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

                                  1875

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 14, 2009
                               ___________

Introduced  by M. of A. BRODSKY, KOON, BOYLAND, MAGNARELLI, CHRISTENSEN,
  SCHROEDER, ENGLEBRIGHT,  STIRPE,  PHEFFER,  COLTON,  CAHILL,  PEOPLES,
  REILLY,  BENEDETTO,  JAFFEE,  CLARK,  POWELL, DIAZ, DINOWITZ, GUNTHER,
  TITUS, ORTIZ, BROOK-KRASNY, KAVANAGH, KELLNER, ALESSI  --  Multi-Spon-
  sored  by  --  M. of A. ABBATE, ALFANO, ARROYO, BING, BRADLEY, CAMARA,
  CARROZZA, COOK, CUSICK, CYMBROWITZ, GALEF,  GIANARIS,  GLICK,  GORDON,
  GOTTFRIED,  GREENE,  HOOPER,  HYER-SPENCER, JACOBS, JEFFRIES, LANCMAN,
  LATIMER, LAVINE,  LENTOL,  LIFTON,  LUPARDO,  MAGEE,  MAISEL,  MARKEY,
  MAYERSOHN,  McDONOUGH,  McENENY,  MILLMAN,  NOLAN,  O'DONNELL, PAULIN,
  PERALTA, PERRY, PRETLOW, ROBINSON, ROSENTHAL, SALADINO,  SPANO,  SWEE-
  NEY,  TITONE,  TOWNS,  TOWNSEND,  WALKER,  WEISENBERG, WEPRIN, WRIGHT,
  ZEBROWSKI -- read once and referred to the Committee on  Corporations,
  Authorities and Commissions

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 2009".
  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04809-01-9
              

A. 1875                             2

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
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).

A. 1875                             3

  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
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

A. 1875                             4

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.
        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.

A. 1875                             5

  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
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:

A. 1875                             6

  (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.
  13. "BOARD" MEANS 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  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

A. 1875                             7

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;
  (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;

A. 1875                             8

  (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
  (G) TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT TO CARRY OUT THE
POWERS GRANTED TO IT BY LAW.
  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
  (G)  TO  DO  ALL ACTS AND THINGS 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-

A. 1875                             9

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-
TAL MEMBERS SHALL EXPIRE ON DECEMBER THIRTY-FIRST, TWO THOUSAND  ELEVEN,
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 NONGOVERNMENTAL 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  ADDITIONAL  TERMS.
MEMBERS  OF  THE  BOARD SHALL BE SUBJECT TO THE PUBLIC OFFICERS LAW, AND
SHALL SERVE AT THE PLEASURE OF THE GOVERNOR.  IMMEDIATELY AFTER APPOINT-
MENT, 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

A. 1875                            10

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:
  (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

A. 1875                            11

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
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 ("CSIC") 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

A. 1875                            12

  (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.
  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

A. 1875                            13

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.
  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

A. 1875                            14

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-
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 JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSION-
ER  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-

A. 1875                            15

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,
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

A. 1875                            16

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-
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 FOUR

A. 1875                            17

THOUSAND ONE HUNDRED FIVE OF THIS ARTICLE, RELATING  TO  ITS  ACTIVITIES
FOR  THE  PRECEDING  CALENDAR  YEAR  TO THE GOVERNOR, THE SPEAKER OF THE
ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE, THE MINORITY LEADER  OF
THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE, THE CHAIR OF THE ASSEM-
BLY STANDING COMMITTEE ON CORPORATIONS, AUTHORITIES AND COMMISSIONS, AND
THE  CHAIR  OF  THE SENATE STANDING COMMITTEE ON ENERGY AND TELECOMMUNI-
CATIONS.
  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.
  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-g to
read as follows:
  S  92-G.  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

A. 1875                            18

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
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
PROVIDER,  AND  THE PROPOSED TOTAL AMOUNT OF THE HIGH COST SUPPORT MECH-
ANISM 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

A. 1875                            19

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
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

A. 1875                            20

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,
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-

A. 1875                            21

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
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
SYSTEM-WIDE 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

A. 1875                            22

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
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;

A. 1875                            23

  (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;
  (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;

A. 1875                            24

  (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
  (I) PROVIDE ADDITIONAL INFORMATION AS NEEDED BY THE COMMISSION.
  3.  UPON  FILING  AN APPLICATION WITH THE COMMISSION FOR A SYSTEM-WIDE
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

A. 1875                            25

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
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 SYSTEM-WIDE 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 SYSTEM-WIDE 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 OR 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

A. 1875                            26

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.
  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.

A. 1875                            27

  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
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-

A. 1875                            28

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
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

A. 1875                            29

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
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 NINE, AND UNTIL THE EXPIRATION
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  EIGHT,  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

A. 1875                            30

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
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

A. 1875                            31

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)  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;

A. 1875                            32

  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.
  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

A. 1875                            33

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
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

A. 1875                            34

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,
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

A. 1875                            35

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.
  (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 446
of the laws of 1998, 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.

A. 1875                            36

  2.  Save  where  stock shall be transferred or held for the purpose of
collateral security, no stock corporation, domestic  or  foreign,  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 telephone corporation organized or existing
under  or  by  virtue  of  the  laws  of this state. Any corporation now
lawfully holding a majority of the voting capital stock of any telegraph
corporation or telephone corporation 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 NONUNION 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.

A. 1875                            37

  (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] contained IN THIS SECTION shall be  construed
to prevent the holding of any stock heretofore lawfully acquired, nor to
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 propor-
tion of the voting capital stock of the new corporation held by a  stock
corporation  and  acquired  by  it  by any such surrender or exchange of
stock shall not without the consent of the commission exceed the propor-
tion of the voting capital stock held by it in the  former  corporation.
Every  contract,  assignment, transfer, or agreement for transfer of any
stock by or through any person or  corporation  to  any  corporation  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 telegraph 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 33 to  read
as follows:
  S  33.  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,  FIBEROPTIC  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-

A. 1875                            38

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
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 CHAIRPEOPLE OF THE BROADBAND DEVELOPMENT
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 CHAIRPEOPLE 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 STATE AUTHORITIES WHICH MAY BE LEASED ON A

A. 1875                            39

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  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 CHAIRPEOPLE 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, FIBEROPTIC  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;

A. 1875                            40

  (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  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 CHAIRPEOPLE 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

A. 1875                            41

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
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,

A. 1875                            42

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-
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

A. 1875                            43

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 TEN,  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, AUTHORI-
TIES AND COMMISSIONS COMMITTEE. THE REPORT  SHALL  EVALUATE  THE  IMPLI-
CATIONS  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

A. 1875                            44

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
("CSIC")  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 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 CSIC, AND CONSISTENT
WITH THE LEGITIMATE SECURITY CONCERNS THAT MAY  BE  EXPRESSED  BY  CSIC,
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 E-911 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

A. 1875                            45

  (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
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 OFFICES ("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 E-911; 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. 1875                            46

  (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
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

A. 1875                            47

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.
  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;

A. 1875                            48

  (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 E-911; 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
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 E-911  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.