Senate Bill S3720

2021-2022 Legislative Session

Relates to fees for the use and occupancy of the state right of way by fiber optic utilities; and directing the department of transportation to study the cost of administering state highway rights of way projects

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Archive: Last Bill Status - In Senate Committee Transportation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to transportation
Jan 30, 2021	referred to transportation

co-Sponsors

2021-S3720 (ACTIVE) - Details

Current Committee:: Senate Transportation
Law Section:: Highway Law
Laws Affected:: Amd §10, Hway L; amd §7, Transp Corps L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S9003
2023-2024: S1527
2025-2026: S3032

2021-S3720 (ACTIVE) - Summary

Adjust the limits on fees for the use and occupancy of the state right of way by fiber optic utilities; directs the department of transportation to study the cost of administering utility projects in state highway rights of way.

2021-S3720 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3720

SPONSOR: ORTT
 
TITLE OF BILL:

An act to amend the highway law and the transportation corporations law,
in relation to fees for the use and occupancy of the state right of way
by fiber optic utilities; directing the department of transportation to
study the cost of administering utility projects in state highway rights
of way; and providing for the repeal of certain provisions upon the
expiration thereof

 
PURPOSE:

To determine the cost to the Department of Transportation to administer
utilities in the State highway rights of way, and to reduce the cost of
expanding broadband throughout the State of New York.

 
SUMMARY OF PROVISIONS:

Section 1: Directs the Department of Transportation to conduct a study

on the cost to the Department of administering utility projects in the
state highway rights of way.

Section 2: Requires that the Commissioner of Transportation deliver a
copy of the finding of the study to legislative leaders no later than
April 1, 2021.

Section 3: Amends subdivision 24-e of section 10 of the Highway Law to
limit the cost of the fiber optic fee to the cost to the Department of
administering the program.

Section 4: Amends section 7 of the Transportation Corporations Law to
limit the cost of the fiber optic fee to the cost to the Department of
administering the program..

Section 5: Provides an effective date.

 
JUSTIFICATION:

In the FY 2020 Enacted Budget, the Department of Transportation was
authorized to collect a fee on new and existing fiber optic projects in
the rights of way of state highways. Predictably, this fee has led to
planned broadband expansion projects being halted, which reduces the
competitiveness of New York by limiting the number of people in the
State with access to high speed internet access. Additionally, fiber
optic utilities were the only utility where a fee was authorized, so
existing utilities located in the state rights of way still pay nothing
for the Department to administer those utilities.

This bill would direct the Department to study how much it costs them to
administer projects from each utility and to transmit the results of the
study to legislative leaders. Furthermore, it would limit the amount
that can be collected under the fiber optic fee to the cost to the
Department to administer those projects. This would significantly lower
the cost to entities looking to expand broadband in New York State,
which is more important than ever during a time of distance learning and
working from home as a result of the COVID-19 pandemic.

 
LEGISLATIVE HISTORY:

2019-2020: Referred to Rules.

 
FISCAL IMPLICATIONS:

Reduction of revenue to the Department of Transportation offset by
increased economic productivity resulting from broadband expansion.

 
EFFECTIVE DATE:
This act shall take effect immediately, provided, however, that the
amendments to subdivision 24-e of section 10 of the highway law made by
section three of this act and the amendments to section 7 of the trans-
portation corporations law made by section four of this act shall not
affect the expiration of such subdivision and such section and shall be
deemed to expire therewith; provided, further, that sections one and two
of this act shall expire and be deemed repealed on the thirtieth day
following the delivery of the report to the governor and the legislature
as provided for in section two of this act.

2021-S3720 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3720
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2021
                                ___________
 
 Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Transportation
 
 AN ACT to amend the highway law and the transportation corporations law,
   in relation to fees for the use and occupancy of the  state  right  of
   way  by fiber optic utilities; directing the department of transporta-
   tion to study the cost of  administering  utility  projects  in  state
   highway  rights  of  way;  and  providing  for  the  repeal of certain
   provisions upon the expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The department of transportation is authorized and directed
 to  study  the  cost  to  the department of transportation to administer
 utility projects in the state highway rights of way.   Such study  shall
 separately  review,  but  not  be  limited to, water, gas, electric, and
 fiber optic projects.
   § 2. On or before April 1, 2022, the  commissioner  of  transportation
 shall  deliver a copy of the findings of the study conducted pursuant to
 section one of this act to the governor, the temporary president of  the
 senate,  the speaker of the assembly, the minority leader of the senate,
 and the minority leader of the assembly.
   § 3. Subdivision 24-e of section 10 of the highway law,  as  added  by
 section  1  of part RRR of chapter 59 of the laws of 2019, is amended to
 read as follows:
   24-e. The commissioner of transportation is hereby authorized to enter
 into an agreement with any fiber optic utility for use and occupancy  of
 the  state right of way for the purposes of installing, modifying, relo-
 cating, repairing, operating, or  maintaining  fiber  optic  facilities.
 Such  agreement  may include a fee for use and occupancy of the right of
 way[, provided, however, such fee shall not be greater than fair  market
 value]. Any provider using or occupying a right of way in fulfillment of
 a  state  grant  award through the New NY Broadband Program shall not be
 subject to a fee for such use or occupancy. Any fee for use or occupancy
 charged to a fiber optic utility shall not be passed through in whole or
 in part as a fee, charge, increased service cost, or by any other  means

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08033-01-1

 S. 3720                             2
 
 by  a  fiber  optic  utility to any person or entity that contracts with
 such fiber optic utility for service. ANY SUCH FEES SHALL IN  TOTAL  NOT
 EXCEED  THE COST TO THE DEPARTMENT OF TRANSPORTATION TO ADMINISTER FIBER
 OPTIC  PROJECTS  IN THE STATE RIGHT OF WAY. Any compensation received by
 the state pursuant to such agreement shall be  deposited  by  the  comp-
 troller  into  the special obligation reserve and payment account of the
 dedicated highway and bridge trust fund established pursuant to  section
 eighty-nine-b  of  the  state  finance law. Nothing herein shall impair,
 inhibit, or otherwise affect the ability of any municipality to regulate
 zoning, land use, or any other power or authority granted under the law.
 For purposes of this subdivision, "municipality" shall include a county,
 city, village, or town.
   § 4. Section 7 of the transportation corporations  law,  as  added  by
 section  2  of  part RRR of chapter 59 of the law of 2019, is amended to
 read as follows:
   § 7. Agreement for fiber optic utility  use  and  occupancy  of  state
 right of way. The commissioner of transportation is hereby authorized to
 enter  into  an agreement with any fiber optic utility for use and occu-
 pancy of the state right of way for the purposes of installing,  modify-
 ing, relocating, repairing, operating, or maintaining fiber optic facil-
 ities.  Such  agreement  may  include a fee for use and occupancy of the
 right of way[, provided, however, such fee shall  not  be  greater  than
 fair  market  value].  Any provider using or occupying a right of way in
 fulfillment of a state grant award through the New NY Broadband  Program
 shall not be subject to a fee for such use or occupancy. Any fee for use
 or  occupancy  charged  to  a  fiber  optic  utility shall not be passed
 through in whole or in part as a fee, charge, increased service cost, or
 by any other means by a fiber optic utility to any person or entity that
 contracts with such fiber optic utility for service. ANY SUCH FEES SHALL
 IN TOTAL NOT EXCEED THE COST TO  THE  DEPARTMENT  OF  TRANSPORTATION  TO
 ADMINISTER  FIBER  OPTIC PROJECTS IN THE STATE RIGHT OF WAY. Any compen-
 sation received by the state pursuant to such agreement shall be  depos-
 ited  by the comptroller into the special obligation reserve and payment
 account of the dedicated  highway  and  bridge  trust  fund  established
 pursuant  to  section  eighty-nine-b  of  the state finance law. Nothing
 herein shall impair, inhibit, or otherwise affect  the  ability  of  any
 municipality to regulate zoning, land use, or any other power or author-
 ity  granted under the law. For purposes of this section, "municipality"
 shall include a county, city, village, or town.
   § 5. This act shall take effect immediately, provided,  however,  that
 the amendments to subdivision 24-e of section 10 of the highway law made
 by  section  three  of  this  act and the amendments to section 7 of the
 transportation corporations law made by section four of this  act  shall
 not affect the expiration of such subdivision and such section and shall
 be  deemed to expire therewith; provided, further, that sections one and
 two of this act shall expire and be deemed repealed on the thirtieth day
 following the delivery of the report to the governor and the legislature
 as provided for in section two of this act; provided  that  the  commis-
 sioner  of  transportation  shall  notify  the legislative bill drafting
 commission upon the occurrence of the delivery of  such  report  to  the
 governor  and  the legislature in order that the commission may maintain
 an accurate and timely effective data base of the official text  of  the
 laws  of  the  state  of  New  York  in  furtherance of effectuating the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law.

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Senate Bill S3720

Sponsored By

Archive: Last Bill Status - In Senate Committee Transportation Committee

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co-Sponsors

2021-S3720 (ACTIVE) - Details

2021-S3720 (ACTIVE) - Summary

2021-S3720 (ACTIVE) - Sponsor Memo

2021-S3720 (ACTIVE) - Bill Text download pdf

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Sponsored By

Robert G. Ortt

Archive: Last Bill Status - In Senate Committee Transportation Committee

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co-Sponsors

Daphne Jordan

2021-S3720 (ACTIVE) - Details

2021-S3720 (ACTIVE) - Summary

2021-S3720 (ACTIVE) - Sponsor Memo

2021-S3720 (ACTIVE) - Bill Text download pdf

Comments