Assembly Bill A7126

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7126
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 20, 2025
                                ___________
 
 Introduced by M. of A. BICHOTTE HERMELYN, COLTON, HYNDMAN, LAVINE, HEVE-
   SI,  SIMON,  BRONSON, PEOPLES-STOKES, HUNTER -- read once and referred
   to the Committee on Corporations, Authorities and Commissions
 
 AN ACT to amend the public service law and the  state  finance  law,  in
   relation to state contracts being only with internet service providers
   compliant with net neutrality
 
   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 "NYS Net Neutrality Protection Act".
   §  2.  Subdivision 1 of section 5 of the public service law is amended
 by adding a new paragraph j to read as follows:
   J. TO EVERY BROADBAND INTERNET LINE WHICH LIES WHOLLY WITHIN THE STATE
 AND THAT PART WITHIN THE STATE OF NEW YORK OF EVERY  BROADBAND  INTERNET
 LINE  WHICH  LIES  PARTLY WITHIN AND PARTLY WITHOUT THE STATE AND TO THE
 PERSONS OR CORPORATIONS OWNING, LEASING OR OPERATING ANY SUCH  BROADBAND
 INTERNET LINE.
   §  3.  Section  5 of the public service law is amended by adding a new
 subdivision 7 to read as follows:
   7. THE COMMISSION SHALL REQUIRE ANY PERSON ENGAGED IN THE PROVISION OF
 BROADBAND INTERNET ACCESS SERVICE IN NEW YORK STATE  TO  REPORT  TO  THE
 COMMISSION, AND PUBLICLY DISCLOSE ANNUALLY, ACCURATE INFORMATION REGARD-
 ING  THE NETWORK MANAGEMENT PRACTICES, PERFORMANCE, AND COMMERCIAL TERMS
 OF ITS BROADBAND INTERNET ACCESS SERVICES SUFFICIENT  FOR  CONSUMERS  TO
 MAKE  INFORMED  CHOICES  REGARDING USE OF SUCH SERVICES AND FOR CONTENT,
 APPLICATION, SERVICE, AND DEVICE PROVIDERS TO DEVELOP, MARKET, AND MAIN-
 TAIN INTERNET OFFERINGS.
   § 4. Subdivision 1 of section 165 of the state finance law is  amended
 by adding three new paragraphs f, g and h to read as follows:
   F.  A "NET NEUTRAL SOURCE OF INTERNET SERVICES" SHALL MEAN AN INTERNET
 SERVICE PROVIDER WHO ADHERES TO THE PRINCIPLES OF NET NEUTRALITY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10619-01-5
              

 A. 7126                             2
 
   G. A "NON-NET NEUTRAL SOURCE  OF  INTERNET  SERVICES"  SHALL  MEAN  AN
 INTERNET  SERVICE  PROVIDER  WHO  VIOLATES  ANY OF THE PRINCIPLES OF NET
 NEUTRALITY.
   H.  "THE  PRINCIPLES OF NET NEUTRALITY" SHALL MEAN THE RULES AND REGU-
 LATIONS UNDER THE OPEN INTERNET REPORT AND ORDER ON REMAND,  DECLARATORY
 RULING,  AND  ORDER  BY  THE  FEDERAL COMMUNICATIONS COMMISSION RELEASED
 MARCH TWELFTH, TWO THOUSAND FIFTEEN, GN DOCKET NO. 14-28.
   § 5. Section 165 of the state finance law is amended by adding  a  new
 subdivision 10 to read as follows:
   10.  PROHIBITION  ON  PURCHASE  OF  INTERNET  SERVICES  FROM A NON-NET
 NEUTRAL SOURCE OF INTERNET SERVICES.
   A. (I) WITH RESPECT TO CONTRACTS DESCRIBED IN SUBPARAGRAPHS  (II)  AND
 (III)  OF THIS PARAGRAPH, AND IN ACCORDANCE WITH SUCH SUBPARAGRAPHS, THE
 STATE AND ANY GOVERNMENTAL AGENCY OR  POLITICAL  SUBDIVISION  OR  PUBLIC
 BENEFIT  CORPORATION OR MUNICIPALITY OF THE STATE SHALL NOT CONTRACT FOR
 THE SUPPLY OF INTERNET SERVICES WITH ANY CONTRACTOR WHO DOES  NOT  AGREE
 TO  STIPULATE  TO THE FOLLOWING, IF THERE IS ANOTHER CONTRACTOR WHO WILL
 CONTRACT TO SUPPLY INTERNET SERVICES OF COMPARABLE QUALITY AT A COMPARA-
 BLE PRICE OR COST, THE CONTRACTOR AND ANY INDIVIDUAL OR LEGAL ENTITY  IN
 WHICH  THE  CONTRACTOR HOLDS A TEN PERCENT OR GREATER OWNERSHIP INTEREST
 AND ANY INDIVIDUAL OR LEGAL ENTITY THAT HOLDS A TEN PERCENT  OR  GREATER
 OWNERSHIP  INTEREST  IN  THE  CONTRACTOR SHALL MAKE LAWFUL STEPS IN GOOD
 FAITH TO CONDUCT ANY BUSINESS OPERATIONS AS  A  NET  NEUTRAL  SOURCE  OF
 INTERNET SERVICES.
   (II)  IN  THE CASE OF CONTRACTS LET BY A COMPETITIVE PROCESS, WHENEVER
 THE RESPONSIVE AND RESPONSIBLE OFFERER HAVING THE LOWEST PRICE  OR  BEST
 VALUE  OFFER  HAS NOT AGREED TO STIPULATE TO THE CONDITIONS SET FORTH IN
 THIS SUBDIVISION AND ANOTHER RESPONSIVE AND RESPONSIBLE OFFERER WHO  HAS
 AGREED  TO  STIPULATE  TO  SUCH  CONDITIONS HAS SUBMITTED AN OFFER SHALL
 DETERMINE THAT THE CONTRACT BE AWARDED TO THE LOWEST PRICE OR BEST VALUE
 OFFER FOR INTERNET SERVICES  FROM  A  NET  NEUTRAL  SOURCE  OF  INTERNET
 SERVICES.
   (III) IN THE CASE OF CONTRACTS LET BY OTHER THAN A COMPETITIVE PROCESS
 INTERNET SERVICES INVOLVING AN EXPENDITURE OF AN AMOUNT GREATER THAN THE
 DISCRETIONARY  BUYING  THRESHOLD  AS  SPECIFIED  IN  SECTION ONE HUNDRED
 SIXTY-THREE OF THIS ARTICLE, THE CONTRACTING ENTITY SHALL NOT AWARD TO A
 PROPOSED CONTRACTOR WHO HAS NOT AGREED TO STIPULATE  TO  THE  CONDITIONS
 SET  FORTH  IN  THIS  SUBDIVISION  UNLESS  THE ENTITY SEEKING TO USE THE
 INTERNET SERVICES DETERMINES THAT THE INTERNET  SERVICES  ARE  NECESSARY
 FOR  THE ENTITY TO PERFORM ITS FUNCTIONS AND THERE IS NO OTHER RESPONSI-
 BLE CONTRACTOR WHO WILL SUPPLY INTERNET SERVICES OF  COMPARABLE  QUALITY
 AT  A COMPARABLE PRICE. SUCH DETERMINATIONS SHALL BE MADE IN WRITING AND
 SHALL BE PUBLIC DOCUMENTS.
   B. UPON RECEIVING INFORMATION THAT A CONTRACTOR WHO HAS MADE THE STIP-
 ULATION REQUIRED BY  THIS  SUBDIVISION  IS  IN  VIOLATION  THEREOF,  THE
 CONTRACTING  ENTITY SHALL REVIEW SUCH INFORMATION AND OFFER THE CONTRAC-
 TOR AN OPPORTUNITY TO RESPOND. IF THE CONTRACTING ENTITY  FINDS  THAT  A
 VIOLATION  HAS OCCURRED, IT SHALL TAKE SUCH ACTION AS MAY BE APPROPRIATE
 AND PROVIDED FOR BY LAW, RULE OR CONTRACT, INCLUDING,  BUT  NOT  LIMITED
 TO,  IMPOSING  SANCTIONS,  SEEKING  COMPLIANCE,  RECOVERING  DAMAGES  OR
 DECLARING THE CONTRACTOR IN DEFAULT.
   C. AS USED IN THIS SUBDIVISION, THE TERM "CONTRACT" SHALL NOT  INCLUDE
 CONTRACTS  WITH  GOVERNMENTAL  AND  NON-PROFIT  ORGANIZATIONS, CONTRACTS
 AWARDED PURSUANT  TO  EMERGENCY  PROCUREMENT  PROCEDURES  OR  CONTRACTS,
 RESOLUTIONS,  INDENTURES,  DECLARATIONS  OF  TRUST  OR OTHER INSTRUMENTS
 AUTHORIZING OR RELATING TO THE AUTHORIZATION, ISSUANCE, AWARD,  SALE  OR
 A. 7126                             3
 
 PURCHASE  OF  BONDS, CERTIFICATES OF INDEBTEDNESS, NOTES OR OTHER FISCAL
 OBLIGATIONS, PROVIDED THAT THE POLICIES OF  THIS  SUBDIVISION  SHALL  BE
 CONSIDERED  WHEN  SELECTING  A  CONTRACTOR TO PROVIDE FINANCIAL OR LEGAL
 ADVICE, AND WHEN SELECTING MANAGING UNDERWRITERS IN CONNECTION WITH SUCH
 ACTIVITIES.
   D. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO CONTRACTS FOR
 WHICH  THE STATE OR OTHER CONTRACTING ENTITY RECEIVES FUNDS ADMINISTERED
 BY THE UNITED STATES, EXCEPT TO THE EXTENT CONGRESS HAS DIRECTED TO  NOT
 WITHHOLD  FUNDS  FROM  STATES  AND  LOCALITIES  THAT CHOOSE TO IMPLEMENT
 SELECTIVE PURCHASING POLICIES BASED ON AN AGREEMENT TO COMPLY  WITH  THE
 PRINCIPLES  OF  NET NEUTRALITY, OR TO THE EXTENT THAT SUCH FUNDS ARE NOT
 OTHERWISE WITHHELD BY CONGRESS.
   § 6. This act shall take effect immediately.