S T A T E O F N E W Y O R K
________________________________________________________________________
6288--B
2021-2022 Regular Sessions
I N S E N A T E
April 20, 2021
___________
Introduced by Sen. MANNION -- read twice and ordered printed, and when
printed to be committed to the Committee on Transportation -- commit-
tee discharged, bill amended, ordered reprinted as amended and recom-
mitted to said committee -- recommitted to the Committee on Transpor-
tation in accordance with Senate Rule 6, sec. 8 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the highway law and the transportation corporations law,
in relation to agreements for fiber optic utility use and occupancy of
state right of way
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. 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 PROVIDER THAT IS OWNED
AND OPERATED BY A MUNICIPALITY, OR IS OWNED AND OPERATED BY A DOMESTIC
CORPORATION AS SUCH TERM IS DEFINED IN SUBPARAGRAPH FIVE OF PARAGRAPH
(A) OF SECTION ONE HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW AND
POSSESSING A FEDERAL TAX EXEMPTION PURSUANT TO PARAGRAPH (3) OF
SUBSECTION (C) OF SECTION 501 OF THE FEDERAL INTERNAL REVENUE CODE (26
UNITED STATES CODE SECTION 501(C)(3)) SHALL NOT BE SUBJECT TO A FEE FOR
SUCH USE OR OCCUPANCY; FURTHERMORE, THE DEVELOPMENT AUTHORITY OF THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09869-07-1
S. 6288--B 2
NORTH COUNTRY, AS DEFINED BY TITLE TWENTY-NINE OF ARTICLE EIGHT OF THE
PUBLIC AUTHORITIES LAW, 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 compensation received by the state pursuant to such agree-
ment shall be deposited 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 abil-
ity 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.
§ 2. Section 7 of the transportation corporations law, as added by
section 2 of part RRR of chapter 59 of the laws 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 fulfill-
ment of a state grant award through the New NY Broadband Program shall
not be subject to a fee for such use or occupancy. ANY PROVIDER THAT IS
OWNED AND OPERATED BY A MUNICIPALITY, OR IS OWNED AND OPERATED BY A
DOMESTIC CORPORATION AS SUCH TERM IS DEFINED IN SUBPARAGRAPH FIVE OF
PARAGRAPH (A) OF SECTION ONE HUNDRED TWO OF THE NOT-FOR-PROFIT CORPO-
RATION LAW AND POSSESSING A FEDERAL TAX EXEMPTION PURSUANT TO PARAGRAPH
(3) OF SUBSECTION (C) OF SECTION 501 OF THE FEDERAL INTERNAL REVENUE
CODE (26 UNITED STATES CODE SECTION 510(C)(3)) SHALL NOT BE SUBJECT TO A
FEE FOR SUCH USE OR OCCUPANCY; FURTHERMORE, THE DEVELOPMENT AUTHORITY OF
THE NORTH COUNTRY, AS DEFINED BY TITLE TWENTY-NINE OF ARTICLE EIGHT OF
THE PUBLIC AUTHORITIES LAW, 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 compensation received by the state pursuant to
such agreement shall be deposited 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 authority granted under the law. For purposes of this
section, "municipality" shall include a county, city, village, or town.
§ 3. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law; provided, however, that
the amendments to subdivision 24-e of section 10 of the highway law made
by section one of this act shall not affect the repeal of such subdivi-
sion and shall be deemed to expire and repeal therewith; and provided,
further, that the amendments to section 7 of the transportation corpo-
rations law made by section two of this act shall not affect the repeal
of such section and shall be deemed to expire and repeal therewith.