NY State Senate Bill 2021-S7494

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to transportation
Oct 29, 2021	referred to rules

co-Sponsors

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2021-S7494 (ACTIVE) - Details

See Assembly Version of this Bill:: A8287
Current Committee:: Senate Transportation
Law Section:: Highway Law
Laws Affected:: Amd §10, Hway L; amd §7, Transp Corps L

2021-S7494 (ACTIVE) - Summary

Prohibits fees for the use and occupancy of the state right of way in agreements for the installation, modification, relocation, repair, operation or maintenance of fiber optic facilities.

2021-S7494 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7494

SPONSOR: HINCHEY
 
TITLE OF BILL:

An act to amend the highway law and the transportation corporations law,
in relation to prohibiting fees for the use and occupancy of the state
right of way in certain agreements

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation would prohibit the commissioner of transportation from
including any fee for use and occupancy of the state right of way in an
agreement with a fiber optic utility for use and occupancy of the state
right of way. Any such fee in an existing agreement shall be deemed
unenforceable. The state may retain any such fee collected prior to the
effective date of this legislation.

 
SUMMARY OF PROVISIONS:

Section 1. Amends subdivision 24-e of section 10 of the highway law to
prohibit the commissioner of transportation from including any fee for

use and occupancy of the state right of way in an agreement with a fiber
optic utility for use and occupancy of the state right of way.

Section 2, Amends section 7 of the transportation corporations law to
prohibit the commissioner of transportation from including any fee for
use and occupancy of the state right of way in an agreement with a fiber
optic utility for use and occupancy of the state right of way.

Section 3. Deems that any agreement for use and occupancy of the state
right of way that provides for a fee for use and occupancy of the state
right of way shall be deemed unenforceable, and any such fee collected
prior to the effective date of this legislation may be retained by the
state.

Section 4. Effective date.

 
JUSTIFICATION:

The DOT fiber optic fee established by ch. 59 of the laws of 2019 effec-
tively suppresses private investment in new wireline broadband expansion
projects, even as the New NY Broadband Program strives to rapidly expand
wireline broadband internet service into unserved and underserved areas
of the state. The DOT fee specifically stifles private investment,
because it applies to all new and existing fiber optic installations
which are not grant-funded by the Broadband Program.

Under existing law, the commissioner of transportation may charge a use
and occupancy fee to a broadband provider who installs, modifies, relo-
cates, repairs, operates or maintains fiber optic facilities in a state
right of way, unless the project has been grant-funded through the
Broadband Program. This per-foot-per-year-per-cable (or, in the case of
transverse crossings, per-year-per-cable) DOT fee applies to all
privately-funded, aerial and underground fiber installations, including
new and existing lit fibers, unlit (dark) fibers, and empty backup
conduit.

 
PRIOR LEGISLATIVE HISTORY:  None
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

The comptroller's office reports that, from April 1 to July 2021, the
state collected fees of approximately $330,000 for the dedicated highway
and bridge trust fund established by ch. 59 of the laws of 2019.

 
EFFECTIVE DATE:
Immediately, provided, however that the amendments to subdivision 24-e
of section 10 of the highway law made by section one of this act and the
amendments to section 7 of the transportation corporations law made by
section two of this act shall not affect the expiration of such subdivi-
sion and such section and shall be deemed to expire and repeal there-
with.

2021-S7494 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7494
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             October 29, 2021
                                ___________
 
 Introduced  by  Sen. HINCHEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the highway law and the transportation corporations law,
   in relation to prohibiting fees for the use and occupancy of the state
   right of way in certain agreements

   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 section 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] SHALL NOT include [a] ANY 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
 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  estab-
 lished pursuant to section eighty-nine-b of the state finance law. Noth-
 ing 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 subdivision, "munici-
 pality" shall include a county, city, village, or town.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13118-01-1

 S. 7494                             2
 
   § 2. Section 7 of the transportation corporations  law,  as  added  by
 section  2  of part RRR of section 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] SHALL NOT include [a] ANY 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  Broad-
 band  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 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 section, "muni-
 cipality" shall include a county, city, village, or town.
   §  3.  Notwithstanding  any  provision  of  law  to  the contrary, any
 provision of an agreement made pursuant to subdivision 24-e  of  section
 10  of  the  highway law or section 7 of the transportation corporations
 law that provide for a fee for use and occupancy of a right of way shall
 be deemed unenforceable, provided however, that the remaining provisions
 of such agreement shall be enforceable. Any fees for use  and  occupancy
 of  a  right  of  way  collected prior to the effective date of this act
 pursuant to such an agreement, may be retained by the state.
   § 4. 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 one of this act and the amendments to section 7 of the trans-
 portation  corporations  law  made  by section two of this act shall not
 affect the expiration of such subdivision and such section and shall  be
 deemed to expire and repeal therewith.

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Senate Bill S7494

Sponsored By

Archive: Last Bill Status - In Senate Committee Transportation Committee

co-Sponsors

2021-S7494 (ACTIVE) - Details

2021-S7494 (ACTIVE) - Summary

2021-S7494 (ACTIVE) - Sponsor Memo

2021-S7494 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7494

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Sponsored By

Archive: Last Bill Status - In Senate Committee Transportation Committee

co-Sponsors

2021-S7494 (ACTIVE) - Details

2021-S7494 (ACTIVE) - Summary

2021-S7494 (ACTIVE) - Sponsor Memo

2021-S7494 (ACTIVE) - Bill Text download pdf

Comments