOPMENT AUTHORITY,  A  COMPLETE  AND  DETAILED  REPORT  OR
REPORTS  UPON  THE PHYSICAL LOCATION AND/OR FREQUENCY, AND AMOUNT OF ALL
EXCESS CAPACITY, WITHIN THE TELECOMMUNICATIONS INFRASTRUCTURE AND  RADIO
FREQUENCY  BANDWIDTH  OWNED,  LICENSED  OR OTHERWISE CONTROLLED BY STATE
AUTHORITIES;
  (II) WITHIN ONE HUNDRED FIFTY DAYS  OF  THE  EFFECTIVE  DATE  OF  THIS
SECTION,  SUBMIT  TO  THE  GOVERNOR,  TEMPORARY PRESIDENT OF THE SENATE,
SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE  SENATE  AND  ASSEMBLY,
CHAIR  AND RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNI-
CATIONS COMMITTEE, AND THE CHAIR AND  RANKING  MINORITY  MEMBER  OF  THE

A. 2118--A                         40

ASSEMBLY  CORPORATIONS,  AUTHORITIES AND COMMISSIONS COMMITTEE, CHAIR OF
THE PUBLIC SERVICE COMMISSION, COMMISSIONER OF THE EMPIRE STATE DEVELOP-
MENT CORPORATION AND THE CHAIRS OF THE BROADBAND DEVELOPMENT AND DEPLOY-
MENT  COUNCIL  AND  BROADBAND  DEVELOPMENT  AUTHORITY,  A  COMPLETE  AND
DETAILED REPORT OR REPORTS IDENTIFYING THE EXCESS CAPACITY AND BANDWIDTH
POSSESSED OR CONTROLLED BY LOCAL AUTHORITIES WHICH MAY BE  LEASED  ON  A
NON-DISCRIMINATORY  AND COMMERCIALLY REASONABLE BASIS TO PUBLIC ENTITIES
OR CERTIFIED TELECOMMUNICATIONS CARRIERS  THAT  NEED  SUCH  CAPACITY  TO
PROVIDE  BROADBAND  SERVICES  TO  UNSERVED,  UNDERSERVED  AND DISTRESSED
AREAS;
  (III) WITHIN ONE HUNDRED EIGHTY DAYS OF THE  EFFECTIVE  DATE  OF  THIS
SECTION,  IDENTIFY  AND  REPORT  UPON  ALL  TELECOMMUNICATIONS  SERVICES
PURCHASED, LEASED OR OTHERWISE USED BY THE AUTHORITIES THAT MAY BE  USED
IN  A  TELECOMMUNICATIONS DEMAND AGGREGATION PROGRAM ADMINISTERED BY THE
STATE BROADBAND DEVELOPMENT AND DEPLOYMENT COUNCIL.
  (B) ALL LOCAL AUTHORITIES SHALL,  FROM  THE  EFFECTIVE  DATE  OF  THIS
SECTION, INSTALL TELECOMMUNICATIONS-GRADE CONDUIT AND ANTENNA ATTACHMENT
POINTS  IN  AND/OR  ON  ALL INFRASTRUCTURE PROJECTS NEWLY CONSTRUCTED OR
UPGRADED BY SUCH AGENCIES, FOR LEASE ON A NON-DISCRIMINATORY AND COMMER-
CIALLY REASONABLE BASIS TO PUBLIC  ENTITIES  OR  CERTIFIED  TELECOMMUNI-
CATIONS  CARRIERS  THAT NEED SUCH CAPACITY TO PROVIDE BROADBAND SERVICES
TO UNSERVED, UNDERSERVED AND DISTRESSED AREAS.  LOCAL  AUTHORITIES  MAY,
HOWEVER,  EXEMPT FROM THIS REQUIREMENT INFRASTRUCTURE WHERE SUCH INSTAL-
LATIONS COULD POSE A THREAT TO PUBLIC SAFETY OR OTHERWISE  BE  UNREASON-
ABLE.  SUCH  CONDUIT AND ANTENNA ATTACHMENT POINT INSTALLATIONS SHALL BE
REPORTED ON A SEMI-ANNUAL BASIS.
  (C) ALL LOCAL AUTHORITY REPORTS PROVIDED FOR IN THIS SECTION SHALL  BE
DELIVERED  INITIALLY, AND THEREAFTER ON AN ANNUAL BASIS UNLESS OTHERWISE
SPECIFIED, TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE  SENATE,  SPEAKER
OF  THE ASSEMBLY, MINORITY LEADERS OF THE SENATE AND ASSEMBLY, CHAIR AND
RANKING MINORITY MEMBER OF  THE  SENATE  ENERGY  AND  TELECOMMUNICATIONS
COMMITTEE,  AND  THE  CHAIR  AND RANKING MINORITY MEMBER OF THE ASSEMBLY
CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEE, CHAIRPERSON OF  THE
PUBLIC  SERVICE COMMISSION, COMMISSIONER OF THE EMPIRE STATE DEVELOPMENT
CORPORATION AND THE CHAIRPERSONS OF THE  BROADBAND  DEVELOPMENT  COUNCIL
AND BROADBAND AUTHORITY.
  3.  STATE  AND  LOCAL  AUTHORITIES.  TO  THE  EXTENT  PRACTICABLE, AND
CONSISTENT WITH APPLICABLE DIRECTIVES OR  GUIDELINES  BY  THE  EMERGENCY
PREPAREDNESS  COMMISSION,  STATE  EMERGENCY  MANAGEMENT OFFICE AND STATE
OFFICE OF HOMELAND SECURITY, EACH STATE AND LOCAL AUTHORITY  SHALL  MAKE
ACCESSIBLE  TO  THE PUBLIC VIA ITS OFFICIAL INTERNET WEB SITE DOCUMENTA-
TION PERTAINING TO THE TELECOMMUNICATIONS INFRASTRUCTURE RESOURCES OWNED
BY, LEASED BY, USED BY OR OTHERWISE CONTROLLED BY SUCH STATE  AND  LOCAL
AUTHORITIES.
  S  12.  The public service law is amended by adding a new section 90-a
to read as follows:
  S 90-A. STATEMENT OF POLICY. 1. THE STATE OF NEW YORK'S  LONG-STANDING
POLICY,  CODIFIED IN THIS SECTION, IS THAT CERTAIN COMMUNICATIONS TOOLS,
AND PARTICULARLY TELEPHONE SERVICES, I.E.  ESSENTIAL  SERVICES,  ARE  SO
FUNDAMENTAL  THAT  IT  IS  NOT  IN  THE  PUBLIC  INTEREST TO LEAVE THEIR
PROVISION TO THE VAGARIES OF THE  MARKETPLACE  ALONE.  FURTHERMORE,  THE
LEGISLATURE  DECLARES THAT IT IS IN THE PUBLIC INTEREST THAT SUCH ESSEN-
TIAL SERVICES BE MADE AND MAINTAINED UNIVERSALLY ACROSS NEW  YORK.  SUCH
TOOLS  AND  SERVICES HAVE, OVER TIME, AND INCREASINGLY NOW, SHAPED CITI-
ZENS' ABILITY TO PARTICIPATE  IN  CIVIC  AFFAIRS,  TO  ACQUIRE  LEARNING
SKILLS  NEEDED  FOR THEIR ECONOMIC SUCCESS AND THAT OF THE STATE, AND TO

A. 2118--A                         41

ENJOY THE RICH AND UNPARALLELED SOCIAL AND CULTURAL LIFE THAT IS A VITAL
PART OF NEW YORK  STATE'S  ECONOMY.  THE  STATE'S  GOALS  FOR  UNIVERSAL
SERVICE  ARE TO FURTHER AND PROTECT THE PUBLIC INTEREST BY PROMOTING THE
AVAILABILITY  OF  QUALITY  SERVICES  AT JUST, REASONABLE, AND AFFORDABLE
RATES; TO ADVANCE THE AVAILABILITY OF SUCH SERVICES  TO  ALL  CONSUMERS,
INCLUDING  THOSE  IN  LOW INCOME, RURAL, INSULAR, AND HIGH COST AREAS AT
RATES THAT ARE REASONABLY COMPARABLE TO THOSE  CHARGED  IN  HIGH-DENSITY
URBAN  AREAS;  AND  TO INCREASE ACCESS TO, AND THE UBIQUITY OF, ADVANCED
TELECOMMUNICATIONS SERVICES AVAILABLE TO THE PUBLIC IN AN EQUITABLE  AND
NONDISCRIMINATORY  MANNER.  ALL TELEPHONE CORPORATIONS AND PROVIDERS AND
RESELLERS OF  TELECOMMUNICATIONS  SERVICES  SHOULD  CONTRIBUTE  TO  CORE
PUBLIC  SAFETY AND PUBLIC INTEREST GOALS TO THE EXTENT ALLOWABLE BY LAW.
AT A  MINIMUM,  THESE  INCLUDE  EQUIVALENT  UNIVERSAL  SERVICE  SUPPORT,
PROVISION AND SUPPORT FOR E911, DISABILITY ACCESS, CONSUMER PROTECTIONS,
AND EQUITABLE TAXATION. EFFECTIVE PUBLIC PROGRAMS MUST BE MADE AVAILABLE
WHERE  COMPETITIVE  FORCES DO NOT RESULT IN THE DEPLOYMENT, MAINTENANCE,
OR RECONSTRUCTION OF  AFFORDABLE,  HIGH-QUALITY,  AND  RELIABLE  ADVANCE
TELECOMMUNICATIONS  CAPABILITY  ACROSS  ALL GEOGRAPHIC REGIONS AND DEMO-
GRAPHIC SEGMENTS OF  THE  STATE.  TELECOMMUNICATIONS  NETWORKS  MUST  BE
INTER-OPERABLE, BASED ON OPEN STANDARDS, RELIABLE, SURVIVABLE, DIVERSELY
PATHED,  AS  WIDELY  INTERCONNECTED AS IS REASONABLE, ACCESSIBLE FOR ALL
USERS AS PROVIDED FOR BY LAW, INCLUDING BUT NOT LIMITED TO THE AMERICANS
WITH DISABILITIES ACT, AND ALL  APPLICABLE  FEDERAL,  STATE,  AND  LOCAL
REGULATIONS,  AND MUST MEET BASIC REQUIREMENTS CONCERNING PUBLIC SAFETY,
CONSUMER PROTECTION, AND RELEVANT SOCIAL AND MORAL OBLIGATIONS.
  2. FOR THE PURPOSES OF THIS SECTION:
  (A) THE TERM "UNIVERSAL SERVICE" MEANS THAT  CERTAIN  BASIC  TELEPHONE
FACILITIES,   SERVICES,   AND  INSTRUMENTALITIES,  KNOWN  AS  "ESSENTIAL
SERVICES", SHALL BE ACCESSIBLE TO ANY PERSON, CORPORATION,  OR  LOCALITY
IN  NEW  YORK  STATE  AT COSTS REASONABLY COMPARABLE TO RATES CHARGED IN
URBAN AREAS AND LOW-COST AREAS, SO THAT THERE SHALL NOT BE ANY UNDUE  OR
UNREASONABLE  PREFERENCE  OR  ADVANTAGE  TO  ANY PERSON, CORPORATION, OR
LOCALITY.
  (B) THE TERM "ESSENTIAL SERVICES" MEANS  THE  PROVISION  BY  TELEPHONE
CORPORATIONS  OF  VOICE  GRADE  ACCESS TO AND ACROSS THE PUBLIC SWITCHED
TELEPHONE  NETWORK,  WITH  THE  ABILITY  TO  PLACE  AND  RECEIVE  CALLS;
TOUCH-TONE  SERVICE; SINGLE-PARTY SERVICE; ACCESS TO EMERGENCY SERVICES,
INCLUDING 911 AND E911 (WHICH IDENTIFIES A CALLER'S LOCATION); ACCESS TO
OPERATOR SERVICES; ACCESS TO INTER-EXCHANGE SERVICES; ACCESS TO DIRECTO-
RY ASSISTANCE; ACCESS TO "LIFELINE" SERVICES, OR OTHER  SERVICES  EQUIV-
ALENT  IN  PRICE  AND  QUALITY  FOR QUALIFYING LOW-INCOME CONSUMERS; AND
ACCESS TO ALL OF SUCH OTHER SERVICES AS  MAY  BE  MANDATED  BY  FEDERAL,
STATE, AND LOCAL LAW.
  3.  WITHIN  THIRTY DAYS OF THE DATE ON WHICH THE COMMISSION HAD ACTUAL
KNOWLEDGE, OR SHOULD REASONABLY HAVE KNOWN  OR  BEEN  INFORMED,  OF  THE
OCCURRENCE,  OR  APPEARANCE  OF THE PROXIMATE OCCURRENCE, OF A PURCHASE,
ACQUISITION, TAKING, OR OTHER TRANSFER OF CONTROL OR  OWNERSHIP  OF  THE
CAPITAL  STOCK  OF  A  TELEGRAPH  OR  TELEPHONE CORPORATION ORGANIZED OR
EXISTING UNDER THE LAWS  OF  THIS  STATE  WITHIN  THE  CONTEMPLATION  OF
SECTION  ONE  HUNDRED  OF THIS ARTICLE OR PARAGRAPH (B) OF THIS SUBDIVI-
SION, THE COMMISSION SHALL COMPILE AND PUBLISH A REPORT ON  THE  EFFECT,
IF ANY, OF SUCH TRANSFER OF CONTROL UPON UNIVERSAL SERVICE IN THE STATE.
SUCH  REPORT  SHALL BE KNOWN AS THE "UNIVERSAL SERVICE IMPACT ANALYSIS",
AND SHALL BE ISSUED BEFORE THE COMMISSION MAY VOTE UPON THE APPROVAL  OF
SUCH OCCURRENCE. IF, ON THE EFFECTIVE DATE OF THIS SUBDIVISION, THERE IS
A  PROCEEDING BEFORE THE COMMISSION WITHIN THE CONTEMPLATION OF SUBDIVI-

A. 2118--A                         42

SION ONE OF THIS SECTION, THEN THE COMMISSION  SHALL  HAVE  THIRTY  DAYS
FROM  SUCH EFFECTIVE DATE TO ISSUE ITS UNIVERSAL SERVICE IMPACT ANALYSIS
REPORT. SUCH UNIVERSAL SERVICE IMPACT ANALYSIS REPORT SHALL INCLUDE, BUT
NOT BE LIMITED TO:
  (A)  AN  ANALYSIS OF THE EFFECTS UPON PRICING OF TELEPHONE SERVICES IN
HIGH-COST AND RURAL AND LOW-INCOME AREAS AFFECTED BY  SUCH  TRANSFER  OF
CONTROL;
  (B) AN ANALYSIS OF THE ACTUAL OR POTENTIAL EFFECTS OF SUCH TRANSFER OF
CONTROL  UPON  NETWORK  RELIABILITY  AND  SERVICE  QUALITY  IN  THE AREA
AFFECTED BY SUCH TRANSFER OF CONTROL;
  (C) AN ANALYSIS OF THE ACTUAL OR POTENTIAL EFFECTS  UPON  NEW  SERVICE
PROVISION  IN  RURAL  AND HIGH-COST AND LOW-INCOME AREAS WITHIN THE AREA
AFFECTED BY SUCH TRANSFER OF CONTROL.
  FOR THE PURPOSES OF  TRIGGERING  SUCH  REPORTING  REQUIREMENT  BY  THE
COMMISSION,  THERE  SHALL  BE  A REBUTTABLE PRESUMPTION OF A TRANSFER OF
CONTROL OR OWNERSHIP UPON THE ACQUISITION OR ACCUMULATION BY ANY  PERSON
OR  GROUP  OF  PERSONS  OF  TEN  PERCENT OR MORE OF THE SHARES OF, OR OF
COMPARABLE OWNERSHIP INTEREST IN, A TELEGRAPH OR TELEPHONE  CORPORATION.
SUCH  TRANSFER  OF  CONTROL  OR ACQUISITION OR ACCUMULATION OF OWNERSHIP
INTERESTS SHALL ALSO BE DEEMED  TO  OCCUR  UPON  THE  SALE,  ASSIGNMENT,
TRANSFER,  DIVESTITURE OF A PORTION OF A BUSINESS ENTITY, LEASE OR OTHER
DISPOSAL, EITHER IN WHOLE OR PART, EITHER  BY  INVOLUNTARY  SALE  OR  BY
VOLUNTARY SALE, MERGER, OR CONSOLIDATION, OR BANKRUPTCY, OF ANY TITLE TO
SUCH  TELEGRAPH  OR TELEPHONE CORPORATION, EITHER LEGAL OR EQUITABLE, OR
OF THE LINES OR OTHER NETWORK ELEMENTS OF SUCH  TELEGRAPH  OR  TELEPHONE
CORPORATION  WITHIN  THREE  OR  MORE  LOCAL  ACCESS  AND TRANSPORT AREAS
(LATAS) OR COUNTIES.
  4. UPON THE COMPLETION OF THE REPORT UNDER SUBDIVISION THREE  OF  THIS
SECTION  THE  COMMISSION  SHALL  HAVE POWER AND THE DUTY TO ESTABLISH BY
RULE OR REGULATION, WITHIN NINETY DAYS OF THE  EFFECTIVE  DATE  OF  THIS
SECTION,  SUCH  CHARGES,  EXCHANGES  OF  FUNDS, FEES, METHODOLOGIES, AND
MODALITIES AS ARE NECESSARY AND CONVENIENT TO  PROMOTE  AND  ENSURE  THE
STATEWIDE  UNIVERSAL  AVAILABILITY OF HIGH-QUALITY ESSENTIAL SERVICES AT
JUST, REASONABLE, AND AFFORDABLE RATES; TO ADVANCE THE  AVAILABILITY  OF
SUCH  SERVICES  TO  ALL CONSUMERS, INCLUDING THOSE IN LOW INCOME, RURAL,
INSULAR, AND HIGH COST AREAS AT RATES THAT ARE REASONABLY COMPARABLE  TO
THOSE  CHARGED  IN  LOW COST AND URBAN AREAS; AND TO INCREASE ACCESS TO,
AND THE UBIQUITY OF, ADVANCED TELECOMMUNICATIONS SERVICES  AVAILABLE  TO
THE  PUBLIC IN AN EQUITABLE AND NONDISCRIMINATORY MANNER. THE COMMISSION
SHALL HAVE POWER AND THE DUTY TO PROMULGATE SUCH RULES OR REGULATIONS AS
ARE NECESSARY AND CONVENIENT TO EFFECTUATE THE STATE POLICIES SET  FORTH
IN THIS SECTION.
  S  13.  The public service law is amended by adding a new section 90-b
to read as follows:
  S 90-B.  REPORTS, HEARINGS AND INVESTIGATIONS STUDYING MATTERS IN  THE
PUBLIC INTEREST. THE LEGISLATURE FINDS THAT UNIVERSAL ACCESS TO AFFORDA-
BLE  TELEPHONE  SERVICE HAS BEEN A LONG-STANDING TRADITION AND POLICY OF
THE STATE. HOWEVER, THIS POLICY HAS COME INTO QUESTION WITH PROPOSALS BY
INCUMBENT CARRIERS TO SELL SIGNIFICANT PORTIONS OF THE UPSTATE TELEPHONE
NETWORK TO COMPANIES WITH LITTLE OR NO BACKGROUND IN  THE  PROVISION  OF
TELEPHONE  SERVICE.  UNIVERSAL SERVICE, LONG TAKEN FOR GRANTED, MUST NOW
BE REEVALUATED TO ENSURE THAT ANY FUTURE UPSTATE TELEPHONE CARRIERS WILL
MAINTAIN THIS  POLICY.  THEREFORE,  THE  DEPARTMENT  SHALL  PREPARE  AND
SUBMIT,  ON  OR  BEFORE AUGUST FIRST, TWO THOUSAND EIGHTEEN, A REPORT TO
THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE  ASSEM-
BLY,  MINORITY  LEADERS  OF  THE  SENATE AND ASSEMBLY, CHAIR AND RANKING

A. 2118--A                         43

MINORITY MEMBER OF THE SENATE ENERGY AND  TELECOMMUNICATIONS  COMMITTEE,
AND  THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY CORPORATIONS,
AUTHORITIES AND COMMISSIONS COMMITTEE. THE  REPORT  SHALL  EVALUATE  THE
IMPLICATIONS OF A SALE OF A PORTION OF THE UPSTATE TELEPHONE NETWORK FOR
THE  POLICY  OF UNIVERSAL ACCESS TO AFFORDABLE SERVICE. THE REPORT SHALL
FURTHER EVALUATE THE STANDARDS BY WHICH THE DEPARTMENT  WILL  ANALYZE  A
PROPOSED SALE.
  S  14.  The public service law is amended by adding a new section 90-c
to read as follows:
  S 90-C. LEGISLATIVE FINDINGS. 1. THE LEGISLATURE FINDS THAT  DEPLOYING
BROADBAND  NETWORKS  AND ADVANCED COMMUNICATIONS SERVICES THROUGHOUT NEW
YORK WILL ENABLE CONTINUED IMPROVEMENTS IN  HEALTHCARE,  PUBLIC  SAFETY,
EDUCATION,  ECONOMIC  DEVELOPMENT  AND  THE  CREATION  OF JOBS, AND WILL
FACILITATE THE FREE EXCHANGE OF IDEAS THAT IS VITAL  TO  DEMOCRACY.  THE
LEGISLATURE  FURTHER FINDS THAT NEW YORK'S FINANCIAL SERVICES COMMUNITY,
PUBLISHING COMMUNITY, HIGHER EDUCATION COMMUNITY, HIGH-TECHNOLOGY COMMU-
NITY AND OTHER WORLD-CLASS BUSINESS COMMUNITIES HAVE PLACED NEW YORK  AT
THE FOREFRONT OF NUMEROUS VITAL INDUSTRIES, BUT THAT TO CONTINUE TO BE A
WORLD-CLASS  LEADER,  NEW  YORK  MUST  ADOPT POLICIES AND PRACTICES THAT
PROMOTE THE ROLL-OUT AND FURTHER DEVELOPMENT OF BROADBAND. FINALLY,  THE
LEGISLATURE  FINDS  THAT RURAL AREAS OF NEW YORK LACK THE MULTIPLE TELE-
COMMUNICATIONS CONNECTIONS NECESSARY TO LINK TO OUTSIDE RESOURCES DURING
TIMES OF EMERGENCY, THAT BROADBAND NETWORKS ARE NECESSARY TO  CREATE  OR
FACILITATE  SUSTAINABLE  TELEMEDICINE NETWORKS THAT CONNECT RURAL HEALTH
CLINICS TO URBAN MEDICAL CENTERS, AND THAT INCREASED GOVERNMENT  USE  OF
BROADBAND  NETWORKS  AND  ADVANCED  COMMUNICATIONS SERVICES WILL ENHANCE
GOVERNMENT OPERATIONS  THROUGH  TELEMEDICINE  FOR  HEALTHCARE,  DISTANCE
LEARNING  FOR  EDUCATION,  REDUNDANT AND DIVERSELY-PATHED COMMUNICATIONS
NETWORKS FOR PUBLIC SAFETY COMMUNICATIONS AND TO GENERALLY  PROTECT  THE
HEALTH AND WELFARE OF THE STATE AND ITS CITIZENS.
  2.  THE DEPARTMENT SHALL PREPARE AND SUBMIT, WITHIN NINETY DAYS OF THE
EFFECTIVE DATE OF THIS SECTION, A  REPORT  TO  THE  GOVERNOR,  TEMPORARY
PRESIDENT  OF  THE  SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF
THE SENATE AND ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF THE SENATE
ENERGY AND TELECOMMUNICATIONS  COMMITTEE,  AND  THE  CHAIR  AND  RANKING
MINORITY  MEMBER  OF  THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMIS-
SIONS COMMITTEE. THE REPORT SHALL STUDY  IN  DETAIL  THE  ACTUAL  RETAIL
AVAILABILITY OF WIRELINE, WIRELESS CELLULAR AND FIXED-WIRELESS BROADBAND
COMMUNICATIONS MODALITIES ACROSS THE STATE OF NEW YORK, AND SHALL ORGAN-
IZE THE DATA OF SUCH AVAILABILITY BY CENSUS TRACT.
  3.  THE  DEPARTMENT, ACTING TOGETHER WITH THE EMPIRE STATE DEVELOPMENT
CORPORATION, SHALL PREPARE AND SUBMIT, WITHIN NINETY DAYS OF THE  EFFEC-
TIVE DATE OF THIS SECTION, A REPORT TO THE GOVERNOR, TEMPORARY PRESIDENT
OF  THE  SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE SENATE
AND ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF THE SENATE ENERGY AND
TELECOMMUNICATIONS COMMITTEE, AND THE CHAIR AND RANKING MINORITY  MEMBER
OF THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEE. THE
REPORT  SHALL LIST ALL FEDERAL, STATE, LOCAL, FOUNDATION, PRIVATE SECTOR
AND OTHER FUNDS, GRANTS, LOANS AND OTHER FUNDING MECHANISMS THAT CAN  BE
APPLIED  FOR  AND  USED  BY  THE BROADBAND DEVELOPMENT AUTHORITY, BY THE
STATE, BY MUNICIPAL  CORPORATIONS,  BY  NONPROFIT  CORPORATIONS  AND  BY
PRIVATE SECTOR BUSINESSES TO FUND BROADBAND DEPLOYMENT IN NEW YORK.
  4.  THE DEPARTMENT, ACTING TOGETHER WITH THE OFFICE FOR TECHNOLOGY AND
THE OFFICE OF CYBER SECURITY AND  CRITICAL  INFRASTRUCTURE  COORDINATION
("CSCIC")  SHALL PREPARE AND SUBMIT, WITHIN NINETY DAYS OF THE EFFECTIVE
DATE OF THIS SECTION, A REPORT TO THE GOVERNOR, TEMPORARY  PRESIDENT  OF

A. 2118--A                         44

THE  SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE SENATE AND
ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF  THE  SENATE  ENERGY  AND
TELECOMMUNICATIONS  COMMITTEE, AND THE CHAIR AND RANKING MINORITY MEMBER
OF THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEE. THE
REPORT SHALL DETERMINE THE LOCATION OF ALL AREAS OF THE STATE, BY CENSUS
TRACT,  THAT  DO  NOT  HAVE GENERALLY AND READILY COMMERCIALLY AVAILABLE
RETAIL ACCESS TO BROADBAND  WIRELINE  FACILITIES  AND/OR  FIXED-WIRELESS
BROADBAND FACILITIES ("UNSERVED AREAS"); THE REPORT SHALL ALSO DETERMINE
ALL  AREAS OF THE STATE, BY CENSUS TRACT, THAT DO NOT HAVE GENERALLY AND
READILY COMMERCIALLY  AVAILABLE  RETAIL  ACCESS  TO  BROADBAND  WIRELINE
FACILITIES  AND/OR  FIXED-WIRELESS BROADBAND FACILITIES FROM TWO OR MORE
TELECOMMUNICATIONS  OR  ADVANCED   COMMUNICATIONS   SERVICES   PROVIDERS
("UNDERSERVED  AREAS");  THE REPORT SHALL ALSO DETERMINE THE LOCATION OF
ALL AREAS OF THE STATE, BY CENSUS TRACT,  THAT  QUALIFY  AS  "DISTRESSED
AREAS"  UNDER  THIS  CHAPTER, AND EITHER DO OR DO NOT HAVE GENERALLY AND
READILY COMMERCIALLY  AVAILABLE  RETAIL  ACCESS  TO  BROADBAND  WIRELINE
FACILITIES AND/OR FIXED-WIRELESS BROADBAND FACILITIES; THE REPORT SHALL,
FURTHERMORE,  ASSESS  AND SET FORTH WITH SPECIFICITY THE AGGREGATE UNMET
DEMAND FOR BROADBAND SERVICES IN UNSERVED,  UNDERSERVED  AND  DISTRESSED
AREAS  BY  CENSUS TRACT AND BY BLOCK, LOT OR OTHER UNIQUELY IDENTIFIABLE
ADMINISTRATIVE CHARACTERISTIC, AND SHALL ESTIMATE THE AMOUNT  OF  BROAD-
BAND  CONNECTIVITY  THAT WOULD NEED TO BE BUILT OR OFFERED IN SUCH AREAS
TO MEET THE UNMET DEMAND.  SUCH  REPORT  SHALL,  IN  ADDITION  TO  BEING
SUBMITTED  TO  THE  GOVERNMENT OFFICES AND OFFICIALS SET FORTH ABOVE, BE
USED TO CREATE A MAP IN STANDARD FORMAT TO BE DETERMINED BY THE NEW YORK
GEOGRAPHIC INFORMATION SYSTEMS CLEARINGHOUSE AND CSCIC,  AND  CONSISTENT
WITH  THE  LEGITIMATE  SECURITY CONCERNS THAT MAY BE EXPRESSED BY CSCIC,
SUCH MAP SHALL BE A FULLY THREE-DIMENSIONAL REPRESENTATION OF ALL BROAD-
BAND RESOURCES WITHIN THE STATE.
  S 15. The public service law is amended by adding a new  section  90-d
to read as follows:
  S 90-D. LEGISLATIVE PURPOSE. 1. THE LEGISLATURE FINDS THAT:
  (A)  THE  PUBLIC  INTEREST IS FURTHERED AND PROTECTED BY ENSURING THAT
NEW YORK'S EXISTING ENHANCED 9-1-1 ("E911") SYSTEM  FOR  WIRELINE  TELE-
PHONE  SERVICE  AND  WIRELESS CELLULAR TELEPHONE SERVICE PROVIDE ALL THE
AUTOMATIC NUMBER IDENTIFICATION ("ANI") AND AUTOMATIC LOCATION IDENTIFI-
CATION ("ALI") NECESSARY TO PROTECT PUBLIC SAFETY AND RESPOND  TO  HOME-
LAND  SECURITY  CONCERNS,  AND  PARTICULARLY SO IN RURAL AREAS AND ON OR
NEAR NEW YORK'S COASTLINES;
  (B) EXISTING EMERGENCY SERVICES SYSTEMS CAN ISOLATE EMERGENCY RESPONSE
AGENCIES THAT NEED INTER-CONNECTIVITY IN MEETING HOMELAND  SECURITY  AND
PUBLIC SAFETY CRISES;
  (C)  ALL  9-1-1  CALLERS  IN  NEW  YORK,  AND THE FIRST RESPONDERS WHO
RECEIVE AND ACT UPON SUCH CALLS, WOULD BE BETTER  ABLE  TO  ENHANCE  THE
PUBLIC  SAFETY  WITH FLEXIBLE E911 NETWORKS THAT COULD BE INTERCONNECTED
WITH LOCAL, REGIONAL AND NATIONAL INTERNET PROTOCOL BASED NETWORKS,  AND
THAT  COULD  BE  FLEXIBLY  ADAPTED AND SCALED TO MEET THE CHALLENGES NEW
COMMUNICATIONS TECHNOLOGY PLACE UPON E911 NETWORKS; AND
  (D) CLEAR LINES OF AUTHORITY AND ORGANIZATION IN  THE  DEPLOYMENT  AND
ADMINISTRATION  OF  PUBLIC  SAFETY  ANSWERING POINTS SHOULD BE A GOAL OF
STATE E911 POLICY.
  2. THE DEPARTMENT SHALL PREPARE AND SUBMIT, WITHIN NINETY DAYS OF  THE
DATE THIS SECTION BECOMES LAW A REPORT TO THE GOVERNOR, TEMPORARY PRESI-
DENT  OF  THE  SENATE,  SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE
SENATE AND ASSEMBLY, CHAIR AND RANKING MINORITY  MEMBER  OF  THE  SENATE
ENERGY  AND  TELECOMMUNICATIONS  COMMITTEE,  AND  THE  CHAIR AND RANKING

A. 2118--A                         45

MINORITY MEMBER OF THE ASSEMBLY CORPORATIONS,  AUTHORITIES  AND  COMMIS-
SIONS  COMMITTEE.  THE  REPORT SHALL STUDY IN DETAIL THE TECHNICAL CHAL-
LENGES FACING AND POTENTIALLY DEGRADING THE EFFECTIVENESS OF NEW  YORK'S
EXISTING  E911  NETWORKS,  AND SHALL STUDY AND REPORT UPON IN DETAIL THE
NEXT-GENERATION TECHNOLOGICAL SOLUTIONS,  AND  NATIONAL  STANDARDS,  AND
POTENTIALLY  AMELIORATIVE  SYSTEMS  AND  PROCEDURES PROPOSED BY NATIONAL
PUBLIC SAFETY EXPERT ASSOCIATIONS SUCH  AS,  BUT  NOT  LIMITED  TO,  THE
NATIONAL  EMERGENCY  NUMBERING  ASSOCIATION ("NENA"), THE ASSOCIATION OF
PUBLIC-SAFETY COMMUNICATIONS OFFICIALS ("APCO"), AND THE NATIONAL PUBLIC
SAFETY TELECOMMUNICATIONS COUNCIL.
  3. THE DEPARTMENT, ACTING TOGETHER WITH THE STATE EMERGENCY MANAGEMENT
OFFICE, THE STATE OFFICE OF FIRE PREVENTION AND CONTROL, AND  THE  STATE
POLICE,  SHALL  PREPARE  AND SUBMIT, WITHIN NINETY DAYS OF THE EFFECTIVE
DATE OF THIS SECTION, A REPORT TO THE GOVERNOR, TEMPORARY  PRESIDENT  OF
THE  SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE SENATE AND
ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF  THE  SENATE  ENERGY  AND
TELECOMMUNICATIONS  COMMITTEE, AND THE CHAIR AND RANKING MINORITY MEMBER
OF THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEE. THE
REPORT SHALL EXAMINE THE CURRENT E911 SYSTEMS FUNDING MECHANISMS, STATE-
WIDE, REGIONAL, COUNTY AND LOCAL ADMINISTRATION OF E911 FACILITIES,  THE
EXTENT OR LACK THEREOF OF THE COMMISSION'S EXISTING REGULATORY AUTHORITY
OF E911 ISSUES IN NEW YORK, AND SUCH OTHER PUBLIC SAFETY ISSUES DIRECTLY
ARISING  FROM  THE CURRENT E911 IMPLEMENTATIONS IN NEW YORK AS IS NECES-
SARY AND CONVENIENT TO PROTECT THE PUBLIC INTEREST.
  4. WITHIN SIXTY DAYS AFTER THE SUBMISSION OF THE REPORTS  REQUIRED  BY
SUBDIVISIONS TWO AND THREE OF THIS SECTION, THE COMMISSION SHALL CONVENE
A  SERIES OF PUBLIC HEARINGS TO DISCUSS NEW YORK'S EXISTING E911 SYSTEMS
AND NETWORKS AND THE FINDINGS OF SUCH REPORTS IN NEW YORK TO CLARIFY THE
PUBLIC POLICY ISSUES INVOLVED THAT MIGHT REQUIRE LEGISLATIVE ATTENTION.
  S 16. The public service law is amended by adding a new  section  90-e
to read as follows:
  S  90-E.  WIRELESS  TELEPHONE  QUALITY,  RELIABILITY AND AFFORDABILITY
STUDY. 1.  WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF  THIS
SECTION, THE COMMISSION SHALL STUDY AND REPORT ON THE QUALITY, RELIABIL-
ITY,  AND  AFFORDABILITY,  OF  WIRELESS TELEPHONE SERVICE, INCLUDING WHY
SUBDIVISION SIX OF SECTION FIVE OF THIS CHAPTER SHOULD NOT BE  REPEALED.
THE  COMMISSION  SHALL ALSO, AS PART OF SUCH STUDY, DETERMINE WHAT RULES
AND REGULATIONS SHALL BE NECESSARY:
  (A) TO ENHANCE CONSUMER  PROTECTIONS  CURRENTLY  OFFERED  TO  WIRELESS
TELEPHONE SERVICES CONSUMERS;
  (B)  TO  ESTABLISH AND SAFEGUARD WIRELESS TELEPHONE SERVICE QUALITY SO
THAT IT IS REASONABLY COMPARABLE TO THE WIRELINE SERVICE QUALITY  NECES-
SARY TO SAFEGUARD CITIZEN ACCESS TO E911; AND
  (C)  TO  PROTECT  THE  PUBLIC  INTEREST,  PUBLIC SAFETY AND HEALTH AND
WELFARE.
  2. THE STUDY SHALL INCLUDE A DETAILED ANALYSIS EXAMINING  WHETHER  THE
WIRELESS TELEPHONE SERVICE PROVIDERS' POLICIES INCLUDE ADEQUATE CONSUMER
PROTECTIONS INCLUDING WHETHER:
  (A)  THERE  IS SUFFICIENT WRITTEN DISCLOSURE IN THE COMPANY'S CONSUMER
SERVICE CONTRACT WITH RESPECT TO THE CALLING  AREA  FOR  THE  PLAN,  THE
MONTHLY  ACCESS  FEE  OR  BASE  CHARGE;  THE  NUMBER  OF AIRTIME MINUTES
INCLUDED IN THE PLAN; ANY NIGHT AND WEEKEND MINUTES INCLUDED IN THE PLAN
OR OTHER DIFFERING CHARGES FOR DIFFERING TIME PERIODS AND THE TIME PERI-
ODS WHEN NIGHT AND WEEKEND MINUTES OR OTHER CHARGES APPLY;  THE  CHARGES
FOR  EXCESS  OR  ADDITIONAL  MINUTES;  WHETHER OR NOT, AND THE EXTENT TO
WHICH, PER-MINUTE DOMESTIC OR INTERNATIONAL LONG  DISTANCE  CHARGES  ARE

A. 2118--A                         46

INCLUDED IN OTHER RATES, AND, TO THE EXTENT NOT INCLUDED, THE APPLICABLE
PER-MINUTE LONG DISTANCE RATES; PER-MINUTE ROAMING OR OFF-NETWORK CHARG-
ES; THE AMOUNT OF ANY ADDITIONAL TAXES, FEES, OR SURCHARGES THAT WILL BE
COLLECTED OR RETAINED BY THE WIRELESS TELEPHONE SERVICE PROVIDER; IF THE
PLAN  REQUIRES A FIXED-TERM CONTRACT, THE DURATION OF SUCH CONTRACT; THE
AMOUNT OF ANY EARLY TERMINATION FEE AND THE CONDITIONS UNDER  WHICH  ANY
SUCH  EARLY  TERMINATION  FEE  WOULD  APPLY, INCLUDING THE LENGTH OF ANY
TRIAL PERIOD DURING WHICH NO EARLY TERMINATION FEE WOULD APPLY;
  (B) THE FIRST BILL RENDERED BY THE WIRELESS TELEPHONE SERVICE PROVIDER
TO THE CUSTOMER SHALL INCLUDE NOTICE OF THE TERMS ON AND THE  PERIOD  OF
TIME  DURING  WHICH  SUCH  SERVICE  MAY BE TERMINATED WITHOUT PENALTY; A
STATEMENT NOTIFYING THE CUSTOMER THAT THE SERVICE INCLUDES  BASIC  WIRE-
LESS  911  SERVICE; THE INFORMATION WHICH IS INCLUDED IN THE EDUCATIONAL
PLAN FOR INFORMING THE PUBLIC ABOUT THE ENHANCED WIRELESS 911 SERVICE IN
NEW YORK STATE REQUIRED BY SUBDIVISION EIGHT OF  SECTION  THREE  HUNDRED
TWENTY-EIGHT  OF  THE  COUNTY  LAW  AND  WHICH  IS AN EXPLANATION OF THE
ENHANCED  WIRELESS  911  SYSTEM   AND   A   PROGRESS   REPORT   ON   THE
COUNTY-BY-COUNTY  IMPLEMENTATION OF THE STATEWIDE SYSTEM; WEBSITE INFOR-
MATION TO PERMIT THE CONSUMER TO ACCESS SUCH INFORMATION VIA THE  INTER-
NET  IN ACCORDANCE WITH SUBDIVISION EIGHT OF SECTION THREE HUNDRED TWEN-
TY-EIGHT OF THE COUNTY LAW; THE TOLL-FREE HOTLINE NUMBER BY  WHICH  SUCH
INFORMATION  MAY BE ACCESSED BY THE CONSUMER IN ACCORDANCE WITH SUBDIVI-
SION EIGHT OF SECTION THREE HUNDRED TWENTY-EIGHT OF THE COUNTY LAW;  AND
BASED  UPON  CUSTOMER  SUPPLIED  INFORMATION REGARDING ANTICIPATED USAGE
PATTERNS AND UPON SUCH CUSTOMER'S REQUEST, A GOOD FAITH ESTIMATE OF  THE
MONTHLY   FIXED  AND  USAGE  CHARGES  AND  ADDITIONAL  TAXES,  FEES,  OR
SURCHARGES AND OF THE ANTICIPATED TOTAL MONTHLY BILL FOR  SUCH  CUSTOMER
UNDER SUCH PLAN;
  (C)  WIRELESS  TELEPHONE SERVICE PROVIDERS HAVE ADEQUATELY ESTABLISHED
PROCEDURES FOR DISCLOSURE AT ANY POINT OF SALE OR OF CONTACT WITH POTEN-
TIAL OR EXISTING RESIDENTIAL CUSTOMERS OF MAPS DISPLAYING  THE  WIRELESS
TELEPHONE SERVICE PROVIDER'S OUTSIDE COVERAGE WITHIN THE STATE AND WITH-
IN EACH COUNTY OF THE STATE IN WHICH SUCH PROVIDER PROVIDES SERVICE;
  (D)  WIRELESS  TELEPHONE  SERVICE  PROVIDERS CLEARLY DESCRIBE IN PLAIN
LANGUAGE THE PRODUCTS AND SERVICES FOR WHICH CHARGES  ARE  IMPOSED,  AND
SHALL  CONFORM  TO  FORMAT  STANDARDS  ESTABLISHED  BY  THE BOARD IN THE
CUSTOMER'S MONTHLY BILL;
  (E) WIRELESS TELEPHONE SERVICE PROVIDERS OFFER CUSTOMERS A TRIAL PERI-
OD WHICH AFTER THE FIRST BILL IS RENDERED TO SUCH CUSTOMER  FOR  MONTHLY
SERVICE  FOLLOWING  SERVICE  ACTIVATION  AND  DURING  WHICH  PERIOD SUCH
CUSTOMER MAY, AFTER PAYMENT FOR SERVICES USED,  TERMINATE  SUCH  SERVICE
WITHOUT  INCURRING  ANY TERMINATION FEES OR CHARGES OR ANY OTHER PENALTY
OF ANY KIND AND MAY, UPON THE RETURN OF ANY HANDSET BOUGHT OR LEASED  IN
CONNECTION  WITH  SUCH SERVICE, RECEIVE A PRO RATA REFUND OF ANY AMOUNTS
PAID FOR SUCH HANDSET;
  (F) WIRELESS TELEPHONE SERVICE PROVIDERS HAVE  ESTABLISHED  PROCEDURES
FOR  THE  NOTIFICATION  OF RESIDENTIAL CUSTOMERS AT LEAST THIRTY DAYS IN
ADVANCE OF ANY CHANGE IN RATES, CHARGES, TERMS, OR CONDITIONS OF SERVICE
FOR SUCH CUSTOMERS; AND
  (G) WIRELESS TELEPHONE SERVICE PROVIDERS HAVE  ESTABLISHED  PROCEDURES
FOR  THE  TIMELY  PRIOR  NOTICE TO RESIDENTIAL CUSTOMERS OF THE WIRELESS
TELEPHONE SERVICE PROVIDER'S INTENT TO TERMINATE SUCH CUSTOMER'S SERVICE
SUCH THAT, AT A MINIMUM, SUCH CUSTOMER IS FULLY ADVISED  OF  THE  AMOUNT
WHICH MUST BE PAID TO MAINTAIN SERVICE, THE PROCEDURES AVAILABLE TO MAKE
SUCH  PAYMENTS  SO  THAT  THE TERMINATION MAY BE AVOIDED AND THE BOARD'S
COMPLAINT HANDLING PROCEDURES.

A. 2118--A                         47

  3. THE COMMISSION SHALL DELIVER THE REPORT TO THE GOVERNOR,  TEMPORARY
PRESIDENT  OF  THE  SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF
THE SENATE AND ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF THE SENATE
ENERGY AND TELECOMMUNICATIONS  COMMITTEE,  AND  THE  CHAIR  AND  RANKING
MINORITY  MEMBER  OF  THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMIS-
SIONS COMMITTEE.
  4. THE COMMISSION SHALL, AT THE COMPLETION OF THE STUDY AND SIMULTANE-
OUSLY WITH THE DELIVERY OF THE REPORT, BEGIN A RULEMAKING PROCEEDING  TO
IMPLEMENT  SUCH RULES AS MAY BE DETERMINED DURING THE STUDY TO BE NECES-
SARY AND CONVENIENT TO EFFECTUATE THE REQUIREMENTS OF SUBDIVISION ONE OF
THIS SECTION.
  S 17. The public service law is amended by adding a new  section  90-f
to read as follows:
  S  90-F.   LEGISLATIVE FINDINGS AND DECLARATION. 1. IT IS HEREBY FOUND
AND DECLARED THAT UNIVERSAL, AFFORDABLE AND  HIGH  QUALITY  TELECOMMUNI-
CATIONS  SERVICES  THAT  MEET THE NEEDS OF INDIVIDUALS AND BUSINESSES IN
THE STATE ARE NECESSARY AND VITAL TO THE WELFARE AND DEVELOPMENT OF  OUR
SOCIETY.  IT  IS,  AND  HAS  BEEN  THE  GOAL  OF THE STATE TO ENSURE THE
UNIVERSAL AVAILABILITY AND ACCESSIBILITY  OF  HIGH  QUALITY,  AFFORDABLE
TELECOMMUNICATIONS SERVICES TO ALL RESIDENTS AND BUSINESSES IN THE STATE
AND TO ENSURE THAT PROVIDERS OF TELECOMMUNICATIONS SERVICES IN THE STATE
PROVIDE  HIGH  QUALITY  CUSTOMER  SERVICE  AND  HIGH  QUALITY  TECHNICAL
SERVICE. ALL NEW YORK RESIDENTS SHOULD BE ABLE TO EXPECT  TO  RECEIVE  A
SIMILAR  LEVEL  OF HIGH QUALITY SERVICE REGARDLESS OF WHERE THEY LIVE OR
WHO PROVIDES THEIR SERVICE. THE COMMISSION MUST MAKE USE OF ITS  MAXIMUM
AUTHORITY  TO  PROTECT THE PUBLIC HEALTH, SAFETY AND WELFARE BY ENSURING
THAT TELEPHONE SERVICE QUALITY DOES NOT ERODE TO THE  POINT  THAT  E-911
SERVICE  IS ENDANGERED BY PERSISTENT, EXTENDED, OR CHRONIC LOSS OF DIAL-
TONE, OR  BY  THE  FAILURE  OF  INTERMODAL  CARRIERS  TO  PROVIDE  E-911
SERVICES, OR BY SUCH OTHER EROSION OF SERVICE QUALITY THAT WOULD TEND TO
UNDERMINE  THE  ABILITY OF THE VARIOUS CITIZENS OF NEW YORK TO ENGAGE IN
PROTECTED SPEECH OVER THE TELEPHONE NETWORKS AND  LINES  AND  FACILITIES
AND EQUIPMENT UNDER THE JURISDICTION OF THE COMMISSION.
  2.  THE  COMMISSION  SHALL  COMMENCE A STUDY TO SURVEY SERVICE QUALITY
PRACTICES AND STANDARDS OF PROVIDERS OF TELECOMMUNICATIONS SERVICES THAT
WILL  LEAD  TO  LEGISLATIVE  AND  REGULATORY  RECOMMENDATIONS.  FOR  THE
PURPOSES  OF  THIS  SECTION,  "TELECOMMUNICATIONS  SERVICE  PROVIDER" OR
"PROVIDER OF TELECOMMUNICATIONS SERVICES" SHALL MEAN A TELEPHONE  CORPO-
RATION,  OR OTHER PROVIDER OF TELEPHONE SERVICES, CERTIFIED IN THE STATE
WITH THE AUTHORITY TO PROVIDE INTRASTATE TOLL AND LOCAL EXCHANGE SERVICE
USING EITHER ITS OWN OR LEASED FACILITIES. THE COMMISSION SHALL ALSO, AS
PART OF SUCH STUDY, DETERMINE WHAT RULES AND REGULATIONS SHALL BE NECES-
SARY:
  (A) TO ENHANCE CONSUMER  PROTECTIONS  CURRENTLY  OFFERED  TO  WIRELINE
TELEPHONE SERVICES CONSUMERS;
  (B)  TO  ESTABLISH AND SAFEGUARD WIRELINE TELEPHONE SERVICE QUALITY SO
THAT IT IS REASONABLY COMPARABLE TO THE WIRELINE SERVICE QUALITY  NECES-
SARY TO SAFEGUARD CITIZEN ACCESS TO E911; AND
  (C)  TO  PROTECT  THE  PUBLIC  INTEREST,  PUBLIC SAFETY AND HEALTH AND
WELFARE.
  3. THE COMMISSION SHALL SPECIFICALLY  STUDY  SERVICE  AND  RELIABILITY
ISSUES INCLUDING, BUT NOT LIMITED TO, AREAS OF THE STATE THAT EXPERIENCE
CHRONIC  TELECOMMUNICATIONS OUTAGES, CUSTOMER SERVICE PROVIDERS OF TELE-
COMMUNICATION  SERVICES,  INSTALLATION  OF  TELECOMMUNICATION   SERVICES
ISSUES,  NETWORK PERFORMANCE, DATA COLLECTION BY PROVIDERS OF TELECOMMU-
NICATIONS SERVICES, THE PREVIOUS EFFECT OF  PERFORMANCE-BASED  INCENTIVE

A. 2118--A                         48

PLANS  UPON  SERVICE QUALITY PROVIDED BY WIRELINE PROVIDERS, WHETHER AND
HOW THE COMMISSION'S PRE-TWO THOUSAND ONE SERVICE QUALITY  AND  CONSUMER
PROTECTION  RULES AND REGULATIONS CAN BE EXPANDED TO BE EQUALLY APPLICA-
BLE  TO  ALL  TELECOMMUNICATIONS  PROVIDERS THAT PROVIDE E911 AND IN ANY
MARKETING MATERIALS PRESENT THEIR COMPANY OR PRODUCT  AS  A  REPLACEMENT
FOR  PRIMARY  LINE  TELEPHONE SERVICE USED BY CONSUMERS IN NEW YORK, AND
ISSUES CONCERNING REPORTING UPON  SERVICE  QUALITY  AND  OTHER  CONSUMER
PROTECTION RELATED ISSUES, PROVIDED HOWEVER THAT SUCH REPORTING REQUIRE-
MENTS  SHALL  BE  EXAMINED  BY  THE  COMMISSION  FOR  METHODS THAT MIGHT
DECREASE THE COST OF COMPLIANCE BY SUCH TELECOMMUNICATIONS PROVIDERS.
  4. THE COMMISSION SHALL ISSUE  A  REPORT  OF  ITS  FINDINGS  INCLUDING
LEGISLATIVE  AND  REGULATORY  RECOMMENDATIONS  TO ENHANCE RELIABILITY OF
PROVIDERS OF TELEPHONE SERVICE TO THE GOVERNOR, TEMPORARY  PRESIDENT  OF
THE  SENATE,  SPEAKER  OF THE ASSEMBLY, CHAIR OF THE SENATE COMMITTEE ON
ENERGY AND TELECOMMUNICATIONS AND CHAIR OF  THE  ASSEMBLY  COMMITTEE  ON
CORPORATIONS,  AUTHORITIES  AND  COMMISSIONS  WITHIN  ONE HUNDRED EIGHTY
DAYS.
  5. THE COMMISSION SHALL, AT THE COMPLETION OF THE STUDY AND SIMULTANE-
OUSLY WITH THE DELIVERY OF THE REPORT, BEGIN A RULEMAKING PROCEEDING  TO
IMPLEMENT  SUCH RULES AS MAY BE DETERMINED DURING THE STUDY TO BE NECES-
SARY AND CONVENIENT TO EFFECTUATE THE REQUIREMENTS OF SUBDIVISION TWO OF
THIS SECTION.
  S 18. Applicability of other laws. The provisions of section seven  of
this  act  are  intended to be consistent with the Federal Cable Act, 47
U.S.C.  S521, et. seq., and nothing in this act shall be interpreted  to
prevent  a  voice  provider, cable operator or municipality from seeking
clarification of its rights and obligations under federal  law.  In  the
event  that any cable operator obtains relief through judicial, adminis-
trative, or executive action from any obligation imposed under this act,
or from any obligation in a franchise agreement that gives  rise  to  an
obligation  of  another  cable  operator under this act, all other cable
operators shall be deemed to be relieved of their obligations under this
act within the same geographic area and to the same extent.
  S 19. Severability. If any provision of this act or its application to
any person or circumstance is held invalid,  this  invalidity  does  not
affect  other  provisions  or applications of this act that can be given
effect without the invalid provision or application, and to this end the
provisions of this act are declared to be severable.
  S 20. This act shall take effect immediately.