NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9964A
SPONSOR: Rivera TITLE OF BILL:
An act to amend the real property tax law, in relation to providing an
exemption against certain fiber optic cable assessments for municipal
fiber optic broadband companies in Erie county; and providing for the
repeal of such provisions upon expiration thereof
PURPOSE:
To incentivize the development and deployment of municipal broadband in
Erie County.
SUMMARY OF PROVISIONS:
Section 1: creates a new section (§ 431) of the real property tax law,
which specifies that municipal fiber optic networks in Erie County and
municipal fiber optic cable in Erie County is exempt from real property
taxes. Specifies that municipal fiber optic broadband companies are
owned by municipalities or a non-profit local authority. Requires that
municipal broadband companies shall use contractors that adhere to state
labor standards, including prevailing wage requirements.
Section 2: effective date.
JUSTIFICATION:
Reliable, affordable broadband access is essential for New Yorkers to be
able to participate in, contribute to, and succeed in modern society.
Studies show that broadband access has a positive impact on individuals
and communities. However, reliable, affordable broadband is not avail-
able to every New Yorker. According to the NYS Comptroller, as of 2021,
more than one million (or 13.8% of the state) of households do not have
access to broadband. One in three low-income households do not have
access. Some such households are in communities without broadband
infrastructure. Others are unable to fit the cost of a broadband
subscription into their budget without foregoing other essentials.
These disparities in access create a "digital divide."
One potential means of closing the digital divide is increasing the
number of publicly owned or "open access" fiber optic broadband compa-
nies
across the state. This is the primary goal of the ConnectALL Municipal
Infrastructure Program, which provides state grants to construct last
mile, open access broadband infrastructure. This open access broadband
can then be provided directly to consumers via a municipal entity or
affiliated non-profit, or internet service providers may contract to use
the infrastructure to provide broadband access to consumers. These
buildouts are meant to complement existing carrier infrastructure, and
direct resources to unserved and underserved communities.
This legislation endeavors to incentivize the development and deployment
of open access broadband by ensuring that municipal entities and nonpro-
fits will not have to pay property taxes on the infrastructure. This is
similar to the exemptions provided for utilities and broadcasting, and
would demonstrate that the state recognizes the essential nature of
broadband access.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
To be determined.
LOCAL FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed 2 years after such date and shall apply to assessment rolls
prepared on the basis of taxable status dates occurring on or after such
date.
STATE OF NEW YORK
________________________________________________________________________
9964--A
IN ASSEMBLY
April 26, 2024
___________
Introduced by M. of A. RIVERA -- read once and referred to the Committee
on Real Property Taxation -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to providing an
exemption against certain fiber optic cable assessments for municipal
fiber optic broadband companies in Erie county; and providing for the
repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The real property tax law is amended by adding a new
2 section 431 to read as follows:
3 § 431. Fiber optic cable in Erie county. 1. For the purposes of this
4 section the following terms shall have the following meanings:
5 (a) "Municipal fiber optic broadband company" shall mean a local
6 authority as defined in section two of the public authorities law or a
7 municipal corporation as defined in section two of the general municipal
8 law engaged in the construction, operation, marketing and sale of fiber
9 optic broadband infrastructure and services and located in Erie county.
10 (b) "Municipal fiber optic network" shall mean municipal fiber optic
11 cable and infrastructure owned by a municipal fiber optic broadband
12 company.
13 (c) "Municipal fiber optic cable and infrastructure" shall mean fiber
14 optic cable and related equipment which is owned and installed by or
15 caused to be installed by a municipal fiber optic broadband company to
16 transmit, or facilitate the transmission, of broadband data, applica-
17 tions, and services to end users located in Erie county.
18 2. Notwithstanding any other provision of law to the contrary, all
19 municipal fiber optic networks and municipal fiber optic cable and
20 infrastructure owned by a municipal fiber optic broadband company,
21 whether located on public or private property, and installed for the
22 purpose of distributing broadband technology and services, shall be
23 exempt from real property taxes, levies and assessments.
24 3. In any contracting for the construction, operation, and management
25 of a municipal fiber optic network, the municipal broadband company
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15076-03-4
A. 9964--A 2
1 shall prioritize applicants that have and commit to maintaining high
2 standards of workplace safety practices, training, certification or
3 licensure for all relevant workers, and compliance with state and feder-
4 al workplace protections; ensure that persons, companies, or entities
5 seeking to contract with the municipal broadband company demonstrate
6 suitable fiscal, technical, operational, and management capabilities;
7 ensure that applicants for funding provide certifications as to compli-
8 ance with relevant safety standards, including the National Electrical
9 Safety Code; ensure that applicants for funding provide certifications
10 as to compliance with relevant workplace protections as determined by
11 the department of labor including the Occupational Safety and Health
12 Act, the Fair Labor Standards Act, Title VII of the Civil Rights Act of
13 1964, and New York State labor and employment laws; ensure that appli-
14 cants for funding submit to the municipal broadband company a workforce
15 plan which shall include: (a) information regarding whether the
16 construction workforce will be directly employed or subcontracted and
17 what entity employs the workforce; (b) the anticipated size of the work-
18 force required to carry out the proposed work; (c) a description of
19 plans to maximize use of local or regional workforce; and (d) a
20 description of the expected workforce safety standards and training to
21 ensure the project is completed at a high standard. The municipal broad-
22 band company shall publish workforce plans publicly on its website.
23 4. Municipal fiber optic networks shall be subject to prevailing wage
24 requirements in accordance with article eight of the labor law.
25 5. The commissioner is hereby authorized and directed to promulgate
26 rules and regulations necessary to implement the provisions of this
27 section.
28 § 2. This act shall take effect immediately and shall expire and be
29 deemed repealed 2 years after such date and shall apply to assessment
30 rolls prepared on the basis of taxable status dates occurring on or
31 after such date.
